Paris, April 18th, 2024 — IFC, a member of the World Bank Group, and Amundi, the leading European asset manager, announced the final closing of the SEED, which stands for - Sustainable Emerging Economy Development Debt (the "Fund"), a sub-fund of Amundi Planet II, SA SICAV-RAIF. Launched in 2021 on the sidelines of COP26 in Glasgow, the fund has raised $436 million from institutional investors, including IFC, Alecta, Cassa Depositi e Prestiti ("CDP"), and APK-Pensionskasse, thereby mobilizing private investment in emerging market sustainable bonds, with the objective of promoting a green, resilient, and inclusive economic recovery. The Fund is classified as Article 8 under the Sustainable Finance Disclosures Regulation (SFDR)[1].
The initiative is intended to help to expand the availability of and demand for underdeveloped segments of the sustainable bond market, strengthening the asset class and driving greater resources towards priority areas such as climate mitigation and gender equality. The capital structure seeks to limit the risk for commercial investors who might be otherwise averse to investing in impact-oriented bonds on their own, particularly in less developed markets. In addition to mobilizing much needed capital, the strategy provides a new model for other asset managers and institutional investors to replicate, further amplifying its impact.
"This Fund underscores the growing interest in sustainable bonds as well as their resilience in the face of global economic uncertainty," said Tomasz Telma, Director and Global Head of IFC's Financial Institutions Group. "Innovative financing solutions such as the SEED fund enable greater mobilization of private sector capital to emerging markets, aiming to address a massive financing gap and channeling resources to meet global challenges."
Jean-Jacques Barbéris, Head of the Institutional and Corporate Clients Division and ESG at Amundi, added "We are proud to play a leading role in responsible finance together with the IFC, tackling key challenges such as inequality and climate change. This Fund is a great example of the benefits of public-private partnerships in creating new markets trying to help addressing financing gaps in regions where funding is most needed."
"The investment gives Alecta an opportunity to support a more sustainable development by encouraging the issuance of green, social and sustainability-linked bonds in emerging markets," said Tony Persson, Head of Fixed Income and Strategy at Alecta. "The Fund is building on Amundi's prior experience from green bond issuance, with Amundi Planet, SICAV-SIF - Emerging Green One as a proof of concept for catalyzing green finance in emerging markets. This is an example of Alecta's ambition to combine attractive returns and positive impact for our beneficiaries."
Paolo Lombardo, Head of International Cooperation for Development at CDP remarked, "We are pleased to join an initiative aimed at fostering high-impact investments in our strategic partner countries. The promotion and expansion of green and sustainable bonds within financial markets present an invaluable opportunity to boost investments in critical sectors such as green and social infrastructures. These initiatives are indispensable for nurturing the sustainable development of emerging markets."
"In terms of sustainability matters, many issuers from emerging markets are currently not in compliance with our ESG standards. Disengagement or divestment will not change that fact. This investment by APK is a perfect example of how we can promote positive change in emerging markets while at the same time securing attractive returns for our beneficiaries", added Poul Thybo, Head of Investment at APK.
The Fund requires that investments comply with International Capital Markets Association Principles (ICMA) governing sustainable bonds and will implement review mechanisms and impact reporting to ensure such investments are aligned with the strategy's goals. The strategy contributes to IFC's commitments under the World Bank Group's Climate Change Action Plan. To extend the reach into low-income countries, the International Development Association's Private Sector Window (IDA PSW) is providing a partial credit guarantee through its Blended Finance Facility. To further support the strategy, a Technical Assistance Facility was designed to increase the quality and quantity of sustainable bond issuance in emerging markets, deepening market awareness and strengthening best practices across the industry.
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Main Risks and SRI
See "Risk Descriptions" in the Prospectus of the Fund for more information[2] and the SRI in the PRIIPS KID of the Fund available at https://www.amundi.lu/professional/product/view/LU2608824061 for more information.
Costs
For information on costs, charges and other expenses, please refer to the Prospectus and the PRIIPS KID available at https://www.amundi.lu/professional/product/view/LU2608824061
SFDR
Please refer to the Amundi Responsible Investment Policy and the Amundi Sustainable Finance Disclosure Statement available at https://about.amundi.com/legal-documentation. For more product-specific information, please refer to the Prospectus and the Fund's Pre-contractual Document (PCD) available at https://www.amundi.lu/professional/product/view/LU2608824061
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's vision to create a world free of poverty on a livable planet, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
About Amundi
Amundi, the leading European asset manager, ranking among the top 10 global players[1], offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €2 trillion of assets[2].
With its six international investment hubs[3], financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 5,500 employees in 35 countries.
[1] Source: IPE "Top 500 Asset Managers" published in June 2023, based on assets under management as at 31/12/2022
[2] Amundi data as at 31/12/2023
[3] Boston, Dublin, London, Milan, Paris and Tokyo
About Alecta
Alecta manages collectively agreed occupational pensions. Since 1917, our mission has been to provide the best possible occupational pensions for our corporate and private customers. We focus on high returns, great customer service and low costs. We manage approximately 1200 billion SEK for our owners – 2,8 million private clients, and 36 000 corporate clients.
About APK-Pensionskasse
APK-Pensionskasse is a multi-employer pension fund in Austria with around €6 billion in assets under management. APK operates completely independently from banks and other financial institutions. APK has one of the best track records of all pension funds in Austria and has received several international awards for its asset management services.
About Cassa Depositi e Prestiti
CDP is the Italian National Promotional Institution and the Financial Institution for International Development Cooperation entrusted by the Italian State to foster the sustainable development of Italy and partner countries. CDP supports economic growth, social inclusiveness and ecological transition by investing in innovation, business competitiveness, infrastructures and local development. According to its 2022-2024 Strategic Plan it is expected to mobilize a total of 128 billion euro investments within 2024.
Important Information
This is a marketing communication. Please refer to the prospectus / information document and to the KID before making any final investment decisions.
This document is intended solely for the attention of journalists and professionals of the press/media sector. The information contained herein concerning AMUNDI PLANET II - SEED (SUSTAINABLE EMERGING ECONOMY DEVELOPMENT DEBT)] is provided solely to enable journalists, media professionals and media to have an overview of AMUNDI PLANET II - SEED (SUSTAINABLE EMERGING ECONOMY DEVELOPMENT DEBT)and whatever use they make, which is exclusively for independent editorial, Amundi assumes no responsibility. The information in this document is as at 31/01/2024 except where otherwise stated. This material is based on sources that Amundi considers to be reliable at the time of publication. Data, opinions and analysis may be changed without notice.
[1] The fund promotes environmental or social characteristics, but does not have as its objective a sustainable investment
[2] All investments involve risks. The risk information in this slide is intended to give an idea of the main risks associated with this fund. Any of these risks could negatively impact the value of the fund. Please refer to the Prospectus and [KID/KIID] available at https://www.amundi.lu/professional/product/view/LU2608824061 for further information on risks. The SRI represents the risk and return profile as presented in the Key Information Document (KID). The lowest category does not imply that there is no risk. The SRI is not guaranteed and may change over time.
