Impact Fund Denmark is providing a USD 25.3 million /DKK 162 million first‑loss guarantee to Allianz Global Investors’ new Allianz Credit Emerging Markets (ACE) fund. The guarantee mobilises private institutional capital for climate investments in developing economies.
The commitment marks an important milestone: It is the first time Impact Fund Denmark provides a guarantee where a major private asset manager establishes a fund of this scale for climate and development.
A permanent guarantee scheme supporting private mobilisation
Impact Fund Denmark’s guarantee instrument, which is backed by the Danish state, was recently made a permanent financial tool for mobilising finance for climate mitigation and adaption. This means that Impact Fund Denmark can continue to offer guarantees to raise private capital for development at scale. The guarantee scheme amounts to DKK 12 billion, providing long-term stability and a strong platform for blended finance solutions.
Prior to the ACE fund, Impact Fund Denmark has issued guarantees to a commercial bank in Rwanda, supporting small and medium-sized enterprises, a fund investing in renewable energy in Africa and to two multilateral development banks in Asia and Latin America, focusing on mobilising climate finance. The new ACE guarantee is the first large-scale guarantee explicitly focused on directly mobilising private-sector investors, marking a significant evolution in Impact Fund Denmark’s role.
This is a milestone for Impact Fund Denmark. By providing our first guarantee focused on mobilising capital from private investors, we help unlock capital for projects that drive the green transition, expand financial inclusion and create jobs in emerging markets. This fund demonstrates how blended finance can scale to deliver real‑world impact.
Anchor investors in the ACE fund include Allianz and Gastrosocial Pensionkasse, while first‑loss capital is provided by Global Affairs Canada, British International Investment and IDB Invest.
ACE fund background
ACE was designed to mobilise large-scale private investment for projects aligned with the Paris Agreement and the UN Sustainable Development Goals. By blending public and private capital, the strategy allows institutional investors to take senior positions supported by first‑loss protection from development actors. Today marks the first close of the Allianz Credit Emerging Markets (ACE) strategy, with total commitments of USD 690 million.
Impact Fund Denmark will serve as one of the first‑loss guarantors alongside the Swedish International Development Agency (Sida). The guarantee enables more private investors to participate in emerging markets while ensuring strong risk mitigation.
ACE will primarily co‑invest with development finance institutions and multilateral development banks, leveraging their strong ESG standards, local market insight and proven track record.
ACE will invest in a diversified portfolio of private debt across clean energy, sustainable infrastructure, agriculture, financial inclusion and other low‑carbon sectors in Africa, Latin America, the Caribbean and Asia Pacific. This could include solar power for industrial parks, wind farms for electricity supply, expansion of electric vehicles in congested cities or reduced pressure on sustainable agroforestry. With more than a decade of experience in blended finance and impact credit, Allianz Global Investors continues to expand large‑scale vehicles that mobilise private capital toward global sustainability goals.
Managing Director and Head of Impact Partnerhips
Theo Ib Larsen
+45 33 44 12 37
Head of Guarantee Facility
Magnus Cedergren
+45 33 63 75 02
