L&G has announced the launch of its Nature and Social Outcomes strategy with a $235m commitment.

The initial investment has been made through L&G’s Future World Multi-Asset and Retirement Income Multi-Asset funds. The $235m investment will invest in developing countries by leveraging innovative financing methods that benefit from credit enhancement through multilateral guarantees and insurance, such as use of proceeds bonds, debt conversion bonds, and outcome bonds.

Projects will target habitat and biodiversity conservation, as well as socially beneficial infrastructure to support education, healthcare, and access to clean water.

Jake Harper, Senior Investment Manager, Asset Management, L&G, said, “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. 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. By leveraging our proven track record and long-standing industry relationships, we believe L&G has distinct access to diverse investment opportunities and is advantageously positioned to shape future transactions in the sector.”

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