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Syndicated Loans & Management

Syndicated Loans & Management > Overview/Benefits  > A Loan Participations (ALPs) 

A Loan Participations (ALPs)


An A Loan Participation (“ALP”) is an effective exposure management tool which IFC uses to reduce its risk exposures – dollar for dollar – to a client, country or sector. An ALP is created through the partial sale of an A Loan to commercial banks or other financial institutions and is governed by a Participation Agreement, much like the agreement used for IFC B Loans. As in a B loan, IFC remains the lender of record for the entire A Loan. An ALP participant shares all project risks with IFC and has the same benefits of a traditional B Loan participant.

Since 2002, IFC has sold twenty ALPs valued at over US$424 million to over twenty-two financial institutions. Through this mechanism, IFC has reduced its exposure constraints in Argentina, Brazil, India, Romania, Russia, Thailand & Turkey.
 

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