Canada provides CAD 40 million (c. USD 31.8 million) investment to Private Infrastructure Development Group (PIDG) company, GuarantCo, to enhance affordable and sustainable infrastructure across Africa and Asia
Global Affairs Canada (GAC), a department of the Government of Canada, is providing CAD 40 million (c. USD 31.8 million) through a repayable contribution to Private Infrastructure Development Group (PIDG) company, GuarantCo, to enhance affordable and sustainable infrastructure credit solutions in low-income countries and fragile states across Africa and Asia. The funding will be used to finance essential infrastructure, develop local capital markets and help economies grow by mobilising additional capital towards the Sustainable Development Goals (SDGs) aiming to reduce poverty.
The partnership will help to support PIDG’s and GuarantCo’s gender-responsive approach to infrastructure investment in alignment with Canada’s Feminist International Assistance Policy. PIDG and GuarantCo view the Canadian government’s strong gender advocacy as a significant benefit allowing PIDG to further enhance its gender policies and processes. GuarantCo contributes to the implementation of the PIDG Gender Equity Action Plan and the collaboration with GAC will further accelerate progress.
This initiative will help to demonstrate that investments in low-income countries and fragile states are not only possible but that they can mobilise significant additional private capital towards the SDGs to ensure sustainable and inclusive economic growth.
The Honourable Karina Gould, Canada’s Minister of International Development, said: “This initiative with GuarantCo is a key opportunity to address the financing gap in infrastructure in Africa and Asia by mobilizing private sector investment.”
Emily Bushby, Interim CEO of GuarantCo, said: “We are proud that Canada has decided to invest in GuarantCo, particularly to support PIDG and its companies to further build and implement its gender equity agenda. The investment will enable GuarantCo to leverage this facility three times to mobilise a portfolio of up to CAD 120 million (c. USD 95 million) of guarantees. It will provide increased capacity to grow GuarantCo’s portfolio, enabling us to achieve our strategic and development objectives with the associated positive impact to our external stakeholders, including ratings agencies, to further diversify our funding base.”
Philippe Valahu, CEO of PIDG, said: “We are delighted that the Canadian Government is investing in GuarantCo. We are particularly pleased that this investment aims to enhance gender initiatives. As a group, PIDG has developed a robust Gender Equity Action Plan which provides us with a roadmap for continuous improvement in our investments and in our companies. PIDG is adopting a deliberate climate and gender lens to screen both risks and potential of its infrastructure investments and we are looking forward to working closely together with GAC to accelerate gender inclusivity further the global gender agenda.”
GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development. www.guarantco.com
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure development and finance organisation which encourages and mobilises private investment in pioneering infrastructure in the frontier markets of sub-Saharan Africa and south and south-east Asia to promote economic development and combat poverty. PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 171 infrastructure projects to financial close which provided an estimated 223 million people with access to new or improved infrastructure. PIDG is funded by six governments (the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany) and the IFC. www.pidg.org
About Global Affairs Canada
Global Affairs Canada (GAC), a federal department of the Government of Canada, defines, shapes and advances Canada’s interests and values in a complex global environment. The Department manages diplomatic relations, promotes international trade and provides consular support. It leads international development, humanitarian, and peace and security assistance efforts. GAC also contributes to national security and the development of international law.
Contact for GuarantCo
Marjolein van Kampen
M: +44 (0)738 8857097
Contact for PIDG
Head of Communications
M: +44 (0)7917 302724
Global Affairs Canada
Media Relations Office
M: +1 343-203-7700