Ashmore, EBRD to Partner on EM Private Debt Concept

EM specialist Ashmore, the London-listed investment house with $50.7 billion under management, has announced a significant new proof-of-concept project utilising its Impact Debt strategy, in partnership with the leading multilateral European Bank for Reconstruction and Development (EBRD).

Ashmore says the POC for the strategy will be backed by a grant from Convergence, the Toronto-based international finance organisation and selecting entity for the project, and Global Affairs Canada. The envisioned fund target is $500 million.

The partners will assess whether a structure can be developed to mobilise capital from institutions into through a diversified portfolio of impact-oriented private debt. Ashmore is tasked with evaluation for key structuring elements of a potential strategy including portfolio construction, credit considerations, investor requirements and pathways to scale, with support from Convergence and the EBRD.

“We are delighted to be selected by Convergence to explore the opportunity of mobilising institutional capital into impact-oriented private debt in emerging markets. This work builds on Ashmore’s long-standing experience in EM debt and our focus on scalable approaches to mainstreaming impact investing," Simon Cooke, Head of Impact Debt at Ashmore Group, said.

Christian Kleboth, Head of Debt Mobilisation at the EBRD, added: “In order to achieve the required scale, we need to develop comprehensive market solutions investable for large investors. Our partnership with Ashmore aims to do just that – crowding in long-term private capital to expand the funding available to businesses and projects across emerging economies.

Kleboth further characterised the project as "a major outcome" for the EBRD’s Private-Public Taskforce for Mobilisation (T4M), aimed at supporting joint multilateral development bank efforts, and the EBRD's Originate-to-Distribute working group.