IFC proposes investment in new renewable energy vehicle
The International Finance Corporation has disclosed a proposed equity investment of up to $120 million in the Zafiri Investment Vehicle
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The International Finance Corporation has disclosed a proposed equity investment of up to $120 million in the Zafiri Investment Vehicle, a permanent capital structure to be domiciled in Mauritius. The vehicle will invest in companies delivering distributed renewable energy solutions in sub-Saharan Africa, with the aim of providing electricity and clean cooking access to at least 30 million people over its lifetime. An investment manager is yet to be appointed.
Zafiri is targeting an initial capitalisation of $300 million, comprising $150 million in senior equity and $150 million in junior equity, which is being provided primarily by multilateral development banks, development finance institutions, and philanthropies.
Subject to performance and subsequent capital needs in the market, Zafiri may raise an additional $300 million of equity, most likely raised from commercial investors, ultimately targeting $1 billion in net asset value through organic growth with 10-15 years.
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