Multinational - African Agriculture Impact Investments LTD

The proposed project is a €100 million partial credit guarantee (PCG) to the structured finance company, African Agriculture Impact Investments Ltd (Mauritius), to develop commercial agriculture in Africa. The project aims to leverage the AfDB’s Partial Credit Guarantee (PCG) to catalyze the deployment of European pension and asset management funds into Africa’s agriculture sector in line with the Bank’s Feed Africa strategic priority. This will be achieved by using the PCG to back agri-linked notes (the Notes) of up to EUR100M to be issued by a structured finance company. The Mauritius-based company will leverage the Bank's PCG to catalyse additional financing from international pension funds through an Agri-linked Note to facilitate investments in sustainable farmland and agricultural infrastructure across Africa. It will be authorized to operate in various African countries through a special purpose entity that will include two other active portfolios worth €62.5 million. The proceeds of the Notes together with two other pools of assets worth about USD75M will be pooled in a Special Purpose Vehicle (SPV) to create a capital pool for ultimate investment in a diversified portfolio of agricultural farmland assets and related agricultural infrastructure in Africa. These assets will then be put at the disposal of selected agribusiness operators seeking expansion opportunities across the continent.