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EDFI, the network of the
15 Development Finance
Institutions
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KfW and BIO MSMEs in the DRC
Who is EDFI?
EDFI is the Association of
European Development
Finance Institutions, a
group of 15 bilateral
institutions which provide
long­term finance for
private sector enterprises
in developing and
reforming economies.
Since its foundation in
Brussels in 1992, EDFI's
mission has been to
foster co­operation
among its members and
to strengthen links with
institutions of the
European Union
2013 figures
The consolidated
portfolio of the EDFI
members at the end of
2013 was €28 billion,
invested in 3.791
projects.
In geographical terms,
28% of the global
portfolio was in the ACP
region and South Africa,
26% in South­East Asia,
South­Asia and China,
19% in South and Central
America and 26% in
remaining regions
eligible for investments
EDFI members
FPM SA (Fonds pour l’inclusion financière en République
Démocratique du Congo) obtained the authorization by the Central
Bank of Congo to operate as a Financial Company. FPM SA will be
able to start financing the financial institutions targeting MSMEs in
the DRC. This new financial instrument complements “FPM ASBL”,
operating in the DRC since 2007 and focusing on providing Technical
Assistance to the Congolese financial institutions that FPM SA is
targeting.
FPM SA benefits from capital contribution of KfW (USD 13 mln), BIO
(USD 8 mln), the Dutch Catholic Organization for Relief and
Development Aid (Cordaid) (USD 4 mln) and the Belgian microfinance
fund Incofin CVSO ( USD 100k). The Belgian Incofin Investment
Management acts as the fund advisor for FPM SA, bringing on board
its specific experience and knowledge of the financial services market
for micro, small and medium enterprises.
For more information, please visit BIO’s website or KFW’s website
PROPARCO, DEG and FMO support Peru’s
largest wind farm
BIO—Belgium
CDC—United Kingdom
COFIDES—Spain
DEG—Germany
FMO—The Netherlands
FINNFUND—Finland
IFU—Denmark
Norfund—Norway
OeEB—Austria
PROPARCO—France
SBI­BMI—Belgium
Sifem—Switzerland
SIMEST—Italy
SOFID—Portugal
SWEDFUND—Sweden
Full contact details
are available on
http://www.edfi.eu
PROPARCO has allocated two loans for USD 10 mln and USD 19 mln
to the companies Parque Eolico Marcona and Parque Eolico Tres
Hermanas (subsidiaries of COBRA Group) for the construction and
operation of two wind farms in Peru. The French institution has
coordinated an additional USD 69 mln from DEG and FMO. The two
projects are also supported by the Andean Development Corporation
(CAF).
Marcona (32 MW) has been operational since May 2014 and is the
country’s first wind farm. Tres Hermanas (90 MW) will enter the
construction phase in the coming weeks. At its completion, which is
scheduled in early 2016, it will be the country’s largest wind farm.
This project will not only contribute to meeting increasing electricity
demand in Peru while reducing its dependence on gas, but also to
avoiding the emission of some 428,000 tons of CO2 equivalent a year.
For more information, please visit Proparco’s website
Norfund and CDC form partnership to boost
power generation in Africa
A new partnership to boost power generation in Africa by adding at
least 5,000 megawatts (MW) of generating capacity over the next 10
years has been announced by Norfund and CDC.
Through the partnership, Norfund will acquire a significant minority
stake in Globeleq Africa from the Actis Infrastructure 2 Fund for a
cash consideration of approximately USD 225 mln, subject to
completion adjustments and including capital to further fund two
expansion projects. CDC, which already holds a major indirect
investment in Globeleq Africa via the Actis fund, will concurrently sell
a small part of its holding to Norfund and transfer its remaining
majority stake into the new venture.
The agreement, which will result in direct ownership of Globeleq Africa
by Norfund and CDC at 30% and 70% shareholdings respectively, is
pending government and other third party consents. Under Norfund and
CDC ownership, Globeleq will pursue early­stage and other
development opportunities in power generation in Africa in order to
alleviate the critical shortage of reliable electricity.
For more information, please visit CDC’s website or Norfund's
website
PROPARCO and DEG invest in a North African
network of private health facilities
PROPARCO, DEG and the EBRD have invested USD 55 mln (USD 15
mln, 15 mln and 25 mln, respectively) in North Africa Hospital Holdings
Group (NAHHG), a health platform set up on the initiative of the Abraaj
Group to support the creation of a network of private hospitals in North
Africa.
These funds provided by European donors will initially allow NAHHG to
acquire four facilities: Cleopatra Hospital and Cairo Medical Center in
Egypt, as well as the Taoufik and Soukra clinics in Tunisia. These four
facilities have 579 beds and a total of 75,000 hospitalizations a year.
These resources will support an increase in their capacity, the
creation/reopening of units, the recruitment of qualified staff, as well
as an improvement in their environmental and social practices.
