DFC backs Adenia, Meridiam

The U.S. International Development Finance Corporation (DFC) board of directors has approved $245 million in investments this quarter that address the climate crisis through innovation and climate-smart urban infrastructure and elevate businesses with loans and professional business management practices throughout Africa. In addition, DFC approved several other investments at the corporation level, bringing total approved projects to nearly $364 million for the quarter.

“The projects DFC approved this quarter will improve people’s lives and promote U.S. foreign policy in Africa, the Middle East, Latin America, and the Indo-Pacific,” said DFC chief executive officer Scott Nathan.

African investments approved by the board this quarter include:

– A $40 million equity investment in Adenia Capital (V) LP, which will make growth-control investments that enable mid-stage companies across Africa to build out their management teams, expand their geographic footprint, and improve their environmental, social, and governance standards while promoting women’s economic empowerment.

– An up to $80 million direct loan to The Urban Resilience Fund, a blended finance investment fund managed by Meridiam Group, will enable municipalities to identify, develop, and invest in essential infrastructure projects that respond to the critical needs of urban population growth in Africa and the Middle East.

Additional projects approved by DFC since its last quarterly board meeting include:

– Supporting renewable energy in Egypt: DFC’s purchase of a $50 million green note issued by Virtuo Finance S.A.R.L will support a new tool for climate finance in emerging markets.

– A $10 million loan portfolio guaranty to Absa Bank Zambia PLC will expand credit for small- and medium-sized enterprises advancing food security and climate solutions in the agriculture, manufacturing, tourism, and clean cooking sectors in Zambia.

– A $250,000 loan portfolio guaranty for AB Microfinance Bank Nigeria will help mobilise capital to small- and medium-sized enterprises in Nigeria that benefit women and/or are owned or led by women. DFC’s guaranty is provided in collaboration with USAID to support the African Union Development Agency-NEPAD’s 100,000 SME Initiative.