PGGM, the Euro 88bn ($139bn) asset manager of Pensioenfonds Zorg en Welzijn, the Dutch healthcare pension fund, is making one of the world’s largest institutional commitments to microfinance - small-scale lending in developing countries - after announcing an investment of Euro 200m with specialist fund managers over the next two to three years.

The fund manager has made its first investment worth Euro 27m to the Dexia Microcredit Fund operated by Swiss fund manager BlueOrchard Finance. The initial allocation will make investments in microfinance projects in Africa, Asia, Latin America and Eastern Europe.