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Reference: 20230085
Release date: 24 April 2023

Promoter – Financial Intermediary

EXAGON IMPACT CAPITAL LLC

Location

Description

Fund focused on equity and equity-like investments, focusing predominantly on renewable energy and related infrastructure sectors in Latin America and the Caribbean.

Additionality and Impact

EIB's investment supports a newly set-up and fully independent fund manager in raising its first fund focused on renewables and sustainable infrastructure in Latin America and the Caribbean, which will address a significant market gap in infrastructure investments in the region. The individual team members have previous experience investing in the Latin American infrastructure and renewables sector.


Through an investment in the Fund, the EIB will (i) address the market gap related to the scarcity of capital for renewable energy and related infrastructure in the target region, (ii) support an experienced team to raise their first fund under an independent set-up, (iii) as a cornerstone investor attract other private and institutional investors to join the Fund (iv) help the Fund to reach an adequate first close size and start deploying capital on the ground.


The Fund is expected to address several Sustainable Development Goals ("SDG"), among which, SDG 7, SDG 13, SDG 12 and SDG 9.


The operation is strongly aligned with EU policy goals, meets the Bank's priority objectives in climate action and environment, and supports focus areas of the European Commission's assistance programme (Private Sector Development, Environment and Climate Change and Energy). It will also contribute to advance development priorities included in national strategies, the European Commission's Global Gateway strategy and the European Green Deal.

Objectives

The fund will predominantly target greenfield infrastructure investments in renewable energy and sustainable infrastructure in Latin America and the Caribbean. The fund will have a significant focus on financing and supporting climate action and environmental sustainability in the target region.

Sector(s)

  • Energy - Electricity, gas, steam and air conditioning supply
  • Water, sewerage - Water supply; sewerage, waste management and remediation activities
  • Telecom - Information and communication

Proposed EIB finance (Approximate amount)

USD 30 million (EUR 28 million)

Total cost (Approximate amount)

USD 300 million (EUR 280 million)

Environmental aspects

The fund will be required to develop an environmental and social policy and establish the appropriate management systems so as to comply with the environmental and social requirements of the Bank. The assessment of the environmental and social impacts and risks will be part of the standard due diligence process, which the fund will have to carry out for each underlying investment, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation as well as the EIB's Environmental and Social Standards.

Procurement

The Bank will require the fund manager to take all requisite measures to ensure that contracts for the implementation of the projects financed by the fund are tendered in line with the Bank's Guide to Procurement.

Status

Signed - 20/09/2024

Milestone
Under appraisal
Approved
Signed
20 September 2023
20 September 2024

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).

Related tags

Regional - Latin America Energy Water, sewerage Telecom