DevFiNews

News and Intelligence for the Development Finance Industry

Author: DevFiNews

  • IFC weighs $40m anchor investment in Peru MSME receivables fund

    IFC weighs $40m anchor investment in Peru MSME receivables fund

    The International Finance Corporation (IFC) is considering an investment of up to $40 million in a Peru-focused trade receivables fund, as the World Bank Group member seeks to expand non-bank financing channels for micro, small, and medium enterprises in the country.

    The proposed commitment, equivalent in Peruvian soles, would account for up to 20% of total commitments in Compass Fondo de Inversion Adelanto de Efectivo, or Compass FAE, an unlisted, closed-ended fund with a tenor of up to eight years, according to documents seen by DevFiNews.

    The fund will provide financing through factoring and reverse factoring, structures that allow businesses to convert receivables into immediate liquidity and improve access to working capital.

    IFC’s anchor participation is expected to mobilise at least one dollar of additional private capital for every dollar it invests.

    The investment comes as Peru’s credit market remains shallow, with credit to GDP at about 45%. The formal financing gap for MSMEs is estimated at $10 billion, or 4.7% of GDP.

    Smaller businesses remain heavily reliant on supplier credit and short-term bank lines, while women-led MSMEs face a wider credit constraint than male-led firms despite lower past-due loan ratios.

    MSMEs account for about 31% of Peru’s GDP and nearly 60% of employment, making working-capital access critical for business growth, competitiveness and job preservation.

    Development finance institutions have increasingly promoted factoring and supply-chain finance in emerging markets as a way to expand liquidity access for smaller firms without relying solely on traditional bank lending.

    The project builds on broader World Bank Group efforts to develop factoring and reverse factoring as alternative financial intermediation channels in Peru.

    Compass FAE is managed by Vinci Compass Sociedad Administradora de Fondos, the Peruvian subsidiary of Vinci Compass Investments, which was formed through the December 2024 merger of Vinci Partners Investments and Compass Group Asset Management.

    The combined platform manages more than $54 billion in assets.

    Vinci Compass SAF Peru, founded in 2002, has closed three funds totaling $400 million.

    It pioneered reverse factoring in Peru and previously managed the country’s largest factoring fund, which reached $170 million in assets before closing in 2019.

    IFC said the project would also support Peru’s private debt market by broadening financing options in a concentrated lending market dominated by banks and municipal savings institutions.

  • FMO backs one of Côte d’Ivoire’s first private solar projects with €55m financing

    FMO backs one of Côte d’Ivoire’s first private solar projects with €55m financing

    Dutch development bank FMO is providing 55 million euros ($62 million) in loans to support one of Côte d’Ivoire’s first privately owned solar power projects, according to documents seen by DevFiNews.

    The transaction comes as development finance institutions step in to bridge long-term funding gaps for renewable infrastructure in frontier African markets.

    FMO said the financing will support Kong Solaire S.A.S, a special-purpose vehicle developing a 50-megawatt-peak photovoltaic plant and related transmission infrastructure near the village of Kong in northern Côte d’Ivoire under a 25-year concession agreement with the government.

    FMO will extend a 20-year senior secured loan of 50.5 million euros for the solar plant, alongside a separate 4.5 million-euro facility for transmission infrastructure that will eventually be transferred to the Ivorian government upon completion.

    The project is owned 51% by InfraCo Africa, part of the Private Infrastructure Development Group, and 49% by AfricaVia, which is partly owned by Axian Energy Green.

    The deal underscores the role of development finance in mobilising private capital for African power infrastructure, particularly in markets where currency risks, shallow debt markets and political uncertainties limit commercial bank participation in long-dated projects.

    FMO said its financing tenor, which extends up to 20 years, is not available in Côte d’Ivoire’s local commercial banking market.

    The longer maturity is expected to help the project sell electricity to the national utility at a more attractive tariff.

    The solar plant is also expected to generate electricity at a lower cost than existing thermal power stations using natural gas and heavy fuel oil, while supporting Côte d’Ivoire’s efforts to expand generation and grid capacity in the country’s northern region.

    The investment has been given a 100% green label by FMO, aligning with the lender’s sustainability strategy.

    FMO classified the project as category B+ for environmental and social risks.

    Key concerns include worker health and safety, contractor management, ecosystem-service impacts, economic displacement and community health and safety during construction.

