World Bank attracts record US$112bil in private capital

The World Bank announced it attracted $112 billion in private capital during the year ending June, a significant increase from $69 billion the previous year and more than triple the amount in fiscal 2022. This record figure, which comes in addition to $123 billion from the bank's own resources, brings the total to $235 billion. The bank aims to more than double private capital to over $200 billion within the next two to three years.

CEO Ajay Banga emphasized the importance of attracting private capital to meet the financial needs of developing countries, especially for projects related to energy transition, education, healthcare, and agriculture. As official development assistance is declining, the bank is working to standardize and package loans to appeal to institutional investors such as pension funds, insurance companies, and asset managers.

Banga has convened a Private Sector Investment Lab to brainstorm ways to tackle regulatory uncertainty, political risk, and challenges with local currencies that have deterred large investments in developing economies. The bank's efforts have already funded successful projects, such as a Rio Tinto greenfield lithium project in Argentina and a US$100 million loan to Guatemala's largest lender, Banco Industrial, which attracted over 190 global investors.