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 more than $10 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
