'Another Arrow to the Quiver': World Bank Posts Record Private Capital Mobilization
- On Thursday, the World Bank announced it attracted $112 billion in private capital during the fiscal year ended June, more than tripling the amount from fiscal 2022.
- World Bank Group President Ajay Banga prioritized private investment after his June 2023 appointment, addressing regulatory uncertainty and political risks that had deterred private firms from developing countries.
- About 40% of World Bank lending went into infrastructure and 26% into regulatory reform, while the bank standardized loan packages to appeal to institutional investors like BlackRock.
- Recent projects include a Rio Tinto lithium venture in Argentina totaling $2.5 billion and a Banco Industrial bond in Guatemala that attracted more than 190 global investors, generating about $1.1 billion in secondary trading volume.
- Banga aims to increase private capital commitments to over $200 billion within three years, targeting a managed institutional capital market exceeding $280 trillion.
31 Articles
31 Articles
The World Bank Group announced, this Thursday, the mobilization of 22 billion dollars of private capital for Africa in the 12 months until June this year, an increase of almost 150% compared to the 9 billion of 2022. In all Africa, the mobilization of private capital has increased from approximately 9 billion dollars [7,8 billion euros] to 22 billion dollars [19.1 billion euros], an increase of almost 150%, read in the communiqué sent to Lusaka …
The World Bank is expanding its reliance on private capital for development financing, after attracting $112 billion over a year, approaching 123 billion of its resources to maximize the impact of its projects.
The World Bank mobilizes as much private capital as ever. Under President Banga, job creation is centred rather than climate finance.
'Another arrow to the quiver': World Bank posts record private capital mobilization
Private capital mobilization increased by more than 60 percent from the year before and was almost level with the World Bank Group's own lending, according to official data. Speaking to AFP at the World Bank's headquarters in Washington, Group President Ajay Banga said the focus on private capital mobilization reflected a stark reality: donors did not have the funds to meet the world's development needs. "We can't be lending $200 billion a year.…
The Economic Times
Times of IndiaWorld Bank mobilises $112 billion in private capital for developing nations
The World Bank mobilised $112 billion in private capital for developing nations last year. This significant increase reflects a strategic shift due to donor funding limitations. Private capital mobilisation now nearly matches the World Bank Group's own lending efforts. The bank employs various methods to de-risk and incentivise private investment. These efforts aim to bridge development financing gaps and foster job creation.
World Bank boosts private capital mobilization to record $112 billion
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