Standard Bank investment in Acre Impact Capital fund boosts financing for climate infrastructure
Standard Bank investment in Acre Impact Capital fund boosts financing for climate infrastructure
Standard Bank has invested into the Export Finance Fund I to facilitate its target capital raise and achieve first closing.
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By Standard Bank
Standard Bank is proud to announce that it has invested into Acre Impact Capital’s Export Finance Fund I to facilitate its target capital raise and achieve first closing.
The mandate of Acre Impact Capital’s Export Finance Fund I is to provide debt financing targeted towards climate-aligned essential infrastructure projects in Africa.
Standard Bank is the largest commercial bank investor in the fund. Investing in the fund provided the bank with an opportunity to support a market first unique platform which will help converge new and innovative financing sources that aim to address the infrastructure backlog in Africa in a sustainable way.
Acre Impact Capital was founded on the belief that investments in climate-aligned essential infrastructure are fundamental to economic growth and providing essential services to underserved populations. The company’s investment strategy involves co-investing alongside well-established export credit agency partners to achieve risk-adjusted market-rate returns for investors while mobilising up to 5.6 times the private sector capital for every dollar invested. Acre Impact Capital leverages its strong relationships and partnerships with key players in the export finance ecosystem to gain access to a diverse pool of curated opportunities across Africa.
The Fund will invest in climate-aligned and sustainable infrastructure projects in the renewable energy, health, food and water security, sustainable cities and green transportation sectors. The Fund also crowds-in new sources of capital into the above climate- and sustainability-related investment segments at a time of increased financing stress in Africa.
Indeed, for decades, there has been a consistent gap in funding for African infrastructure projects, which increased during the COVID-19 pandemic. The Fund aims to fill this gap while simultaneously unlocking opportunities for many otherwise bankable projects to help them achieve financial close and provide much-needed, essential climate-aligned infrastructure to African countries.
As Africa’s largest bank and a market leader in Export Finance for Africa, we are consistently seeking opportunities to drive meaningful and sustainable growth across the continent. We are very proud to have the opportunity to invest in Acre Impact Capital’s Export Finance Fund I as its aspirations are aligned with the bank’s sustainable finance mandate. We believe that through this partnership, we will be able to significantly improve the lives of African citizens while promoting economic growth in our communities.
Standard Bank Group is the largest African bank by assets with a unique footprint across 20 African countries. Headquartered in Johannesburg, South Africa, it is listed on the Johannesburg Stock Exchange, with share code SBK, and the Namibian Stock Exchange, share code SNB.