Australian financial firm, Export Finance Australia, offers a $100 million loan to EAAIF
The Emerging Africa & Asia Infrastructure Fund (EAAIF) has announced a significant move to address funding gaps in clean energy and climate-resilient infrastructure in South and Southeast Asia. The fund has leveraged a US$100 million debt facility from Export Finance Australia (EFA) alongside equity capital from European governments and other partners.
This financing marks a strategic expansion for EAAIF into these Asian markets, enabling investment in sectors such as solar energy, sustainable transport, digital communications infrastructure, and climate-smart industrial solutions.
EAAIF's approach to blended finance combines public sector capital with private sector investment, mobilizing diverse sources of funds to reduce risk and attract private capital into underfunded infrastructure projects. This strategy has been key in filling critical infrastructure financing gaps in the region, where only about 2% of global clean energy investment is currently allocated.
By providing long-term commercial debt on market-based terms, EAAIF finances projects that promote energy transition, economic stability, job creation, and poverty reduction in emerging markets. The partnership is expected to crowd in private investment by mitigating risks and providing catalytic capital, thereby scaling up infrastructure investment beyond what is publicly available.
The collaboration between EAAIF and EFA aligns with Australia’s government priorities to support quality infrastructure in the Pacific and Indo-Pacific regions through blended finance. The fund is managed by Ninety One, a global investment manager, ensuring professional deployment of funds and access to high-growth markets.
The EAAIF has attracted commitments from investors including Allianz Global Investors, Standard Bank, and Sweden's development finance institution, Swedfund. Key infrastructure projects supported by EAAIF’s blended finance include solar and biomass energy plants, digital data centers, and transport infrastructure, all designed to build climate resilience and improve socio-economic outcomes.
The new debt finance package, expected to enable investments of up to $1bn in next-generation infrastructure in Africa and Asia by 2028, is a testament to the potential of such collaborations in driving sustainable economic growth and addressing critical infrastructure needs in these regions.
- The Emerging Africa & Asia Infrastructure Fund (EAAIF) is using a blend of development finance, private equity, and other partnerships to fund clean energy and climate-resilient infrastructure in South and Southeast Asia.
- EAAIF's strategy incorporates long-term commercial debt for projects that encourage energy transition, economic stability, job creation, and poverty reduction in emerging markets.
- The fund's approach to blended finance allows it to leverage diverse sources of funds, reducing risk and attracting private capital to underfunded infrastructure projects.
- Investments made by EAAIF will target sectors like solar energy, sustainable transport, digital communications infrastructure, and climate-smart industrial solutions.
- The partnership between EAAIF and Export Finance Australia (EFA) supports Australia’s government priorities to backing quality infrastructure in the Pacific and Indo-Pacific regions through blended finance.
- Key infrastructure projects funded by EAAIF’s blended finance include solar and biomass energy plants, digital data centers, and transport infrastructure, all aimed at building climate resilience and improving socio-economic outcomes.
- The new debt finance package, expected to enable investments of up to $1bn in next-generation infrastructure in Africa and Asia by 2028, underscores the potential of such collaborations in driving sustainable economic growth and addressing critical infrastructure needs in these regions.
