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To support the growth of the association EDFI MC and strengthen its position as a key partner of the European Union (EU), Proparco and its counterpart members of the association (EDFIs) have participated in the capital increase and are now shareholders of the company. This strengthening of EDFI MC consolidates its role with the EU, allowing it to act on behalf of EDFI member institutions and increase their capacity to deploy the EU’s blended finance.
Client presentation

Based in Brussels and set up in 2016, the EDFI (EDFI MC) management company promotes partnerships and closer cooperation with the EU. It manages and coordinates financing facilities allocated to EDFIs by the European Commission, particularly in sectors such as renewable energies and agriculture, for example, via ElectriFI* and AgriFI** programs or, more recently, guarantee instruments. It also manages ICCF (Interact Climate Change Facility) and EFP (European Financing Partners) instruments. This allows EDFIs to increase the impact of their actions and scale up investments in projects more upstream or with a higher risk which they could not do alone.  

Proparco has been a key partner of EDFI MC since it was set up, including as a member of its Board of Directors and ElectriFI and AgriFI Investment Committees. 

Project description

Proparco recently acquired a 12.5% stake in the capital of the EDFI (EDFI MC) management company which manages concessional funds in the name of and on behalf of 15 European Development Finance Institutions (EDFIs), including Proparco. This strategic investment has increased operational cooperation between EDFIs and strengthened their partnership with the European Union. To support the growth of EDFI MC and strengthen its position as a key partner of the European Union, it was essential for more members of the EDFI association to be shareholders of the company. It is for this reason that Proparco, alongside its European counterparts, participated in the capital increase of EDFI MC. Proparco and five other EDFIs now each have a 12.5% shareholding, with the EDFI association holding the remaining 25%. 
The strengthening of EDFI MC consolidates its role among European institutions, allowing it to act on behalf of EDFI member institutions and increase their capacity to deploy the EU’s blended finance.  
    
It is a strategic investment, as it will both increase our capacity to support sectors and activities that DFIs are generally less able to finance alone and further strengthen our partnership with the European Union. EDFI MC is certainly an excellent illustration of what we are able to do at European level to pool capacities and harmonize practices to increase the effectiveness of European external aid and have a greater impact on development.     

Project impact
10/09/2020
Date of signature of the project
Multi-country Global
Location
Financing tool
160 520 Euros
Amount of funding
EUR 160,520.22 equity investment
Financing details
European Development Finance Institutions Mgmt cpy
Client
CES