Key facts
- The World Bank Group has closed its first securitization transaction, a $510 million collateralized loan obligation (CLO).
- The transaction aims to attract institutional private capital, such as pension funds and insurance companies, into emerging markets.
- This securitization is the first step in an originate-to-distribute strategy to mobilize private investment at scale.
- The World Bank Group mobilized a record amount of private capital in its 2026 financial year, channeling over $200 billion to developing economies.
- Financing for Africa increased by over 150% in the past four years to $22 billion.
- Goldman Sachs acted as the arranger for the World Bank's securitization transaction.
The World Bank Group has successfully closed its inaugural securitization transaction, a $510 million collateralized loan obligation (CLO), as part of a broader strategy to attract private capital into emerging markets. This move, led by World Bank Group President Ajay Banga, aims to create a new asset class for institutional investors like pension funds and insurance companies, thereby mobilizing private investment at scale and freeing up the World Bank's own capital for more developing countries and projects.
The transaction, which took two years to design, repackages IFC loans into rated securities. It includes a $320 million senior tranche, a $130 million mezzanine tranche insured by credit insurers, and a $60 million equity tranche. Goldman Sachs acted as the arranger for the deal, which was listed on the London Stock Exchange. The World Bank Group plans to launch regular issuances to establish a scalable and replicable model.
This initiative aligns with the Private Sector Investment Lab's aim to identify and solve barriers to private sector investment in emerging markets. The World Bank Group reported mobilizing a record amount of private capital in its 2026 financial year, channeling over $200 billion to developing economies worldwide and significantly increasing financing for Africa to $22 billion. The institution attributes these results to reforms that have made it faster and simpler, brought its public and private sectors closer, and expanded investor tools.