Beijing, September 18, 2013
—IFC, a member of the World Bank Group, today announced that China has pledged $3 billion for joint investments to support private sector development in emerging markets.
The funds will be committed over six years in senior loans in a portfolio of future, IFC-originated loans to businesses in emerging markets.
The announcement also marked the launch of a new IFC syndications program, the Managed Co-lending Portfolio Program. The program enables investors to co-invest with IFC in a portfolio of future emerging market loans. In this program, credit decisions will be largely delegated by the investor to IFC.
“Ending extreme poverty and boosting shared prosperity in a generation are ambitious goals—and to meet these goals we need to be innovative in our work with development partners,” said World Bank Group President Jim Yong Kim. “As the first partner to join IFC’s new mobilization program, China is leading the way. We hope that this model will serve as a benchmark for our cooperation with other development partners.”
IFC structures projects to attract co-financing from commercial banks, funds, and development finance institutions for private sector development in emerging markets. In FY13, IFC syndicated about $3.1 billion. IFC's syndicated loan portfolio stands at $13.6 billion.
The Managed Co-lending Portfolio Program creates a broadly diversified emerging market loan portfolio for investors. Projects financed through the program follow IFC’s investment strategy across regions and sectors and conform to IFC’s performance standards.
Jin-Yong Cai, IFC Executive Vice President and CEO, said: “Addressing the financing gap in sectors such as infrastructure and housing is critical for sustained economic growth and opportunity. Africa alone needs an annual investment of close to $100 billion until 2020. To be successful in our goals---to virtually end extreme poverty and increase incomes for the bottom 40 percent of every developing country—new forms of partnerships with large-scale investors will be essential.”
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit
www.worldbank.org
,
www.miga.org
, and
www.ifc.org
.
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