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Istanbul, Turkey, October 5, 2009
—Four international finance institutions today announced that they have agreed to streamline the process for providing loans in developing countries
where projects face a financing shortfall because of the global economic crisis. Their efforts will help minimize duplication, reduce the overall costs, and shorten the time it takes to conclude deals.
The Master Cooperation Agreement was signed by France’s Société de Promotion et de Participation pour la Coopération Economique, or Proparco; Germany’s Deutsche Investitions- und Entwicklungsgesellschaft mbH, or DEG; the Netherland’s Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V., or FMO; and IFC, a member of the World Bank Group. It standardizes steps that lenders take when joining IFC to cofinance projects.
“This agreement will allow IFC and its partners to get funding to where it is needed in developing countries more quickly, helping bridge a financing gap brought on by the global finance crisis,’’ said Lars Thunell, IFC Executive Vice President and CEO.
The global economic crisis diminished commercial banks’ appetite for lending to projects in emerging markets. To help meet new financing needs, IFC developed a way to help clients obtain financing from international finance institutions more quickly, through the syndication of parallel loans under the Master Cooperation Agreement.
The agreement will help lenders process deals more efficiently by enabling them to cooperate and use IFC’s existing syndication platform, deal-structuring expertise, and global presence to identify investments, perform due diligence, and negotiate loan documents.
In fiscal year 2009, international finance institutions accounted for 17 percent of the $2.2 billion that IFC mobilized through loan syndications. IFC has raised $219.5 million in commitments through syndicated parallel loans for six projects in emerging markets since starting the new program in June.
The Master Cooperation Agreement was signed at the Private Sector Development Institutions Roundtable event held in Istanbul during the World Bank Group and IMF Annual Meetings 2009.
About DEG
DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, a member of KfW Bankengruppe (KfW banking group), finances investments of private companies in developing and transition countries. As one of Europe's largest development finance institutions, with a portfolio of € 4.4 billion, it promotes private business structures to contribute to sustainable economic growth and improved living conditions. For more information, visit
www.deginvest.de
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About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
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About FMO
Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V., known as
FMO, is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of € 4.2 billion, FMO is one of the largest bilateral private sector development banks worldwide. FMO's mission is to create flourishing enterprises, which can serve as engines of sustainable growth in their countries. For more information, visit
www.fmo.nl
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About Proparco
PROPARCO, Société de Promotion et de Participation pour la Coopération Economique, is a development finance institution partly held by
Agence Française de Développement
and private shareholders from the North and South. Its mission is to be a catalyst for private investment in developing countries which targets growth, sustainable development and reaching the Millennium Development Goals. For more information, visit
www.proparco.fr
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