IFC Securitizes $509 Million in Emerging Market Loans

The transaction marks the second major issuance under the Emerging Markets Securitization Program, following an inaugural deal in September 2025. By packaging loans into securities, the IFC moves away from holding debt on its balance sheet, instead creating an originate-to-distribute model that attracts pension funds, insurers, and asset managers. This mechanism allows the organization to redeploy capital into new development projects more rapidly.

The deal structure includes $320 million in senior notes rated Aaa and $50 million rated Aa1 by Moody’s, both of which were snapped up by private investors. An $80 million mezzanine tranche secured backing from a consortium of international insurers including AXA XL and AXIS Capital, while the UK’s Foreign, Commonwealth & Development Office joined the IFC to hold the $59 million equity portion. Listed on the London Stock Exchange, the senior notes represent a core component of the UK government’s MOBILIST initiative to channel capital into high-growth, underserved regions.

Major institutional players, including PIMCO, Legal & General, and Shizuoka Bank, participated in the offering. With over $1 billion in securities now issued across two rounds, the program demonstrates a repeatable pathway for institutional capital to enter markets previously viewed as difficult to access. For the World Bank Group, the focus remains on building liquid credit markets to bridge the systemic financing gap that hinders infrastructure and job creation in the developing world.