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.
Managed Co-Lending Portfolio Program (MCPP)
MCPP is IFC’s newest syndicated loan platform. It follows a “blind pool” approach, with investors committing funds for a set of future IFC 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.
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 and other ineligible B Loan participants.
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. As in a B loan, IFC remains the lender of record for the entire A Loan. An ALP participant shares all project risks with IFC and has the same benefits of a traditional B Loan participant.
Since 2002, IFC has sold 20 ALPs valued at over $424 million to over 22 financial institutions. Through this mechanism, IFC has reduced its exposure constraints in Argentina, Brazil, India, Romania, Russia, Thailand, and Turkey.