EDFI Management Company

Equity : October 2020

BIO has increased its stake in the EDFI Management Company, which manages concessional funds on behalf of and for member development finance institutions (DFIs).

Amount

€ 159,905.00

Type of investment

Equity

Beneficiary locations

Africa:

Asia:

Latin America and Caribbean:

Middle East:

Investment field

Financial Institutions

Activity

K66.30 Fund management activities

Organisation

EDFI Management Company

Website

https://www.edfi.eu/who-we-are/edfi-management-company/

Domicile

Belgium

EDFI Management Company (EDFI MC), established in 2016, manages concessional funds on behalf of and for member development finance institutions (DFIs). Concessional funds can be loans that are extended on terms that are substantially more generous than market loans because of either below market interest rates or because of long grace periods, or both; they also come in the form of guarantees or subsidies. EDFI MC has an innovative, value-added portfolio of blended concessional finance products. The company’s main products are the Electrification Financing Initiative (ElectriFI) and the Agriculture Financing Initiative (AgriFI). As of the date of investment, the total assets managed by EDFI MC amount to 278 million euro (up from 75 million euro in 2016).

ElectriFI

ElectriFI is an innovative facility supporting electrification investments. It aims at accelerating access to electricity and modern energy services, and supports renewable energy investments, with a particular focus on rural electrification. ElectriFI provides loans and equity and initially has a time frame of 10 years, which could be extended if additional funding is secured. The total amount contributed by ElectriFI does not exceed 10 million euro per project and, in the early stages of the project, the project developer will be expected to provide part of the equity. In October 2020, ElectriFI’s investment envelope exceeds 215 million euro. Approximately 15% of this allocation is dedicated to a Technical Assistance Unit which helps promoters for a period of up to 10 years.

www.electrifi.eu

AgriFI

AgriFI is an innovative blending facility that supports investments in the agricultural value chain with a particular focus on smallholder’s inclusiveness and micro, small, and medium-sized agribusinesses. This facility responds to the lack of financing mechanisms adapted to smallholder farmers with limited market access, vulnerable groups, women and youth. Its investments support the increase of yields at affordable rates, and help raise farmers’ incomes, while adhering to the highest environmental and social standards. By supporting sustainable supply chains AgriFI also creates additional employment and improves food security. AgriFI is funded by the European Union and the investment envelope in October 2020 is 39 million euro.

www.agrifi.eu