Azerbaijan, Baku, April 1 / Trend I. Khalilova /
The African, Latin American and Caribbean Fund (ALAC) established under the International Finance Corporation (IFC) has invested in projects implemented in the financial, tourist, retail trade and industry spheres. The State Oil Fund of the Azerbaijani Republic (SOFAZ) participates in ALAC, SOFAZ said.
ALAC was established to create an acceptable business and investment environment in Africa, Latin America and the Caribbean Basin. The total amount of the fund is $1 billion.
"At present, the fund is closed to investments," SOFAZ said. Along with SOFAZ, the UN Pension Fund, the Dutch Pension Fund, the Korea Investment Corporation, the Ministry of Finance of the Saudi Arabia Kingdom, the IFC Asset Management Company and the sovereign fund of Abu Dhabi also invested in the fund."
Geographically, the current portfolio is distributed across the regions in Africa, Latin America and the Caribbean Basin. It hits 60 percent, 24 percent and 15 percent, accordingly. The largest share of ALAC's investments falls to Mexico, Nigeria, Tanzania, Trinidad and Tobago. About $ 100 million of the funds were allocated by SOFAZ.
The State Oil Fund of Azerbaijan was established in 1999.
As of Jan. 1, 2011, its assets increased by 52.8 percent and amounted to $22.766.8 million, compared to early 2010 ($14.900.4 million).
SOFAZ's main objectives are to accumulate funds and place its assets abroad to minimize the negative impact on the economy and to prevent "Dutch disease".
The investments in ALAC were SOFAZ's first investments abroad. The SOFAZ investment program for 2011 provides its first investments in oil and gas projects in the Caspian Sea. SOFAZ is able to invest a maximum of $ 600 million in funds in securities of issuers having long-term investment rating and in realizing Caspian Sea projects.