IFC, Spain Strengthen Collaboration to Promote Private Sector Development in Emerging Markets
IFC and Spain’s development finance institution, Compañía Española de Financiación del Desarrollo (COFIDES), agreed to streamline their collaboration to provide much-needed financing to private companies and help boost growth and jobs in emerging markets.
COFIDES is the 18th development finance institution to sign IFC's Master Cooperation Agreement (MCA), which standardizes steps that lenders take when co-financing projects with IFC. This streamlined approach saves time and money for borrowers—private companies in emerging markets—and lenders. IFC has syndicated over $4.4 billion in parallel loans for clients since the establishment of MCA, 49 percent of which has come from MCA signatories.
IFC created the MCA in response to calls by the Group of 20 for official finance institutions to collaborate more closely to help meet shortfalls in private sector financing during the global financial crisis.
"COFIDES has the mission to support Spanish companies willing to invest in emerging countries, which contributes to the growth and economic development of these companies and countries. This agreement will allow COFIDES and IFC to avoid duplication and increase efficiencies in their work," said Salvador Marín, Chairman of COFIDES.
Dimitris Tsitsiragos, IFC Vice President for Europe, Central Asia, Middle East and North Africa, said, "The agreement with COFIDES marks the addition of another important partner to our network of MCA signatories. Through the MCA model, we have been able to become more efficient in responding to the financing needs of our private sector clients in emerging markets. This agreement also complements IFC’s longstanding relationship with Spain, which includes business development with Spanish companies investing in emerging markets, cooperation with Spanish banks, and donor-funded initiatives."
IFC works closely with Spain to provide financing and advice to promote private sector development in emerging markets. IFC’s aggregate committed portfolio to Spanish sponsors amounted to over $2.1 billion. Spanish financial institutions held approximately $280 million in IFC syndicated loans and $35 million in parallel loans. In addition, Spain provided cumulative funding of $24.3 million to support IFC’s technical assistance and advisory work.
Read more about the event here. Click here for more information on IFC and Spain.