French asset management outfit Eiffel Investment Group is looking to raise €174m for bridging loans to speed-up electrification and energy transition in Africa.
The aim is to provide start-up capital ahead of long-term investment for renewable energy projects, which could provide energy for two million consumers.
The group is targeting a market they believe to be worth €523m a year and will do so by seeking investment from public and private institutions.
The European Investment Bank has initiated due diligence in view of investing up to €26m in the fund, while other European and international public and private investors are also assessing the opportunity.
Eiffel Investment Group aims to replicate in Africa the successful bridge funding programme it already implements in Europe, when it launches the new fund in the first half of this year.
Their existing bridge fund has allowed renewable energy developers to start the construction of renewable energy projects across Europe, in parallel with securing permanent capital structure.
More than 1900 renewable energy infrastructure and energy efficiency projects have started this way over the past five years.
Eiffel Investment Group head of transition Pierre-Antoine Machelon said: “We want to continue supporting those developers for whom we have already provided bridge financing, as well as other developers, within the context of their projects in Africa.
“This is in line with our overall corporate strategy of responding to urgent demand for financing where no adequate solution is currently available in the market.”
To do so, Eiffel has joined forces with Finergreen, a global leader in financial advisory for energy transition, notably in emerging markets.
Finergreen helps renewable energy developers find and implement financing solutions and has completed more than 150 transactions since inception.
Finergreen covers Africa through its three offices located in Abidjan, Nairobi and Cape Town.
Their 15 staff will work alongside Eiffel’s newly appointed African strategy leads, Alan Follmar and Pierrick Paindavoine.