Release date: 10 February 2016
Promoter – Financial Intermediary
PRIVATE ENTITY(IES)Location
Description
The operation consists of a commitment to a private equity fund targeting SMEs and small midcap companies in West and Central Africa.
Objectives
The proposed operation concerns a participation in AFIG Fund II, a growth equity fund managed by Dakar-based Advanced Finance and Investment Group (AFIG Funds). The Fund has a target size of USD 300m. The Fund aims to make a limited number of (mainly minority) equity and near-equity investments in Sub-Saharan Africa. Although all sectors could be considered, agribusiness, manufacturing, energy, healthcare, as well as financial and industry services are likely to be prioritised. Investments will typically range between USD 10-20m in companies offering "transformational growth" potential, i.e. the ability to benefit from a capital injection to develop and create value within a few years, as the result of operational improvements and/or business expansion. Since inception in 2008, AFIG Funds has emerged as a leading equity investment firm in West and Central Africa and developed strong expertise investing in the under-served "middle market" of SMEs and small midcaps. AFIG Fund II will be the successor fund to Atlantic Coast Regional Fund (ACRF), a USD 122.1m vintage 2008 fund in which the EIB committed USD 24.4m and which is now fully committed.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 18 million (USD 20 million)
Total cost (Approximate amount)
EUR 267 million (USD 300 million)
Environmental aspects
The Fund will operate in line with EIB's environmental and social standards.
Procurement
N/A
Status
Signed - 28/07/2016
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).