Private investors are stepping in to fund major infrastructure projects as traditional lending declines. In Angola, Gemcorp financed most of a $475 million refinery, part of a broader $1.2 trillion private credit boom. Firms like PIMCO and Gramercy are expanding into higher-yield markets, raising both opportunity and risk concerns.
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Private investors are increasingly fueling big infrastructure projects across emerging markets as traditional bank and bilateral lending shrank, that according to CNBC.
00:10In Angola, a London-based Jebcorp financed most of a new $475 million fuel refinery expected to start operations by year end, reducing the country's reliance on imported fuel.
00:20Private credit has surged from $200 million to over $1.2 trillion in two decades, filling a lending gap for U.S. companies as banks tighten regulations.
00:29Herbs like PIMCO, 91, and Gramercy are expanding exposure to Latin America, Africa, and Turkey, where yields are 150 to 300 basis points above developed markets.
00:40Fund managers say the flexible asset-backed loans are filling funding gaps for sovereigns and corporations alike, offering faster and bespoke financing.
00:48Bond investors fear private credit's opaque, flexible structure could threaten their market share and create challenges if borrowers face distress.
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