Parallel Loan

IFC-arranged parallel loans enable borrowers to access debt financing from multiple development finance institutions (DFIs) in a single package. IFC’s Master Cooperation Agreement (MCA) creates an efficient co-lending platform that has mobilized over $19 billion to date. Under the MCA, IFC has built a broad global network of DFIs who work together to offer a streamlined financing solution for borrowers.

Private lenders that are ineligible for IFC’s B Loan program may also participate in parallel loans, including to support local currency syndications.

How It Works

MCA signatories and other participating lenders follow a standard co-lending process in which IFC acts as lead arranger and each lender provides a parallel financing tranche. IFC parallel loans rely on standardized documentation, including a Common Terms Agreement, that significantly reduces costs and improves efficiency for all parties.

Benefits to Lenders 

• Increased deal flow through IFC’s global origination capacity.
• Access to IFC’s due diligence, structuring and restructuring expertise and global presence.
• Time and cost savings through standardized processes.   
• Equal rights and obligations across all lenders, including IFC. 
• In selected cases, IFC may act as administrative agent for parallel lenders.

Benefits to Borrowers 

• Access to larger loans and longer tenors.
• A complete and coordinated financial package.
• Introduction to new banking relationships.
• IFC's "stamp of approval" and strong IFC’s environmental and social standards.

Master Cooperation Agreement

Over the last two decades, development institutions have significantly increased cooperation to better coordinate the global response to market disruptions as well as key policy priorities. IFC was an early leader in this effort, designing and launching the Master Cooperation Agreement (MCA) in 2008. The MCA is a parallel lending framework that gives developing-country firms a streamlined way to obtain loans from multiple development institutions at once, with IFC playing the role of lead arranger.

The MCA established the first standard for how development institutions can jointly provide financing to private firms in developing countries. There are now over 35 signatories to the MCA, and new signatories are added every year. Since its launch, borrowers in developing countries have received loans of approximately $12 billion under this framework.

How It Works

Under the MCA, IFC acts as lead 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 its fellow DFIs. The MCA framework relies on standardized documentation templates, which significantly reduce costs and increase efficiency for borrowers and lenders alike.

Benefits to Partners

• Opportunity for increased collaboration with IFC
• Access to lending opportunities in IFC's global pipeline  
• Introductions to other members of the global MCA network
• Standardized documentation provides cost savings and efficiency gains