Finance Exporter Australia extends $100 million loan to EAAIF
The Emerging Africa & Asia Infrastructure Fund (EAAIF) Secures Additional Funding to Boost Climate-Resilient Infrastructure in South and Southeast Asia
The Emerging Africa & Asia Infrastructure Fund (EAAIF) has recently announced that it has raised an additional $325m in a new debt finance package. This fund will be used to back infrastructure and renewable energy projects in South and Southeast Asia, a region that houses more than 25% of the world's population and offers significant investment opportunities in climate-resilient infrastructure.
Managed by fund manager Ninety One, the EAAIF is part of the London-based Private Infrastructure Development Group (PIDG). The fund's investments aim to bridge the financing gap and create opportunities for people, communities, and ambitious businesses across the region.
The EAAIF has 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 fund has attracted commitments from investors including Allianz Global Investors, Standard Bank, and Sweden's development finance institution, Swedfund.
The new debt finance package enables investments of up to $1bn in next-generation infrastructure in Africa and Asia by 2028. This funding comes at a time when significant gaps in clean energy spending remain, with clean energy representing only about 2% of the global total.
Southeast Asia needs to increase annual clean energy investment to USD 190 billion by 2035 and invest USD 300 billion in grid development to meet its climate goals. Thailand alone estimates needing 12 trillion THB in additional funding to meet its climate targets, reflecting a significant gap in climate finance across the region.
The region's clean energy transition is hindered by a drop in Western development aid, making it essential to secure consistent funding from other sources. The EAAIF's investments are aligned with the Australian government's goals to build regional resilience in South and Southeast Asia and boost trade and investment links. The loan aligns with Australian government goals to build regional resilience in South and Southeast Asia and boost trade and investment links.
The EAAIF has also received a $100m debt facility from Export Finance Australia (EFA). This facility will further support the fund's mission to invest in climate-resilient infrastructure and renewable energy projects in South and Southeast Asia.
The EAAIF's activities are part of a broader effort to address the funding gaps in the region and support the transition to a low-carbon economy. As the world grapples with the challenges of climate change, investments like those made by the EAAIF will be crucial in meeting the region's climate goals and creating a more sustainable future for all.
- The Emerging Africa & Asia Infrastructure Fund (EAAIF) targets social impact by aiming to bridge the financing gap and create opportunities for communities and businesses through climate-resilient infrastructure development in South and Southeast Asia.
- As part of its mission, the EAAIF has secured an Australian government loan to align with its goals of building regional resilience in South and Southeast Asia, boosting trade, and investment links.
- The EAAIF received a $100m debt facility from Export Finance Australia (EFA) to further support investments in environmental-science focused climate-resilient infrastructure and renewable energy projects in the region.
- To foster financial inclusion and address the significant gaps in clean energy spending, the EAAIF has established investing commitments to support the transition to a lower-carbon economy, while providing a blended finance approach that combines public and private funds.
- In the context of global climate-change concerns, the EAAIF's activities are critical components of a broader strategy to ensure adequate investment in science-driven clean energy solutions across South and Southeast Asia, promoting sustainable and climate-resilient real-estate and business development throughout the region.
