Global infrastructure manager I Squared Capital has set up a $1.2bn (€1.1bn) climate fund with US International Finance Development Corporation (DFC).

The Climate Fund, which will invest in climate-related infrastructure projects, has been created with a $300m commitment from the development finance institution and agency of the US federal government alongside $900m worth of commitments from I Squared Capital-led funds.

DFC, which partners with the private sector to finance solutions to the most critical challenges, is known for investing across sectors including energy, healthcare, critical infrastructure, and technology.

Sadek Wahba, chairman of I Squared Capital, said: “The opportunity to invest alongside DFC underscores the importance of public private partnerships as vehicles to support sustainable infrastructure in the markets that need it most.

“It also mitigates regulatory and political risk and enables investments in infrastructure-related sectors at attractive risk-adjusted returns in high growth emerging economies.” 

To read the latest IPE Real Assets magazine click here.