IFC, a member of the World Bank Group, and the State Oil Fund of the Republic of Azerbaijan (SOFAZ) today signed an agreement that expands their cooperation to support private sector development in emerging markets.

SOFAZ, Azerbaijan’s sovereign wealth fund, recently committed $50 million to the IFC Catalyst Fund which is designed to stimulate the development of funds and projects focused on renewable energy and climate-friendly solutions. This follows an investment by SOFAZ in 2010 of $100 million in the IFC African, Latin American, and Caribbean Fund. Azerbaijan was the first investor from an emerging market to invest in funds managed by the IFC Asset Management Company.

“The Republic of Azerbaijan attaches great importance to the global development agenda. That is the reason that we invest the funds generated through oil revenues in sustainable projects,” said Shahmar Movsumov, Executive Director of SOFAZ.

“We value IFC’s experience and track record of working in emerging markets and anticipate our investments delivering significant developmental impact as well as strong financial returns. We are looking at other opportunities to invest in funds managed by the IFC Asset Management Company in the near future,” he said.

Jin-Yong Cai, IFC Executive Vice President and CEO, said, “We value our partnership with the State Oil Fund of the Republic of Azerbaijan. Through agreements like this, IFC can increase its support to the private sector, which has the power to drive economic development and create opportunity where it is needed most.”

The IFC Asset Management Company, a wholly-owned subsidiary of IFC, mobilizes and invests third-party capital, enabling institutional investors to benefit from IFC’s expertise in achieving strong equity returns as well as positive development impact in the emerging markets in which it invests. It manages $4.8 billion of capital across five investment funds.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.

About SOFAZ

The State Oil Fund of Azerbaijan, the sovereign wealth fund, was set up in December 1999 by the Presidential Decree as an extra-budgetary entity which accumulates and manages oil and gas revenues of the country. The Fund’s primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations. As of 01 January, 2013, assets of SOFAZ totaled USD 34 129.4 million.