The Hong Kong Monetary Authority (HKMA) signed an agreement with the International Finance Corporation (IFC), a member of the World Bank Group, in London, committing USD 1 billion to the innovative Managed Co-Lending Portfolio Program (MCPP) debt mobilisation 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 realising the growth potential of emerging markets in a sustainable manner,” said Mr 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.”
“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.”
Mr 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 mobilisation platform has widespread appeal,” Mr Hua said, “We have received keen interest from the market, and doubled the amount of financing available under MCPP to USD 6 billion. With these resources now available, IFC can finance vital projects that will also help the poor. We look forward to working together.”
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
About the HKMA
The HKMA is the government authority in Hong Kong responsible for maintaining monetary and banking stability.
As part of the HKMA, IFFO’s mission is to facilitate infrastructure investments and their financing by working with a cluster of key stakeholders. By establishing IFFO, the HKMA can play a valuable role as a catalyst in the facilitation of infrastructure investments and their financings with its mandate to promote Hong Kong as an international financial centre.