The Private Infrastructure Development Group (PIDG) is committing $41 million to the Infrastructure Resilience Development Fund, a blended finance vehicle aimed at shoring up climate resilience in emerging markets and developing economies across Africa and Asia.
The Fund is managed by Global Infrastructure Partners (GIP), which is part of global asset manager BlackRock. It was launched in 2024 in partnership with the insurer-led organisation, the Insurance Development Forum, a private-public initiative to drive insurance-sector investments in climate-resilient infrastructure.
The PIDG commitment comprises a $6.4 million first-loss catalytic capital investment, and a $35 million partial second-loss guarantee for investors at the end of the Fund’s life. It is subject to regulatory and investor approvals, PIDG said in a statement.
PIDG’s commitments are expected to strengthen the Fund’s risk profile for institutional investors, and help mobilise $750 million in private capital into sectors including clean energy, water and sanitation, transport, digital infrastructure, and other climate-resilient assets.
Last year, the Fund secured $340 million for its first close. Investors include AXA, Generali, Swiss Re, Zurich Insurance Group, and the International Finance Corporation.
This latest announcement follows other recent PIDG transactions in the region.
On June 15, GuarantCo, part of PIDG, provided a partial payment default guarantee covering two ten-year loan facilities totalling INR 2.6 billion that Axis Bank is extending to BECIS India. The financing will support up to 60 megawatt of solar capacity for commercial and industrial use across India.
In May, GuarantCo provided full guarantees for up to IDR 730 billion of bonds to be issued by Indonesian telecommunications infrastructure company PT Ketrosden Triasmitra.
PIDG also announced a collaboration with Singapore’s Financing Asia’s Transition Partnership (FAST-P) and Clifford Capital, to ramp up investment in sustainable infrastructure and the energy transition across Asia.
The efforts under the Energy Transition Acceleration Finance (ETAF) programme are aimed at mobilising private capital for decarbonisation projects in developing Asian economies.
PIDG is funded by the governments of the UK, Netherlands, Switzerland, Sweden, Australia, Canada, and Germany. It operates mainly in sub-Saharan Africa and South and Southeast Asia, on climate projects and sustainable development.