The Three Seas Investment Fund and the US DFC have agreed to fund up to $300 million
The Three Seas Investment Fund (‘3SIIF’) and the US Development Finance Corporation (‘DFC’) have agreed to conclude a contract under which DFC will provide funding to the fund of up to $300 million (EUR 280 million). These funds will support energy and infrastructure investments that enhance energy security, facilitate the energy diversification and improve the connectivity in the Three Seas region. The Bulgarian Development Bank is a class A investor in the Fund with a cash contribution of EUR 20 million.
The funding is expected to be finalized in 2022 and shall further strengthen the transatlantic business, energy and geopolitical ties with the Three Seas region.
“The current geopolitical and economic challenges have highlighted the importance of the Three Seas region,” said Beata Daszynska-Muzyzcka, chairperson of the Supervisory board of the Three Seas Investment Fund.
In her view, the investment needs in this region are crucial for the EU cohesion, its continued economic growth and improved connectivity and energy security.
“The US’s strong relationship with the Three Seas provides a huge opportunity for high-quality investment together with the private sector. The cooperation between DFC and 3SIIF will facilitate an inclusive economic growth and development across the region," said DFC’s CEO Scott Nathan.
DFC is the U.S. development financial institution and has an investment portfolio of over $37 billion worldwide, with a focus on less developed countries. It works with investors to deploy capital in a number of sectors, including critical infrastructure. Its investments aim to advance the economic and social development.
The 3SIIF Fund invests in eligible transport, energy and digital infrastructure along the North-South axis in the Three Seas region.
It includes 12 EU Member States in Central and Eastern Europe and aims to reduce socio-economic disparities within the European Union. DFC’s investments will bring the fund’s capital commitment to around EUR 1.3 billion.