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.
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.
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.