Munich Re and Liberty Specialty Markets have contributed $US1 billion ($1.2 billion) in unfunded credit insurance to support a lending platform aimed at fighting poverty.

The International Finance Corporation (IFC) says the support will allow the platform to provide at least $US2 billion ($2.5 billion) in loans to banks for onward lending to SMEs, women-owned businesses and climate change strategies in emerging markets.

“The world’s insurance giants such as Munich Re and Liberty Insurance are recognising the value of supporting IFC’s lending operations in emerging markets,” VP Jingdong Hua said.

“They have shown willingness to go beyond convention, using innovation to create impact.”

Lending provided through IFC’s Managed Co-Lending Portfolio Program targets enterprises in low and middle-income countries that often have restricted access to debt finance.

Munich Re and Liberty Re have each contributed $US500 million ($622 million) in capacity.

“By doing do, we [can] contribute to IFC’s objective of stimulating private-sector development and economic growth in low and middle-income countries, while developing future markets for our business,” Munich Re Board of Management Member Doris Hopke said.

The Washington-based IFC is part of the World Bank.