The World Bank Group’s International Finance Corporation (IFC) has completed its second Emerging Markets Securitization Program (EMSP) transaction, helping mobilise private investment for business growth and job creation in developing economies.
The $509 million collateralised loan obligation (CLO) transaction builds on the success of the programme’s first issuance and supports efforts to create a stronger market for institutional investment in emerging markets.
The initiative uses an originate-to-distribute model, allowing portions of IFC’s loan portfolio to be packaged into rated securities and offered to private investors. This approach helps recycle capital and increases the capacity to finance businesses that support economic development.
The latest transaction includes 62 IFC-originated loans across different sectors and regions. By creating a diversified investment structure, the programme provides institutional investors with access to emerging market opportunities while helping address financing gaps in developing economies.
The transaction received strong investor demand and was structured with multiple investment levels to match different risk and return preferences. Private investors participated in senior and mezzanine tranches, while IFC and the UK’s Foreign, Commonwealth & Development Office supported the equity portion.
The programme is backed by support from the UK’s MOBILIST initiative, which helped strengthen market access and encourage private sector participation through the London Stock Exchange.
IFC officials said that increasing private capital flows into emerging markets can help expand employment opportunities and support businesses driving economic growth. The partnership reflects a broader effort to transform development finance by attracting larger volumes of private investment.
With the two EMSP transactions exceeding $1 billion in issued securities, the World Bank Group aims to build a scalable financial model that connects global investors with businesses in developing countries.
The initiative represents a growing shift toward using capital markets to support sustainable growth, strengthen private sector activity and create jobs in emerging economies.
