Insurance powerhouse Allianz has teamed up with a World Bank affiliate for a planned major investment in infrastructure projects in emerging markets worldwide.
The insurer has signed a partnership agreement with the International Finance Corporation (IFC) and intends to invest US$500 million (about £392 million) in infrastructure projects.
The infrastructure debt team of Allianz Global Investors has structured the transaction and will manage the fund on behalf of investors. IFC will originate, arrange and administer the loans in addition to providing first loss protection.
“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,” said Allianz CEO Oliver Bäte.
Philippe Le Houérou, IFC chief executive, said the tie-up with Allianz is a “breakthrough in the search for large-scale financing solutions to the challenges of development.”
“Modern infrastructure is essential for economic growth and lasting prosperity,” he said. “Yet a huge investment gap exists in this sector—totalling trillions of dollars a year in emerging markets alone.”
Allianz investment chief Andreas Gruber also commented: “Together with IFC we were able to conceive a reliable investment vehicle appropriate to the very long-term perspectives of all parties involved.”
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