Investors including the Caisse de dépôt et placement du Québec and the C$128.6 billion ($97 billion) Ontario Municipal Employees Retirement System, Toronto, have committed to invest an initial $400 million to the emerging markets energy transition under the Emerging Markets Transition Debt initiative.
The debt strategy is managed by investment manager Ninety One, which had £128.6 billion ($164.2 billion) in assets under management as of June.
According to a July 29 news release, the strategy "looks to provide companies in emerging markets with commercial financing to make critical investments, including in low-emission infrastructure and in heavy emitting companies with a credible transition plan — helping reduce carbon emissions and supporting the global energy transition."
United States Secretary of the Treasury Janet Yellen and South African Finance Minister Enoch Godongwana recently praised efforts to pull institutional capital into emerging markets through the Emerging Markets Transition Debt initiative.
"For many of the investors involved, this initiative represents a significant step forward in expanding their investments in emerging markets. It shows that we are making tangible progress on our ambition to increase private capital mobilization for emerging markets, with hopefully much more progress ahead," Yellen said at a G20 event in Brazil last month.
