Urbanization, energy demand and yawning infrastructure gaps are pulling institutional capital into South and Southeast Asia. Allianz is stepping up with private credit for mid-sized, growth-oriented infrastructure companies often overlooked by capital markets.
“Addressing infrastructure financing gaps in South and Southeast Asia is critical to sustaining growth, strengthening job creation, supporting the energy transition, and expanding access to essential services,” said Allen Forlemu of International Finance Corp., a limited partner in Allianz’s Asia Pacific Infrastructure Credit Fund.
The Indonesia Investment Authority, one of the country’s two sovereign wealth funds, also committed to the fund’s $270 million first close. INA’s Merlissa Trisno said the fund “creates a pathway for international institutional capital to support Indonesia-linked opportunities and generate broader multiplier effects.
Green infrastructure
Allianz will make loans to operating or holding companies secured by infrastructure assets with strong, predictable cash flows. The Asia Pacific Infrastructure Credit Fund will invest in renewable energy, power transmission and distribution, as well as digital infrastructure such as data centers and telecommunication networks. The fund will also target water, wastewater and other environmental infrastructure.
The private credit fund, which expects to hold its final close next year, will complement Allianz’s other Asia Pacific lending strategies, the global asset management firm’s Sumit Bhandari said.
