(Ecofin Agency) - The final closing is announced two years after the first closing to fund SMEs in frontier markets over the coming 10 years.
Belgian Investment Company for Developing Countries (BIO), announced Friday (April 29), the final closing, at €36 million (about US$38 million) of its SDG Frontier Fund.
With the investment vehicle, BIO will indirectly invest in a dozen high-potential and growth-stage SMEs in Africa and Asia through private equity funds active in the two continents.
SDG Frontier Fund is “the first of its kind in Belgium and offers a unique counter-cyclical opportunity to diversify an investor's portfolio,” explains BIO.
The investment company announced the first closing of SDG Frontier Fund in early June 2020. At the time, BIO was announcing a closing at €25.3 million, thanks to nine private Belgian investors and BIO.
After the first closing, SDG Frontier Fund invested in eight private equity funds, which funded SMEs in the DRC, South Africa, India, and Vietnam.
For the second closing, five investors contributed a total of €7.5 million for impact investing and attractive returns. SDG Frontier Fund’s plan is to support local SMEs over the next 10 years and open new opportunities for a large number of entrepreneurs.