IFC plans US$10m stake in Sygnus-managed CARICOM Fund

The International Finance Corporation (IFC) plans to invest US$10 million in a Caribbean Community (CARICOM) fund managed by Sygnus Capital Limited, subject to board approval.

"The proposed investment comprises a US$10-million equity investment in the Caribbean Community Resilience Fund Equity Fund (CCE)," stated the IFC, the private- sector financing arm of the World Bank.

IFC would invest up to US$5 million in a senior C tranche and up to US$5 million in a junior D tranche.

The proceeds would be deployed across renewable energy, electric vehicle infrastructure, energy efficiency, ocean ecosystems, and agriculture in up to 12 CARICOM member states, as well as the Dominican Republic and The Bahamas.

The IFC board is scheduled to consider the investment on June 12, with the project currently listed as pending approval.

The IFC added that it would play a role in standard-setting, including improving the fund's environmental and social risk management framework and advising on gender practices.

The project will provide equity access for mid-market companies in the Caribbean by supporting a fund that aims to scale businesses targeting sustainability outcomes. The focus on energy stems from the region's reliance on costly fossil fuels amid cheaper low-carbon alternatives.

The CCE fund seeks to raise US$60 million overall, with an option to upsize to US$100 million. The CCE is a sub-fund of the Caribbean Community Resilience Fund, a 10-year, US$135-million vehicle split into an equity fund and a debt fund. It was established through a partnership between the CARICOM Development Fund, the anchor investor, and Sygnus, the fund manager.

The Financial Gleaner sent queries to Sygnus co-founder Beris Grey but did not receive a response by press time. Sygnus Capital, established in 2016 and headquartered in Jamaica, manages more than US$600 million in assets and employs close to 90 professionals across Jamaica, St Lucia, Puerto Rico, and the United States.

The countries named within the fund's scope include Antigua & Barbuda, Barbados, Belize, Dominica, the Dominican Republic, Grenada, Guyana, Jamaica, St Kitts & Nevis, St Vincent and the Grenadines, The Bahamas, St Lucia, Suriname, and Trinidad & Tobago. 

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