For more information, please visit Proparco’s website
FMO spurs the off grid energy sector in Kenya
FMO invests USD 2 mln in Orb Energy for the off grid energy sector in
Kenya. This investment serves as an excellent example of a high
impact and inclusive renewable energy access investment.
Investments in the off­grid energy space are essential knowing that
1,4 bln people are left with no or poor grid access and rely on relatively
hazardous, inefficient, polluting and expensive forms of energy (like
kerosene lighting).
Orb manufactures, distributes and installs solar energy systems for
electricity and water heating for both residential and commercial
customers. Orb’s expansion to Kenya is aimed at energy access for
(rural) household customers through solar energy solutions. Products
cover the full range, from small­light lanterns to large systems.
For more information, please visit FMO’s website
Finnfund supports Peikko's expansion in Asia
Peikko, a global supplier of concrete connections and composite
structures is expanding rapidly. The Finnish family­owned company is
now growing in China, where the company has expanded its
produccion and moved into new premises in Zhangjiang, Shanghai.
Finnfund has financed the expansion, which has trebled Peikko’s
production area.
The company is aiming at expanding its business in the Asia­Pacific
region. Its new Chinese plant will respond to a growing regional
demand. Its business strengths lie in innovative solutions that make
construction faster, easier and safer.
Peikko Group has signed a major contract to supply the foundation
solution for the Lake Turkana wind project in Kenya, Africa’s largest
wind power project which most EDFI Members are supporting by
providing long term financing.
For more information, please visit Finnfund's website
PROPARCO supports microfinance in
Tajikistan
PROPARCO, IFC and the OPEC Fund for International Development
(OFID) have allocated a credit line in local currency, equivalent to USD
16,5 mln (USD 6,5 mln, USD 5 mln and USD 5 mln, respectively), to
IMON International, Tajikistan’s largest microfinance institution (MFI).
This financing will support the development of its credit activities in
rural areas. IMON International offers a wide range of products tailored
to its clients’ needs: micro­credits (USD 1,440 on average), leasing,
foreign exchange services, but also non­financial services (training on
creating start­ups, agricultural advisory services, training on financial
literacy…). In 2014, it served 94,000 clients via 25 branches and 135
offices nationwide. Its credit portfolio stands at USD 132 mln, with
over half in the agriculture and retail sectors.
For more information, please visit Proparco’s website
SOFID supports EDOL providing medicines to
Mozambique
SOFID will support the Portuguese pharmaceutical group EDOL in its
expansion to Mozambique. With a total investment of 550.000€,
supported with 400.000€ from SOFID, the project concerns
construction of the company’s subsidiary, Farmacêutica Austral, plant
facilities.
This project will increase the access to one of the Mozambicans basic
needs – medicines – by delivering them in much competitive
conditions. By investing in the new plant, the project supported by
SOFID will create 12 new direct jobs, adding to the sharing of
technology and know­how from the Portuguese pharmaceutical to its
subsidiary in Mozambique.
For more information, please visit SOFID´s website
CDC and Standard Chartered Bank commit to
support increased lending to businesses in
Sierra Leone
CDC and Standard Chartered Bank (“Standard Chartered”) have
announced a risk participation agreement that will support new working
capital lending of up to USD 50 mln to businesses in Sierra Leone.
The agreement comes at a time when working capital needs are
increasing for businesses in the country. Economic growth in Sierra
Leone is slowing as a result of the Ebola crisis, with GDP growth,
which was expected to be 11.3% in 2014, revised downwards to 4%.
The revised estimates come on the back of shortages in the supply of
basic essential commodities and disruptions to supply chains, as well
as reduced production from the mining sector.
African banks currently face constraints on their capital bases which
mean many are unable to provide as much working capital as they
would like. This agreement by CDC allows Standard Chartered to
increase the number of loans it makes in Sierra Leone. The one­year
deal will see CDC and Standard Chartered share the default risk on up
to USD 50 mln of new loans originated by Standard Chartered in the
West African state. By providing short­term loans and overdrafts to a
number of businesses, the facility will support them to continue to
operate, to meet their day­to­day finance needs, and to grow, despite
slower economic growth and supply chain disruption.
For more information, please visit CDC’s website
FMO: On the way to economic growth in Bosnia
and Herzegovina
FMO has signed a senior loan agreement with Mikrofin, the largest
MFI in Bosnia and Herzegovina. With its focus on micro clients in the
agricultural sector, Mikrofin promotes inclusive finance. By providing a
EUR 5 mln loan from the MASSIF fund, FMO will support about 3.800
clients.
Mikrofin is dominantly active in the rural areas, with a focus on the
agricultural sector and a loan portfolio of EUR 70 million. They show a
stable and healthy performance and are socially committed. For
instance, the company provided 0% interest loans to help the people
affected by the 2014 floods in cooperation with the Government of
Federal Republic of Germany and KfW.
