Completed Mixed AidData Chinese Aid

SAFE provides $3 billion to IFC’s Managed Co-lending Portfolio Program (MCPP) to support 83 private sector projects

$3M USD

Funder	China State Administration of Foreign Exchange (SAFE)
Recipient Organization	International Finance Corporation (IFC)
Country	Multi-Region
Start Date	Sep 17, 2013
End Date	May 13, 2026
Duration	4,621 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`98022`

Grant Description

SAFE provides USD $3 billion to IFC’s Managed Co-lending Portfolio Program (MCPP) to support 83 private sector projects in 2013 On September 17, 2013, Yi Gang, the Deputy Governor of the People's Bank of China (PBOC) and the Administrator of the State Administration of Foreign Exchange (SAFE), and Jin-Yong Cai, International Finance Corporation (IFC) Executive Vice President and CEO, signed a series of agreements related to the Managed Co-lending Portfolio Program (MCPP).

Under these agreements, SAFE agreed to provide $3 billion to the IFC — through a trust fund — over a period of 5-years (2013-2018) to support a portfolio of private sector investment projects.

Under the terms of the trust fund agreement and a ‘blind pool’ approach, the IFC signed individual loan agreements (ILAs) with various borrowers for 83 projects spread across three regions: East Asia and Pacific, Sub-Saharan Africa, Latin America and the Caribbean, and Eastern and Central Europe.

IFC signed these ILAs on its own account and on behalf of SAFE (as implementer of the MCPP).

IFC and SAFE agreed in advance upon borrower eligibility criteria and IFC then deployed SAFE’s capital automatically over time alongside its own commitments (from its own balance sheet) to borrowers that met the eligibility criteria—without further review or approval by SAFE.

According to an evaluation undertaken by the World Bank Group’s Independent Evaluation Group, the MCPP ‘leverages IFC’s project pipeline and due diligence skills to source opportunities for third-party investors to co-lend to projects or groups of projects alongside IFC on commercial terms.

The MCPP gives IFC the ability to provide larger financing packages than it could provide from its own account and increases the pool of financing available for achieving development goals.

The MCPP leverages a loan portfolio for an investor [SAFE] that mirrors the portfolio IFC is creating for its own account, similar to an index fund […].’ The evaluation also concluded that ‘[t]he program allowed strategic deployment of China’s foreign exchange reserves through the International Finance Corporation (IFC), generating returns, knowledge, and credit assessment insights for the Chinese sovereign-linked investor, primarily into East Asia and Pacific, Sub-Saharan Africa, and Latin America and the Caribbean.

The MCPP-SAFE approach benefited from IFC’s presence across all emerging market and developing economy countries. The MCPP provided SAFE with unique opportunities and access to emerging markets, a footprint SAFE does not have.

SAFE considers the MCPP one of the more innovative investments in its portfolio because it allows SAFE to review and analyze similar commercial projects on a deal-by-deal basis.

Private capital mobilized from SAFE was disbursed widely by region and by country groups, and was concentrated on non–International Development Association, nonfragile countries, partly driven by the characteristics of the development projects in IFC’s pipeline.

Most of these borrowers have the capacity to meet their financial commitments and are less vulnerable to nonpayment than other speculative projects.’ By the end of 2018, SAFE’s $3 billion allocation to the IFC had been fully utilized (invested).

Illustrative projects supported by SAFE through the MCPP include the Castellana Wind Power Project in Argentina, the Skopje City Mall Project in Macedonia, the Delta City Podgorica Project in Montenegro, the Delta City Belgrade Project in Serbia, the Middle East Glass Manufacturing Company Project in Egypt, the Sonker Bunkering Company SAE Project in Egypt, the 88MW La Genoveva Windfarm Project in Argentina, the Urban Streets Pavement Program in the Province of Santa Fé (Programa de Pavimientacion de Calles a Nivel Definitivo y Cordón Cuneta en Distintos Municipios y Comunas de La Provincia de Santa Fé) in Argentina, the Banco Continental SME On-Lending Project in Paraguay, the Zaporizhzhia Smart City Project in Ukraine, and the Indonesia Infrastructure Finance (IIF) Project.

