Syndications

Through its B Loan Program, IFC offers commercial banks and other financial institutions the opportunity to lend to IFC-financed projects. These loans are a key part of IFC's efforts to mobilize additional private sector financing in developing countries, thereby broadening the Corporation's developmental impact. Through this mechanism, financial institutions share fully in the commercial credit risk of projects, while IFC remains the lender of record. Participants in IFC's B Loans share the advantages IFC derives as a multilateral development institution, including preferred creditor access to foreign exchange in the event of a foreign currency crisis in a particular country. Where applicable, participant banks are also exempted from the mandatory country-risk provisioning requirements that regulatory authorities may impose if these banks were to lend directly to projects in developing countries.

The B Loan Program was launched in 1957 as the cornerstone of the Corporation's mobilization mandate. Since inception of the B Loan Program, IFC has mobilized US$32.2 billion for 923 financings in 103 countries with about 446 participants. As of June 30, 2009, the committed portfolio totaled US$8.2 billion for 204 financings in 51 countries with 170 participants.

B Loan Structure and Benefits

When IFC syndicates a B Loan, it always maintains a portion of the loan for its own account (the "A loan"), while selling participations in the remainder (the "B Loan").

IFC remains the lender of record for the entire financing. This structure allows participants to fully benefit from IFC's status as a multilateral development institution. Learn more...

Preferred Creditor Status

As a multilateral development institution, IFC enjoys a de facto Preferred Creditor Status (PCS). This means that member governments grant IFC loans preferential access to foreign exchange in the event of a country foreign exchange crisis. Learn more...

Universal Recognition by Bank Regulators, the BIS, Rating Agencies and PRI providers

The Preferred Creditor Status of IFC has received consistent universal recognition from entities such as bank regulators, the Bank of International Settlement ("BIS"), rating agencies, and private political risk insurance ("PRI") providers. Learn more...

Participants and Eligibility Criteria

There is a committed group of financial institutions that follow IFC's B Loan Program. Currently, over 150 international banks and institutional investors act as participants in the Program. Learn more...

Sample Transactions

Please find additional information on most B loan transactions since January 2005. Learn more...