J.P. Morgan today announced the creation of the J.P. Morgan Development Finance Institution (DFI) to expand its development-oriented financing activities in emerging markets. In consultation with leading development institutions, J.P. Morgan has created rules-based criteria to help identify business activities and opportunities that generate both financial and developmental returns.
"By defining eligible transactions and anticipating their impact, we can help attract much-needed private investment to developing countries," said Daniel Pinto, Co-President of JPMorgan Chase and CEO of the Corporate & Investment Bank. "Our aim is to increase engagement with clients and investors interested in financing critical projects and transactions in emerging markets."
Leading J.P. Morgan’s new effort is Faheen Allibhoy, a seasoned manager and investment professional with deep experience in emerging markets and development finance. Allibhoy, who will be based in New York, had an 18-year career at the International Finance Corporation, most recently as Country Manager responsible for operations and client relationships in West Africa. Daniel Zelikow, Global Head of J.P. Morgan’s Public Sector Group and Co-Head of the Infrastructure Finance and Advisory practice, will chair the DFI’s governing board.
"It’s an honor and privilege to join J.P. Morgan’s DFI," said Allibhoy. "J.P. Morgan’s global scale, expertise, and suite of financing capabilities provide an excellent platform to make a real difference in emerging markets."
The United Nations estimates that achieving the Sustainable Development Goals – which seek to address basic infrastructure, food security, climate change, health, and education – by 2030 will require $5 to $7 trillion per year, with an annual investment gap of about $2.5 trillion in developing countries. By galvanizing private capital towards this ambition, the J.P. Morgan DFI aims to help narrow the funding gap.
With its newly-launched Development Finance Institution, J.P. Morgan expects to attract additional investment into emerging economies – including connecting philanthropic or concessional funds with private capital to spur investment through blended finance models.
In 2019 alone, J.P. Morgan served clients in 82 of the 144 World Bank-eligible borrowing countries. The DFI estimates that J.P. Morgan will be able to finance development activities valued at more than $100 billion annually from investment banking transactions alone, with additional contributions from its markets businesses. The J.P. Morgan DFI intends to work with existing clients, both governments and those in the private sector, as well as prospective clients across the capital markets.
Source: JP Morgan