BII Provides $1bn for Allianz’s Blended Finance Fund

Kayode Tokede

British International Investment (BII), yesterday announced it will be an anchor investor for the $1billion for Allianz Credit Emerging Markets fund (ACE).

The blended finance fund, which was launched at BII in London, brings together a number of public and private institutions.

Development finance institutions, such as BII and MDBs, will provide $150 million of concessionary capital for the junior tranche of the fund. This will significantly reduce volatility and support the return expectations for private investors that will provide up to a further $850 million if the expected final close target of $1 billion is reached.

UK Minister for International Development and Africa, Baroness Chapman in a  statement  said: “BII’s participation in the ACE fund demonstrates how we are modernising our approach to international development, by working as partners and investors.

“We are using UK government support to attract more private investment to create a bigger impact – ensuring every pound we invest generates much more funding for countries in the Global South to tackle the climate emergency. This approach helps Britain too, boosting growth, bringing in investment and returns for UK taxpayers and positions us as a key hub for helping emerging economies.”

Also, Chief Executive of BII, Leslie Maasdorp said: “At BII we recognise that we must use our scarce concessionary capital to unlock the vast pools of private finance that is required to meet the global challenge of the climate emergency and drive sustainable, impact-led growth in some of the least developed countries in the world. Today’s announcement is another milestone for BII in achieving that key objective.”

Head of Private Markets, AllianzGI, Edouard Jozan said: “Addressing climate change cannot be focused solely on investing in developed markets – launching ACE is a bold step forward in mobilising institutional capital to address global development priorities including climate.”