Nigeria is one of Africa’s largest cashew producers of c. 250-300k tonnes of raw cashew nuts annually, yet currently less than 10 per cent are processed domestically.

Most raw nuts are exported unprocessed to Asian and other countries, forfeiting up to 80 per cent of their potential export value and adding exposure to foreign exchange fluctuations.

This additional plant will more than double Robust’s existing cashew processing capacity from 100 MT per day to 220 MT per day to help reduce this structural gap.

The new plant will be of extensive benefit to the local economy, with procurement of cashew nuts from c. 10,000 primarily low-income smallholder farmers.

There is an expected increase in export revenue (c. USD 335 million) and procurement from local supply chain over the lifetime of the guarantee.

Furthermore, the new plant will incorporate functionality to convert waste by-products into value-added biomass and biofuel inputs to enhance the environmental impact of the transaction.

It is anticipated that up to 900 jobs will be created, with as many as 78 per cent to be held by women. Robust also has a target to gradually increase the share of procurement from women farmers, from 15 per cent to 25 per cent by 2028, as it reaches new regions in Nigeria and extends its ongoing gender-responsive outreach programme for farmers.

The transaction is aligned to the United Nations’ Sustainable Development Goals 2 (Zero Hunger) and 9 (Industry, Innovation and Infrastructure).

The debt facility was provided by a Symbiotics-arranged bond platform, which in turn issued notes with the benefit of the GuarantCo guarantee.

These notes have been subscribed to in full by M&G Investments.

The transaction was executed in record time due to the successful replication of two recent transactions in Côte d’Ivoire and Senegal, again in collaboration with M&G Investments and Symbiotics.

PIDG is funded by six governments: the United Kingdom, the Netherlands, Switzerland, Australia, Sweden and Canada.

Commenting, Mr. Jonny Baxter, British Deputy High Commissioner, said:

“The UK is proud to support innovative financing that mobilises private capital into Nigeria’s productive economy through UK-backed institutions such as PIDG. By backing investment into local processing and value addition, this transaction supports jobs, exports and more resilient agricultural supply chains. Complementing this, through the UK-Nigeria Enhanced Trade and Investment Partnerships and the Developing Countries Trading Scheme, the UK is supporting Nigerian businesses to scale exports to the UK and beyond, demonstrating how UK-backed partnerships help firms grow and compete internationally.”

Dave Chalila, head of Africa and Middle East Investments at GuarantCo, said:

“This transaction marks GuarantCo’s third collaboration with M&G Investments and Symbiotics, emphasising our efforts to bring replicability to everything we do so that we accelerate socio-economic development where it matters most. The transaction is consistent with PIDG’s mandate to mobilise private capital into high impact, underfinanced sectors. In this case, crowding in institutional investors to the African agri-processing value chain.

“As with the two recent similarly structured transactions, funding is channelled through the Symbiotics institutional investor platform, with the notes externally rated by Fitch and benefiting from a rating uplift due to the GuarantCo guarantee.”

Vishanth Narayan, group executive director at Robust International Group, said:

“As a global leader in agricultural commodities, Robust International remains steadfast in its commitment to building resilient, ethical and value-adding supply chains across origin and destination markets. This transaction represents an important step in advancing our long-term strategy of strengthening processing capabilities, deepening engagement with farmers and enhancing local value addition in the regions where we operate. Through sustained investment, disciplined execution and decades of operating experience, we continue to focus on delivering reliable, high-quality products while fostering inclusive and sustainable economic growth.”

María Redondo, director at M&G Investments, said:

“We’re pleased to partner again with Symbiotics and GuarantCo on this innovative transaction. The guarantee gives us the assurance to invest in hard currency, emerging market debt while supporting Robust’s new cashew processing plant in Nigeria. It’s a clear example of how smart credit enhancement can unlock institutional capital for high impact development and manage currency and credit risks effectively. This is another strong step in channelling institutional capital into meaningful, on‑the‑ground growth.”

