Washington, March 13, 2012—IFC,
a member of the World Bank Group, and CDC, the UK's development finance
institution, agreed today to increase and streamline their collaboration
in order to provide much-needed financing to private sector companies in
South Asia and Sub-Saharan Africa.
CDC became the 14th development finance institution to sign IFC's Master
Cooperation Agreement (MCA), which standardizes steps that lenders take
when joining IFC to co-finance projects. This streamlined approach saves
time and money for both borrowers—private sector companies in emerging
markets—and lenders through increased efficiencies. Since the establishment
of the MCA in 2009, signatories have provided over $1.2 billion via syndicated
loans to IFC clients in emerging markets.
IFC created the agreement in response to calls by the Group of 20 for increased
collaboration among official finance institutions to help meet private
sector financing shortfalls during the global financial crisis.
“The Master Cooperation Agreement helps ensure that financing is available
to the private sector to address difficult development challenges,” said
Lars Thunell, IFC Executive Vice President and CEO. “With CDC’s approval
of the agreement, we look forward to expanding our already-strong partnership
with CDC to support private sector development where it matters most in
South Asia and Sub-Saharan Africa."
Diana Noble, CDC CEO said: “Since publishing a new high-level business
plan in 2011 CDC has started to increase its provision of debt finance.
IFC is a longstanding and trusted CDC partner and we’re delighted
that the Master Cooperation Agreement will help CDC advance loans to deserving
enterprises. It will also align us more closely with other DFI partners
that all cooperate with IFC in this way.”
The following institutions are also signatories to the MCA: the Belgian
Investment Company for Developing Countries, France’s PROPARCO, Germany’s
Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), the Development
Bank of Japan, the Netherlands’ FMO, the OPEC Fund for International Development,
the Black Sea Trade and Development Bank, Austria’s OeEB, Arab Petroleum
Investments Corporation, the Eurasian Development Bank, the U.S. Overseas
Private Investment Corporation, the Islamic Corporation for the Development
of the Private Sector, and Export Development Canada.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while
driving our investments to an all-time high of nearly $19 billion. For
more information, visit www.ifc.org.
For further information about CDC please see www.cdcgroup.com