DEG: USD 45 million for infrastructure projects

In many developing countries, a lacking infrastructure in key sectors such as energy supply, transport or telecommunications is a major cause of bottlenecks in progress.

Financing for multi-sector infrastructure fund MIP II

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is investing USD 45 million in the multi-sector infrastructure fund Mubadala Infrastructure Partners Fund II (MIP II). The fund will invest in companies that provide water and energy supply, build transport and telecommunications infrastructure and improve social infrastructure in emerging markets. The fund is aiming for a total volume of up to USD 750 million.

Target regions: MENA, sub-Saharan Africa and Asia

The fund’s target regions are the MENA region, sub-Saharan Africa and South-East and South Asia. They also include less developed countries such as Bangladesh, Mozambique and Senegal.

Investments in improved infrastructure in developing countries

“We are delighted to be contributing to this supra-regional fund and cooperating with MIP’s experienced team. We want our investment to help eliminate infrastructure bottlenecks effectively in developing and emerging markets,” said Dr Tilman Kruse, Head of Europe/Middle East/Central Asia Debt & Equity at DEG.

By providing this financing, DEG is setting an example to other private and institutional investors. As part of its involvement, it will also contribute to strengthen environmental and social management systems in the companies co-financed by MIP II.

As one of Europe’s major development finance institutions, DEG offers direct financing to companies as well as long-term funding for banks and funds. This is used to provide local enterprises in developing countries with investment capital. About 1.9 million small and medium-sized enterprises are reached by DEG-financed financial intermediaries.