IFC commits $200m to emerging markets fund

Korea Development Bank (KDB) and the Fiji National Provident Fund (FNPF) have also invested in the vehicle, which reached a first close last week of an undisclosed size, according to a release. EAF has a target size of $1-1.5 billion; IFC has committed to provide either $200 million or 20% of total commitments to the fund, whichever is smaller.

The vehicle will provide additional capital for co-investments alongside IFC in emerging markets in Asia, and may also back existing IFC portfolio companies. Investments will focus particularly in the infrastructure sector but will also include manufacturing and services and financial companies such as banks, PE funds and non-banking finance companies (NBFCs).

IFC expects the fund to help it free up capital for the firm to make its own investments. Along with its financial contribution, IFC will help investee companies improve their governance standards and risk mitigation. In addition, IFC hopes its commitment will send a strong signal to outside investors of the region's potential.

"We are excited by the equity opportunities we see in emerging Asia and delivering further development impact through our clients," said Vivek Pathak, IFC's regional director for East Asia and Pacific. "We are very pleased that major institutional investors such as KDB and FNPF are partnering with us to further IFC's support of private sector development."

IFC has launched several ventures this year alongside other investors, such as a $1 billion partnership with Apollo Global Management to invest in distressed assets in emerging markets and a lending platform founded with ADM Capital and aimed at small and medium-sized enterprises in Asia.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Infrastructure
• Growth
• Fundraising
• Asia
• IFC