The IFC has recently announced that it is proposing to support the development of a series of third party infrastructure debt platforms (vehicles) that will invest in senior loans in infrastructure projects alongside IFC. This could be understood as part of its strategic focus on mobilizing third party capital for infrastructure investment in emerging markets.

For third party investors credit enhancement, IFC will provide anchor investment in the form of subordinated debt/equity in each vehicle, an unfunded portfolio guarantee and financial instruments structured. Additionally, IFC will contract with the vehicles to provide co-investment.

Each vehicle will be managed by a third party asset manager additionally, as all the investment origination and supervision, it will be conducted by IFC under the Managed Co-lending Portfolio Program.

An initial IFC investment of up to US$125 million is being contemplated with the intention of mobilizing US$1 billion of private sector third party capital. Additionally, the initial transactions are intended to create a demonstration model that will ultimately support a larger IFC investment to facilitate additional third party mobilization totaling US$5 billion. The development is expected to have the following impact:

• Given that the vehicles will co-invest with IFC (on the same terms and conditions), the proposed investment will support private sector development by increasing access to long term debt capital for infrastructure projects across emerging markets.
• Under Co-lending Portfolio Program, investors approve funding in projects much earlier than traditional co-lenders, providing IFC's clients with greater certainty of finance and reducing their transaction costs during the project development phase, allowing for a faster process to financial close. 
• The vehicles directly leverage IFC's own economic capital allowing IFC to participate in larger transactions.