Swiss RE has agreed to insure up to USD 500m of loans to emerging markets from the International Finance Corporation (IFC).
The firm’s Swiss Re Corporate Solutions unit will provide insurance coverage of IFC loans from its Managed Co-Lending Portfolio Program (MCPP), which provides a platform for institutional investors to participate in IFC’s loan portfolio.
Swiss RE’s commitment increases the platform’s total capacity to USD 7bn, according to an 18 April statement from the IFC.
“Swiss Re Corporate Solutions will only provide the insurance cover on a portion of each loan,” said Brian Moore, Head Project & Infrastructure Finance, Swiss Re Corporate Solutions, in an email to Inframation. “We will not take the entire risk, as IFC will retain a portion.”
The IFC program, “adds diversification to our portfolio and is very much in line with Swiss Re’s vision of making the world more resilient,” Moore said.
Under the terms of the program, Swiss RE would have input into the MCPP’s lending activities as investor approval is sought pre-mandate, he said.
The People’s Bank of China (PBOC), through the Chinese State Administration for Foreign Exchange (SAFE), was the first investor in the program. The PBOC has pledged USD 3bn to the MCPP platform over a six-year period.
Other investors to have committed capital to the program since its launch in 2013 include AXA, Allianzand Munich Re.
The platform is targeting investments in the power, water, transport and telecommunications sectors in developing countries.