Allianz and IFC invest $500m in emerging markets projects
Allianz Group has signed a partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to invest $500 million for infrastructure projects in emerging markets worldwide.
The transaction was structured by the infrastructure debt team of Allianz Global Investors, which will manage the fund on behalf of investors.
The IFC will originate, structure and administer the loans on behalf of the fund in addition to providing a first loss protection.
Allianz has established an infrastructure debt fund that will co-invest with IFC in a portfolio of loans which IFC has granted to infrastructure projects in emerging economies and fulfil a defined set of eligibility criteria.
The IFC will provide a first loss protection in order to reflect the risk/reward profile of an institutional investor.
As a result, this grant Allianz insurance entities access to emerging markets infrastructure loans, which have historically been funded by international development institutions, local banks and some international banks only.
Oliver Bäte, CEO of Allianz SE, said: “We work to ensure that our activities are profitable and sustainable. We create long-term value by embedding sustainability in our core business. The partnership with IFC and our co-investment in infrastructure is a perfect example how Allianz can provide thought leading investment expertise to support the economic development of emerging countries as well as serving the interest of our customers.”
Philippe Le Houérou, CEO of IFC, added: “Modern infrastructure is essential for economic growth and lasting prosperity.
“Yet a huge investment gap exists in this sector—totalling trillions of dollars a year in emerging markets alone. MCPP Infrastructure marks a breakthrough in the search for large-scale financing solutions to the challenges of development. It is a key building block in the global effort to move from billions to trillions in development finance.”
Andreas Gruber, group chief investment officer of Allianz, added: “This partnership underlines how we at Allianz can create value for our customers by combining entrepreneurial investment ideas with industry-leading implementation know-how. Together with IFC we were able to conceive a reliable investment vehicle appropriate to the very long-term perspectives of all parties involved.”
