Pension funds, insurance companies, and other institutional investors have vast sums to invest. But until now, risk perceptions and the cost of identifying and managing transactions have kept them from financing key projects in developing countries.
IFC’s Managed Co-Lending Portfolio Program is helping change that. It puts IFC projects in a common pool for others to invest in, giving investors efficient access to a highly diversified portfolio of emerging-markets projects. MCPP has now attracted more than $6 billion from institutional investors: Allianz, Prudential, Liberty Mutual, and Munich Re, among others. First launched in 2013, this innovative model has now proven itself—harnessing a huge market opportunity for investing along with IFC to address some of the greatest challenges of development.
MCPP investors have approved 87 projects in 39 countries, 30 percent of them in the poorest countries. The platform has committed more than $2 billion from MCPP investors alongside IFC’s own lending.
Read more: ifc.org/solutions
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets.