World Bank IFC securitisation deal raises $510m in first collateralised loan obligation, unlocking private capital for emerging markets
The transaction, listed on the London Stock Exchange, repackages IFC’s loan portfolio into rated securities tailored for institutional investors such as pension funds, insurers, and asset managers.
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By freeing up balance sheet space, the deal allows IFC to finance more projects in developing economies while channelling global capital toward underserved markets.
World Bank Group President Ajay Banga hailed the deal as the first step in an ambitious originate-to-distribute strategy.
“Mobilising private investment at scale is essential to creating jobs that lift people out of poverty and change family trajectories for generations,” he said.
The deal comprises a $320 million senior tranche purchased by private investors, a $130 million mezzanine tranche insured by credit insurers, and a $60 million equity tranche. Goldman Sachs served as arranger.
Analysts say the structure addresses two long-standing barriers: providing investors with exposure to emerging-market credit opportunities, while enabling IFC to recycle capital for new high-impact lending.
The originate-to-distribute model was one of the recommendations of the Private Sector Investment Lab, created in 2023 to identify ways of boosting private investment in developing regions.
IFC plans to replicate the securitisation framework with regular issuances.
Development experts argue that such innovations are vital, given the vast financing gaps for infrastructure, energy, and social projects in low- and middle-income countries.
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With public funding insufficient, the World Bank is positioning itself not just as a lender but as a catalyst for global investment flows into emerging markets.
Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.
