(Ecofin Agency) - After months of review, the European Investment Bank (EIB) has approved the financing project for Acre Impact Capital’s first fund. The European financial institution is committed to supporting vital infrastructure projects on the continent through this initiative.

On July 17, Acre Impact Capital, a climate-focused infrastructure project financier in emerging markets, announced it secured $40 million from the EIB for its inaugural fund, Export Finance Fund I. This private debt vehicle will provide short-term commercial loans to finance critical infrastructure projects in Africa, specifically in the renewable energy, healthcare, water access, and sustainable transportation sectors.

Thomas Östros, Vice President of the European Investment Bank, commented on the announcement, stating that this financing aims to "accelerate the establishment of climate infrastructure in Africa and worldwide." The EIB intends to mobilize institutional capital to address the estimated $100 billion annual infrastructure financing gap in Africa.

The commercial loans offered by Acre Impact Capital will complement those provided by international banks and guaranteed by export credit agencies. Established in 2019, Acre Impact Capital partners with commercial banks and export credit agencies to invest in growing infrastructure projects in emerging markets, contributing to their sustainable development.

Chamberline Moko