MCPP Infrastructure

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As part of its strategic focus on mobilizing third party capital for infrastructure investment in emerging markets, IFC is proposing to support the development of, and to invest in, a series of third party infrastructure debt platforms (the “vehicles”) that will invest in senior loans in infrastructure projects alongside IFC. IFC will provide anchor investment in the form of subordinated debt/equity in each vehicle, an unfunded portfolio guarantee and/or financial instruments structured that synthetically replicate such structures. In this way IFC will provide credit enhancement for third party investors enabling them to consider this asset class. In addition to investing in the vehicles, IFC will contract with the vehicles to provide co-investments using IFC’s Managed Co-Lending Portfolio Program (MCPP). Under MCPP IFC creates loan portfolios for third party investors based on pre-agreed eligibility criteria. All investments made by the vehicles will be in IFC originated senior loans on the same terms and conditions as with IFC’s investment for its own account. All underlying loans will need to meet IFC’s own internal standards and IFC will be required to seek independent Board approval for each loan following its standard approval process; it is only upon IFC’s commitment for its own account that a portion of the loans would then be allocated to the relevant vehicle.