New Development Bank and International Finance Corporation sign Agreement aimed at promoting co-financing of projects
On 10 April 2018, the New Development Bank and International Finance Corporation (IFC) signed Accession Agreement to Amended and Restated Master Cooperation Agreement between IFC and international financial institutions. The Agreement was signed in Shanghai by Mr. Xian Zhu, NDB Vice President, Chief Operations Officer and Mr. Hans Peter Lankes, IFC Vice President, Economics and Private Sector Development.
Master Cooperation Agreement sets forth a number of guiding principles in order to establish a better understanding of the process and allocation of responsibilities in connection to promoting co-financing through the provisions of debt facilities to borrowers.
New Development Bank
The New Development Bank (NDB) is a multilateral development bank established by Brazil, Russia, India, China and South Africa in 2014. The Bank is mandated to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the efforts of multilateral and regional financial institutions for global growth and development.
International Finance Corporation
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
Master Corporation Agreement
The Master Cooperation Agreement was established by IFC in 2009 as a response to the global financial crisis which hit in 2008 and led to the retrenchment of financing by a number of commercial banks from emerging markets. It became clear to the community of development financial institutions (DFIs) that a partnership to work together to fill the void that the commercial banks left would be needed. The MCA was created to foster greater cooperation among DFIs, increase efficiencies and streamline due diligence processes. The MCA was initially signed between IFC, DEG, FMO and Proparco and subsequently acceded to by 26 other DFIs to make a total of 30 currently. The MCA has generally been well received within the DFI community given that it is structured to create efficiencies through standardized documentation and deal processing.