23 April 2019

Managed Co-Lending Portfolio Program (MCPP) Infrastructure

Written by International Finance Corporation
23 April 2019

The Managed Co-Lending Portfolio Program is IFC’s groundbreaking Syndications platform that creates diversified portfolios of emerging market private sector loans, allowing investors to increase exposure—or get first-time entry—to this asset class. The MCPP platform leverages IFC’s origination capacity and deep market knowledge to source opportunities for third-party investors to co-lend alongside IFC on commercial terms.

The MCPP gives IFC the ability to provide larger financing packages than we could provide from our own account and increases the pool of financing available for achieving development goals. The MCPP builds a loan portfolio for an investor that mirrors the portfolio IFC is creating for its own account—similar to an index fund. MCPP investors and IFC sign upfront administration agreements determining the makeup of the portfolio based on agreed eligibility. Investors pledge capital upfront and then as IFC identifies eligible deals, investor exposure is allocated alongside IFC’s own per the terms of the agreement.