EDFIs strengthen joint financing platform to promote private sector development

EDFI Management Company (EDFI MC) is reinforced to boost collaboration among European Development Finance Institutions as part of the Team Europe approach.

27-05-2021

EDFIs strengthen joint financing platform to promote private sector development

European DFIs, through the Association of European Development Finance Institutions (EDFI), set up EDFI Management Company (EDFI MC) in 2016 to develop and manage joint financing facilities in partnership with the EU institutions. This first-of-a-kind joint financing platform allows European DFIs to cooperate efficiently and to achieve high impact, in an example of what is now often referred to as a Team Europe approach.

EDFI MC recently celebrated its fifth anniversary, and it already plays a role in delivering a range of innovative financing solutions supporting private sector development. Examples include the EU-funded AgriFI and ElectriFI facilities targeting investments in early-stage enterprises in the agriculture and energy sectors, and the COVID-19 window under the European Financing Partners (EFP) facility in partnership with the European Investment Bank (EIB). EDFI MC was recently accredited to manage budgetary guarantees under the EU’s European Fund for Sustainable Development (EFSD), in recognition of the business practices and expertise that it has built up since its launch. This milestone is reached after many years of co-investment activity among European DFIs, launching the first EFP facility in partnership with EIB in 2004, followed by the Interact Climate Change Facility (ICCF) in 2011 together with the EIB and AFD. Over EUR 1 billion of investments have so far been made in impactful projects under EFP and ICCF.

EDFIs strengthen joint financing platform to promote private sector development

The recent steps to strengthen EDFI MC’s structure will enable us to pursue new strategic initiatives in the coming years

Søren Peter Andreasen, General Manager of EDFI, and Chair of EDFI MC’s Board of Directors

Earlier this month, European DFIs took a further step to reinforce their involvement in the ownership and governance of EDFI MC, which is now owned directly by nine European DFIs and the EDFI Association in equal shares. During its incubation period, EDFI MC was 99%-owned by the EDFI non-profit association. The new structure allows the European DFIs to continue to develop joint financing facilities in areas of common interest. This is particularly relevant in view of the significant emphasis on expanding initiatives to promote private sector development in the EU’s recently adopted multi-annual financial framework for 2021-27.

“European DFIs cooperate closely on innovative financing solutions to support private sector development in areas such as climate finance and the inclusive response to COVID-19. EDFI’s important partnership with the EU institutions and the joint facilities supported by EDFI MC plays an important role in these efforts. The recent steps to strengthen EDFI MC’s structure will enable us to pursue new strategic initiatives in the coming years,” explains Søren Peter Andreasen, General Manager of EDFI, the Association of European Development Finance Institutions, and Chair of EDFI MC’s Board of Directors.

“The strong involvement of the European DFIs in EDFI MC and the EU’s accreditation for managing budgetary guarantees will allow us to continue to develop further the exciting mandates entrusted to us. We are thankful for this engagement and recognition, which is also a great motivation for our staff,” concluded Frederik van den Bosch, CEO of EDFI MC.

EDFI Management Company

EDFI MC manages two EU-funded market development facilities EDFI AgriFI - The Agriculture Financing Initiative and EDFI ElectriFI - The Electrification Financing Initiative, in partnership with FMO. It also administrates two co-financing facilities among European DFIs, the European Investment Bank (EIB) and Agence Francaise de Developpement (AFD): the European Financing Partners and the Interact Climate Change Facility. In addition, the EDFI MC plans to launch risk-sharing facilities, such as the T&C guarantee to tackle transferability and convertibility issues (in partnership with Proparco) and new guarantee facilities under the European Fund for Sustainable Development (EFSD+).

As of May 2021, EDFI MC is owned directly by nine European DFIs (BIO - Belgium, Cofides - Spain, DEG - Germany, Finnfund - Finland, FMO - Netherlands, IFU - Denmark, OeEB - Austria, Proparco - France, Swedfund - Sweden) and the EDFI Association in equal shares.

Media contacts

EDFI
Mathilde Poncelet
mathilde.poncelet@edfi.eu

BIO
Ben Jehaes
ben.jehaes@bio-invest.be

EDFI Management Company

  • Equity € 159,905.00 (2020)
    Asia, Latin America and Caribbean, Middle East & North Africa, Sub-Saharan Africa

More news

Lendable to Launch $100 million Emerging Market Fintech Fund with Leading Impact and DFI Investors

 News

Lendable to Launch $100 million Emerging Market Fintech Fund with Leading Impact and DFI Investors

12-10-2021

Lendable Inc., a leading emerging market fintech credit provider, is targeting a ground-breaking USD 100 million closed-ended fund focused on emerging and frontier market fintech investments.

Read more
BIO invests in vaccine production in Africa

 News

BIO invests in vaccine production in Africa

05-10-2021

Through European Financing Partners - a joint venture between the European Investment Bank (EIB) and several European DFIs - the Belgian Investment Company for Developing Countries (BIO) is investing EUR 1.56 million in the production of covid and other vaccines in Africa.

Read more
Greener money

 News

Greener money

31-08-2021

Money is getting greener. The superlative in sustainable investing today is "impact investing". A growing global market that is already worth more than $700 billion.

Article originally appeared in MT Magazine in Dutch.

Read more