DBS Bank on Friday announced that it has joined the World Bank's Global Infrastructure Facility (GIF) as an advisory partner.
Launched on Thursday in Washington, the GIF aims to catalyse and mobilise private-sector investment in infrastructure projects in emerging markets.
As an advisory partner, DBS will be involved in advising on project preparation, optimal approaches to financial structuring, and the design and use of risk instruments. This will help to ensure the suitability of emerging market infrastructure projects for commercial or institutional investment.
"While many are familiar with the huge infrastructure needs in the region, few are aware the issue is not so much a lack of liquidity as the absence of a steady pipeline of bankable projects. Similar to our partnership with Cities Development Initiative in Asia (CDIA), this collaboration in the GIF is another significant step in our efforts to go 'upstream' - to strengthen institutional capacity and capabilities for project development in emerging markets," said Lim Wee Seng, head of project finance at DBS.
"As a leading Asian bank and an active project finance advisor and lender in the region, we are committed to supporting the building of a robust infrastructure financing eco-system and the development of a stable pipeline of investible projects, as we believe this will be key in helping the long-term economic growth of Asia."
According to the World Bank, developing countries now spend about US$1 trillion a year on infrastructure.
"But maintaining current growth rates and meeting future demands would require investment of at least an estimated additional US$1 trillion a year through to 2020," it added in a statement to the press.
Other partners and prospective partners that signed up to the GIF at Thursday's launch ceremony include Citibank, HSBC Bank, Macquarie Group, and the Singapore government.