International Finance Corporation has signed a $3.5 bn credit insurance policy with 13 global re/insurance companies under its Managed Co-Lending Portfolio Program (MCPP).
The new program will increase the total capacity raised under the MCPP, IFC’s portfolio syndications platform, to over $16 bn which will help support more than 260 IFC clients across 63 countries.
MCPP Financial Institutions III mobilizes the risk capacity of insurers to support more than $7 bn of new IFC medium and long-term lending to commercial banks and non-bank financial institutions over the next six years, according to IFC.
This is a milestone that will support economic activity and foster development in emerging markets.
The program will increase access to finance for micro, small and medium enterprises, including women-owned businesses, as well as firms addressing climate change.
MCPP Financial Institutions III is International Finance Corporation’s largest-ever mobilization in a single agreement, that will further the insurance industry’s risk-bearing capacity to increase private capital deployment and enable billions of dollars of additional development finance to support economic growth, job creation, and poverty reduction.
Insurance is not just about managing risks. It is also about underwriting human potential and development in emerging economies.
John Gandolfo, IFC Vice President and Treasurer, Treasury & Mobilization
This new facility demonstrates the opportunity for leading insurers and development finance institutions to work together to solve the world’s most urgent development challenges.
MCPP Financial Institutions III has garnered participation from Liberty Specialty Markets, Munich Re, the Tokio Marine Group, AXA XL, Everest, and Aspen. The Hartford, Swiss Re, AXIS Capital, HDI Global Specialty, Allianz Trade, Sompo International, and SCOR are also joining the program for the first time.
MCPP Financial Institutions III helps insurers expand insurance coverage to unique developmental transactions in markets and with clients to deliver positive social, economic, and environmental impact.
Connecting the insurers to IFC’s diversified pipeline of financial institution lending, which will be 100% aligned with the Paris Climate Agreement by 2025.
The International Finance Corporation (IFC) improves the lives of people in developing countries by investing in private sector growth. We connect economic development with humanitarian needs to create real progress for the people and places that need it most.
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
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