Ashmore Andean Fund II: Addressing the lack of infrastructure in Latin America

Ashmore Andean Fund II is an investment fund targeting the infrastructure sector, mainly in Colombia and Peru. With transport, energy and telecommunications as the key sectors for its investment policy, the manager is also looking at opportunities in the social infrastructure segments (health and education), logistics and waste treatment.

This USD 20m investment in one of the leading funds in the infrastructure sector targets majority shareholdings with investment tickets ranging between USD 15m and USD 20m. The geographical areas covered by the fund are characterized by a lack of infrastructure, which a number of government initiatives aim to remedy with ambitious public-private partnership programs.

In terms of impacts on development, the project is in the category DEV-1 and, as it provides a response to the lack of infrastructure observed in the target countries, will contribute to SDGs n° 6 (Clean water and sanitation), n° 8 (Decent work and economic growth), n° 9 (Industry, innovation and infrastructure) and n° 11 (Sustainable cities and communities). The project’s main expected outcomes concern i) support for employing and training local populations, with the creation of several thousand jobs in the portfolio companies, ii) the mobilization of debt and equity capital in the target countries, iii) support for the private sector, iv) support for environmental projects (energy, including REN, waste treatment, water treatment) and social projects, with education and health, which have been subject to two transactions with the first fund.