Allianz Group in investing $500m (€446m) in infrastructure projects in emerging markets with the World Bank’s International Finance Corporation (IFC).
Under the managed co-lending portfolio programme, Allianz and the IFC will provide debt financing for infrastructure projects in emerging markets worldwide.
The infrastructure debt team at Allianz Global Investors, which structured the transaction, will manage the fund on behalf of investors.
A first loss protection, to reflect the risk/reward profile of an institutional investor, will offer Allianz insurance entities access to emerging market infrastructure loans, which have historically only been funded by international development institutions, local banks and some international banks.
Andreas Gruber, Allianz CIO, said: “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.”
IFC will originate, structure and administer the loans for the fund.
IFC chief executive Philippe Le Houérou said: “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.”
