IFC finds way to bridge infrastructure funding gap in Asia

The International Finance Corporation, part of the World Bank, says it has hit on a deal structure that will help bridge the enormous funding gap that Asian governments face as they struggle to build much-needed infrastructure.

The IFC on Wednesday signed a deal with Eastspring Investments, the Asian asset management business of Prudential Plc, to commit $500 million to a portfolio of emerging market loans for mostly greenfield infrastructure projects. German insurance group Allianz is also chipping in $500 million.

The investment arm of the World Bank hopes these deals will pave the way for other institutional investors to join in and raise $5 billion...