The fund is made up of subsidies from the UK’s Department for International Development and the Department of Energy and Climate Change made to the Private Infrastructure Development Group, which created GAP.
It will allow GAP to offer long term loans and contingent lines of credit to privately-owned renewable power generation projects in the most under-developed countries in Africa.
So far no projects in Africa have been earmarked for funding from the vehicle.
GAP says that with the $98m it should be able to providing financing for a “few dozen projects” during the next two or three years.
The group has not specified what return they are targeting, except to say it is a commercial rate. No more fundraising is due in the near future.
GAP chairman Jim Cohen said, “The infrastructure investment expertise of EISER, complemented by the African and renewable energy experience of Camco provides us with the ideal balance of skills for our future needs.”
UK-based GAP will invest alongside commercial lenders and equity investors in transformational renewable energy projects in order to stimulate private investment in developing African countries.
The firm will aim to influence the overall policy environment for financing of renewable energy projects in each country in which it operates.
EISER partner Vivian Nicoli, “Access to renewable and sustainable sources of energy is vital to economic development of Africa and we are proud to be taking a leading role in facilitating development in the region.”
GAP expects to start deploying funds to projects in the fourth quarter of this year.
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