17 January 2014

CDC backs two Actis funds with US$170 million investment

CDC’s capital will finance mid-market businesses and energy infrastructure across Africa and South Asia 

CDC, the UK’s development finance institution, has today announced new commitments totalling US$170 million to two funds managed by Actis. CDC is backing the Actis Energy 3 (“AE3”) fund with a US$70 million commitment and the Actis Global Fund 4 (“AG4”) with a US$100 million commitment.

CDC’s commitment to Actis Energy Fund 3 has helped Actis raise a total of US$1.15 billion for investment in electricity generation and distribution businesses in Africa, Asia and Latin America. CDC’s capital, however, will be exclusively used for investment in energy projects in Africa and South Asia, which are CDC’s focus regions. AE3 will typically make investments of between US$50m and US$150m in both established and growing businesses.

The Actis energy team has already started building the fund’s portfolio, making agreements to invest in Cameroon’s national grid and Morocco’s water and electricity services. The fund will also actively seek out renewable energy projects such as its recent investment in Aela Energía, Chile’s largest wind and solar electricity provider.

Welcoming the commitment to the Actis Energy Fund 3, CDC’s Portfolio Director, Clarisa De Franco said:

“Providing access to reliable electricity is a key priority for CDC. Reliable energy helps businesses to develop and grow, creates new and better jobs and improves the lives of millions of people. By backing the Actis Energy Fund 3 we continue to support an experienced team who have a great track record of building electricity businesses in developing countries. They do this using the highest environmental, social and governance standards in their investments.”

CDC is also committing US$100 million to Actis’ Global Fund 4. AG4 will focus its investments in four broad sectors; consumer, financial, industrials and healthcare. The fund will typically invest between US$50m and US$250m in leading mid-market companies. CDC’s capital will only support businesses located in Africa and South Asia.

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