Eastspring invests $500m in IFC infrastructure program

The platform, known as MCPP Infrastructure, is looking to raise $5 billion from global institutional investors by 2021. Eastspring is the first Asian backer. Under the agreement, IFC will originate transactions and provide Eastspring with co-lending opportunities in deals that fit the firm’s investment strategy. 

“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 infrastructure projects," Tony Adams, Eastspring’s infrastructure chief investment officer said. 

According to a statement, the rationale for MCPP includes infrastructure shortcomings in developing countries that leave 1.2 billion people worldwide with no access to electricity and more than 660 million without a clean source of drinking water. In Asia, infrastructure pressure is magnified by intense urbanization, with the number of people living in cities set to double by 2030.

Founded in 1994, Eastspring claims about $146 billion in assets under management across infrastructure, alternatives, equities and fixed income investments. It maintains operations in 10 Asian markets.   

IFC is the private investment arm of the World Bank and claims to have provided $19 billion in long-term financing for developing countries during the 2016 financial year. Recent infrastructure investments include Indian renewable energy financier Tata Cleantech Capital and Pakistan’s Karot hydroelectric power project, an early development under China’s One Belt One Road initiative.

Both IFC and Eastspring are partners of the Hong Kong Monetary Authority’s infrastructure investment platform, which hosted the MCPP investment signing ceremony (pictured).

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• Topics
• Greater China
• Infrastructure
• Fundraising
• IFC
• Asia
• energy