Istanbul, Turkey, October 5, 2009—Four
international finance institutions today announced that they have agreed
to streamline the process for providing loans in developing countries
where projects face a financing shortfall because of the global economic
crisis. Their efforts will help minimize duplication, reduce the overall
costs, and shorten the time it takes to conclude deals.
The Master Cooperation Agreement was
signed by France’s Société de Promotion et de Participation pour la Coopération
Economique, or Proparco; Germany’s Deutsche Investitions- und Entwicklungsgesellschaft
mbH, or DEG; the Netherland’s Nederlandse Financierings-Maatschappij Voor
Ontwikkelingslanden N.V., or FMO; and IFC, a member of the World Bank Group.
It standardizes steps that lenders take when joining IFC to cofinance projects.
“This agreement will allow IFC and
its partners to get funding to where it is needed in developing countries
more quickly, helping bridge a financing gap brought on by the global finance
crisis,’’ said Lars Thunell, IFC Executive Vice President and CEO.
The global economic crisis diminished
commercial banks’ appetite for lending to projects in emerging markets.
To help meet new financing needs, IFC developed a way to help clients obtain
financing from international finance institutions more quickly, through
the syndication of parallel loans under the Master Cooperation Agreement.
The agreement will help lenders process
deals more efficiently by enabling them to cooperate and use IFC’s existing
syndication platform, deal-structuring expertise, and global presence to
identify investments, perform due diligence, and negotiate loan documents.
In fiscal year 2009, international finance
institutions accounted for 17 percent of the $2.2 billion that IFC mobilized
through loan syndications. IFC has raised $219.5 million in commitments
through syndicated parallel loans for six projects in emerging markets
since starting the new program in June.
The Master Cooperation Agreement was
signed at the Private Sector Development Institutions Roundtable event
held in Istanbul during the World Bank Group and IMF Annual Meetings 2009.
DEG - Deutsche Investitions- und Entwicklungsgesellschaft
mbH, a member of KfW Bankengruppe (KfW banking group), finances investments
of private companies in developing and transition countries. As one of
Europe's largest development finance institutions, with a portfolio of
€ 4.4 billion, it promotes private business structures to contribute to
sustainable economic growth and improved living conditions. For more information,
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
Voor Ontwikkelingslanden N.V., known as FMO, is the international
development bank of the Netherlands. FMO invests risk capital in companies
and financial institutions in developing countries. With an investment
portfolio of € 4.2 billion, FMO is one of the largest bilateral private
sector development banks worldwide. FMO's mission is to create flourishing
enterprises, which can serve as engines of sustainable growth in their
countries. For more information, visit www.fmo.nl.
PROPARCO, Société de Promotion et de
Participation pour la Coopération Economique, is a development finance
institution partly held by
Française de Développement
and private shareholders from
the North and South. Its mission is to be a catalyst for private investment
in developing countries which targets growth, sustainable development and
reaching the Millennium Development Goals. For more information, visit