The lender estimates the firm can use investment banking transactions to finance development projects valued at more than $100 billion annually/Bloombergby Bloomberg
JPMorgan Chase & Co. is building a group to provide more financing and advice for development in emerging markets, looking to use profit-making operations to support efforts by the international community.
Allibhoy will work with JPMorgan’s bankers to identify transactions and investors.
The unit, part of JPMorgan’s Corporate and Investment Bank, will work with existing and prospective clients in government and the private sector. The lender estimates the firm can use investment banking transactions to finance development projects valued at more than $100 billion annually.
Daniel Pinto, co-president of JPMorgan and Chief of Corporate and Investment Bank, said, “By defining eligible transactions and anticipating their impact, we can help attract much-needed private investment to developing countries.”
The United Nations estimates that achieving its sustainable development goals for issues including poverty, clean water and gender equality by 2030 will require as much as $7 trillion a year, with an annual funding shortfall of $2.5 trillion in developing countries.
JPMorgan’s group will try to help narrow that gap.
The bank said it created ‘rules-based’ criteria to help identify opportunities and aims to generate both financial and developmental returns. The methodology was created with the International Finance Corporation and other groups and will be reviewed periodically to reflect industry best practises.