Ifc Master Cooperation Agreement
As part of this approach, IFC acts as an arranger – and can also act as a managing agent – leveraging its existing syndication platform, transaction structuring expertise and global presence to identify investments, conduct due diligence and negotiate credit documents in collaboration with parallel lenders. The Private Infrastructure Development Group (PIDG), the Emerging Africa Infrastructure Fund (EAIF), has signed a Framework Cooperation Agreement (GFA) with the International Finance Corporation (IFC). The MCA, signed on 18 March 2020, will enter into force when the IFC is the mandated lead arranger of the debt package for an infrastructure project involving both parties. The MCA establishes a set of mutually agreed processes to reach a contractual agreement and assign responsibilities for each project. EAIF joins 33 Development Finance Institutions (DFIs) from around the world that have signed the MCA, although EAIF is the first third-party fund to do so. John Gandolfo, IFC Vice President and Treasurer, said: “This agreement with the Emerging Africa Infrastructure Fund means the addition of another key partner to our network of MCA signatories. It also complements IFC`s long-standing goal of helping African clients close Africa`s infrastructure gap. The IFC established the MCA in 2009 in response to calls from the Group of 20 Nations for formal financial institutions to work more closely together to address private sector financing gaps during the global financial crisis. Since then, IFC has syndicated more than $26 billion in parallel loans to its clients, nearly half of which comes from MCA signatories. Click here for a full list of signatories. Washington, D.C. March 25, 2021 – Norfund is today the 35th development finance institution to join the IFC`s Framework Cooperation Agreement, paving the way for collaboration between the two institutions to boost private sector investment around the world and catalyze jobs and economic growth.
The IFC, a member of the World Bank Group, plays a key role in mobilizing private capital to accelerate development in emerging markets. The Framework Cooperation Agreement standardises the measures taken by lenders when co-financing projects with the IFC. This simplified approach saves borrowers – private companies in emerging markets – and lenders. Lenders who accept the deal will benefit from IFC`s $16 billion loan syndication platform, global presence, and expertise in transaction structuring and due diligence. Norfund is owned and financed by the Norwegian government and provides equity and other venture capital to create sustainable businesses in developing countries. Norfund`s mission is to create jobs and improve lives by investing in businesses that would not otherwise be developed due to high risks and that contribute to economic and social development through the direct and indirect jobs they provide, the goods and services they offer and the taxes they pay. By the end of 2020, Norfund had committed to invest a total of NOK 28.352 million in 170 projects. Norfund prioritizes investments in four investment areas in line with the United Nations Sustainable Development Goals: clean energy, financial institutions, green infrastructure and scalable businesses. John Gandolfo, IFC Vice President and Treasurer, said: “We are delighted to sign this new agreement with Norfund as part of our commitment to catalyze global sustainability through investments in clean energy and green projects, as well as financial institutions and sustainable agriculture in emerging markets. We are joining forces at a critical time as we work to build back better after the COVID-19 pandemic.
Birgit Edlefsen, Senior Investment Manager at Norfund, said: “Norfund is very pleased to conclude the Framework Cooperation Agreement with IFC, which will allow us to increase our impact in the debt segment efficiently and with an excellent lead partner. We look forward to working together to deliver the initial funding in the framework, which is even more critical in the current challenging circumstances of the pandemic. The IFC established the Framework Cooperation Agreement in 2009 in response to calls by the Group of 20 Nations for formal financial institutions to work more closely together to address private sector financing gaps during the global financial crisis. Since then, ifC has syndicated more than $26 billion in parallel loans to its clients, nearly half of which comes from signatories. Click here for a full list of signatories. About IFC IFC – a sister organization of the World Bank and a member of the World Bank Group – is the world`s largest private sector-focused development institution in emerging markets. Working with more than 2,000 companies worldwide, we use our capital, expertise and influence to create markets and opportunities where they are most needed. In fiscal 2019, we provided more than $19 billion in long-term financing to developing countries, leveraging the power of the private sector to end extreme poverty and increase shared prosperity. For more information, see www.ifc.org. Stay www.facebook.com/IFCwbg www.twitter.com/IFC_org www.youtube.com/IFCvideocasts www.ifc.org/SocialMediaIndex www.instagram.com/ifc_orgAbout NorfundNorfund is Norway`s investment fund for developing countries. Its mission is to create jobs and improve lives by investing in companies that promote sustainable development.
Norfund is owned and funded by the Norwegian government and is the government`s main instrument for strengthening the private sector in developing countries and fighting poverty. For more information, see www.norfund.no. Norfund and other lenders accepting the deal will benefit from IFC`s $16 billion loan syndication platform, global presence, and expertise in transaction structuring and due diligence. The IFC established the Framework Cooperation Agreement in 2009 in response to calls by the Group of 20 Nations for formal financial institutions to work more closely together to address private sector financing gaps during the global financial crisis. The Framework Cooperation Agreement is a cooperation framework for debt transactions that covers all sectors of Norfund. Cooperation among international financial institutions increased significantly following the 2008 global financial crisis and the consequent lack of liquidity for commercial banks. In October 2009, the IFC signed a Framework Cooperation Agreement (MCA) with the three largest European development finance institutions: DEG, FMO and Proparco. The agreement describes how DFIs work together to co-finance projects where the IFC is the designated lead arranger. The MCA also provides documentation templates that significantly reduce costs and increase efficiency. The Infrastructure Fund for Emerging Africa (EAIF) is now the 34th development finance institution to join the IFC`s Framework Cooperation Agreement, making it easier for the two institutions to work together to increase private sector investment in infrastructure in Africa and the Middle East and to promote jobs and economic growth. .