    The lender said risks are expected to be managed through measures including a livelihood restoration plan and community development plan.

    An updated environmental and social impact assessment will be completed before construction begins, FMO added.

  • Germany backs ADB nature finance hub targeting $5b by 2030

    Germany backs ADB nature finance hub targeting $5b by 2030

    Germany has joined the Asian Development Bank (ADB)’s Nature Solutions Finance Hub as a financing partner, committing €5.5 million ($6.5 million) in grant cofinancing to support biodiversity and ecosystem projects across Asia and the Pacific.

    The funding, provided by Germany’s Federal Ministry for Economic Cooperation and Development and implemented by GIZ, will help the hub scale nature-based solutions and mobilise capital for projects focused on biodiversity protection, ecosystem restoration, and climate resilience.

    Launched in 2023, the ADB platform aims to catalyse at least $5 billion in nature-positive investments by 2030. It seeks to address two persistent constraints in nature finance: the lack of bankable projects and the limited availability of financial instruments capable of drawing private capital at scale.

    The hub is currently supporting nearly 20 ADB pipeline projects, including flood resilience in the Philippines, coastal ecosystem management in Thailand, river basin restoration in Bangladesh, and watershed rehabilitation in Uzbekistan.

    Germany joins a group of existing partners that includes Agence Française de Développement, the European Union, the OPEC Fund for International Development, the Global Environment Facility, and funds under the ASEAN Catalytic Green Finance Facility backed by the UK and the Green Climate Fund.

    The investment comes as development finance institutions seek to turn biodiversity and ecosystem protection into a larger investable asset class.

    ADB has said about 75% of Asia-Pacific GDP is generated by sectors that are moderately or heavily dependent on nature, including agriculture, forestry, fisheries, and tourism.

    The global nature finance gap exceeds $900 billion annually, underscoring the need for concessional capital, project preparation support, and blended finance structures to crowd in private investors.

  • Zafiri targets $300m to scale distributed energy in Africa with IFC backing

    Zafiri targets $300m to scale distributed energy in Africa with IFC backing

    Proposed distributed renewable energy investment vehicle Zafiri is targeting an initial capitalization of $300 million to scale off-grid and decentralized energy solutions across Sub-Saharan Africa, according to documents seen by DevFiNews.

    The move higlights a shift toward blended and permanent capital structures in development finance.

    International Finance Corporation (IFC), a member of the World Bank Group, plans to invest up to $120 million in the vehicle, spanning both senior and junior equity tranches, alongside up to $70 million in concessional capital from its IDA21-backed blended finance window to help crowd in additional investors.

    In a disclosure, IFC said the vehicle, which will be domiciled in Mauritius, is structured as a permanent capital platform, allowing it to deploy patient equity into distributed renewable energy (DRE) companies without the constraints of traditional fund lifecycles.

    Zafiri’s initial $300 million raise will be split evenly between senior and junior equity, with backing expected primarily from development finance institutions, multilateral lenders, and philanthropic investors, per the disclosure.

    The platform may later raise additional capital from commercial investors, with a long-term ambition to scale toward $1 billion in net asset value.

    The vehicle will invest in a range of DRE solutions including mini-grids, solar home systems, commercial and industrial solar, battery storage, and clean cooking technologies, targeting markets with significant energy access gaps such as Nigeria, the Democratic Republic of Congo, and Ethiopia.

    Over its lifecycle, Zafiri aims to provide electricity and clean cooking access to at least 30 million people, while reducing reliance on diesel and other carbon-intensive energy sources.

    The structure underscores a broader trend among development finance institutions toward using blended finance and flexible capital vehicles to address structural funding gaps in early-stage and fragmented sectors such as distributed energy.

    IFC said its participation is expected to play a catalytic role in mobilizing additional capital, while also supporting environmental and social standards, including risk management systems and gender practices across investee companies.

  • IFC backs Metito Utilities with $40m structured equity to scale emerging markets water platform

    IFC backs Metito Utilities with $40m structured equity to scale emerging markets water platform

    World Bank Group’s International Finance Corporation (IFC) is proposing an investment of up to $40 million in structured equity to support the expansion of Metito Utilities Limited, according to a disclosure seen by DevFiNews.

    The move underscores a broader shift toward platform-level financing in emerging markets infrastructure.

