ADF approves US$149mn credit facility to support low-income countries

alternative alternative energy clean energy 421888The seven operations include senior loans targeting renewable energy and agroindustry sectors in Uganda, Sudan, and Cameroon among others. (Image source: Carl Attard/Pexels)The African Development Fund Board (ADF) has approved credit risk facility of US$149mn by the Private Sector Credit Enhancement Facility (PSF) in seven private sector operations targeting low-income countries

The Board of Directors of ADF, the concessional window of the African Development Bank Group, approved the credit risk participations by the PSF in seven loans cumulatively valued at US$149mn.

The PSF, launched in 2015 by the ADF, provides credit risk participations in private sector operations of the African Development Bank in low-income countries and is on its way to building a US$1.5bn portfolio of exposures.

The seven operations include senior loans targeting renewable energy and agro-industry sectors in Uganda, Sudan, and Cameroon among others, as well as lines of credit to lenders in Liberia and Mali.

Cecile Ambert, PSF administrator, said, “These approved operations bring the facility’s total portfolio to more than 40 per cent of its US$1.5bn target size and increase the PSF’s footprint to 29 countries.”

“They deliver on our mandate to contribute to development impact through enabling additional financing of private sector projects in low-income countries,” she added.

The operations were prioritised in light of their superior expected development results and additionality; particularly in terms of increased access to electricity, food security, and job creation.

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