Tokio Marine HCC (TMHCC), a Texas-based specialty insurance provider, has committed $100 million as a seed investor to a new emerging markets fund, established by International Finance Corporation (IFC), a member of the World Bank Group, and managed by BlueOrchard Finance Ltd.
Additionally, Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) has committed a further $200 million, taking Tokio Marine Group’s total anchor commitment to $300 million.
Designed to give institutional investors, such as insurers and pension funds, exposure to a broad array of premium, IFC-originated loans spanning various sectors and global regions, the new fund aims for up to $2 billion in total commitments.
Targeting up to $2 billion in commitments, with a $300 million first closing to finance private businesses in emerging and developing markets, the fund builds on the Managed Co-Lending Portfolio Program (MCPP), a syndications platform IFC launched in 2013 with over $25.5 billion in capacity.
Structured as an evergreen fund, it enables investors to continuously subscribe and redeem capital, provided they adhere to specified redemption schedules.
Designed to foster sustainable and resilient economic development across developing and emerging markets, this initiative deepens TMHCC’s long-term partnership with IFC.
The collaboration originally expanded in 2020 following TMHCC’s participation in the MCPP via the MCPP FIG II facility.
Jerome Swinscoe, President, HCC Credit Group, said: “We have worked with the World Bank Group and IFC for more than 10 years. We wrote our first policy for IFC in 2013, and since then we have provided credit insurance across multiple programs to support IFC’s economic and social development work.
“We expanded our relationship in 2020, providing unfunded participations in IFC’s MCPP that support loans to financial institutions and the real sector across IFC’s member countries. This seed investment alongside TMNF builds on that experience and marks the next step in our longstanding relationship.”
Jonathan Lee, Senior Vice President, Treasurer and Head of Investments, Tokio Marine HCC, added: “This investment reflects TMHCC’s disciplined approach to investing, while also supporting sustainable economic growth in developing countries.
“With IFC’s goal of advancing economic development and BlueOrchard’s 25-year history of impact investing, this expanded partnership gives TMHCC access to private credit opportunities across emerging markets and directs long-term capital toward meaningful impact outcomes that align with our ESG philosophy.”
