IFC mobilises $3.5 billion from insurers to expand development finance
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IFC signed a $3.5 billion credit insurance policy with 13 global insurance companies under its Managed Co-Lending Portfolio Program (MCPP), a milestone that will support economic activity and foster development in emerging markets. Swiss Re is one of the major participants.
The program, MCPP Financial Institutions III, mobilises the risk capacity of private insurers to underwrite at least $7 billion of new IFC medium and long term lending to commercial banks and non-bank financial institutions over the next six years. It will increase access to finance for micro, small and medium enterprises, including women-owned businesses, as well as firms addressing climate change.
MCPP Financial Institutions III is IFC’s largest-ever mobilization in a single agreement. It will unlock the insurance industry’s risk-bearing capacity to increase private capital and enable billions of dollars of additional development finance to support economic growth, job creation, and poverty reduction.
“Mobilization of private capital is key to scale the impact of development finance, but not easy to achieve. IFC has successfully managed this through its MCPP FIG III program, whose record volume is testament to IFC's scaling capability,” said Veronica Scotti, Chairperson of Swiss Re Public Sector Solutions. “Swiss Re is thrilled to support this facility and thanks IFC for its trust.”