Multinational - LEAF Risk Sharing Facility with the African Guarantee Fund

The LEAF Risk Sharing Facility (“LEAF RSF” or the “Facility”) is a USD 100m counter-guarantee facility to the African Guarantee Fund (“AGF”) aimed at supporting access to finance for Small and Medium Enterprises (SMEs) in the decentralised renewable energy space (“DRE”) that offer solar home systems (SHS), green mini-grids (GMG) and captive commercial/industrial solutions (C&I). The proposal is for the Bank to contribute with USD 52m Partial Credit Guarantee (PCG) to the facility while the Green Climate Fund (GCF) – in context of the Leveraging Energy Access Finance Framework (LEAF) – contributes with USD 48 million PCG. The facility is expected to catalyse a minimum of USD 267 million in local currency financing from AGF’s Partner Financial Institutions (“PFIs”) for DRE projects and companies over a 5-year investment period. LEAF is an AfDB programme in collaboration with the GCF that extends concessional credit enhancement and debt instruments to Decentralized and Distributed Renewable Energy (DRE) companies.