Washington, D.C. April 12, 2010—Investors
from Azerbaijan, the Netherlands, Saudi Arabia, and South Korea have joined
IFC in committing to a fund to make equity investments in companies in
Africa, Latin America, and the Caribbean, providing a new way to finance
growth and jobs in the developing world.
IFC has committed up to $200 million
as a limited partner in the IFC African, Latin American, and Caribbean
Fund, L.P. Other anchor investors in the fund, with total commitments of
up to $600 million, are PGGM, the Dutch pension fund manager; Korea Investment
Corporation; State Oil Fund of the Republic of Azerbaijan; and a fund investor
from Saudi Arabia.
The fund provides an opportunity for
sovereign and pension fund investors to co-invest for the first time with
IFC in growth equity investments in developing countries. The fund is part
of IFC’s broader strategy to increase its commitment to Africa, Latin
America, and the Caribbean and to mobilize third-party capital where it
is needed most.
"Pension and sovereign funds represent
a significant savings pool that is seeking commercial returns and portfolio
diversification,’’ said World Bank Group President Robert B. Zoellick,
who in 2008 called for sovereign wealth funds to invest in equity in sub-Saharan
Africa as a way of tapping long-term global savings to boost investment
opportunities and development. “`With this fund, we will demonstrate that
developing countries have high-quality investment opportunities to attract
commercial investors. The private sector will be crucial to a sustained
recovery from the global economic crisis and for future growth.”
Lars Thunell, IFC CEO and Executive
Vice President, added, "This fund is part of IFC’s strategy to address
the increasing number of investment opportunities in frontier markets.
With the launch of this fund we are providing equity co-investment opportunities
to sovereign and pension fund investors for the first time. We are proud
to work with these institutions, which share our vision of sustainable
investment opportunities in these markets."
Fons Lute, the Managing Director Alternative
Strategies at PGGM, said: “We are very pleased about this new partnership
with IFC, which will give us greater access to frontier markets where we
see a lot of potential for growth over the long term,"
The fund will be managed by IFC Asset
Management Company, LLC (“AMC”), a wholly owned subsidiary of IFC. This
is AMC’s second fund under management, joining the $3 billion IFC Capitalization
Fund, which invests in systemically important banks in emerging markets.
Private sector development remains the
most effective way for developing nations to grow, create jobs and provide
people with the opportunity to escape poverty. The establishment
of the IFC African, Latin American, and Caribbean Fund comes as net private
capital flows to emerging markets have declined significantly since their
peak in 2007. From the perspective of investors, investments in emerging
markets, especially frontier markets, represent an asset class that can
bring diversification and long-term capital-growth opportunities.
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. Through its investments — including
in this first-of-its-kind IFC African, Latin American, and Caribbean Fund
— IFC creates opportunities for the poor in developing countries.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing capital for private enterprise,
and providing advisory and risk mitigation services to businesses and governments.
Our new investments totaled $14.5 billion in fiscal 2009, helping channel
capital into developing countries during the financial crisis. For more
information, visit www.ifc.org.
This press release is not an offer
to sell or solicitation of an offer to buy securities in the United States
or to any "U.S. person" as such term is defined in Regulation
S under the Securities Act of 1933, as amended (Securities Act).
Interests in the Fund described herein have not been registered under
the Securities Act and may not be offered or sold in the United States
or to U.S. persons except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act.