SIFEM Commits USD 15 Million to Ashmore Andean Fund III for Infrastructure and Climate Projects in Colombia and Peru

Zurich, 1 July 2024 – The Swiss Investment Fund for Emerging Markets (SIFEM), managed by responsAbility Investments AG, announces its contribution to Ashmore Andean Fund III (AAF III), marking a step forward in supporting infrastructure and climate projects across Colombia and Peru. SIFEM committed USD 15 million to AAF III whilst the Fund secured total commitments in excess of USD 400 million.

AAF III is a growth equity fund focusing on infrastructure and growth investments in Colombia and Peru, as well as several Central American countries. The fund targets key sectors such as transport, renewables, logistics, water and waste, telecom, healthcare and education. SIFEM's USD 15 million commitment provides essential growth capital to these sectors, aiming to foster sustainable development and economic growth in the region. The fund will make majority or significant minority investments with a hands-on, value-added approach, seeking to enhance ESG and impact.

Impact on Colombia and Peru

responsAbility, SIFEM’s portfolio manager, is proud to support a long-term partner with an excellent track record alongside other development finance institutions (DFIs). Ralph Keitel, Head of Fund of Funds Investments at responsAbility, said: "We are pleased to support Ashmore in raising funds for the AAF III to foster impactful investments in Colombia and Peru. As the portfolio manager of SIFEM, we aim to scale up our efforts to promote economic development, mitigate climate change, create quality jobs, and enhance infrastructure, contributing to sustainable growth in Latin America. This is in line with our vision of a sustainable world with access to opportunities for all."

Addressing regional challenges

Both Colombia and Peru were severely affected by Covid and its economic repercussions, including high inflation and interest rates. This has left both countries in a challenging economic context, and companies face difficulties in accessing long-term finance. Through this investment, SIFEM contributes to filling a financing gap for important infrastructure projects and companies. The fund's investments are expected to provide access to services for underserved local populations and contribute to social inclusion, economic resilience, decent jobs, and climate change mitigation.

responsAbility's is SIFEM’s portfolio manager

responsAbility has been managing SIFEM's portfolio since March 1, 2023, bringing extensive expertise in impact investing to support SIFEM’s mission. This role includes driving investments that promote long-term, sustainable economic growth in developing and emerging countries.

SIFEM is the Swiss government’s development finance institution (DFI) and one of the instruments of economic development cooperation. The fund focuses on promoting sustainable economic growth, developing markets, and creating decent jobs in emerging markets. In addition, SIFEM aims to contribute to climate protection and is committed to gender equality through the economic empowerment of women. Since its inception in 2011, SIFEM has invested around USD 1.2 billion, primarily in private equity funds and financial institutions.