World Bank Group, through its private sector arm, the International Finance Corporation (IFC), has completed its first securitisation deal valued at $510 million.
Gatekeepers News reports that in a statement on Friday, the institution said the initiative is designed to channel more institutional private capital into emerging markets.
World Bank noted that the collateralised loan obligation (CLO) represents the start of an originate-to-distribute approach, transforming IFC loans into rated securities that meet the standards of global institutional investors such as pension funds, insurers, and asset managers.
Ajay Banga, president of the World Bank Group, said the deal would help unlock critical resources for developing nations while freeing the bank’s balance sheet to extend further support.
Banga said, “Mobilising private investment at scale is essential to creating the jobs that give people a ladder out of poverty and begin the journey of changing a family’s trajectory for generations.”
“This is step one in an originate-to-distribute strategy that holds significant potential to attract private capital at scale. It also frees up our balance sheet so we can support more countries and more private-sector players.”
The securities, listed on London Stock Exchange, attracted strong investor interest. According to World Bank, the deal included a $320 million senior tranche purchased by private investors, a $130 million mezzanine tranche backed by credit insurers, and a $60 million equity tranche. Goldman Sachs served as the arranger.
The IFC added that it plans to make such issuances a regular feature, positioning securitisation as a scalable and replicable model.
The effort aligns with the goals of the Private Sector Investment Lab, launched in June 2023, to identify and address barriers to private sector financing in emerging markets.
