A risk sharing facility (RSF) allows a client to sell a portion of the risk associated with a pool of assets. The assets typically remain on the client’s balance sheet and the risk transfer comes from a partial guarantee provided by IFC.
In general, the guarantee is available for new assets to be originated by the client using an agreed upon underwriting criteria, but in certain situations may also be used for assets that have been already originated. Typically, the client’s purpose in entering into a risk sharing facility with IFC is to help the client increase its capacity to originate new assets within an asset class in which IFC is interested in increasing its own exposure.
For more details on risk sharing product description, please click here.
To learn more on IFC risk-sharing facility, please read the following fact sheet: