The U.S. Agency for International Development (USAID) announced the launch of a partial credit guarantee facility for 3 private-sector partners that will make available up to USD 100 million in private financing to support the deployment of household technology products, from cookstoves to solar lanterns, that are critical for the millions of families around the world who lack access to basic social services. This transaction, put together by USAID's Development Credit Authority (DCA), is co-guaranteed by the Swedish International Development Agency (SIDA) and includes a USD 20 million facility for AlphaMundi's SocialAlpha impact fund.
"USAID is pioneering a new model of development-one grounded in a focus on harnessing innovation, public-private partnerships, and local leadership to deliver real, measurable results," said USAID Administrator Rajiv Shah. USAID's DCA uses partial credit guarantees to mobilize local financing in developing countries. Credit guarantees encourage private lenders to extend financing to under-served borrowers in new sectors and regions.