Emerging markets infrastructure debt investor ImpactA Global has secured backing from the UK government’s Mobilist programme and IDB Invest, the private sector arm of the Inter-American Development Bank.
ImpactA Global said it has now raised over $200m (€180m) as it secured the new commitments from the two institutions and from other private investors, joining existing investor Legal & General (L&G), which pledged up to $100m in October 2023.
The funds will finance sustainable infrastructure in emerging markets, focusing on climate challenges and social inequalities across sectors like clean energy, mobility, health, water and sanitation, ImpactA Global said.
Alongside its fund commitment, Mobilist has also contributed to a technical assistance facility, designed to streamline ImpactA Global’s origination and strengthen project development, with the goal of attracting further investment into these economies.
Isabella da Costa Mendes, co-founder and co-CEO, ImpactA Global, said: “We are thrilled with the support and collaboration from both public and private institutions for this important initiative. Through such collaborations, we are providing global investors with the confidence to diversify their allocations.
“We are hugely motivated to address this market gap and demonstrate the quality of outcomes from investing into emerging markets.”
Hannah Gore-Randall, managing director of alternative finance, asset management at L&G, said: “Channelling capital into private debt financing for emerging markets is crucial to closing the $4trn annual funding gap and achieve the UN Sustainable Development Goals.
“We believe this investment shortfall also offers investors the opportunity to benefit from the potential for strong returns and diversification to their portfolios that exposure to emerging markets can provide.
“Our early support of ImpactA Global and provision of catalytic capital is one example of how we aim to achieve our dual goals of delivering commercial returns alongside positive social and environmental outcomes.”
Jenny Chapman, minister of state for international development, Latin America and the Caribbean, said: “This is a great example of how the government is partnering with the private sector to harness the UK’s financial expertise and maximise impact. We are modernising our approach to international development to seize opportunities for growth and sustainable development like this one, while delivering value for money for taxpayers.”
Victoria Miles, co-founder and co-CEO, ImpactA Global, said: “Addressing climate challenges and reducing inequalities in underserved emerging markets is paramount. These challenges will only be met with the mobilisation of significant pools of private institutional capital.
“Working with partners such as the UK government and our blended finance partners will enable ImpactA Global to accelerate this mobilisation and implement its strategy.”
Marisela Alvarenga, managing director, financial sector at IDB Invest, said: “Closing infrastructure gaps in key sectors like energy, health and transportation is essential not only for driving economic growth but also for building more resilient economies and enhancing social wellbeing in Latin America and the Caribbean.
“We are proud to support ImpactA Global through a capital commitment that includes $5m in first-loss protection for projects in Central America and the Caribbean, funded by the UK sustainable infrastructure programme.”
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