IFC signs $3b credit insurance deal to boost real sector investments

The International Finance Corporation (IFC) signed on Wednesday a $3 billion credit insurance policy with 14 global insurance companies under its Managed Co-Lending Portfolio Programme (MCPP). The agreement aims to back real sector investments, create jobs, and promote sustainable economic growth in emerging markets.

The MCPP Real Sector Programme, IFC’s first credit insurance facility targeting real sectors like energy, transport, telecoms, manufacturing, agribusiness, and more, leverages the risk capacity of insurers to expand global investments.

With this new initiative, IFC’s MCPP platforms will exceed $19 billion in capacity. The participating insurers include Swiss Re, Tokio Marine, AXIS Capital, AXA XL, SCOR, Munich RE, and others, highlighting the growing role of private insurers in financing long-term economic development. MCPP has already supported over 329 IFC clients in 68 countries, advancing inclusive development.

This program enables insurers to broaden their coverage across various sectors, delivering significant social, economic, and environmental benefits. John Gandolfo, IFC Vice President and Treasurer, noted that the collaboration would unlock further investments, directly benefiting communities and fostering sustainable growth.

The new facility connects insurers to IFC’s diverse, high-quality pool of real economy investments in emerging markets, building on the success of previous MCPP iterations that focused on supporting IFC lending to financial institutions.

Attribution: IFC

Subediting: Y.Yasser