Valeria Berzunza, Structuring & Arranging at Symbiotics, said:

“This third collaboration reinforces the value of developing structured financial products through strategic partnerships to mobilise investment from institutional investors seeking exposure to highly rated securities, into high impact projects in emerging markets. We are pleased to continue our collaboration with M&G Investments, GuarantCo, and now with Robust through a transaction with a strong social and gender focus, demonstrating that well-structured products can boost commercially attractive, viable, and impactful investments.”

The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, managed by Ninety One, has invested USD28 million and acted as the sole impact investor in an oversubscribed USD300 million capital market maiden bond issue.

Book orders over USD550 million meant that EAAIF could reduce its anchor commitment from USD40 million to USD28 million, allowing the participation of more private capital from a variety of international investors.

The proceeds of the issuance will support capital expenditure growth across Africell’s subsidiaries in Angola, the Democratic Republic of Congo (DRC), The Gambia, and Sierra Leone.

This will strengthen the supply of mobile and data connectivity for approximately 14 million current subscribers, with conditions ripe for future expansion across these countries.

Magase Mogale, Africell’s executive vice president said,

“EAAIF was instrumental in the success of this process. Their support and involvement gave other investors confidence, resulting in our debut issuance being heavily oversubscribed. Launching the bond is a transformational moment for our company as we offer investors exposure in four dynamic African countries”.

The transaction deepens Africa’s financial services landscape and diversifies fundraising sources for dynamic, fast-growth businesses.

This bond issuance is the first by any corporate or state in two of Africell’s four established markets (The Gambia and Sierra Leone). It will provide international private investors with insight into these markets and create the opportunity for further, much-needed, foreign investment.

Tidiane Doucoure, director, Emerging Market Alternative Credit at Ninety One Group, the Fund Manager of The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, said:

“We are proud to have acted as anchor investor on the successful first bond issuance of Africell. At PIDG and Ninety One, we firmly believe in the development of capital markets and the mobilisation of private capital in low and middle income countries. That’s the only viable way the trillions of dollars currently available in developed markets will be channeled to support the much needed economic and social growth for the six billion people living in emerging markets. We are honored by the trust of Africell, and our other partners, including the global banks that acted as bookrunners – JP Morgan, Citi, and Standard Bank.”

Developing Africa’s capital markets is a key priority for the Private Infrastructure Development Group and Ninety One.

In 2020, sub-Saharan Africa, excluding South Africa, contributed just 0.02% to the global stock of international bonds.

This presents a tremendous opportunity for global investors and ambitious businesses to increase access to growth capital from debt capital markets.

Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), has successfully raised $294 million of additional debt facilities, achieving over half of the Fund’s target to raise $500 million by 2025.

The finance facilities demonstrate the Fund’s ability to mobilise private sector debt in one of the largest capital raises in recent years, led by a blended finance debt fund advancing infrastructure development across Africa.

Backed by prominent financial institutions, the package unlocks fresh capital to advance EAIF’s strategic, operational, and financial capabilities – enabling its investment portfolio to expand and meet rising opportunities in frontier and developing economies.

The Fund will invest across various infrastructure assets, including those aligned with the energy transition, low-carbon economies, and energy-efficient smart cities.

As a PIDG company, EAIF fulfils the Group’s key strategic priorities, focusing on pioneering infrastructure projects that offer an innovative, agile, and sustainable approach to delivering essential infrastructure services for economic development.

Allianz Global Investors led the financing on behalf of Allianz Group, one of the world’s leading insurers and asset managers, committing a further €75m and $50m to EAIF.

Standard Bank, Africa’s largest lender by assets, provided a $75m multicurrency revolving credit facility with sustainability-linked features and a $25m sustainability-linked term debt facility.

KfW, the German state-owned development bank, committed a further €60m loan to EAIF.

EAIF secured $385 million of debt capital in 2018, with KfW and Allianz among the participating lenders in the funding round, committing €75 million plus $50 million and €75 million and $25 million, respectively.

