IFC Eyes US$10 Million Investment In Sygnus-Managed CARICOM Resilience Fund

The International Finance Corporation is seeking board clearance to put US$10 million into a CARICOM-focused investment fund overseen by Sygnus Capital Limited.

IFC, the World Bank's private-sector finance unit, said the proposal would place US$10 million in equity into the Caribbean Community Resilience Fund Equity Fund, also called CCE.

Under the plan, IFC would commit as much as US$5 million to a senior C tranche and another amount of up to US$5 million to a junior D tranche.

Money raised by the fund is to support renewable power, electric vehicle infrastructure, energy-saving projects, ocean-related ecosystems and agriculture across as many as 12 CARICOM member countries, along with the Dominican Republic and The Bahamas.

The matter is due to go before IFC's board on June 12. The project remains listed as awaiting approval.

IFC said it would also help shape standards for the fund, including stronger systems for managing environmental and social risks, while offering guidance on gender-related practices.

The investment is intended to widen equity financing for mid-sized Caribbean businesses by backing a vehicle designed to help companies grow while pursuing sustainability goals. The emphasis on energy reflects the Caribbean's dependence on expensive fossil fuels at a time when lower-cost, low-carbon options are available.

CCE is targeting US$60 million in commitments, with room to expand the fund to US$100 million. It sits within the Caribbean Community Resilience Fund, a 10-year vehicle valued at US$135 million and divided into equity and debt components.

The wider fund was created through an arrangement between the CARICOM Development Fund, which serves as anchor investor, and Sygnus, which manages the vehicle.

The Financial Gleaner sought comment from Sygnus co-founder Beris Grey, but no reply was received up to press time.

Sygnus Capital was founded in 2016, is based in Jamaica, and manages more than US$600 million in assets. The firm has nearly 90 professionals working across Jamaica, St Lucia, Puerto Rico and the United States.

Countries identified for the fund's reach are 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.