Ifc Commits Up To US$15 Million To Caribbean Debt Fund
ifc is committing up to US$15 million to the Caribbean Community Resilience Fund Debt Sub-Fund. The capital is split between up to US$5 million in the senior tranche and as much as US$10 million in the mezzanine piece.
Sygnus Runs The Fund
Berisford Grey, co-founder, president and CEO of Sygnus, said, "Building a more resilient and sustainable Caribbean is central to Sygnus’ mission." Sygnus runs the fund alongside the CARICOM Development Fund, and Sygnus Capital Limited manages the CCRF program.
The fund is looking to raise US$75 million and could lift that target to US$125 million. IFC said this is its first debt fund deal in the region, a move that puts a named private backer into a structure designed to pull in more capital for Caribbean borrowers.
13 Countries, 7 Sectors
Up to 70% of the capital will go to loans for medium-sized businesses. The rest is set aside for resilience and sustainability projects, with money moving to Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago.
Energy, water, agriculture, housing, transportation, financial services, and ICT are the target sectors. That gives the fund a wider reach than a single-industry vehicle and ties the financing to operating businesses as well as infrastructure-linked projects.
Credit Gap Above US$22 Billion
IFC said domestic credit stands at just 32.8% of GDP, while the funding gap is above US$22 billion. Those figures explain why the fund is being structured with both debt capital and technical help, including US$7.5 million for technical help, rather than relying on one pool of money alone.
For companies in the 13-country target area, the practical change is access: loans aimed at mid-sized firms, plus capital for projects tied to resilience and sustainability. If the fund reaches its larger target, it would have room to move beyond a single closing and support a broader set of borrowers across the region.