The new finance package marks the maturity of Africa’s debt capital markets and illustrates the Fund’s ability to take on and manage risk while delivering sustainable returns and economic impact.

Since EAIF’s establishment in 2001, the Fund and its partners have completed 96 projects and mobilised total investment commitments of over $2.1 billion across 20 African countries and 10 infrastructure sectors.

Reinforcing its leading position as an attractive vehicle for investors seeking exposure to the growing African infrastructure asset class, Moody’s reaffirmed EAIF’s foreign currency long-term issuer rating of A2 with a stable outlook as a testament to its strong capital position, diverse portfolio, and track record of success in Africa.

PIDG plays a unique catalytic role in increasing private investors’ appetite for investing in emerging market infrastructure and responding to macroeconomic trends and the climate crisis.

To create impact on an even greater scale, EAIF plans to start investing in Asian markets this year and work even more closely with PIDG’s guarantee arm GuarantCo, development arm InfraCo, and PIDG Technical Assistance as the Fund progressively expands its Asia portfolio over the coming years.

Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One, the fund manager for the Emerging Africa Infrastructure Fund, said: “Over the last 20 years, we’ve developed a diverse portfolio, a unique business model and a distinct approach to investing for impact and returns, whilst maintaining a minimal default rate. The debt financing is a significant milestone and sign of private investor confidence that strengthens our ability to pioneer new models for infrastructure development – enabling the delivery of transformative projects in dynamic geographies, sectors and complex environments that otherwise would not be bankable. We thank Allianz, Standard Bank and KfW for their continued support. ”

Philippe Valahu, CEO of PIDG, said: “Action on climate and nature, together with sustainable development, through new and improved access to infrastructure are the central focus of everything we do at PIDG. Marking this significant milestone means we are contributing to the goal of improving climate resilience and economic opportunities for 100 million people by 2030, as outlined in our strategy. But the challenges ahead are too great for any single organisation or country and will require more collaboration. We look forward to being part of this journey alongside our key partners.”

Aislinn Baker, Portfolio Manager, Development Finance, at AllianzGI, said:

“We are delighted to see how the EAIF has been helping to unlock Africa’s potential over the last five years which underlines the decisive role private capital plays in blended finance. As one of the early movers in this area, we look forward to seeing how the projects financed by the EAIF will contribute to the further development of infrastructure assets and the energy transition on the continent and facilitate Allianz’s sustainable investment objectives in emerging markets.”

Andrew Pearce, Head of Leveraged Finance, Corporate and Investment Banking at Standard Bank, said:

“Standard Bank’s sustainability-linked loans for EAIF reaffirm our commitment to the sustainable economic development of Africa and align with Standard Bank, EAIF and Ninety One’s shared ambition. Our footprint and expertise across the continent demonstrate that we see Africa’s development as intricately tied to advancing its infrastructure. Through our partnerships, we provide innovative solutions that offer value and transform Africa’s economy. This facility aligns with our strategic objective to deliver structured capital solutions that combine our clients’ sustainability strategy with our banking solutions and enhance value for our clients, businesses, and society.”

Dr. Thomas Duve, Director of Southern Africa at KfW Development Bank, said:

“KfW has been financing EAIF since 2006 in various financing rounds as we strongly believe in the developmental impact that EAIF achieves. EAIF has clearly demonstrated that private sector financing can be mobilised to meet the substantial infrastructure needs in Sub-Saharan Africa if projects are structured adequately and experienced partners, such as EAIF, are part of the financing consortium.

As the mobilisation of private capital is an important target for KfW, we are very pleased to notice that KfW’s financing share in the recent financing rounds is constantly decreasing as private sector institutions, such as AllianzGI and Standard Bank, are gradually taking over the financing of EAIF.”

