The World Bank president has said that the group’s corporate lending arm will start regularly offloading slices of its loans to private investors, after its maiden securitisation packaged half a billion dollars of debt.
The International Finance Corporation sold tranches of risk on a $500mn portfolio of loans to companies in emerging markets this month, as a test of a plan to boost the World Bank’s firepower with private investment.
Ajay Banga told the Financial Times that while he could not yet predict how large these deals might become, “I have every intention of doing this on a regular cadence” that would keep “large pools of private capital” such as pension funds and insurers coming back.