news - Cooperation to mobilize capital for development


Cooperation to mobilize capital for development

March 31, 2017

At the IDB-IIC Annual Meetings in Asunción, Paraguay, leaders from the development finance institutions FMO, Proparco and DEG executed a co-financing agreement with the IIC. This agreement formalizes a successful track record of working together with the goal of increasing private sector financing to Latin America and the Caribbean and strengthening client-service.

The framework establishes a number of guiding principles in order to streamline co-financings and take advantage of each institution’s origination and mobilization capabilities. The agreement works on reciprocity in that the same rules apply regardless of which entity is acting as the lead arranger. Clients thus receive a higher speed of service delivery and lower transaction costs.

This agreement builds on a successful history of cooperation that most recently included the Kingston Container Terminal transaction that IIC led and included the participation of FMO, DEG and Proparco. This transaction recently received the North American Port Deal of the Year Award by the magazine IJ Global.

Additionally, the cooperation is non-exclusive and allows additional entities to join through an Accession Agreement. The Co-Financing Framework Agreement is the start of a network that will continue to grow in order to close the financing gap in Latin America and the Caribbean.

Mobilization underscores IIC’s counter-cyclical role to provide financing in times of low liquidity and market uncertainty. In 2017, the IIC aims to add an additional $1.8 billion in third-party assets to its current $4.2 billion under management. The IIC is hosting several events with partners at the Annual Meeting in Asunción to strengthen its mobilization capacity.

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