When the World Bank Group announced its first securitization transaction – bundling and selling a share of loans from the International Finance Corporation, its private sector arm — it marked both a historic first for the institution and the culmination of years of effort.
Shareholders have pushed IFC to rethink its model: shifting from holding loans on its own books to originating and then distributing them to the private sector.
This securitization reflects that pivot and responds to the World Bank Group leadership’s call to deepen engagement with the private sector. While the transaction does expand IFC’s lending capacity, the driving motivation was to bring more private investors into development projects across IFC’s markets.
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About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
