Infrastructure fund raises over $1.3B, including a $300 Million USG investment
Washington, DC – October 19, 2020 – President Kersti Kaljulaid of Estonia convened Three Seas heads of state, along with the US Secretary of State and top officials from the United States, Germany, and the European Union. The summit, which focused on cross border infrastructure projects in Central Europe, featured the announcement of a $300M US government investment into the Three Seas Initiative Investment Fund, raising its capital base to over $1.3B.
The Three Seas Initiative (3SI) is a Central European initiated and led effort to accelerate the development of cross border energy, transport, and digital infrastructure in the region between the Baltic and Black Seas. Member states include: Estonia, Latvia, Lithuania, Poland, The Czech Republic, Slovakia, Hungary, Austria, Slovenia, Croatia, Bulgaria and Romania. The commercially managed 3SI Investment Fund was established to attract international private sector capital into the region’s infrastructure projects.
The United States underscored its commitment to the Initiative through robust participation in the Summit and Web Forum, including Secretary of State Pompeo, Deputy Secretary of State Mark Menezes, and Under Secretary of State for Economic, Growth, Energy, and Environment Keith Krach.
The US delegation announced an investment of $300M through the US Development Finance Corporation (DFC) into the Three Seas Fund. The DFC is expected to formalize that pledge at a meeting of its governing board in December. Secretary Pompeo and Under Secretary Krach emphasized that the US commitment made earlier this year to invest up to $1B continues and that the DFC could increase its investment up that amount if the fund continues to grow.
The Tallinn summit also highlighted investments into the Fund by nine Three Seas member states and the Amber Infrastructure Group, the fund manager, totaling 923 million Euros. Poland also announced a 250 million Euro increase in its investment into the fund.
The 3SI Fund became operational last February. Gavin Tait, CEO of the fund manager, Amber Infrastructure Group, informed the Three Seas Web Forum that he expects its first investment to be announced in the coming days and that by the end of the year, it will have closed investments in digital, transport and energy projects.
European Commission Executive Vice President Magrethe Vestager complemented 3SI’s efforts to attract private investment to Central Europe and defined it as complementary and consistent with the Commission’s own efforts to support infrastructure development in the region.
President Kaljulaid defined the Three Seas meeting as a “summit of consolidation” that underscored the political and financial commitment the of Three Seas member states, highlighted the launch and operations of the Three Seas Fund, and reflected the continued, if not increased, support of the United States, Germany and the European Union.
For more information and insight into the Three Seas Virtual Summit and Web Forum visit 3seas.eu.