Hong Kong SAR, China, June 28, 2017—IFC,
a member of the World Bank Group, today signed an agreement with Eastspring
Investments, the Asian asset management business of Prudential plc, to
raise $500 million for an innovative IFC program that mobilizes funds from
institutional investors for infrastructure projects in emerging markets.
Eastspring is the first Asian investor to participate in the program, known
as MCPP Infrastructure. The signing ceremony was hosted by Norman Chan,
Chief Executive of the Hong Kong Monetary Authority (HKMA).
The program seeks to raise $5 billion from global institutional investors
to modernize infrastructure in emerging markets by 2021, opening up a new
stream of capital flows to improve power, water, transportation, and telecommunications
systems in developing countries.
“Building sustainable infrastructure strengthens economies, allows for
cross-border business, and helps create new markets,” IFC Vice President
and Treasurer, Jingdong Hua said 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. IFC will continue
to work with governments and investors to mobilize additional resources
for infrastructure development in developing countries.”
“We look forward to working with IFC on this initiative. As a business
with a strong focus in the developing world, we have long been committed
to realising the full growth and development potential of emerging markets.
Raising awareness and boosting infrastructure investment is a crucial
part of that and we are always looking for innovative and sustainable ways
to provide attractive long term returns for our clients. This partnership
enables us to make a significant contribution to the economies and communities
of developing countries while investing in infrastructure projects that
deliver compelling returns for our clients,” said Virginie Maisonneuve,
Chief Investment Officer of Eastspring Investments.
In most developing countries basic infrastructure is failing, insufficient,
or non-existent—compromising livelihoods and holding back economies. More
than 1.2 billion people worldwide have no access to electricity. More than
660 million people don’t have a clean source of drinking water and one
in three people worldwide lack access to sewage infrastructure. With
the number of people living in cities in Asia estimated to double by 2030,
the infrastructure deficit will only become larger.
Under the agreement IFC will originate transactions and provide Eastspring
with co-lending opportunities in all deals that fit with Eastspring's investment
Commenting on this partnership, Tony Adams, Infrastructure CIO at Eastspring
Investments said, “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. 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
"I am delighted to host the signing ceremony between IFC and Eastspring,
both of whom are valuable partners of the HKMA Infrastructure Financing
Facilitation Office (IFFO)”, said Norman Chan, Chief Executive of the
HKMA. “Trillions of dollars a year are required to bridge the infrastructure
gap in emerging markets, and it is impossible for the public sector alone
to fulfil such needs without substantially drawing in private sector capital.
Through the IFFO platform, we look forward to collaborating more closely
with public and private sector stakeholders, with a view to developing
a more conducive environment in Hong Kong for facilitating infrastructure
investment and financing.”
MCPP Infrastructure is designed for institutional investors seeking to
increase their exposure to emerging markets infrastructure. Through the
program, IFC originates, approves, and manages a portfolio of loans that
mirrors IFC’s own portfolio in infrastructure.
With support from the Swedish International Development Cooperation Agency
(Sida), IFC provides a limited first-loss guarantee on the program’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.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit
About Eastspring Investments
Eastspring Investments, part of Prudential Corporation Asia, is Prudential's
asset management business in Asia. With operations in 10 Asian markets
as well as offices in North America and Europe), we have almost 2,500 employees
and US$146 billion in assets under management (as of 31 December 2016).
We were named Asia’s leading retail fund manager for 2016 in an annual
survey by Asia Asset Management. The annual survey ranks participating
fund managers in Asia, ex Japan, Australia and New Zealand, based on assets
sourced in the region as of June 30, 2016. For more information on Eastspring
Investments, please visit: www.eastspring.com
As part of the HKMA, IFFO’s mission is to facilitate infrastructure investments
and their financing by working with a cluster of key stakeholders. The
functions of IFFO are:
- Providing a platform for information
exchange and experience sharing;
- Building capacity and knowledge on infrastructure
investments and financing;
- Promoting market and product development;
- Facilitating infrastructure investment
and financing flows.
By establishing IFFO, the HKMA can play a valuable role as a catalyst in
the facilitation of infrastructure investments and their financings with
its mandate to promote Hong Kong as an international financial centre.
For more information about IFFO, please visit http://www.iffo.org.hk