Today, Allianz Group and International Finance Corporation (IFC), a member of the World Bank Group, have signed a partnership under the Managed Co-Lending Portfolio Program (MCPP). The new program, MCPP One Planet is the world’s first cross-sectoral portfolio of emerging-market loans aligned with the Paris Agreement.
The partners of the new program have joint up to create a new global platform for climate smart-investment that will provide up to $3 billion to private enterprises in developing economies. The investors’ contributions will be combined with IFC’s own funds, to scale up climate-responsible financing in emerging markets.
“Our strong partnership with IFC and other engaged investors enable us to shape programs like MCPP One Planet and contribute to climate-smart economic growth in markets at scale. Huge sums need to be invested to bring emerging markets along a Paris-aligned trajectory, and we are keen to help structure these public-private collaborations and mobilize the required capital,” explained Oliver Bäte, Chief Executive Officer of Allianz SE.
The partnership with IFC underlines Allianz Group’s leading investment expertise and clear commitment to support the global transition to a low-carbon economy across markets as well as serving the customers’ interest.
Announcing MCPP One Planet at the international climate conference COP26 in Glasgow today, IFC Managing Director Makhtar Diop said: “Expanding partnerships with some of the world’s largest investors is fundamental to scaling up financial flows to emerging markets for climate-smart solutions consistent with the goals of the Paris Agreement. MCPP One Planet will create a global model for mobilization of institutional investor financing in support of the climate agenda for the most vulnerable communities on the frontlines of climate change – in emerging and developing economies.”
The Development Finance team of Allianz Global Investors has been instrumental in building the structure and will manage the vehicle on behalf of investors. IFC will originate and administer the loans on behalf of the vehicle in addition to providing a first loss protection. Deborah Zurkow, Global Head of Investments, Allianz Global Investors added: “In 2016, together with Allianz and IFC, we set up a blueprint with the MCPP on infrastructure. Today, we are proud to extend our successful partnership to the MCPP One Planet. It is a great example for effectively scaling private capital for sustainable investing as part of our Development Finance business.”
MCPP One Planet builds on successful collaboration between IFC and Allianz Group started in 2016. Then, AllianzGI established an infrastructure debt fund that co-invested with IFC in a portfolio of loans into infrastructure projects in emerging economy.
