DFC achieves first close of $100m loan to WaterEquity’s Global Access Fund
The US International Development Finance Corporation has funded the first $25 million tranche of its $100 million loan to WaterEquity’s Global Access Fund. The $150 million impact investment vehicle targets inclusive financial institutions in emerging markets to scale up water and sanitation microloan portfolios.
DFC says the catalytic financing is expected to empower at least five million people to access improved household water and sanitation across Asia, Latin America, and Africa.
The loan was funded by issuing fixed income instruments in accordance with the ICMA Sustainability Bond guidelines. As the placement agent for the transaction, BofA Securities is managing the sale and pricing of the $100 million instruments. This first disbursement coincides with the first close of WaterEquity’s Global Access Fund, which has to date secured $125 million in investments toward its $150 million total target capitalization.
