Germany’s Allianz Group has made a US$500mn partnership agreement with the International Finance Corporation (IFC) to co-invest in infrastructure projects in emerging markets. The deal will work to bridge the investment gap in the sector and provide Allianz insurance entities with access to the loans.
The agreement is made under the managed co-lending portfolio programme (MCPP), and will see Allianz’s investment co-invested alongside IFC debt financing.

The transaction is structured by Allianz’s debt team, who will manage the fund on behalf of investors. IFC will originate, structure and administer the loans on behalf of the fund in addition to providing first loss protection.

The IFC protection will give Allianz insurance entities access to the loans, which historically have been funded primarily by international development institutions and local banks.

Allianz CEO, Oliver Bäte, says: “The partnership with IFC and our co-investment in infrastructure is a perfect example how Allianz can provide investment expertise to support the economic development of emerging countries as well as serve the interest of our customers.”

“Modern infrastructure is essential for economic growth and lasting prosperity,” says IFC CEO Philippe Le Houérou.
“Yet a huge investment gap exists in this sector – totaling trillions of dollars a year in emerging markets alone. MCPP marks a breakthrough in the search for large-scale financing solutions to the challenges of development. It is a key building block in the global effort to move from billions to trillions in development finance.”