Syndications

(See also Products and Services.) IFC offers commercial banks and other financial institutions the opportunity to lend to IFC-financed projects. These loans are a key part of IFC's efforts to mobilize additional private sector financing in developing countries, thereby broadening the Corporation's developmental impact. Through this mechanism, financial institutions share fully in the commercial credit risk of projects, while IFC remains the lender of record.

IFC's Syndicated Loan Program is the oldest and largest among multilateral development banks. In fiscal 2014, it accounted for 61 percent of the funds mobilized by IFC.

In fiscal 2014, IFC syndicated about $3.1 billion in B-loans, parallel loans, and Managed Co-Lending Portfolio Program loans, provided by more than 80 financial institutions. These included commercial banks, institutional investors, development finance institutions, and an emerging-markets central bank. A record $1.1 billion was provided by co-financiers in emerging markets. The syndicated loan portfolio stood at $15.2 billion.

Borrowers in the infrastructure sector received 44 percent of the total volume. More than a quarter of the financing IFC provided through syndications—$816 million in all—went to borrowers in IDA countries.

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Systematic Country Diagnostic

As part of the restructuring of the institution, the World Bank Group endorsed, in July 2014, the proposal of a new Country Partnership Framework (CPF) to define World Bank Group country engagement. Under the new approach, Bank Group country engagements will continue to draw upon the national development strategies of the country. They will also draw upon a Systematic Country Diagnostic (SCD), which will be prepared by Bank Group staff in close consultation with national authorities and other stakeholders.

The SCD is intended to become a reference point for client consultations on priorities for Bank Group country engagement. It is intended to help the country government, the Bank Group, and other development partners establish a dialogue to focus their efforts around goals and activities that have high impact and are aligned with the global goals of ending extreme poverty and boosting shared prosperity in a sustainable manner.

The Systematic Country Diagnostic is:

• Conducted by Bank Group staff in close consultation with national authorities and

other stakeholders. It identifies key challenges and opportunities for a country for accelerating progress toward the goals at the country level. It will not be limited a priori to areas or sectors where the Bank Group is currently active or expects government demand.

• Conducted upstream of the CPF to inform strategic discussions with clients about priority areas for Bank Group interventions in support of the twin goals. The SCD for every country will be aligned with CPF preparation and, where possible, with the preparation of key national development planning documents.

• Based on the best possible analysis, drawing on available evidence. It also identifies critical data and knowledge gaps that merit attention.

• Informed by citizens' input and feedback. Bank Group staff will seek to involve country partners (private sector, governments, researchers, or institutions) in SCD preparation.

• Prepared by Bank Group country teams, including technical experts, led by a Task Team Leader with proven integrative skills and drawing upon expertise across the appropriate networks or Global Practices and Cross-Cutting Solution Areas. (For Bank Group country teams preparing joint SCDs, IFC regional/country teams will lead IFC engagement, provide oversight with the Bank team and private sector perspectives, and draw on other expertise from IFC staff).

• Subject to a corporate review process similar to high visibility, flagship regional economic and sector work (ESW) with Bank-wide concept stage and decision stage review meetings chaired by the Regional Vice President (or delegate). Global Practices and Cross-Cutting Solution Areas are expected to participate actively in these review meetings.

• Expected to be made publicly available following Regional Vice President approval, following the Access to Information Policy on disclosure of ESW.

Any Country Management Unit taking a Country Strategy to a concept review after June 30, 2014, will be required to produce a CPF that is preceded by a SCD. Any strategy going to the Board after the second quarter of fiscal 2015 must be a CPF.

 
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