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United States : IFC Mobilizes $1 Billion From Global Insurers to Fight Poverty
Publish Date : 21-Sep-2017
IFC, a member of the World Bank Group, has mobilized a billion dollars in credit capacity from private sector insurance companies for a pioneering emerging market lending platform that will help fight poverty.
IFCs Managed Co-Lending Portfolio Program (MCPP) is an innovative syndications platform that allows institutional partners to participate in our loan portfolio. A first of its kind approach, MCPP Financial Institutions will tap $500 billion apiece in unfunded credit insurance from Munich Re and Liberty Specialty Markets, part of Liberty Mutual Insurance. This will enable IFC to provide at least $2 billion in loans to commercial banks, offering additional capacity for on-lending to small and medium enterprises, women-owned businesses, and climate change strategies.
In Madrid tomorrow, at IFCs inaugural Global Debt Mobilization Conference, the first partnership under the program will be launched. A ground-breaking insurance structure has been created ensuring that credit capacity is available to allow IFC to increase its lending to commercial banks across more than 100 countries in which IFC operates -- including some of the poorest.
Financial Institutions, because of their reach, are critical elements in the ecosystem to fight poverty, Jingdong Hua, Vice President and Treasurer of IFC said. The worlds insurance giants like Munich Re and Liberty Insurance are recognizing the value of supporting IFCs lending operations in emerging markets via our unique MCPP Financial Institutions platform. They have shown willingness to go beyond convention using innovation to create impact. I would like to thank them for their commitment.
Doris Hpke, member of Munich Res Board of Management, said: We are proud to add another facet to our cooperation with the World Bank Group. Providing insurance capacity to IFCs MCPP Program will facilitate the mobilization of much-needed long-term loans to micro, small, and medium enterprises in some of the poorest countries in the world. By doing so, we have the opportunity to contribute to IFCs objective of stimulating private sector development and economic growth in low- and middle income countries, while developing future markets for our business.
Peter Sprent, Head of Global Financial Risks at Liberty Specialty Markets said: We are delighted to partner with IFC in this important initiative to boost trade and investment in emerging markets. This is a significant milestone in our strategy to provide innovative insurance solutions to support global development institutions.
