Prudential’s Eastspring invests US$500m in IFC infrastructure fund

June 29 2017 by InsuranceAsia News Staff

IFC has signed a deal with Eastspring Investments, the Asian asset management arm of Prudential, to raise US$500 million for an innovative IFC programme that mobilises funds from institutional investors for infrastructure projects in emerging markets.

Eastspring is the first Asian investor to participate in the programme, known as MCPP Infrastructure, which seeks to raise US$5 billion from global institutional investors to modernise infrastructure in emerging markets by 2021.

“Building sustainable infrastructure strengthens economies, allows for cross-border business, and helps create new markets,” said IFC treasurer Jingdong Hua at Wednesday’s signing. “This new partnership with Eastspring will help bring reliable power, roads, and other critical infrastructure to areas where they are urgently needed.”

Under the agreement IFC will originate transactions and provide Eastspring with co-lending opportunities in all deals that fit with Eastspring’s investment strategy.

“The G20 and other global institutions have been calling on multilateral lenders and the private sector to find ways to help close the global gap in infrastructure funding,” said Tony Adams, infrastructure CIO at Eastspring. “The structure of this partnership breaks new ground in providing a credit-enhanced platform for our clients to participate in a portfolio of emerging market infrastructure loans. It also develops our access and capability to lend directly to compelling infrastructure projects.”

With support from the Swedish International Development Cooperation Agency (Sida), IFC provides a limited first-loss guarantee on the programme’s investments to meet the risk-reward profile that institutional investors require.

The other first mover partnership under the MCPP Infrastructure program is the global insurance company Allianz.

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