IFC commits $200 M to Emerging Asia Fund
The International Finance Corp. (IFC) has committed $ 200 million to its Emerging Asia Fund (EAF), a financing instrument for emerging markets in Asia that can be tapped for infrastructure development and raising the standard of operations of private companies.
In a statement, the IFC said the fund would encourage investments “across multiple sectors in Asia” to boost growth and investment in the region.”
Other contributors to the fund are Korea Development Bank (KDB) and Fiji National Provident Fund (FNPF).
The IFC, a member of the World Bank Group, is a development institution focused on the private sector in emerging markets. In 2015, its long-term investments in developing countries rose to $18 billion.
IFC said providing additional capital to emerging Asian markets is important because of the scale of investment, innovation, technological development and employment creation required for sustainable development falls beyond the range of the public sector.
“(This) makes the private sector central to finding and financing the development solutions that are needed,” said the IFC.
The organization said investments made through the use of the fund would be aligned to its strategy of addressing infrastructure deficit, helping investee companies raise standards, improve risk mitgation and generate value.
“We are excited by the equity opportunities we see in emerging Asia and delivering further development impact through our clients,” said Vivek Pathak, IFC 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 said using the fund would contribute to the attainment of aspirations under the Sustainable Development Goals ( SDGs) agreed upon by UN member states in 2015 by providing emerging countries easier access to global capital.
The organization noted that despite being an engine of growth, emerging Asia is home to two thirds of the world’s poorest.