📋 Staff Comments

For an illustrative loan agreement between the IFC and a private sector borrower that committed IFC funds and SAFE funds, see the syndicated loan agreement with CP La Castellana S.A.U. for the Castellana Wind Power Project in Argentina: https://www.dropbox.com/s/j67g2c8j2af6hvn/Argentina%202017%20China%20SAFE%20Loan%20via%20IFC%20MCPP_COMMON_TERMS_AGREEMENT.pdf?dl=0 and https://www.dropbox.com/s/v00cn9qvf28lai6/Argentina%202017%20China%20SAFE%20Loan%20via%20IFC%20MCPP%20to%20CP%20LA%20CASTELLANA%20S.A.U..pdf?dl=0.
SAFE loans issued through the MCPP are syndicated loans.
The IFC's Syndicated Loans and Mobilization Department (CSL) is responsible for raising external funds for IFC clients through the B Loan program, Parallel Loans, Credit Insurance Policies (CIP), the Managed Co-Lending Portfolio Program (MCPP), and Debt Securities Syndications (DSS).
The IIF Project is described here: https://web.archive.org/web/20230711154211/https://webcache.googleusercontent.com/search?q=cache:giZob3_HEgAJ:https://www.globalcapital.com/article/lxvbr09b38vk/syndication-success-takes-iif-debut-to-250m%3FFreeTrial%3Dtrue&cd=13&hl=en&ct=clnk&gl=us.

📚 Sources & References

International Financing Mechanisms for Infrastructure Projects in Emerging Markets
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Catalysing private investment through the IFC's co-lending facility
CENTRAL PUERTO OBTAINS FINANCING FOR THE LA GENOVEVA WIND PROJECT (88MW) FROM IFC
Chapter 2: Did PCM Approaches Deliver?
China Third-Party Market Cooperation for Infrastructure Projects: Financing Mechanism Handbook
CL SSL MCPP
Common Terms Agreement
COUNTRY PARTNERSHIP FRAMEWORK FOR THE PEOPLE’S REPUBLIC OF CHINA FOR THE PERIOD FY 2020-2025
Daycoval Gender (IFC-36812)
Early Warning System Santa Fe Infra (IFC-40418)
EBRD and IFC boosting retail sector in Western Balkans
El expediente N° 00301-0069749-9 del registro del Sistema de Información de Expedientes
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Hystead Montenegro
Hystead Regional Facility (EBRD-48980)
Hystead Serbia
IFC Debt Mobilization: MCPP Overview: October, 2017
IFC MAY ALLOCATE $55 MLN TO ZAPORIZHIA TO IMPROVE ENERGY EFFICIENCY
IFC PROJECT INFORMATION & DATA PORTAL: MEG
IFC's private loan platform attracts $7.1 b from insurers
Asian institutions
Infrastructure financing in sub-Saharan Africa: Opportunities and impact for institutional investors
Itau PY Loan
Klabin Growth
La Castellana
LA LEGISLATURA DE LA PROVINCIA DE SANTA FE SANCIONA CON FUERZA DE LEY
Latest NAFMII Data as of September 6, 2013
Lekela EG Wind 1
Loan Agreement between CP LA CASTELLANA S.A.U. and INTERNATIONAL FINANCE CORPORATION
Dated as of October 20, 2017
Loan Agreement between CPLA CASTELLANA S.A.U. and INTERNATIONAL FINANCE CORPORATION
Dated as of October 20, 2017
Managed Co-Lending Portfolio Program (MCPP)
Managed Co-Lending Portfolio Program (MCPP)
Marport Liman Isletmeleri Sanayi Ve Ticaret Anonim Sirketi
MEG (IFC-37095)
Michlig destacó la confirmación de un crédito de 300 millones de dólares para obras de pavimento en municipios y comunas
MICROCAPITAL BRIEF: IFC Loans $75m to Banco Continental of Paraguay for SMEs
Mobilizing Institutional Investments into Emerging Market Infrastructure
Our Expertise
PBC Signed Memorandum of Understanding on Co-investment Program with IFC
PERFORMANCE AND LEARNING REVIEW OF THE COUNTRY PARTNERSHIP FRAMEWORK FOR THE ARGENTINE REPUBLIC
SGBL SSL MCPP
Sonker Bunkering Company SAE
Stocktake of Approaches that Leverage Private Sector Investment in Sustainable Infrastructure
Trade and other receivables Dec. 31, 2020
Ukraine: Zaporizhzhia (IFC Investment No. 43181) - IFC Agreement (Mandate Letter) dated October 29, 2019 as amended and restated on March 2020
UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 20-F Central Puerto S.A.
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Xekaman
Zaporizhzhia Smart City, Пояснювальна записка до проєкту рішення міської ради «Про співробітництво з Міжнародною фінансовою корпорацією («IFC») ( в новій редакції)» Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

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International Finance Corporation (IFC)

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