Allianz fund targets Philippine green infrastructure
The asset management arm of global insurance and financial services giant Allianz is eyeing to finance green infrastructure projects in emerging Asia, including the Philippines.
In a Nov. 11 disclosure, International Finance Corp. (IFC) said its Washington-based board is scheduled to approve, on Dec. 19, an investment of up to $60 million in Allianz Asia-Pacific Infrastructure Credit Fund.
The private credit fund, to be launched by Allianz Global Investors (AGI), targets a size of as much as $500 million, according to IFC.
“The fund will focus on providing senior secured loans to medium-sized, high-growth infrastructure companies in emerging markets (EMs) across the Asia-Pacific region. Up to 40 percent of the investment is expected to be allocated to climate finance, supporting sustainable infrastructure projects,” the private-sector lending arm of the World Bank Group (WBG) said.
IFC said this upcoming fund would focus on infrastructure joint venture (JV) projects in the Philippines, India, Indonesia, Malaysia, Thailand, and Vietnam.
Founded in 1998, Frankfurt, Germany-based AGI is a global asset management firm and a wholly owned subsidiary of Allianz SE, with a presence across Europe, Asia-Pacific, and the United States (US).
AGI’s Luxembourg branch will serve as the authorized alternative investment fund manager for Allianz Asia-Pacific Infrastructure Credit Fund, which will be structured as a Luxembourg-based variable capital investment fund receiving non-discretionary advice from AGI-owned Allianz Global Investors Singapore Ltd.
The fund is AGI’s first infrastructure-focused strategy in Asian EMs, IFC noted.
IFC said its upcoming investment is expected to significantly increase access to finance for mid-market infrastructure projects in emerging Asia-Pacific, including climate assets, while boosting renewable energy (RE) supply, data center access, and reducing greenhouse gas (GHG) emissions.
The specific sub-sectors targeted by the fund include digital infrastructure, energy infrastructure, environmental infrastructure, logistics, RE, and transportation.
IFC also expects the project to enhance the competitiveness of the private credit market in the mid-market infrastructure sector, contributing to broader market development.