Allianz Global Investors targets $1 bln for blended finance debt fund

LONDON, Nov 2 (Reuters) – Allianz World Buyers on Wednesday mentioned it’s seeking to increase $1 billion for its third blended finance debt fund, a mixture of concessional and institutional capital seen as a vital path to scaling up non-public funding in rising economies.

Blended finance is prone to be a key focus for world leaders on the COP27 local weather talks in Egypt beginning subsequent week, as policymakers look to handle the historic shortfall in climate-related finance in rising markets.

The Allianz Local weather Options Rising Markets (ACSEM)technique, which AllianzGI will handle, will embrace funding from its dad or mum, German insurer Allianz (ALVG.DE), in addition to an unknown regional growth finance establishment (DFI).

Each Allianz and the DFI will assist supply initiatives throughout a spread of low-carbon sectors together with power, infrastructure and agriculture, with a give attention to each local weather adaptation and resilience.

The fund will probably be AllianzGI’s third blended finance debt technique. The agency has to this point raised $2.5 billion throughout 5 blended finance funds in each debt and fairness since 2017.

Personal finance in creating economies hit a document $250 billion final yr, in response to the Worldwide Financial Fund, however should greater than double by 2030 to maintain on monitor to hit the world’s local weather aim, a London College of Economics research mentioned.

Blended finance is a type of funding that goals to encourage industrial traders into riskier initiatives by elevating cash from concessional traders akin to growth finance establishments or philanthropies.

Reporting by Virginia Furness; Enhancing by Simon Jessop and Mark Porter

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