UK-based Legal and General (L&G) has committed a further US$235 million in private debt financing to nature conservation and sustainable development in emerging markets (EMs) through its Nature and Social Outcomes strategy. This initial investment, made through L&G’s Future World Multi-Asset Fund and Retirement Income Multi-Asset Fund, takes L&G’s overall commitment to nature conservation and sustainable development in EMs to US$1.1 billion. The new strategy aims to further diversify L&G’s private markets platform, addressing funding gaps across EMs by leveraging financing methods that benefit from credit enhancement through multilateral guarantees and insurance, including use of proceeds bonds, debt conversion bonds, and outcome bonds. The strategy will deploy capital through projects that aim to deliver strong commercial returns alongside positive nature and social outcomes. Projects targeted by investment will include habitat and biodiversity conservation, as well as socially beneficial infrastructure to support education, healthcare and access to clean water. “Exposure to EMs has the potential to offer attractive returns for investors whilst aiming to support communities and ecosystems which play an indispensable role in upholding economies across the globe,” said Jake Harper, Senior Investment Manager at L&G. “Innovative debt financing allows investors to allocate to nature conservation and sustainable development in EMs whilst benefitting from an improved credit rating and higher returns.”
