By Cyber Era NG Special Correspondent

IFC and Amundi-Acba Asset Management unveiled a new partnership today to catalyze private sector investment in infrastructure projects, and support job creation and economic growth in Armenia.

Amundi-Acba will become the world’s first pension fund manager to join IFC’s Master Cooperation Agreement, which provides a streamlined way for multiple lenders to provide financing to companies in developing countries, with IFC acting as lead arranger. Under the agreement, and within the framework of Armenia’s law on pension funds, the two organizations will assess the feasibility and opportunities to finance major infrastructure projects together in Armenia.

Lenders who adopt the agreement benefit from IFC’s global loan syndication platform, which has raised more than US$100 billion for private firms in emerging markets, as well as IFC’s expertise in deal-structuring, due diligence, environmental and social risk management, and impact measurement and monitoring. The aim is to scale up private capital mobilization to accelerate development and support climate mitigation and adaptation in emerging markets.

Amundi-Acba Asset Management is Armenia’s leading pension fund manager, with EUR 700 million(US$746.47million) in assets under management.

This partnership complements the cooperation between Amundi and IFC launched in 2018, when the two organizations announced the world’s largest targeted green bond fund focused on emerging markets, the Amundi Planet Emerging Green One. Amundi brings to this partnership its emerging market debt investment capabilities and its commitment to environmental, social, and governance (ESG) standards, while IFC brings its unique outreach in emerging countries. The two organizations work together to help direct capital to emerging markets through innovations and regular education and knowledge transfer programmes designed for issuers and investors alike.

“While ensuring a dignified retirement for our participants remains our main mission, contributing to Armenia’s economic development through our investments is also essential. This agreement with IFC, one of the most prestigious international institutions, will help us achieve our goal,” said CEO of Amundi-Acba, Jean Mazedjian,.

“Sustainable infrastructure is key to addressing development challenges in emerging markets, which is why supporting Armenia’s infrastructure is an important part of IFC’s mission. We welcome Amundi-Acba to our vast network of investment partners. By mobilizing capital, our goal is to amplify the positive impact of our financing on the lives of people in Armenia,” said IFC’s Regional Manager for the South Caucasus, Ivana Fernandes Duarte.

IFC launched its Master Cooperation Agreement in 2008 to foster greater collaboration among global investors and help meet the shortfall in private sector financing in developing countries. The agreement is a cornerstone of IFC’s work to enlarge the pool of responsible capital available to deliver positive social, environmental, and economic impact and help achieve the UN Sustainable Development Goals and the objectives of the Paris climate agreement.