IFC proposes investment in Africa Go Green fund

The IFC is proposing an investment of up to $47 million in Africa Go Green (AGG), a dedicated pan-African greenhouse gas (GHG) emission reduction debt fund, established by KFW with the support from the German Government (BMZ).

AGG primarily focuses on energy efficiency and renewable energy opportunities, with a prioritisation on West African countries. AGG is raising up to $250 million capital comprised of debt, senior equity and junior equity. AGG will provide medium to long-term debt, mezzanine financing, and guarantees as well as technical assistance for green housing, green appliances, industrial energy efficiency and green mobility sectors.

In addition to an about $50 million junior equity anchor investment from KFW, and equity commitments from the Sustainable Energy Fund for Africa, the African Development Bank and the Nordic Development Fund, AGG will have multiple shareholders, including IFC, and will be managed by Lion’s Head Global Partners (LHGP).

To date LHGP has raised four debt funds with commitments of nearly $600 million. LHGP is part of Lion’s Head Group (LHG), an investment banking and asset management firm established in 2008 and focused on frontier and emerging economies. LHG maintains a team of 60 professionals across offices in London, Nairobi, Lagos, New York, Dubai, and Amsterdam. Clients include a diverse array of corporations, development finance institutions, sovereigns, and foundations.

The proposed investment of up to $47 million is comprised of: (i) up to $30 million debt for IFC’s own account; (ii) up to $15 million senior equity from IDA PSW Blended Finance Facility; and (iii) up to $2 million senior equity for IFC’s own account.