Our anchor investment in the ACE fund is unlocking institutional capital for climate-focused investments across emerging markets
The scale of investment required to tackle climate change and support sustainable growth in emerging markets far exceeds the capacity of development finance institutions alone. Mobilising private capital alongside public funding is therefore critical to achieving impact at scale.
In 2025, we became an anchor investor in the Allianz Credit Emerging Markets (ACE) fund, a landmark blended finance vehicle targeting up to $1 billion in investment.
The fund brings together development finance institutions, multilateral banks and private investors within a blended structure. Concessional capital from public institutions, including our $40 million commitment, provides a first-loss tranche that reduces risk and volatility for commercial investors. This will enable up to a further $850 million in private capital to be mobilised into emerging markets.
At first close, the fund secured $690 million in commitments, including $540 million of commercial capital, demonstrating strong investor appetite for well-structured opportunities that combine financial returns with climate and development impact.
ACE will invest in private credit across sectors such as clean energy, sustainable infrastructure, agriculture and financial services, supporting Paris Agreement goals while directing capital to underserved markets across Africa, Asia and beyond.
Our commitment to the ACE fund highlights how we are using concessional capital strategically to unlock significantly larger flows of private finance and help build scalable models for investment in emerging economies.
