BII anchors Allianz ACE fund, mobilising $1 billion for climate finance in emerging markets and supporting sustainable development goals

British International Investment, BII, the United Kingdom’s impact investor and development finance institution, yesterday announced it will be the anchor investor for the Allianz Credit Emerging Markets fund, known as ACE.

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The blended finance fund, launched in London, aims to mobilise up to $1 billion to support climate finance and the Paris Agreement goals in emerging economies.

BII will contribute $40 million of the $150 million in concessionary capital allocated to the fund’s junior tranche, alongside Global Affairs Canada, the Inter-American Development Bank Invest, the Swedish International Development Cooperation Agency, and Impact Fund Denmark.

Allianz SE and GastroSocial Pensionskasse will anchor the senior tranche.

The first close of the fund has already secured $690 million in commitments.

Leslie Maasdorp, Chief Executive of BII, described the fund as a “strategic milestone” in using limited concessionary capital to unlock significant private investment.

Approximately 40 per cent of the fund’s disbursements are expected in Africa, with the remainder spread across other emerging markets.

Investments will target sectors including renewable energy, clean transportation, agriculture, and financial services.

Baroness Chapman, UK Minister for International Development and Africa, emphasised the broader impact of the initiative.

“BII’s participation demonstrates how the UK is modernising international development by attracting private investment to create a bigger impact while generating returns for taxpayers,” she said.

Edouard Jozan, Head of Private Markets at Allianz Global Investors, highlighted the collaborative nature of the fund.

“ACE is a bold step in mobilising institutional capital for global development priorities, delivering both measurable outcomes and attractive returns,” he said.

The ACE fund is the third major initiative under BII’s £100 million mobilisation facility, launched in 2024.

Previous projects include the Pentagreen Green Investment Partnership for sustainable infrastructure in South-East Asia and a collaboration with BlueOrchard to unlock life insurance capital for climate finance.

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BII also commits at least 30 per cent of new investments between 2022 and 2026 to climate finance and supports women’s economic empowerment through the 2X Challenge.