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“RMB Joins Acre Impact Capital’s $100 Million Fund For Climate-Aligned Infrastructure In Africa”

Rand Merchant Bank

In a significant move towards promoting climate-aligned infrastructure projects across Africa, Rand Merchant Bank (RMB), one of Africa’s leading corporate and investment banks, has invested in Acre Export Finance Fund I. This fund targets the commercial debt tranches of Export Credit Agency (ECA) transactions that support climate-aligned infrastructure projects on the continent.

The fund marked its first close on April 17th, successfully raising approximately $100 million in equity. This capital injection will be utilized to partially finance projects in four impact sectors: renewable power generation, health, food and water scarcity, as well as sustainable cities and green transportation.

Aymeric Perrin-Guinot, Senior Transactor ECA Finance at RMB London, highlighted the significance of the fund in unlocking financing opportunities for impact projects. By specializing in funding the commercial debt tranche, the fund aims to mobilize up to $2 billion towards impactful initiatives, thus contributing to the reduction of Africa’s infrastructure financing gap, estimated to exceed $100 billion annually.

Siyanda Mflathelwa, Sector Head of PPPs and Concessions at RMB, emphasized the fund’s role in filling a critical market gap by financing the uncovered portion of ECA transactions. This funding mechanism is expected to catalyze transactions with a multiplier effect on the economies of beneficiary countries.

Aligned with the UN’s Sustainable Development Goals (SDGs), the Acre Export Finance Fund will leverage industry-leading frameworks for impact reporting, ensuring its investments have a significant positive social, environmental, and economic impact. Perrin-Guinot underscored RMB’s commitment to sustainable finance and its support for Africa’s transition to a lower carbon economy in line with the Paris Agreement.

This investment by RMB reflects the proactive role of African financial institutions in addressing Africa’s challenges. Hussein Sefian, CEO of Acre Impact Capital, praised RMB’s commitment to financing climate-aligned essential infrastructure in Africa, highlighting the positive contribution of African financial institutions in supporting such initiatives.

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