Finance in Emerging Markets: ImpactA Secures $200m Funding
In a significant stride towards sustainable development and climate transition, several investment firms have pledged billions of dollars to support projects in emerging markets.
Aegon Asset Management Launches Climate Transition Bond Fund
Kicking off the trend, Aegon Asset Management has launched a climate transition bond fund, aiming to support projects that contribute to a lower-carbon economy.
ImpactA Global Secures $200m Investment
ImpactA Global, a UK-based private credit firm, has successfully raised $200m from public and private investors. While Legal & General (L&G) is one of the investors, no specific other institutions have been disclosed in the search results.
Government Programmes and IDB Invest Back ImpactA Global
The UK government program MOBILIST, IDB Invest, and other private investors have also invested in ImpactA Global. The fund will focus on sectors like clean and renewable energy, sustainable mobility, health, water, and sanitation.
JICA Invests in Aavishkaar Capital's Supply Chain Fund
Japan International Cooperation Agency (JICA) has invested $40m in Aavishkaar Capital's supply chain fund, further boosting investment in emerging markets.
IDB Invest Commits to First-Loss Protection
IDB Invest has committed $5m for first-loss protection for projects in Central America and the Caribbean, aiming to close infrastructure gaps in key sectors like energy, health, and transportation.
Marisela Alvarenga's Vision for Latin America and the Caribbean
Marisela Alvarenga, managing director, financial sector at IDB Invest, believes that driving economic growth and enhancing social well-being in Latin America and the Caribbean hinges on closing these infrastructure gaps.
L&G Invests $100m in 2023
L&G, which managed £1.1trn in total assets last year, invested $100m in 2023, with a focus on climate challenges and reducing social inequalities. This investment brings L&G's total commitment to over $1bn towards nature conservation and sustainable development.
McKinsey Estimates Need for $1.1trn from International Capital
Consultancy firm McKinsey estimates that some $1.1trn of this investment will need to come from international capital sources.
Hannah Gore-Randall on Private Debt Financing
Hannah Gore-Randall, managing director of alternative finance, asset management at L&G, stated that channelling capital into private debt financing for emerging markets is crucial to closing the $4trn annual funding gap and achieving the UN Sustainable Development Goals.
Partnership Aims to Deliver Value for Money
The partnerships aim not only to drive sustainable development but also to deliver value for money for taxpayers.
Returns from Infrastructure Debt in Emerging Markets
According to the Global Infrastructure Hub, returns on infrastructure debt in emerging markets were double that of developed markets (8% vs 4%) over a 10-year period.
Finnfund Announces €80m First Close of a Digital Access Impact Fund
Finnfund has announced an €80m first close of a digital access impact fund, further demonstrating the growing interest in sustainable development and climate transition investments.
Investments Needed for Clean Energy in Emerging Markets
To reach net-zero emissions by 2050, emerging markets require clean energy investments of between $2.2trn and $2.8trn annually by the early 2030s, according to the International Environment Agency.
Jenny Chapman on Partnership with the Private Sector
Jenny Chapman, the UK's minister of state for international development, Latin America and the Caribbean, stated that the government is partnering with the private sector to harness the UK's financial expertise and maximize impact.
This wave of investments underscores a growing recognition of the crucial role private capital plays in driving sustainable development and addressing climate change in emerging markets.
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