    The investment, structured as convertible redeemable preferred shares, is expected to catalyze up to $60 million in additional capital, with further mobilization anticipated over time, IFC said in a disclosure.

    Unlike traditional project finance tied to a single asset, proceeds will be deployed at the corporate level to fund Metito’s portfolio of committed projects, assets under construction, and medium-term pipeline across multiple geographies.

    Key assets include wastewater treatment plants in Namangan, Uzbekistan and Zrenjanin, Serbia, alongside water supply projects in Dalian, China and Nabisar, Pakistan, as well as expansion across concession-based water and wastewater platforms in emerging markets.

    The transaction highlights a growing preference among development finance institutions for flexible capital structures that enable infrastructure operators to scale across markets, rather than rely on fragmented, project-by-project funding.

    Metito operates under public-private partnership and build-own-operate-transfer (BOOT) models, positioning it to benefit from long-term concession revenues while addressing infrastructure gaps in water and sanitation.

    IFC’s early involvement in structuring the transaction is aimed at crowding in private capital, reflecting its broader mandate to de-risk investments and mobilize institutional funding into essential infrastructure.

    Environmental and social due diligence classified the project as Category B, indicating limited and site-specific risks.

    Key considerations include labor management, occupational health and safety, and land acquisition tied to new developments, particularly across markets with varying regulatory environments.

    Metito, a repeat IFC client, has previously received satisfactory ratings for environmental, health, and safety performance, supported by established management systems aligned with IFC Performance Standards.

    The investment adds to a growing pipeline of platform-focused deals in development finance, as investors seek scalable exposure to infrastructure assets while maintaining risk-adjusted returns through structured instruments.

  • Acumen targets $80m for Pakistan climate agribusiness fund

    Acumen targets $80m for Pakistan climate agribusiness fund

    Acumen is targeting $80 million for a Pakistan-focused climate and agribusiness private equity fund that deploys a blended capital structure to back early- and growth-stage companies, according to project disclosures seen by DevFiNews.

    The vehicle, Acumen Climate Action Pakistan Cooperatief U.A. (ACAP), is designed with around 66.25% senior equity and at least 33.75% junior equity, a structure aimed at absorbing risk, and mobilising commercial capital into a frontier market where private investment remains limited.

    The International Finance Corporation (IFC), a member of the World Bank Group, is proposing a senior equity commitment of up to $10 million.

    The proposed investment positions itself as an anchor investor to support the fund’s targeted first close of $40 million and catalyse additional participation.

    ACAP will invest in 12 to 15 companies across three priority verticals: farmer platforms and financial solutions, smart farming technologies, and post-harvest systems.

    These segments are seen as critical to improving productivity, reducing losses, and strengthening climate resilience across Pakistan’s agriculture value chain.

    The fund will write equity and equity-linked tickets ranging from $1 million to $7.5 million, focusing on businesses with strong competitive positioning and potential for market leadership.

    A central feature of the vehicle is a grant-funded technical assistance facility of up to $10 million, which will be used to support portfolio companies through operational improvements, ecosystem development, and sector knowledge sharing.

    Such facilities are commonly deployed in development finance structures to enhance impact outcomes while de-risking early-stage investments.

    IFC will also provide advisory support to the fund manager, with a mandate to strengthen institutional capacity and execution capabilities.

    The scope is expected to include investment structuring, pipeline development, portfolio monitoring and valuation, exit strategies, investor relations, and team development.

    The support is intended to mitigate risks associated with a first-time fund manager and improve the likelihood of achieving both financial and development targets.

    ACAP is sponsored by Acumen, a nonprofit impact investor focused on expanding access to essential goods and services in emerging markets.

    Through its investment arm, Acumen Capital Partners, the firm has launched four climate-focused funds with aggregate commitments of approximately $350 million, primarily across energy and agriculture sectors.

    The fund will invest entirely in Pakistan, where agriculture accounts for about 23% of gross domestic product and 37% of employment but remains highly exposed to climate risks, including flooding, extreme heat, and water scarcity.

    The country ranks among the most climate-vulnerable globally, with a significant portion of the population exposed to high climate-related risks.

    Pakistan’s private equity ecosystem also remains nascent, with only a handful of funds and limited recent fundraising activity.

    ACAP is expected to play a catalytic role by attracting a mix of institutional and commercial investors, while demonstrating the commercial viability of equity investments in climate-focused agribusinesses.

