IDB Invest Launches Landmark $1 Billion Securitization in Latin America and the Caribbean

The transaction – Scaling4Impact – consists of securitizing $1 billion of IDB Invest's portfolio, creating a tranched structure with an $870 million senior tranche; a $100 million mezzanine tranche, a portion being sold to international investor Newmarket Capital and the remainder insured by AXIS and AXA; and a $30 million junior tranche retained by IDB Invest.

The securitized portfolio includes assets from 20 countries and 10 sectors, such as corporates, infrastructure, energy and financial institutions. The transaction will free up capital, creating up to half a billion in additional lending capacity for new projects.

"With our new originate to share business model, our strong ties with governments and the deep synergies between our private and public sector work, we're uniquely positioned to attract private capital," said IDB President, Ilan Goldfajn. "Through this landmark transaction, we are connecting development assets with global investors to scale impact in Latin America and the Caribbean."

"This initiative marks a major step in IDB Invest's transition to our new originate-to-share business model, aimed at mobilizing capital and scaling impact through the private sector," said James Scriven, IDB Invest CEO. "We are building a new MDB asset class to crowd-in investors seeking unique impactful investment opportunities in emerging markets."

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable projects to achieve financial results and maximize economic, social, and environmental development. With a $21 billion portfolio in development-related assets under management, 394 clients in 25 countries, IDB Invest provides financial solutions and advisory that meet its clients' needs.

Media Contact:

Ana Escudero
[email protected]

View original content:https://www.prnewswire.co.uk/news-releases/idb-invest-launches-landmark-1-billion-securitization-in-latin-america-and-the-caribbean-302284116.html