The Hong Kong Monetary Authority (HKMA) has signed an agreement with the International Finance Corporation (IFC), a member of the World Bank Group, committing US$1 billion to the innovative MCPP debt mobilization platform for emerging markets.
The HKMA will support IFC in financing projects across more than 100 countries, including in infrastructure, telecom, manufacturing, agri-business and services.
“MCPP is an essential part of IFC’s business development in emerging markets. This new partnership with the HKMA signifies the expansion of IFC’s base of important long-term, strategic partners. With the collaborative efforts of two institutions, we look forward to further realizing the growth potential of emerging markets in a sustainable manner," says Dimitris Tsitsiragos, IFC Vice President, New Business at the signing ceremony.
"The HKMA’s participation in MCPP will allow IFC to provide more financing to projects, benefiting millions of people by creating jobs, raising living standards, and improving connectivity."
The Chief Executive of the HKMA, Norman Chan said: "We are very pleased about this new partnership with IFC, which provides a useful platform for the HKMA to broaden its investment opportunities in the credit market.”
“Emerging markets present a broad array of untapped investment opportunities with good long-term growth potential. Joining hands with IFC allows long-term institutional investors like the HKMA to ride on the considerable expertise, experience and network of IFC in sourcing investable opportunities with proper risk management and governance framework. Together, we will support commercially viable projects in emerging markets.”
“Noting the attractiveness of steady long-term return in infrastructure investments, the HKMA has been active in expanding this new asset class for the Exchange Fund. The setting up of the Infrastructure Financing Facilitation Office (IFFO) has facilitated this process by bringing together like-minded investors, multilateral development institutions like IFC and project developers. IFFO will continue to play a catalytic role in pooling together interested equity and credit investors for infrastructure investments in emerging markets.”
Jingdong Hua, Vice President and Treasurer of IFC, warmly welcomed the HKMA as a new partner. “This signing with one of the world’s most respected institutional investors demonstrates again that MCPP as a mobilization platform has widespread appeal,” Hua said. “We have received keen interest from the market, and doubled the amount of financing available under MCPP to US$6 billion. With these resources now available, IFC can finance vital projects that will also help the poor.”