    Beyond capital deployment, IFC’s involvement is expected to bring additionality through both financial support and non-financial contributions.

    These include strengthening environmental and social management systems in line with global standards, as well as promoting gender inclusion by supporting women’s participation in portfolio companies and skills development initiatives in the agriculture sector.

    By combining concessional elements, technical assistance, and commercial capital, ACAP aims to bridge a persistent financing gap in Pakistan’s agriculture sector, while building a pipeline of scalable, climate-resilient businesses capable of delivering long-term development impact.

  • FMO Provides $20M Facility to Georgia’s Crystal to Scale MSME, Green Lending

    FMO Provides $20M Facility to Georgia’s Crystal to Scale MSME, Green Lending

    Dutch development lender FMO is providing a $20 million senior unsecured facility to Georgia-based JSC Microbank Crystal to support the expansion of its micro, small and medium enterprise (MSME) lending portfolio, with a focus on inclusive and green finance.

    The facility comprises a $10 million committed tranche and a further $10 million uncommitted portion, offering flexibility as Crystal scales its lending activities.

    It also allows for disbursement in either Georgian lari or US dollars, enabling the institution to better match funding with borrower needs and manage currency risk.

    The financing comes shortly after Crystal secured a microbank license, marking a turning point in its growth trajectory.

    The license allows the institution to accept deposits of up to GEL30,000 and increase its maximum loan size to GEL1 million, expanding its capacity to serve a broader range of clients, including larger MSMEs.

    Proceeds from the facility will be fully earmarked for projects aligned with reducing inequalities and green financing criteria.

    Crystal will extend loans to youth- and women-led businesses, agricultural enterprises, and micro-borrowers, segments that typically face limited access to formal credit.

    The transaction reflects a broader push by development finance institutions to strengthen financial inclusion by supporting regulated lenders as they transition into more formal banking structures, particularly in emerging markets where MSME financing gaps remain significant.

    Crystal currently serves around 100,000 clients through a network of 46 branches and has built a strong presence in rural areas, especially in western Georgia, positioning it as a key channel for extending credit to underserved communities.

    For FMO, the investment aligns with its dual focus on inclusive growth and climate-related lending, while providing medium-term funding in both local and hard currency to support sustainable portfolio expansion.

  • FMO Backs South Africa Sugar Mill in Shift From Coal to Biomass

    FMO Backs South Africa Sugar Mill in Shift From Coal to Biomass

    Dutch development lender FMO is providing ZAR333.33 million ($19.8 million) in financing to South Africa-based Gledhow Sugar Company to support the expansion and modernization of its sugar mill in KwaDukuza, KwaZulu-Natal.

    In a disclosure, FMO said the financing will fund the installation of newer and more efficient equipment designed to reduce steam use and improve the mill’s energy performance.

    It will also support Gledhow’s transition away from coal toward power generation using bagasse, a renewable biomass by-product of sugarcane processing.

    Gledhow is a long-established sugar mill that processes sugarcane supplied by a broad base of farmers and supplies refined sugar to food and beverage manufacturers across Southern Africa.

    The investment is aimed at modernizing a key agro-industrial employer in a rural area where job opportunities are limited and economic activity remains closely tied to the sugar industry.

    Around 26,000 people in the region are estimated to rely on Gledhow for their livelihoods, underscoring the mill’s role as an anchor of the local economy.

    For FMO, the transaction combines climate finance with inclusive growth. The financing is expected to qualify fully under its Green Label and Reducing Inequalities Label, reflecting both the project’s energy-efficiency and greenhouse gas reduction benefits, as well as Gledhow’s sourcing from small-scale or marginalized communities.

    The shift to bagasse-based energy generation is significant for agro-processing businesses, particularly in markets where industrial operations remain dependent on fossil fuels.

    Bagasse, which is left over after sugarcane is crushed, can be used to produce heat and power for mill operations, reducing reliance on coal while improving resource efficiency.

    The project also reflects a broader trend among development finance institutions to back the decarbonization of existing industrial assets.

    Rather than financing only new renewable energy projects or greenfield infrastructure, DFIs are increasingly funding upgrades to legacy businesses that remain critical to employment, food supply chains, and rural incomes.

    In Gledhow’s case, the financing supports both production efficiency and supply-chain resilience.

