IFC, Sovereign Funds To Invest In Africa, Latam, Caribbean - The Wall Street Journal (12.04.2010)

The Wall Street Journal

APRIL 12, 2010, 5:11 P.M. ET.

IFC, Sovereign Funds To Invest In Africa, Latam, Caribbean

WASHINGTON (Dow Jones)--The International Finance Corp. announced Monday a new fund to allow sovereign and pension fund investors to co-invest in equities in Africa, Latin America and the Caribbean.

The IFC, the World Bank private-sector arm, has committed up to $200 million to the fund. Investors from Saudi Arabia, South Korea, the Netherlands and Azerbaijan have committed up to $600 million, as well. They include the Korea Investment Corp., Dutch pension fund manager PGGM, the State Oil Fund of the Republic of Azerbaijan, and a Saudi fund investor.

The new fund follows World Bank President Robert Zoellick call in 2008 for sovereign wealth funds to invest in equity in sub-Saharan Africa.

"Pension and sovereign funds represent a significant savings pool that is seeking commercial returns and portfolio diversification," said Zoellick in a statement. "With this fund, we will demonstrate that developing countries have high-quality investment opportunities to attract commercial investors."

-By Tom Barkley, Dow Jones Newswires; 202-862-9275;

tom.barkley@dowjones.com

http://online.wsj.com/article/BT-CO-20100412-712869.html