BIO and DEG join forces in infrastructure and enterprise projects, worth 120 million euros.

The Belgian and German development banks BIO (Belgian Investment Company for Developing Countries) and DEG (Deutsche Investitions- und Entwicklungsgesellschaft) have already been working together on the joint financing of infrastructure and enterprise projects for many years.

While in the past, this usually happened on an ad hoc basis, both parties have now formally signed a cooperation agreement on 24th May 2019 to increase the volume and number of joint financings and to improve the impact and efficiency of the development support provided to the private sector in developing countries.

To this end BIO has allocated an amount of 60 million Euros for joint financings over the next three years; DEG allocates a similar amount. DEG will take the lead in this joint venture and offer BIO the opportunity to share the risk in potential investment opportunities that meet BIO’s eligibility criteria. This agreement covers long-term debt financing for both private infrastructure projects and private enterprises.