By Bamidele Famoofo
WorldStage— The World Bank Group, through the International Finance Corporation (IFC), has closed its second securitization transaction under the Emerging Markets Securitization Program (EMSP), marking continued progress in mobilizing private capital to support private sector growth and build a scalable market for institutional investment in emerging markets.
Following the success of the inaugural transaction in September 2025, this second $509 million collateralized loan obligation (CLO) further demonstrates the viability of the World Bank Group’s originate-to-distribute model. This strategic approach is designed to attract private capital at scale for investments in productive sectors with the greatest potential to create jobs and drive growth.
Both transactions were enabled by catalytic equity investment from the UK’s Foreign, Commonwealth & Development Office (FCDO) through MOBILIST, supporting the listing of senior notes on the London Stock Exchange (LSE) and anchoring the program’s market entry in partnership with IFC.
The transaction packages 62 IFC-originated high-quality loans across sectors and geographies into rated securities, opening access for institutional investors to a diversified portfolio of emerging market assets. By building on the structure of the first deal, the program is helping to build an asset class for emerging markets to facilitate capital flows and help close the development financing gap using capital markets.
“Capital that reaches the private sector in emerging markets is capital that creates jobs,” said John Gandolfo, IFC Vice President and Chief Financial Officer. “This second transaction shows we can mobilize that capital into the sectors where it does the most to expand employment and opportunity, connecting institutional investors with the businesses that drive growth across developing economies.”
“This investment shows how we are putting innovative approaches to development finance into practice. This will mean the IFC can invest more into spurring development in the Global South,” said Jenny Chapman, UK Minister for Development. “It also demonstrates our modern development approach in action, moving from donor to investor, and draws on the UK’s financial expertise to help connect mainstream private investors with opportunities like this that can grow development finance at scale.”
The transaction was oversubscribed, attracting strong investor interest, and is structured with multiple tranches to meet risk-return preferences. The structure consists of $320 million and $50 million senior tranches sold to private investors, rated Aaa and Aa1 by Moody’s, a $80 million mezzanine tranche insured by a consortium of credit insurers, and a $59 million equity tranche held jointly by IFC and the FCDO.
The investors participating in the transaction include PIMCO as anchor investor, L&G, Shizuoka Bank, Sona Asset Management, and other institutional investors. The consortium of credit insurers comprises AXA XL, AXIS Capital, Everest, HDI Global, Liberty Specialty Markets, and MSIG USA.
Goldman Sachs was arranger for the transaction, with Clifford Chance serving as IFC’s Counsel and Bank of New York Mellon as Trustee and Paying Bank
By packaging portions of IFC’s loan portfolio into rated securities, the program recycles capital and expands the institution’s capacity to finance private sector growth in developing countries.
This second issuance builds on strong investor demand for the inaugural transaction, adding an Aa1 rated tranche and expanding access to high-quality emerging market exposure through familiar, scalable instruments. The two transactions represent more than $1 billion of securities issued.
This transaction advances the World Bank Group’s originate-to-distribute strategy, a core part of how the institution is reshaping development finance to put private capital to work at the scale the jobs challenge demands. With each transaction, the World Bank Group is building a deeper, more liquid market for emerging market credit and a repeatable pathway for institutional capital to reach the businesses and economies that need it most.
