Release date: 25 April 2022
Promoter – Financial Intermediary
SAGF II MANAGEMENT LLCLocation
Description
Equity participation in a private equity fund investing in small and medium-sized enterprises (SMEs) that promote climate action and environmental sustainability primarily in India, but also in other countries in the South Asia/South East Asia region.
Additionality and Impact
The operation concerns an investment in GEF South Asia Growth Fund III, a USD 300m investment fund targeting companies that promote climate action and environmental sustainability in South and South East Asia , in line with the objectives of the EIB Climate Bank Roadmap. The Fund will provide equity to SMEs, improving access to finance. A commitment to the Fund will contribute to EU policy and priorities with regards Climate Action outside of Europe. It will support the achievement of sustainable development goals (SDGs), aiming to mitigate the effects of climate change. The Fund will contribute to the Bank's Climate Action and Environmental Sustainability targets outside the EU. Therefore, the operation is proposed under the Climate Action and Environment Facility (CAEF). The EIB commitment is expected to trigger the commitment from other investors and to have a strong catalytic effect. With EIB commitment, the Fund's terms are expected to be negotiated in line with best market practice standards.
Objectives
Equity participation in a private equity fund investing in SMEs that promote climate action and environmental sustainability primarily in India, but also in other countries in the South Asia/South East Asia region.
Comments
N/A
Sector(s)
- Services - Financial and insurance activities
Proposed EIB finance (Approximate amount)
USD 40 million (EUR 40 million)
Total cost (Approximate amount)
USD 300 million (EUR 298 million)
Environmental aspects
The fund's operational guidelines will provide for environmental and social duediligence of investee companies according to guidelines acceptable to the Bank.
Procurement
The Fund is expected to comply with EIB's procurement guidelines.
Status
Signed - 24/11/2022
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).