World Bank Attracts $112 Billion in Private Capital for Projects

The World Bank attracted $112 billion in private capital for projects it facilitated in the fiscal year ended June, which was up from $69 billion the previous year and more than three times the amount seen in fiscal 2022. This private funding was in addition to the $123 billion provided by the bank's own resources, bringing the combined total to $235 billion. The World Bank President stated that the institution is working to standardize and package loans to appeal to institutional investors, such as pension funds, insurance companies, and asset managers.

The push to attract this private capital is driven by the vast financial needs of developing countries concerning energy transition, education, healthcare, and agriculture while official development assistance declines. The World Bank President noted that BlackRock founder Larry Fink had urged the institution years ago to create an asset class capable of tapping into larger pools of private-sector funds.