EXAGON XIC LATIN AMERICA FUND I

Promoteur – Intermédiaire Financier

EXAGON IMPACT CAPITAL LLC

Lieu

• Régional - Amérique latine

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.

Objectifs

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.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné
• Eau, assainissement - Production et distribution d'eau; assainissement, gestion des déchets et dépollution
• Télécom - Information et communication

Montant BEI envisagé (montant approximatif)

USD 30 million (EUR 28 million)

Coût total (montant approximatif)

USD 300 million (EUR 280 million)

Aspects environnementaux

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.

Passation des marchés

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.

Statut

Signé - 20/09/2024