The Trade and Development Bank (TDB) has launched a $75 million TDB SME Off-Grid Facility, which will facilitate access to debt financing for SMEs.
Primarily targetted at renewable energy SMEs in the off-grid energy sector, the facility is also available to SMEs in the broader infrastructure value chain operating in the region served by TDB.
The aim is to “preserve household economic activity in the short-term and support firm productivity in the medium-term by enhancing the liquidity of SMEs involved in infrastructure value chains affected by the COVID-19 crisis”.
By prioritising infrastructure projects with significant development impact and high private-sector mobilisation potential, the selected projects will need to provide communities with access to improved, reliable, and affordable electricity, efficient transport and logistics services, and other social and economic infrastructure.
This will need to be done alongside enhancing the security of energy supply, creating jobs, and reducing greenhouse gas (GHG) emissions.
Primary beneficiaries will be private firms and entities in TDB Member States involved in the supply, construction, and operation of infrastructure projects and will be subject to stringent E&S eligibility criteria.
TDB has launched the TDB Renewable Energy DealRoom in partnership with Asoko Insight in order to build an actionable pipeline of viable private sector projects in the renewable energy space and accelerate deal origination in the sector.
This initiative is supported by the $415 million World Bank Regional Infrastructure Finance Facility (RIFF) signed with TDB in 2020 – the first of its kind to be extended to a regional development bank by the World Bank’s International Development Association (IDA).
TDB, through this facility, will finance long-term infrastructure projects, particularly in renewable energy, including those of MSMEs in need of debt financing in the off-grid energy sector.