EAIF secures A2 credit standing from Moody’s

• Moody’s has affirmed the long-term foreign-currency issuer score of the Rising Africa Infrastructure Fund (EAIF), a multi-donor financing mobilizer at A2, with a steady outlook.
• EAIF says this endorsement is a pointer to its sturdy capital place and extremely rated shareholder base.
• Based in 1991, EAIF says has concluded 9 rounds of elevating funds for infrastructure growth up to now 20 years.

International score company Moody’s has affirmed the Rising Africa Infrastructure Fund (EAIF) long-term foreign-currency issuer score at A2, with a steady outlook.

In response to the Jo’burg-based fund, this endorsement indicators its “sturdy capital place, and extremely rated shareholder base,” a pointer to resilience in Africa’s infrastructure financing market.

“We’re delighted that EAIF’s constant monitor report of efficiency – regardless of a difficult macroeconomic working atmosphere – has been mirrored in our retention of the A2 score,” stated Martijn Proos, Co-head of Rising Market Various Credit score at Ninety One, the fund supervisor for the EAIF.

“We already present long-term, affected person capital to transformative infrastructure initiatives in 20 African international locations, and we’re advancing plans to enter chosen rising and frontier markets in South and Southeast Asia,” Proos added.

In an replace, EAIF additionally attributed the endorsement to its broad portfolio and “confirmed potential to lift funding from a bunch of prestigious business and institutional traders.”

“It additionally underscores the Fund’s constant monitor report of efficiency since Moody’s first issued the A2 score in 2022,” the Fund defined.

EAIF focuses on initiatives in Africa

Vitality, transportation, mining, and agriculture initiatives are essential industries throughout African economies, the place the EAIF directs its financing. Different industries inside its portfolio of financing, now an estimated $1.05 billion, are telecoms, gasoline transportation, water and waste administration, and infrastructure tools investments.

Final yr, EAIF dedicated over $274 million unfold alongside 9 new infrastructure funding offers in 10 African economies. The fund channeled the financing to digital and cloud applied sciences, transport, and energy/power sectors.

Different current funding highlights by the EAIF are:

• $50 million in the direction of Africa’s first totally electrical public bus community in Dakar Metropolis, Senegal.
• A $33 million sustainability-linked mortgage was made to Raxio Group, a pan-African knowledge middle developer and operator.
• $30 million mortgage to Eastcastle Infrastructure, an organization that owns, operates, and develops shared telecom tower infrastructure throughout Africa
• €35 million senior mortgage for creating Ivory Coasts’ 46MW biomass energy plant, the most important facility in West Africa.
• €11.5 million mortgage for creating West Africa’s first project-financed photo voltaic PV plant and battery power storage system. This plant relies in Bokhol, Senegal.
• €46 million financing for extending and upgrading the A1 motorway in Dakar, Senegal. This would be the first toll highway challenge in Western Africa underneath a public-private partnership (PPP) association.
• $48 million to launch West Africa’s first-ever social asset-backed safety, modernize the facility sector, and contribute in the direction of constructing common entry to electrical energy in Ivory Coast.

Key traders the place EAIF has been drawing financing

Some essential traders underneath its portfolio are insurance coverage large Allianz, the UK’s Division for Worldwide Improvement, the Swiss State Secretariat for Financial Affairs, and the Swedish Worldwide Improvement Cooperation Company.

Others are the Dutch Directorate-Basic for Worldwide Cooperation, the Dutch Improvement Financial institution, the German Improvement Financial institution, and the African Improvement Financial institution Group.

Established in 1991, EAIF says that it has concluded 9 rounds of elevating funds for infrastructure growth up to now 20 years. EAIF has raised over $1.68 billion from varied approaches, together with direct overseas investments, business lenders, and financing from institutional traders.

“Our efforts have straight benefited 159 million folks by way of EAIF-funded initiatives, and we’re able to do extra as we advance our plans to enter chosen rising and frontier markets in South and Southeast Asia,” the Fund famous in an replace.

Final yr, EAIF stated it raised a complete of $294 million in debt, marking a historic milestone as one in every of its most vital capital raised in recent times.

Learn additionally: G7 Summit: Ruto requires Africa’s long-term monetary entry and infrastructure funding