1. New models of private sector participation in development finance
Brussels 2 February, 2017
MCPP Infrastructure
Carl Chastenay , IFC
Karin Lindblad, Sida
Thanks
Share the main structure and ideas behind the MCPP Infra
Not just there yet- soon finalised
Our brief narrative
Main outline of the model
Share some thoughts on market dynamics
(where did we (Sida come from) seeking – multilateral with long experince on the markets, right size and geography and diversified portfolio
We met.. and 2 years and a few details later we hope to be there soon..

2. one of the challenges is trying to square private investor requirements and public sector priorities within one vehicle
We set ut to explore how the Sida Guarantee could be used in the most efficienct way, building on the existing IFC MCPP program
Meeting the requirements from the investors while endorsing Swedish development objectives.

3. Confidential
MCPP Infrastructure
Creating a portfolio of EM Infra Loans for Third Party Investors
Borrower
Borrower
Loan Agreement
Loan Agreement
IFC
A Loans
B loan Participation Agreement
B loan Participation Agreement
B Loan
Fund 3

4. MCPP Infrastructure
Creating an Investment Grade Risk Return Profile for Institutional Investors
Confidential
(Fund/SPV)
Assets Liabilities
Investors:
Senior Tranche
Risk: Investment Grade
Institutional Investors
B Loan Portfolio
Risk: Sub Investment Grade
Junior Tranche
IFC
Sida
Guarantee 25

5. Planned Sida eligible loans
Natural gas for energy production in Least Developed and Low income countries
OECD DAC-list I - IV
Upper middle income countries: only renewable energy
Exemption:
Limitation:
Geography:
Mining and fossil fules
Waiver:
IFC is the beneficary of the Sida guarantee
Eligible loans are..
DAC IV- Upper middle income countries, (eg. Jordan, Namibia, Mexico, Peru, Botswana, Iran, Irak
With a total ceiling of 60 miljon dollar and:
On the eligible loans Sida guarantee takes a firstloss coverage of 2/3

6. New models of private sector participation in development finance
Brussels 2 February, 2017
MCPP Infrastructure
Carl Chastenay , IFC ,
Karin Lindblad, Sida
Concluding,
That these things takes time and efforts from all parties- not least from the first-running investors that are not here today.
Thanks for the attention and we look forward to more discussions..

7. MCPP Infrastructure Sizing the Market
Confidential
MCPP Infrastructure
Sizing the Market
$1bn raised by Private lending funds in 2015 outside of Europe and North America

8. A GSAM Survey of 233 Insurers Representing $6 Trillion1
MCPP Infrastructure
Insurance investors already investing in Infrastructure debt and want to do more
A GSAM Survey of 233 Insurers Representing $6 Trillion1
Goldman Sachs Asset Management Insurance Survey of 233 Insurers representing $6 Trillion, 2014
JP Morgan “The US Insurance Company Bid for EM Infrastructure Debt, March 2015