IFC has more than doubled its investments in fragile and conflict-affected situations (FCS) and International Development Association (IDA)-eligible countries during the last decade. We have pledged that, by 2030, 40 percent of our annual commitments will be in these markets.
To supplement our own account loans, IFC seeks to catalyze greater private investment into IDA and FCS countries, especially those where other institutions and investors have traditionally struggled to find viable transactions. Syndications products that are particularly supportive of transactions in IDA and FCS countries include:
- Parallel loans: Through its Master Cooperation Agreement, IFC is unique among MDBs in its ability to formally arrange parallel financing from multiple development finance institutions (DFIs) at once. This capacity is particularly important in IDA markets where commercial appetite is lower but when DFIs have clear strategic mandates. By taking a lead role in coordinating across the DFI community, IFC can tap into multiple different pools of finance and structure this finance in a way that minimizes transaction costs for borrowers.
- Managed Co-Lending Portfolio Program (MCPP): As a portfolio program, the MCPP automatically attaches mobilization where there is an eligible IFC own account investment. As we increase our engagement in IDA and FCS countries, new projects can automatically benefit from MCPP financing. MCPP can therefore extend both commercial and sovereign wealth fund financing into jurisdictions where these types investors did not previously participate. In several countries, the MCPP has been successful in enabling IFC to bring mobilization partners into a country for the first time.
- MIGA guarantees: One of MIGA's primary products provides political risk insurance. This coverage is particularly needed to support private engagement in IDA and FCS countries. A dedicated IFC-MIGA business partnership group within IFC's syndications team can coordinate MIGA’s engagement, ensuring both borrower needs, and investor requirements are met.
Our commercially arranged syndications can be readily combined with concessional financing options, like the IDA Private Sector Window, to provide a comprehensive solution for borrowers.