Australian finance company, Export Finance Australia, grants a $100 million loan to EAAIF
The Emerging Africa & Asia Infrastructure Fund (EAAIF) has announced a significant development in its efforts to invest in climate-resilient infrastructure and renewable energy projects in South and Southeast Asia. The fund has secured a new debt finance package of $325m, aiming to invest up to $1bn in next-generation infrastructure in the region by 2028.
This new debt finance package aligns with the Australian government's goals to build regional resilience in South and Southeast Asia and boost trade and investment links. The EAAIF's investments are part of a broader effort to bridge financing gaps and create opportunities for people, communities, and ambitious businesses across the region.
The EAAIF's focus on climate-resilient infrastructure is particularly important given the significant investment opportunities in the sector, as highlighted by the fund itself. According to the International Energy Agency (IEA), Southeast Asia needed more than $130 billion in energy investments between 2021 and 2024 to meet its climate goals, while the region actually invested only about $72 billion on average during that period. This funding gap of roughly $58 billion is necessary to fulfill climate-related energy targets.
The EAAIF's new debt finance package is expected to contribute to the region's efforts to meet its climate goals. The fund has a track record of investing in renewable energy and infrastructure projects, having committed over $3bn to more than 125 infrastructure projects in over 25 countries and 10 sectors in Africa and Asia since its foundation in 2001.
The EAAIF's new debt finance package has attracted commitments from investors including Allianz Global Investors, Standard Bank, and Sweden's development finance institution, Swedfund. This marks the first time the EAAIF has been reported to have secured a new debt finance package of this size, and also the first time it has been reported to have attracted commitments from these particular investors.
The EAAIF is managed by fund manager Ninety One and is part of the London-based Private Infrastructure Development Group (PIDG). The fund will use the money to back infrastructure and renewable energy projects in South and Southeast Asia, helping to deliver resilient, climate-smart infrastructure to underserved markets in the region.
South and Southeast Asia houses more than 25% of the world's population, making it a crucial region for sustainable development. The EAAIF's new debt finance package is a step towards addressing the funding gaps in the region, particularly in the clean energy sector, where spending represents only about 2% of the global total.
This news comes as the world grapples with the challenges of climate change and the need for sustainable infrastructure. The EAAIF's new debt finance package is a positive development, demonstrating the potential for public-private partnerships to drive investment in climate-resilient infrastructure and contribute to a more sustainable future for South and Southeast Asia.
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