The World Bank Group has completed its first securitisation transaction through its private-sector arm, the International Finance Corporation (IFC), raising $510 million in a landmark effort to draw institutional investors into emerging markets.
The deal, structured as a collateralised loan obligation, marks the start of IFC’s “originate-to-distribute” strategy, which repackages its loan portfolio into rated securities designed to meet the requirements of pension funds, insurers, and asset managers. The model is expected to broaden investor access to emerging-market credit while allowing IFC to recycle capital into new development projects.
World Bank President Ajay Banga described the transaction as a pivotal step in mobilising private finance at scale.
“Mobilising private investment is essential to creating jobs that lift people out of poverty and set families on a stronger path for generations. This first step has the potential to attract significant private capital while expanding our ability to support more countries and businesses,” Banga said.
The securitisation, listed on the London Stock Exchange, attracted strong investor interest. It comprises a $320 million senior tranche acquired by private investors, a $130 million mezzanine tranche insured by a consortium of credit insurers, and a $60 million equity tranche. Goldman Sachs acted as the arranger.
According to the World Bank, the framework is designed to be scalable and replicable, laying the foundation for regular issuances that will strengthen private-sector participation in development finance. By securitising its portfolio, IFC aims to bridge the gap between global investors’ appetite for yield and the urgent financing needs of developing economies.
The initiative reflects recommendations of the Private Sector Investment Lab, launched in 2023 to address barriers to private-sector funding in emerging markets. Analysts say the success of the transaction could encourage similar models across other development finance institutions, helping to mobilise large-scale capital for infrastructure, energy, and social projects in low- and middle-income countries.
For the World Bank, the deal signals both financial innovation and a strategic shift from functioning mainly as a lender to acting as a catalyst for private investment in markets that have long struggled to attract global capital.
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World Bank Unveils $510m in first Securitization to boost Emerging Markets
The World Bank Group has completed its first securitisation transaction through its private-sector arm, the International Finance Corporation (IFC), raising $510 million in a