    By improving the mill’s operating performance, the investment is expected to help sustain demand for sugarcane supplied by farmers, including smaller producers and communities that rely on the mill as a stable offtake channel.

    The project has been categorized as B+ for environmental and social risk.

    Applicable IFC Performance Standards cover environmental and social management systems, labor and working conditions, resource efficiency and pollution prevention, and community health and safety.

    FMO said the risks are manageable with appropriate measures and resource capacity, supported by a targeted Environmental and Social Action Plan.

    The transaction highlights how climate-linked development finance is expanding into traditional sectors such as agriculture and food processing.

    These industries are often difficult to decarbonize but remain central to emerging-market economies, making efficiency upgrades and cleaner captive power generation an important pathway for reducing emissions without disrupting rural livelihoods.

  • ADB Approves $77M to Boost Nursing Education in Turkmenistan

    ADB Approves $77M to Boost Nursing Education in Turkmenistan

    The Asian Development Bank approved a $75 million loan and $2 million grant to strengthen Turkmenistan’s nursing workforce, marking the lender’s first health sector investment in the Central Asian nation.

    The financing from ADB and Japan’s Fund for Prosperous and Resilient Asia and the Pacific will support the Improving Nursing Quality and Capacity Project, aimed at addressing critical shortages in qualified healthcare workers.

    “The project aims to provide high-quality health services based on people’s needs and ensure equitable access to health care through strengthening the nursing profession and education,” said ADB Country Director for Turkmenistan Artur Andrysiak.

    The initiative represents ADB’s third project in Turkmenistan, coinciding with the 25th anniversary of their development partnership.

    Central to the project is construction of a new climate-resilient Ashgabat Nursing School featuring modern simulation laboratories, dormitories, and specialized facilities including a mother-friendly room and educational garden promoting nutrition awareness.

    The program will also modernize nursing curricula to meet international standards while providing advanced training for teaching faculty and senior nurses.

    New medical equipment and updated teaching methods are included in the comprehensive upgrade.

    Turkmenistan’s government committed $23 million in counterpart financing toward the $98 million total project cost, reflecting official priority on healthcare system improvements.

    Nurses serve as critical first points of contact in Turkmenistan’s health facilities, making their professional development essential for improved patient outcomes and preventive care services.

    The Manila-based ADB, founded in 1966, supports development across Asia-Pacific through its 69 member countries, with 50 from the region.

    The bank has positioned itself as a leading multilateral lender focused on sustainable, climate-resilient growth.

    For Turkmenistan, the nursing project represents broader efforts to build a more competitive economy while strengthening social infrastructure in the energy-rich nation of 6 million people.

    DevFiNews.com

  • Philippines Launches SE Asia’s First Green Equity Label with Tougher Sustainability Rules

    Philippines Launches SE Asia’s First Green Equity Label with Tougher Sustainability Rules

    Philippine-listed companies and firms planning to go public will need to meet stricter sustainability requirements to qualify for the country’s new Philippine Green Equity Label, the Securities and Exchange Commission (SEC) said on Thursday.

    The guidelines, the first of their kind in Southeast Asia, require companies to demonstrate that at least half of their revenues and investments come from activities defined as “green” under the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the ASEAN Taxonomy for Sustainable Finance. Firms that qualify will be able to use the label to attract climate-focused investors.

    “The issuance of the SEC Green Equity Guidelines is a game-changing initiative that will help develop the capital market not only by boosting liquidity but also by supporting our climate goals,” SEC Chairperson Francis Lim said in a statement. “This also positions the country as an emerging destination for foreign investors seeking credible, transparent, and meaningful green investments.”

    Companies with exposure to fossil fuels face additional restrictions, with revenues from such sources capped at below 5%.

    Applicants must also undergo independent external review, with results made publicly available. Approved companies will be subject to annual compliance checks by the Philippine Stock Exchange.

    To ease implementation, the SEC introduced transition reliefs for firms still working toward full alignment with the green taxonomies.

    However, applicants must already demonstrate that their activities contribute to at least one environmental objective, do not cause significant harm, and comply with minimum social safeguards.

    The new framework, issued under SEC Memorandum Circular No. 13, builds on the Philippines’ growing sustainable finance market, which has reached 1.02 trillion pesos ($17.9 billion) in fixed-income instruments.

    DevFiNews.com

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