IDB approves US$153mn for China Exim bank LAC investment platform

IDB approved up to US$153mn in loans to establish a new equity investment platform for Latin America and the Caribbean (LAC), in partnership with Export-Import Bank of China (China Exim). The new platform is expected to mobilize as much as US$1.8bn from a diversified pool of investors, including Chinese investors, to fund equity investments that will support economic and financial integration between LAC and China, IDB said in a press release. Three regional investment funds make up the platform and will invest in capital in infrastructure, mid-size companies and natural resource projects. "The investments carried out by the platform will be environmentally and socially responsible and follow the highest standards of corporate governance," IDB said, adding that its policies will guide the environmental and social investment practices of the fund. Each fund will have a 10-year lifespan with a possible two-year extension. IDB and Exim China selected managers of each fund last month, which include Macquarie Infrastructure and Real Assets (MIRA), Darby Private Equity and SinoLatin Investment Advisors (SLIA). "The platform is expected to mobilize a significant amount of long-term commercial resources to and within Latin America and the Caribbean to support sectors that are considered key for the development of the region and that, at the same time, will play an important role in the deepening of trade activities and financial ties between our region and Asia," IDB general manager Hans Schulz said.