IDB Invest Expands Award-Winning Securitization with $450 Million Boost

In a significant move to enhance its innovative financing capabilities, IDB Invest, part of the IDB Group, has successfully increased its $1 billion Scaling4Impact securitization by an additional $450 million. This transaction represents the first instance of a multilateral development bank (MDB) utilizing a retap strategy under the originate-to-share model to effectively mobilize private capital for developmental purposes, further affirming the viability of securitization as a tool for financial innovation in the development finance landscape.

Since its initial launch in 2024, the Scaling4Impact initiative has gained traction as an effective mechanism for optimizing MDB balance sheets while simultaneously crowding in private investment. The latest financing round reaffirms the confidence investors place in the ongoing success of the program. “This is an important step in our IDB Invest+ originate-to-share business model, which enables us to bring together global investors and development projects,” stated Ilan Goldfajn, the President of the IDB Group.

The fresh capital acquired through this retap adds to a diversified portfolio encompassing sectors such as infrastructure, energy, and financial institutions throughout Latin America and the Caribbean. Notably, the mezzanine tranche was acquired by Newmarket Capital, with significant portions insured by AXA XL and AXIS Capital. Meanwhile, IDB Invest continues to hold onto the senior and junior tranches of this financing.

James Scriven, CEO of IDB Invest, emphasized the importance of this achievement, remarking, “Returning to the market with this retap evidences the strong investor confidence in the quality and performance of our diversified development assets.” The achievement is further substantiated by Molly Whitehouse, a Managing Director and Co-Founder at Newmarket, who expressed enthusiasm for the evolution of the Scaling4Impact transaction, highlighting the critical nature of long-term partnerships in facilitating development finance avenues for private market participants.

The original Scaling4Impact securitization has already garnered multiple accolades, establishing itself as a landmark transaction for MDBs in the Latin American and Caribbean regions. Most notably, it received the prestigious IJGlobal Investor Award for the Securitization Deal of the Year in 2025. This accolade further underscores the merits of this innovative financing approach in addressing pressing developmental challenges through effective capital mobilization.

The recent retap also aligns with G20-endorsed MDB reforms aimed at fostering financial innovation and enhancing the mobilization of private capital to address sustainable development goals. The transaction serves as a forward-thinking strategy to streamline balance sheets while maximizing the potential of MDBs to fulfill their lending mandates. By leveraging MDB performance data through resources like the Global Emerging Markets (GEMs) database, IDB Invest exemplifies the future direction of development finance.

In conclusion, the successful addition of $450 million to the Scaling4Impact securitization not only showcases IDB Invest’s commitment to advancing development initiatives but also sets a precedent for other MDBs exploring similar innovative financing strategies. As witnesses this evolution in development finance, it is clear that IDB Invest remains at the forefront of enhancing private capital mobilization efforts that foster sustainable development across Latin America and the Caribbean regions. Advisors for this transaction included Santander Corporate Investment Banking and Clifford Chance, further bolstering the collaborative essence of successful development finance initiatives.