Release date: 9 February 2023
Promoter – Financial Intermediary
INCOFIN INVESTMENT MANAGEMENTLocation
Description
The project consists of a fund investing in decentralised water supply systems and technologies, targeting countries in Africa and Asia with high incidences of water access inequality.
Additionality and Impact
The operation concerns an investment in the Water Access Acceleration Fund. The Fund constitutes the first opportunity for the EIB to support a financial instrument in the form of a private equity fund to invest in private SMEs active in the water sector, which is to date characterised by a dependence on public funding which is often insufficient for their sustained growth and a lack of private sector financing. Portfolio companies of the Fund are expected to develop or provide better access to water treatment, supply and distribution as well as new technologies which would provide innovation in the water sector and improve climate adaptation of end users in developing countries primarily in Sub-Saharan Africa and Asia (South and South-East) where populations are in the direst situation. These benefits would not be achieved to the same extent without EIB intervention. An EIB commitment is expected to constitute a positive signal to trigger commitments from other investors and to have a strong catalytic effect for the Fund to reach its target size and deploy its intended investment strategy fully. Moreover, with the EIB commitment, the Fund's terms are expected to be negotiated in line with best market practice standards. The operation will contribute directly to the achievement of SDG 6 on clean water and sanitation.
Objectives
The Fund will provide equity and quasi-equity investments in companies which work along the water value chain to enable and accelerate access to safe and affordable drinking water in developing countries primarily in Asia (South and South-East) and Sub-Saharan Africa. The Fund will be the first safe water focused private equity fund aiming to enhance access to safe and affordable water in these regions.
Sector(s)
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
Proposed EIB finance (Approximate amount)
EUR 10 million
Total cost (Approximate amount)
EUR 50 million
Environmental aspects
The Fund's operational guidelines will provide for environmental and social due diligence of investee companies according to guidelines acceptable to the EIB.
Procurement
The Fund is expected to comply with the EIB's procurement guidelines.
Status
Signed - 22/12/2023
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).