IDB Invest has structured an investment of up to $40 million to the Allianz Credit Emerging Markets Fund, unlocking new financing in Latin America and the Caribbean (LAC).
WASHINGTON - IDB Invest has structured an investment of up to $40 million in the Allianz Credit Emerging Markets Fund S.A. (the “Fund”), an innovative blended finance vehicle managed by Allianz Global Investors (AllianzGI).
IDB Invest’s financing package includes a commitment of $10 million from its own resources and $30 million from the Canadian Climate Fund for the Private Sector in the Americas (C2F Phase II) in the junior tranche of the Fund. The Fund has been designed to mobilize private capital towards impactful and sustainable development transactions across emerging markets.
The target Fund size is $1 billion, much of which is expected to be raised from institutional investors. At least 30% of the Fund will support sustainable investments in Latin America and the Caribbean, supporting key sectors including energy, infrastructure, manufacturing, agriculture and financial services, among others.
The initiative responds to a long-standing challenge in the region: the limited availability of long-term financing in smaller or higher-risk markets, particularly in Central America and the Caribbean. This transaction is a key step in IDB Invest’s originate-to-share business model and contributes to building programmatic platforms that scale private capital mobilization.
In addition to its financial contribution, IDB Invest will provide advisory support to AllianzGI to enhance the Fund’s investment process, and assess the Fund's portfolio exposure and investor reporting, among others.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of US$22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet its clients' needs across various sectors. Visit our website: idbinvest.org/en.
About Allianz Global Investors
Allianz Global Investors is a leading active asset manager with more than 700 investment professionals in over 20 offices worldwide and managing EUR 580Bn in assets. We believe that with every change comes an opportunity. Our goal is to actively shape the future of investing for all our clients, wherever their location and whatever their objectives. Curious and active in everything we do, we aspire to generate impact beyond alpha, steering our clients’ assets towards the right place at the right time, and building solutions that draw on capabilities across public and private markets.
About the Canadian Climate Fund for the Private Sector in the Americas – Phase II
The purpose of the Canadian Climate Fund for the Private Sector of the Americas - Phase II is to catalyze greater private investment to climate change mitigation and adaptation projects in Latin America and the Caribbean, offering concessional financing to projects that do not benefit from a sovereign guarantee, paying special attention to the poorest and most vulnerable countries. The main areas of investment are generation technologies with renewable energy and storage, energy efficiency, sustainable transport and projects to reduce greenhouse gases, including reforestation, sustainable agriculture and improvement of land use, as well as supporting adaptation to vulnerability to climate change. The resources have a transversal investment mandate to promote gender equality.