European DFIs reinforce co-financing platform with an extra EUR 680 million
The European Investment Bank (EIB) and nine European bilateral DFIs replenish existing joint financing facility – the European Financing Partners (EFP) – to scale up their Team Europe contribution over the next three years.
The European Financing Partners (EFP), a joint venture established by the European Investment Bank (EIB) and several European DFIs in 2003 is expanding. The EIB, together with nine European DFIs (BIO – Belgium, COFIDES – Spain, DEG – Germany, FINNFUND – Finland, FMO – The Netherlands, IFU – Denmark, OeEB – Austria, PROPARCO – France and SWEDFUND – Sweden) have committed a total of EUR 680 million to support private sector sustainable growth in developing countries and emerging markets.
In parallel to the funding upgrade, EFP will in the future also support renewable energy investments via one single platform with two windows to increase the efficiency and reduce the operational costs of existing facilities. In addition, the EFP will comply with strengthened ESG standards, KYC-AML conditions and impact reporting requirements.
Since its inception, the facility has provided more than EUR 700 million to support innovative and sustainable private sector financing. The platform has contributed to foster coherence and coordination among development actors towards the achievement of the Sustainable Development Goals and the Paris Agreement.
«Thanks to this replenishment, European DFIs are strengthening European financial cooperation. With EFP having now EUR 680 million available funding for additional projects, European DFIs are committed to scale up its transformative role to fight poverty and climate change in emerging markets» said Peter Thimme, DEG, Chair of the Board of Directors of EFP.
«With this replenishment, European DFIs are sending a strong message to entrepreneurs and SMEs active in the regions where they operate. This new milestone aims to satisfy the increasing needs for development finance to mobilise resources and catalyse private sector. By reinforcing synergies and DFI collaboration at EU level, the EDFI Management Company is committed to deliver a sustainable and inclusive recovery» said Rodrigo Madrazo, CEO of EDFI Management Company.
« The European Investment Bank is pleased to join European development finance institutions to further boost private sector growth in developing countries and emerging markets to tackle the impact of climate change. Mobilising private sector investment and working in partnerships like Team Europe is key to face global challenges,» said Thomas Östros, Vice President of the European Investment Bank.
« I think this shows the strength of the EDFI collaboration, that together we can create a big difference, where the needs are greatest. The platform is a very effective tool for addressing two of the greatest challenges of our time, i.e. climate change and increased access to jobs with decent working conditions. It is against this background that we choose to increase our investment, » says Maria Håkansson, CEO of Swedfund.
“We are pleased to support the replenishment and team up with our European colleagues to continue to provide financing for projects that that will promote the green transition and improve living conditions in developing countries,” said Torben Huss, CEO of the Danish Investment Fund for Developing Countries.
« At COFIDES we are fully committed with EDFI Management Company. We believe that this replenishment will encourage the work through innovative solutions to support private sector development. It will also allow to strengthen the cooperation among the members of EDFI Management Company, which will be key for COFIDES to achieve greater presence in markets where it now has less experience of direct financing», commented José Luis Curbelo, CEO and chairman of COFIDES.
About the European Financing Partners (EFP)
EFP is a co-financing facility providing long-term financing to projects in countries included in the OECD DAC list, with a special focus on Africa. The funding capacity of EFP is provided by the EIB and 9 EDFI members. This co-ownership structure allows to finance larger investments, to pool resources and expertise and align strategies. This initiative stands out as a best practice in terms of financial and technical cooperation among development institutions. The facility offers a fast-track procedure to syndicate large amounts in an efficient two-step process while sharing the risk of the operation amongst the EIB and European DFIs. The secretarial support services are provided by the EDFI Management Company.
Since 2003, the partnership between European DFIs and the EIB has promoted sustainable private sector development through 55 projects, so far, at a value exceeding EUR 700 million across 23 countries.
Mathilde Poncelet – EDFI: firstname.lastname@example.org