Allianz Global Investors has launched a new blended finance emerging markets credit fund aimed at accelerating the flow of climate finance into emerging markets.
The fund, which was launched in London on Monday, is backed by Allianz SE and Swiss pension fund GastroSocial Pensionskasse as anchor investors in its senior tranche.
It has also received $150mn in concessional capital from multilateral development banks, including $40mn from British International Investment (BII), the UK’s development finance institution and impact investor. The concessional capital is intended to reduce volatility and support return expectations for private investors.
Other backers include Global Affairs Canada, Canada’s development agency, the Inter-American Development Bank Invest (IDB Invest), the Swedish International Development Cooperation Agency and Impact Fund Denmark (IFDK).
The fund will invest across a range of sectors including renewable power, clean transport, agriculture and financial services. A significant proportion of disbursements from the Allianz Climate Engagement (ACE) fund will be directed towards Africa.
BII’s investment in the ACE fund is the third announced under its £100mn mobilisation facility, launched by UK prime minister Keir Starmer in 2024.
The facility has previously supported the Pentagreen Green Investment Partnership, which focuses on sustainable infrastructure in south-east Asia, and BlueOrchard, a blended finance fund providing life insurance capital for climate finance.