By providing finance to micro clients, Mikrofin promotes economic
growth amongst the low­income population in a country with an
unemployment rate estimated to around 40%. The environmental risk
is rather low supporting small entrepreneurs, having an average loan of
EUR 1.300 with the social (CPP) risk being well­guarded by the
institution itself and by the supervisor.
For more information, please visit FMO’s website
PROPARCO provides funding for the financing
of agro­industry in Costa Rica
PROPARCO has allocated a USD 12 mln loan to the Costa Rican
bank Banco Improsa to support the financing of the local agro­industry
sector. Banco Improsa has a unique positioning on the SME segment
which represents a large part of its loan portfolio and a strong
expertise in the agroindustry sector. It offers a wide range of products,
including extra­financial services for small microentrepreneurs.
Agroindustry in Costa Rica is an engine of growth accounting for 6% of
GDP and 40% of exports. By providing long­term resources,
PROPARCO will be supporting the renewal and modernization of
production equipment in the agro­industrial sector, as well as the
dissemination of high environmental and social standards among
Banco Improsa’s clients. This credit line follows on from an initial USD
7 mln PROPARCO loan to the bank in 2012, which was also
earmarked to finance local agriculture and agro­industries.
For more information, please visit Proparco’s website
FMO: Mitigating climate change with GCPF
FMO is proud to announce an investment in the Global Climate
Partnership Fund (GCPF), an innovative public­private partnership
dedicated to mitigating climate change through a reduction of
greenhouse gas emissions. Since inception the fund has saved an
estimated 1,2 million MWh in energy and avoided 500.000 tons of CO2
emissions. This is approximately equivalent to neutralizing the
electricity use of 342.000 Dutch households. GCPF focuses on financing energy efficiency and renewable energy
projects primarily in cooperation with local financial institutions via
green lines, thereby creating a positive impact on the environment and
economy. This investment will contribute to spurring economic growth
while helping reduce GHG emissions which is key to FMO’s strategy
to double our impact and half our footprint by 2020.
GCPF provides greenlines to banks around the world including support
for implementation and reporting. The current portfolio amounts to
around USD 300 mln and is outstanding around the world in for
instance South Africa, Nicaragua, India, Sri Lanka, Vietnam and
Turkey. The shareholders of GCPF are KfW (also initiator of this
investment), IFC, Deutsche Bank, Danida, the British Department of
Energy & Climate Change, OeEB and a German pension fund. For more information, please visit FMO’s website
Swedfund Sells Stake in Kenyan UAP
Swedfund, is selling its stake in the Kenyan insurance company UAP.
The sale, to insurance group Old Mutual, entails a capital gain
exceeding SEK 160 million for Swedfund.
”In only three years we have succeeded in achieving Swedfund’s
primary targets for the business. We have realized substantial value,
created employment opportunities and fair employment conditions,” ”Through the investment in UAP we have had the opportunity to
support the firm in its expansion through Rwanda, Tanzania and DRC
countries where the need to develop insurance markets is big. We
have cooperated closely with UAP management in order to drive
matters of business strategy as well as important sustainability
issues, for example fair employment conditions and anti­corruption
measures. It is gratifying to see how this effort has resulted in a
substantial increase of the value of the company while simultaneously
contributing to social development,” said Anna Ryott, CEO at
Swedfund.
For more information, please visit mynewsdesk´s website
DEG increases new business with German
companies
DEG committed EUR 1,47bn to finance private investments in
developing and emerging­market countries in the past year (2013:
EUR: 1,45bn). It once again managed to slightly exceed the previous
year's level. The development of financial commitments for German
companies was particularly satisfying. With EUR 253 mln (2013: EUR
152 mln), commitments for this important target group saw particular
growth. "This growth highlights the increasing interest on the part of
German companies in the markets in emerging and developing
countries. In these countries they harness investment opportunities
while at the same time taking on corporate and social responsibility,"
said Bruno Wenn, Chairman of DEG's Management Board.
For more information, please visit DEG´s website
FMO issues new 18­month USD 300 million
Floating Rate Note
FMO, the Dutch development bank, issued a new USD 300 mln RegS
18­month floating rate note due 24 August 2016. The issuance spread
was fixed at 3m USD Libor +8bps, giving a re­offer price of par. J.P.
Morgan and the Royal Bank of Scotland acted as lead managers. The issuance attracted good demand across a variety of investors,
producing an oversubscribed order book for this USD 300 mln no grow
transaction.
For more information, please visit FMO´s website
Christiane Laibach joins DEG's Management
Board
Christiane Laibach has
assumed office as member of
the Management Board of
DEG ­ Deutsche Investitions­
und Entwicklungsgesellschaft
mbH, with effect from 15
February 2015. She succeeds
Dr Michael Bornmann, who,
after ten years on DEG's
Management Board, retired on
14 February 2015. Ms
Laibach is the first woman on
the DEG Management Board
where she will be responsible
for the regional departments
of Africa/Latin America and
Asia/Europe, as well as for
the division German
Corporates/Special
Programmes.
For more information, please visit DEG's website
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