• New strategy aims to deliver $9bn in commitments and mobilise $25bn in additional finance to benefit 100 million people in Emerging Markets and Developing Countries (EMDCs)

• Builds on more than two decades of de-risking projects, transforming markets, and building local capacity

• Capital market development, nature-based solutions, and inclusion – with a focus on youth and women – will run across new investment framework

Raises ambition on scale of early-stage project development, introduces new local currency guarantee solutions to deliver on net zero, climate resilience and the Sustainable Development Goals (SDGs)

The Private Infrastructure Development Group (PIDG) introduced its 2030 strategy at a business reception in London – affirming its leadership position as a mover and multiplier of infrastructure finance in sub-Saharan Africa and south and south-east Asia.

Climate and nature, together with sustainable development, are the core focus of the new strategy and will inform all of PIDG’s infrastructure financing and development activities.

Working even more systematically in partnership with the private sector, development finance institutions, and providers of catalytic capital will be key to successful delivery.

PIDG’s new strategic framework aims to attract $1.6bn in funding, deliver $9bn in commitments, and mobilise $25bn in additional finance over 10 years.

The accelerated movement of finance will be aimed at moving markets and stimulating flows worth many multiples of their original value.

Over the last 20 years, PIDG has successfully delivered 211 infrastructure projects, providing 222 million people with access to new or improved infrastructure. It has mobilised $40bn of investment in PIDG projects, of which $25bn were commitments from the private sector.

Private Infrastructure Development Group is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC.

PIDG’s new strategy is designed to build the momentum it has created while responding to the macrotrends that are reshaping the infrastructure market in Emerging Markets and Developing Countries (EMDCs). These include strong economic headwinds, the acceleration of the climate crisis, and a changing geopolitical context.

Working against this backdrop, PIDG is raising its ambition on the scale of project development it undertakes and introducing new local currency guarantee solutions. It aims to:

–       Improve climate resilience and economic opportunities for 100 million people by 2030

–       Accelerate the flows of public and private finance deployed for climate action and sustainable development – including attracting $1.6bn in funding, to deliver over $9bn in new commitments in projects that mobilise over $25bn in additional finance

–       Avoid future greenhouse gas emissions in emerging markets, supporting leapfrogging carbon technologies

–       Demonstrate how infrastructure can deliver gender equality and inclusive opportunities, alongside nature conservation, restoration, and regeneration.  

PIDG is one group with multiple solutions that run across the entire project lifecycle – including early-stage project development, equity, and credit solutions that bridge gaps in local capital markets.

With the new strategy, Private Infrastructure Development group will bring together its capabilities in service of: 

– Increasing the pipeline of projects built to internationally investable standards

– Unlocking domestic institutional capital for infrastructure investment

– Deploying commercial and institutional capital in developing and emerging markets through its blended finance structures.

In addition to elevating climate action with sustainable development, and scaling its impact with new ambition and urgency, PIDG will undertake some key shifts to reach these goals:

• Develop a more deliberate and coordinated origination and product strategy
• Bring a more strategic focus to project origination that targets impact at scale through growth in a selected combination of geographies, sectors and products
• Grow the level of investment delivered while balancing financial sustainability with sustainable development impact at scale
• Nurture a culture of radical collaboration – within PIDG and its partners – to enhance its ability to provide solutions and serve as a bridge between development and private finance.

A summary of the new strategy can be found here.

The Rt Hon, Andrew Mitchell, UK Minister of State for Development and Africa, said:

“The Private Infrastructure Development Group’s new strategy will help deliver more climate resilient infrastructure across developing countries in Africa and Asia. PIDG has over two decades of expertise in creating development impact and has given over 222m people access to new or improved infrastructure. The UK is proud to be a long-standing supporter and funder of this brilliant organisation.”

Philippe Valahu, CEO, Private Infrastructure Development Group said:

“With the new strategy, PIDG is entering a new chapter – one that will be defined by a focus on climate and nature, together with sustainable development. Private sector has a key role to play to develop and finance infrastructure that delivers economic opportunities and climate resilience for all. Drawing on our legacy of providing new and improved access to infrastructure, we will scale our efforts through ambitious, collaborative partnership that reshapes sectors and markets for the benefit of all.  We know we cannot address the scale of challenge on our own – this strategy is a call to collaborate, to make it happen together.”