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Syndicated Loans & Management

Syndicated Loans & Management > Overview/Benefits 

Overview/ Benefits


IFC promotes development by mobilizing financing for the private sector in its developing member countries. In carrying out this role, we operate as both a financial and developmental institution. This developmental mandate is what differentiates IFC from commercial financiers. IFC acts as a catalyst in raising capital from foreign and domestic sources, in both private and public markets, for projects in the private sector of its member countries.

 

IFC's Syndicated Loans & Management Department ("CSL") mobilizes funds for the Corporation through: i) Syndicated "B" Loans, ii)Coordinated and/or syndicated parallel loans, and ii) A Loan Participations (ALPs). The Providers of funds under the B Loan Program are mainly commercial banks, while the providers of funds for parallel loans are mainly development finance institutions (DFIs) and international financial institutions (IFIs).

 

B Loans - IFC's B Loan allows participants to enjoy the advantages of IFC's status as a multilateral institution. By participating in a B Loan transaction, participants benefit from IFC's Preferred Creditor Status. Learn more...

 

Parallel Loans - In response to international banks' retrenchment from cross-border emerging market lending during the recent global financial crisis, IFC began syndicating parallel loans to Development Finance Institutions (DFIs), and other ineligible B Loan participants. Learn more...

 

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. Learn more...

 

Syndicated Loan Management - The Syndicated Loan Management group ("CSLLM" ) was established as a dedicated resource to provide consistent service to B loan participant banks, and to ensure that IFC's contractual obligations under the loan agreements and participation agreements are fulfilled. The group manages $7.5 billion in B loans held by over 150 financial institutions. Learn more...

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