Glasgow, United Kingdom, November 3, 2021—IFC announced today that it will partner with two institutional investors, Allianz through Allianz Global Investors, and the Hong Kong Monetary Authority, to create a new $3 billion global platform for climate-smart investment aligned with the Paris Agreement.
The new program, MCPP One Planet, combines institutional investor contributions with IFC's own funds to scale up climate-responsible financing for private companies in emerging markets.
MCPP One Planet will create the world's first cross-sectoral portfolio of emerging-market loans aligned with the Paris Agreement. The facility enables institutional investors to directly provide capital for sustainable lending in emerging markets — allowing investors to scale up their exposure to this asset class and increase the share of their portfolios aimed at climate-resilient development.
MCPP One Planet builds on successful collaboration between IFC and its partners and will mark a further scale-up of IFC's innovative Managed Co-Lending Portfolio Program (MCPP) private debt platform. Since its launch in 2013, MCPP has raised over $10 billion from 11 investors and provided financing to more than 200 firms across 55 developing countries.
Announcing MCPP One Planet at COP26 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."
"Our strong partnership with IFC and engaged investors enable us to shape programs like MCPP One Planet and contribute to climate-smart economic growth in markets of 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," said Oliver Bäte, Chief Executive Officer of Allianz SE.
"In 2016, together with Allianz and IFC, we set up a blueprint to mobilize private capital via 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," said Deborah Zurkow, Global Head of Investments, Allianz Global Investors.
"The HKMA has partnered with IFC in the MCPP initiative targeting sustainable investments across emerging markets since 2017. We are very pleased to further our partnership with IFC to develop MCPP One Planet which aligns with the HKMA's commitment to green and sustainable investments. Climate risk is one of the biggest threats to our planet and future generations. Joining hands with IFC allows the HKMA to tap into the considerable expertise, experience and network of IFC in sourcing investable and climate-responsible opportunities with proper risk management and governance framework. Together with IFC and other like-minded partners, we believe the MCPP One Planet initiative will support emerging markets in accelerating their transition to low-carbon economies and provide the catalytic and demonstrative effect in the scaling of climate-responsible investments," said Eddie Yue, Chief Executive of the HKMA.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life, and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world's largest investors, managing around €793 billion on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage more than €1.8 trillion of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of €140 billion and an operating profit of €10.8 billion for the group.
The HKMA is Hong Kong's central banking institution. The HKMA's four main functions are: (i) maintaining currency stability within the framework of the Linked Exchange Rate System; (ii) promoting the stability and integrity of the financial system, including the banking system; (iii) helping to maintain Hong Kong's status as an international financial center, including the maintenance and development of Hong Kong's financial infrastructure; and (iv) managing the Exchange Fund.