The World Bank Group, through its International Finance Corporation (IFC) arm, has closed a second securitisation deal worth US09 million under the Emerging Markets Securitization Program (EMSP), marking continued progress in its push to channel institutional capital into developing-economy private-sector lending.
The transaction packages 62 IFC-originated loans across multiple sectors and geographies into rated securities, giving institutional investors access to a diversified portfolio of emerging-market assets. The two closings under the programme have now issued more than US billion in rated securities combined.
The structure consists of US20 million and US0 million senior tranches sold to private investors, rated Aaa and Aa1 by Moody's respectively; a US0 million mezzanine tranche insured by a consortium of credit insurers; and a US9 million equity tranche held jointly by IFC and the UK Foreign, Commonwealth and Development Office (FCDO). The World Bank Group said the deal was oversubscribed, reflecting strong appetite for structured emerging-market credit exposure.
Investors include PIMCO as anchor, alongside Legal & General, Shizuoka Bank, Sona Asset Management and other institutions. Goldman Sachs acted as arranger, with Clifford Chance as IFC's counsel and Bank of New York Mellon as trustee and paying bank. The credit insurance consortium comprises AXA XL, AXIS Capital, Everest, HDI Global, Liberty Specialty Markets and MSIG USA.
The programme builds on the originate-to-distribute model, under which IFC originates loans to private-sector borrowers across developing countries and then packages portions of its portfolio into securities sold to third-party investors. This allows IFC to free up capital for new loans while bringing more private investors into emerging-market financing.
Both the inaugural 2025 transaction and this second issuance were supported by catalytic equity from the UK's FCDO through its MOBILIST programme, which anchored the senior notes listing on the London Stock Exchange and helped establish the market-entry structure.
“Capital that reaches the private sector in emerging markets is capital that creates jobs,” said John Gandolfo, IFC Vice President and Chief Financial Officer. “This second transaction shows we can mobilise that capital into the sectors where it does the most to expand employment and opportunity.”
UK Minister for Development Jenny Chapman said the structure demonstrates “our modern development approach in action, moving from donor to investor” and draws on British financial expertise to connect mainstream private investors with development-finance opportunities.
The World Bank Group says the programme is intended to help build a scalable market for institutional investment in emerging-market private credit. The initiative comes as multilateral development banks face mounting pressure to mobilise private capital at scale. The annual financing gap for sustainable development in emerging markets is estimated in the trillions of dollars, far exceeding what public-sector balance sheets alone can cover. Securitisation structures that package diversified loan pools into rated instruments are one of several approaches being explored to bridge that gap.
Sources: World Bank Group, IFC, UK FCDO / MOBILIST
