Infrastructure & Energy: Our solutions

Whether you're investing in renewable energy, telecommunications or water supply and waste water treatment – we offer private companies a suitable, viable and flexibly structured financing for their sustainable infrastructure investments and individual advice.

As a reliable and professional partner, we advise you right from the start, backed by in-depth expertise. You benefit from our extensive experience in the field of infrastructure and renewable energy investments in emerging-market and developing countries, our network and our 19 locations in Africa, Asia, Europe and Latin America. As a development financier mandated by Germany, we also have a variety of contacts available to us in a number of countries.

DEG customer comments

AEP II is privileged to have the confidence of an outstanding group of public and private institutions to invest in and develop renewable energy projects. This way, we can build sustainable infrastructure where it is needed most.

Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy

What we offer

Financing

With our financing, we enable infrastructure projects in the following sectors:

Energy: Wind energy, solar energy, hydropower, geothermal energy
Telecommunications and digital infrastructure
Transport: Ports, airports, roads
Water supply and waste water disposal

We provide tailored financing solutions to private infrastructure companies that support sustainable transformation and thus contribute to the UN’s Sustainable Development Goals (SDGs) in the form of long-term loans, equity investments and mezzanine finance. If required, we can mobilise and arrange larger volumes for our customers by getting additional investors on board. Through our commitment we send positive signals to further investors. DEG finances only in emerging and developing countries. These are regularly defined in the OECD Development Committee (DAC). The current DAC list with our partner countries can be found here.

We offer you tailored loan financings at matching maturities for your investments in the areas of energy, transport, utilities and telecommunications.

As an arranger of syndicated finance, we get further finance partners on board if required, enabling us to offer the complete loan financing from a single source.

At a glace:

• Currency: EUR or USD, also local currency

• DEG financing volume: USD 15-60 million

• Term: generally between 4 and 21 years

• Interest rate: fixed or variable, market-oriented depending on project and country risk

• Collateral: usually as the company's fixed assets in the country of investment

• Structuring: according to the customer’s requirements

Direct investment

We can also support your growth with equity capital. As a minority shareholder, we generate positive momentum for the development of your company or your project and your reputation. The stake may be taken at operational and holding company level.

At a glace:

• Equity participation at holding company level or in the operating company in the country of investment

• As a rule with a minority stake

• Volume of DEG’s equity participation: USD 10-30 million

• Variable structuring of risk components

• Voting rights and seat on the supervisory board on a case-by-case basis

• Clearly defined exit strategies or, in individual cases, long-term investments

Funds

As the fund manager of an infrastructure or energy equity fund investing in companies or projects, you benefit from our in-depth expertise in funds and co-investments. Through our investment in your fund, we can offer you a stable capital base, as an anchor investor and catalyst even in the first closing. If necessary, we can also invest in portfolio companies on equal terms as a co-investor.

At a glance:

• Subscription generally possible as early as first closing

• Representation of investors and advice for general partner through seat on the fund's Advisory Committee

• Support also for challenges in your portfolio through our Business Support Services

• Investment possible as experienced co-investor in the fund's portfolio companies

• Fund investments starting from USD 10 million and a DEG share of <20% in the final closing

More information on our private equity investments

We subscribe to long-term, sustainability-focused bonds from experienced and established companies and financial institutions in emerging and developing countries, with a view to actively supporting them in achieving their objectives related to environmental and climate protection, gender equality and governance. As an anchor investor with a long-term outlook, we stabilise your bond issues and send positive signals to other investors.

At a glace:

• Investments in private and listed bond issues

• Conditions reflecting the situation in the capital market

• Capital market access and development for issuers from emerging and developing countries

• Positive signals sent out with regard to international environmental, social and corporate governance standards

More information on financing solutions for infrastructure projects

Advice plus support

In addition to offering appropriate financing solutions, our strength is in providing tailored advice on infrastructure and renewable projects in developing markets. We can provide specialist advice on conceptual design and financing as well as arrange co-financing, with the aim of organising your project even more efficiently and sustainably.

Investment-supporting measures help to co-finance investments that enhance the performance, growth and impact of companies in terms of developmental policy. In doing so, they support further professionalisation. DEG can cover a portion of these costs, for example for training skilled workers or for introducing environmental and social management systems. The latter enable risks in the environmental and social spheres to be identified and managed.

We support our customers in their challenges and develop individually tailored solutions for their company together with them.

Please contact your DEG customer relationship manager to get in touch with the BSS team.

Sendeturm, Giunea, Telekommunikationsturm

Expanding green energy supply for telecommunication towers

Expanding mobile telecommunications provides significant impetus for developing the infrastructure in emerging markets and developing countries. DEG finances investments of IPT Powertech Group SAL, which operates telecommunication towers in Africa and the Middle East.

Expansion of wind energy in Uzbekistan

DEG promotes the expansion of green infrastructure in Uzbekistan and finances the construction and operation of a 100 MW wind power plant close to Nukus city.

Further examples of infrastructure projects financed by DEG

2024-05-28

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Infrastructure & Energy: Our solutions

DEG customer comments

AEP II is privileged to have the confidence of an outstanding group of public and private institutions to invest in and develop renewable energy projects. This way, we can build sustainable infrastructure where it is needed most.