IFC, a member of the World Bank Group, is providing Delonex Energy $60 million in equity finance to fund the company’s oil and gas exploration in East and Central Africa.
The identification and development of local sources of energy has the potential to support more competitive downstream industries and offset the high cost of imported fuels in the region.
IFC’s investment is part of a $600 million equity line to be provided by the company’s investors led by Warburg Pincus, a global private equity firm focused on growth investing.
IFC’s investment will be used to fund start-up costs, exploration, appraisal, acquisition and early development of oil and gas assets. IFC will also work closely with Delonex to implement best in class environment and social management practices in its exploration and development work.
“I am pleased that IFC is joining our investor group, led by Warburg Pincus. Their experience supporting energy companies across the world as well as their expertise in emerging markets will be invaluable to us as we build our business in Africa,” Rahul Dhir, Delonex Energy CEO.
“The East and Central Africa region remains underexplored for hydrocarbons. IFC’s support to Delonex follows our strategy to help Africa harness its natural resources for long term economic growth,” said Lance Crist, IFC Global Head for Oil and Gas.
“Delonex has an experienced management team with a successful track record that we hope can be a showcase for responsible exploration in the region.”
In 2013, IFC committed a record $5.3 billion to new investments in Sub-Saharan Africa with a focus on infrastructure, entrepreneurs, farmers and the health sector.