Jan. 21 (UPI) -- JPMorgan Chase said Tuesday it will create a new business to spend at least $100 billion on infrastructure and projects to increase private investment in "emerging-market" areas like climate change, health and food insecurity.
The largest U.S. bank said its new Development Finance Institution will spend $100 billion every year on such projects, and that it aims to eventually mold development finance into a traded assets class.
The aim of the new business is to promote private investment in developing areas of the world.
"By defining eligible transactions and anticipating their impact, we can help attract much-needed private investment to developing countries," said JPMorgan co-President Daniel Pinto. "Our aim is to increase engagement with clients and investors interested in financing critical projects and transactions in emerging markets."
Faheen Allibhoy, who has been with the International Finance Corporation for 18 years, will lead the new business. Allibhoy was a manager of operations and client relationships in West Africa.
"JPMorgan's global scale, expertise, and suite of financing capabilities provide an excellent platform to make a real difference in emerging markets," Allibhoy said.
Allibhoy told CNBC emerging markets are "where the action is," as foreign nations with solid economies like Egypt, Mexico and Turkey are looking for capital to take on large infrastructure projects.
The United Nations has said about $7 trillion per year is needed to reach sustainable development goals by 2030 for improvement in areas like poverty, clean water and gender equality. JPMorgan's new business aims to fill some of an expected $2.5 trillion shortfall in that arena.