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Syndicated Loans & Management

Parallel Loans


In response to international commercial banks' retrenchment from cross-border emerging market lending in FY09, IFC began syndicating parallel loans to International Financial Institutions (IFIs), and other ineligible B loan participants.


g Under this approach (see "MCA" details below), IFC acts as arranger (and can also act as administrative agent) by using its existing syndication platform, deal-structuring expertise and global presence to identify investments, perform due diligence, and negotiate loan documents in cooperation with parallel lenders.

g Lenders under this structure enjoy cost and time savings through this streamlined approach. Borrowers benefit from enhanced access to financing and time & cost savings throughout the life of the loan.


Master Cooperation Agreement "MCA"

Cooperation among IFIs increased significantly following the global financial crisis in 2008 and the resulting lack of commercial banks' liquidity.  In October 2009, IFC signed a Master Cooperation Agreement (MCA) with the three largest European DFIs: DEG, FMO and Proparco. The Agreement details the manner in which DFIs work together to co-finance projects when IFC is the mandated lead arranger.  The MCA also provides documentation templates which significantly reduces costs and increases efficiency. Under this approach, IFC acts as arranger (and can also act as administrative agent) by using its existing syndication platform, deal-structuring expertise and global presence to identify investments, perform due diligence, and negotiate loan documents in cooperation with parallel lenders.

 

Nearly six years later, financing from IFIs continues to play a very important role in IFC's Syndicated Lending Program as the introduction of Basle III has significantly reduced the availability of long-term funding as well as commercial banks’ appetite for risk. There are now 26 MCA Signatories (see chart below). MCA signatories have provided over $3 billion in parallel loans for clients since the establishment of MCA in 2009.

 

Our Newest MCA Signatories: 

 

IFC welcomed JICA (Japan International Cooperation Agency) as its 25th MCA signatory on Saturday, April 18th, 2015 and CDP (Italy's Cassa depositi e prestiti) as its 26th MCA signatory on Monday, April 20th, 2015.

 

MCA Signatories Date of
Signing
FY
1 International Finance Corporation 10/5/2009 FY2010
2 France’s Société de Promotion et de Participation pour la Coopération Economique (Proparco) 10/5/2009 FY2010
3 Germany’s Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) 10/5/2009 FY2010
4 Netherlands’ Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V (FMO) 10/6/2009 FY2010
5 Development Bank of Japan (DBJ) 1/13/2010 FY2010
6 Austria's The OPEC Fund for International Development (OFID) 6/11/2010 FY2010
7 Belgium's Societe Belge d'Investissement pour les Pays en Developpement SA/Investment Co. for Dev. Countries (BIO) 8/17/2010 FY2011
8 Black Sea Trade and Development Bank (BSTDB) 10/10/2010 FY2011
9 Oesterreichische Entwicklungsbank (OeEB) or Development Bank of Austria 12/6/2010 FY2011
10 Eurasian Development Bank 3/14/2011 FY2011
11 Arab Petroleum Investments Corp (APICORP) 3/28/2011 FY2011
12 United States’ Overseas Private Investment Corporation (OPIC) 5/31/2011 FY2011
13 Islamic Corporation for the Development of the Private Sector (ICD) 8/15/2011 FY2012
14 Export Development Canada (EDC) 2/8/2012 FY2012
15 United Kingdom's Commonwealth Development Corporation (CDC) 3/13/2012 FY2012
16 Portugal's Sociedade para o Financiamento do Desenvolvimento (SOFID) 3/29/2012 FY2012
17 Banque Ouest-Africaine de Developpement "West African Development Bank" (BOAD) 8/14/2012 FY2013
18 Swedfund 8/30/2012 FY2013
19 Compañía Española de Financiación del Desarrollo (COFIDES) 10/13/2013 FY2014
20 International Investment Bank (IIB) 1/31/2014 FY2014
21 Hungarian Export-Import Bank (HEIB) 6/10/2014 FY2014
22 Swiss Investment Fund for Emerging Markets (SIFEM) 10/10/2014 FY2015
23 Finnish Fund for Industrial Cooperation Ltd (Finnfund) 10/10/2014 FY2015
24 Instituto de Credito Oficial (ICO) 10/10/2014 FY2015
25 Japan International Cooperation Agency  (JICA) 4/18/2015 FY2015
26 Cassa Depositi e Prestiti (CDP) 4/20/2015 FY2015

 

 

 

 

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