The State Oil Fund of the Republic of Azerbaijan (SOFAZ) joined International Finance Corporation (IFC), the governments of Canada and the United Kingdom in investing in newly created IFC Catalyst Fund, which is designed to stimulate the development of funds and projects focused on renewable energy and climate-friendly solutions.

The IFC Catalyst Fund, which will be managed by a wholly owned subsidiary of IFC, IFC Asset Management Company, LLC ("AMC"), allows to co-invest in funds that provide growth capital to companies developing innovative ways to improve resource efficiency and address climate change.

During the first closing the IFC Catalyst Fund has managed to raise around USD 280 mln. of which USD 50 mln. is committed by SOFAZ. In 2010 SOFAZ made an investment in the amount of USD 100 million to the IFC African, Latin American, and Caribbean Fund.

Commenting on the investment Mr. Shahmar Movsumov, Executive Director of SOFAZ said: “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. 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”.

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 totalled USD34 129.4mln.