Structured Finance
IFC uses a range of structured finance products to provide bespoke financing and risk transfer solutions to its clients.
Guarantees for Approved Exposures
Instead of providing direct financing to its clients, IFC can leverage its triple-A (AAA/Aaa) rating and provide unfunded guarantees to lenders or investors, ie. while the lender or investor provides the funding, IFC absorbs a portion, or all, of the credit risk of the pre-identified borrower under the guaranteed debt. Learn more.
Portfolio Guarantees
Portfolio guarantees are financial instruments provided by IFC to help financial institutions manage and mitigate credit risk across a portfolio of assets. Key products under this category include risk-sharing facilities and synthetic risk transfers. Learn more.
Securitization
Securitizations allow companies and financial institutions to leverage a portfolio of assets with predictable cashflows to source efficient, matched funding from capital markets and/or transfer credit risk to investors and relieve capital that can be redeployed into more lending.
IFC invests in true-sale and synthetic securitizations and can provide credit enhancement to transactions through funded or unfunded participations, often at mezzanine level.
Structured Debt Funds
Structured Debt Funds are managed investment vehicles that primarily invest in debt investments. These funds have the flexibility of traditional funds but also incorporate a tranched capital structure to attract investors with different risk appetites. They can invest in a portfolio of eligible assets and are typically funded through the issuance of debt with varying levels of seniority, and sometimes debt securities.
