SWFs And IFC Pioneer New Corporate Financing Partnership

It is no secret that emerging market (EM) sovereign wealth funds (SWFs) are increasingly diversifying their investments into emerging markets. This is a trend which has been accompanied by a diversification away from US Treasuries into equities. Given the higher returns to be gained from EM equities, it is only normal to find a diversification of EM SWF portfolios into EM assets. This is the unsurprising result of a purely profit-driven rationale. More interesting is the fact that the International Finance Corporation (IFC), i.e. the World Bank's private sector lender, has partnered with SWFs from Azerbaijan, Saudi Arabia, South Korea

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