Washington, D.C., April 18th,
2018—IFC, a member of the World Bank Group, has teamed up with Swiss
Re Corporate Solutions, the commercial insurance entity of the Swiss Re
Group, to expand a pioneering platform by $500 million, enabling an increase
in investments that will modernize infrastructure in emerging markets across
Swiss Re Corporate Solutions will insure a portion of the credit risk on
loans IFC makes under its Managed Co-Lending Portfolio Program (MCPP)—covering
as much as $500 million of risk in total. The transaction, which started
operations this week, increases the platform’s total capacity to $7 billion,
allowing IFC to increase its investments to improve power, water, transport
and telecommunications in developing countries.
“Modern infrastructure is essential for economic
growth and lasting prosperity,” said IFC Vice President and Treasurer
Jingdong Hua. “Yet a huge investment gap exists in this sector—totaling
trillions of dollars a year in emerging markets alone. The MCPP platform
marks a breakthrough in the search for large-scale financing solutions
to the challenges of development. Through this partnership with Swiss Re
Corporate Solutions, we have extended MCPP’s reach and created another
important building block in the global effort to move from billions to
trillions in development finance.”
Andreas Hillebrand, Head Credit & Special Lines at Swiss Re Corporate
Solutions, said: “We are pleased to support this IFC initiative, which
will help release much-needed capital into emerging markets to support
tomorrow's resilient societies and economies. Furthermore, by strengthening
our relationship with the IFC, we will be able to further expand our well-established
trade and infrastructure finance platform and increase the diversity of
our emerging market portfolio."
Through this partnership, IFC will originate and manage a portfolio of
loans for its own account, while Swiss Re Corporate Solutions will use
an unfunded risk-participation product to insure IFC’s risk in the event
of a default. By utilizing this approach, IFC will gain additional capacity
to finance vital infrastructure in emerging markets. Loans provided will
have global coverage and be available in multiple currencies.
IFC created MCPP in 2013, when the People’s
Bank of China pledged $3 billion for investment in IFC projects. Since
then, the platform has more than doubled in size by including a variety
of global institutional investors—including pension funds, sovereign funds,
and insurance companies.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About Swiss Re Group and Swiss Re
The Swiss Re Group is a leading wholesale
provider of reinsurance, insurance and other insurance-based forms of risk
transfer. From standard products to tailor-made coverage across all lines
of business, Swiss Re Group deploys its capital strength, expertise and
innovation power to enable the risk-taking upon which enterprise and progress
in society depend.
Swiss Re Corporate Solutions offers high-quality insurance capacity to
mid-sized and large multinational corporations and banks across the globe.
Our offerings range from standard risk transfer covers and multi-line programs,
to highly customized solutions tailored to the needs of our clients. Swiss
Re Corporate Solutions serves customers from over 50 offices worldwide
and is backed by the financial strength of the Swiss Re Group.
For more information about Swiss Re Group, please visit: www.swissre.com
or follow us on Twitter @SwissRe.