Azerbaijan’s State Oil Fund, the country’s sovereign wealth fund, has committed $150 million to the International Finance Corporation’s (IFC) global infrastructure fund, the latter announced earlier this week.
The IFC Global Infrastructure Fund, as the vehicle is known, has raised $500 million so far, with the IFC committing $100 million of its own money. The remaining funds are coming from other sovereign wealth funds and pensions.
The Azeri sovereign wealth fund said in a statement it was prepared to top up its $150 million commitment with a further $50 million once the vehicle reaches a final close.
The IFC Global Infrastructure Fund will target equity and equity-like investments in core infrastructure across the power, transport, utilities, and telecommunications sectors. It will target emerging markets.
The IFC, a member of the World Bank Group, is a significant investor in emerging market infrastructure. Last year, it invested $2.7 billion in core infrastructure, including close to $1.3 million garnered from third-party investors. The projects it funded helped provide water to over 34 million people and power to nearly 42 million, the IFC said.
Through its asset management arm – IFC Asset Management Company – the World Bank member manages $5.2 billion of capital, including third-party capital, across six investment funds. IFC Asset Management Company will manage the IFC Global Infrastructure Fund.
The State Oil Fund of the Republic of Azerbaijan was started in 1999. It manages $34 billion as of January 1, 2013.