Allianz becomes first insurer to invest in the Emerging Africa Infrastructure Fund

Allianz is to provide financing of €75m and $25m, in a 12-year deal, as the Emerging Africa Infrastructure Fund’s (EAIF) first insurance investor. The EAIF debt financing is the second emerging markets (EM) blended-finance transaction within 12 months, run by Allianz Global Investors (AllianzGI) on behalf of Allianz Group investing for their insurance portfolios. This brings the total commitment of Allianz Group to EM blended finance through the AllianzGI infrastructure debt platform to more than $600m. Nazmeera Moola, head of EAIF’s fund manager, Investec Asset Management, said: “Bringing the vision and support of a lender of Allianz’s calibre on board represents a milestone in terms of mobilising private capital into infrastructure projects across the continent. This debt raising exemplifies the gains to be made from PIDG’s blended finance approach. IAM has a successful track record of co-investing private and public funds side by side in both private credit and private equity funds in Africa.” Sebastian Schroff, global head of private debt, Allianz Investment Management, added: “We believe in Africa’s growth potential and will invest across different asset classes across the continent. The partnership with EAIF and Investec Asset Management is an important contribution to this initiative and illustrates how to create attractive risk-return profiles with the necessary downside protection for our policyholders.” Allianz said this EAIF investment creates value for Allianz’s insurance customers and fits into the international investment strategy of Allianz Group. It said: “The African continent offers a positive long-term growth outlook driven by factors such as favorable demographics, an expanding middle-class and urbanisation.” EAIF is part of the Private Infrastructure Development Group (PIDG), a donor-backed organisation that encourages private sector infrastructure investment in the world’s lowest-income countries. PIDG blends public and private finance to reduce investment risk, promote economic development and combat poverty. Allianz’s investment in EAIF marks the start of PIDG’s drive to attract greater levels of funding from institutional and commercial sources. Nadia Nikolova, director, infrastructure debt at AllianzGI, said: “We are delighted to put our infrastructure debt expertise to work to help facilitate Allianz’s investment strategy in Africa. In the last five years, our global infrastructure debt platform has invested more than €10bn into infrastructure projects across the globe. As Africa unlocks its economic potential, the continent will become increasingly important for institutional investors.” In addition to Allianz, KfW has again made a key contribution, of about $140m. Helmut Gauges, head of the Africa/Middle East directorate at KfW Development Bank, explained: “We are pleased to expand our commitment to the EAIF. This partnership and the investments in renewable energy and cleaner technologies strengthen economic development across large parts of the African continent and improve the quality of life of those living there.” Since its foundation, EAIF has invested about $1.3bn, which has been instrumental in attracting more than $10.9bn of private capital investment to 70-plus projects in some 22 Sub Saharan African countries.

Allianz becomes first insurer to invest in the Emerging Africa Infrastructure Fund

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