World Bank Group member IFC is launching a program designed to raise $5 billion for infrastructure development in emerging markets. Allianz is among the global investors.
IFC, a global development institution focused on the private sector in emerging markets, said it sees the program as helping to improve power, water, transportation and telecommunications systems. The goal is to raise the $5 billion that will accomplish this from global institutional investors.
The first partnership under the program, dubbed MCPP Infrastructure, involves Allianz. The insurer invested $500 million, which will be used for IFC debt financing for emerging market infrastructure markets. Similar discussions are underway with AXA for a potential $500 million investment, among other companies, according to the announcement.
Oliver Bäte, CEO of Allianz SE, said the insurer is pushing to make sure its work is both profitable and sustainable, and the IFC partnership will accomplish this.
“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,” he explained in prepared remarks.
IFC said that MCPP Infrastructure is structured for institutional investors seeking to boost their exposure to emerging markets infrastructure.