Investment Policy

Key parameters

EAIF's policy and operational guidelines are further detailed below.  In general these guidelines are widely drafted to enable EAIF to be as flexible as possible in order to ensure that it can provide effective and useful products and can be run on a commercial basis:
 

Investment size, cover and tenor

The debt amount available from EAIF for any single transaction is limited to a minimum of USD 10 million (although lesser amounts will be considered for highly developmental projects) and a maximum of USD36 million.  EAIF can provide senior debt and subordinated or mezzanine financing but not pure equity.  The maximum tenor is 15 years, with appropriate grace periods. 

 

Eligible Countries

EAIF is able to support projects in sub-Saharan Africa (see Eligible Countries). 

 

Eligible Companies

EAIF can support infrastructure projects developed by either (i) majority private sector entities or (ii) majority public sector entities provided that the private sector is responsible for developing and managing the assets of the public sector entity on a risk sharing basis, including:

 

  • Special purpose vehicles or project companies
  • Private operating infrastructure companies
  • Privatised companies or companies that are about to be privatised and where the Government has contractually committed to such privatisation.

 

Eligible sectors

EAIF can support projects in the following sectors:

 

  • Energy supply, including generation, transmission and distribution
  • Water/waste services
  • Transportation
  • Telecommunications
  • Gas transportation, distribution and storage
  • Mining, provided the financing is for related infrastructure services with access by third parties
  • Other activities that impact positively on the development of the relevant country’s basic infrastructure and promote the objectives of EAIF, including the manufacturing of components used in infrastructure (such as cement and steel) and infrastructure associated with agribusiness.

 

Social and Environmental Impact

All of the projects in which EAIF invests must adhere to local and international environmental, social and health and safety standards as appraised by FMO on behalf of EAIF. Further information can be found at www.fmo.nl.