#USA #Washington #Securitization #IDB Invest #Scaling4Impact

IDB Invest Expands Its Award-Winning Securitization Program

A Significant Financial Move

On December 19, 2025, IDB Invest, a key member of the Inter-American Development Bank Group (IDB Group), announced the addition of over $450 million to its groundbreaking $1 billion Scaling4Impact securitization initiative that commenced in 2024. This development not only marks a significant milestone in the financing strategies employed by multilateral development banks (MDBs) but also reinforces how securitization can be a viable strategy for mobilizing private sector investments into development projects.

The transaction signifies the first instance of a re-tap under the originate-to-share model from a multilateral development bank, which serves as an innovative mechanism to attract private capital while optimizing balance sheets. The utilization of securitization demonstrates the capability of MDBs to not only enhance their capabilities but also broaden financial resources for various development initiatives.

Key Statements from IDB Leadership

Ilan Goldfajn, President of the IDB Group, highlighted the importance of this transaction, indicating that it is a critical step in implementing IDB Invest's business models and IDB Group's broader strategy aimed at promoting private sector-led development. By involving global investors in their projects, IDB Invest is paving the way for a scalable model that can harness private capital for developmental purposes.

This freshly established portfolio will extend across diverse sectors including infrastructure, energy, financial institutions, and business ventures throughout Latin America and the Caribbean. Notably, the mezzanine tranche was acquired by Newmarket Capital, backed by portions insured by AXA XL and AXIS Capital, while IDB Invest retains senior and junior tranches, ensuring constant engagement in the development process.

James Scriven, the General Manager of IDB Invest, expressed confidence in the model they are employing, emphasizing that the re-entry into the market affirms investors' strong trust in the quality and performance of diverse development assets. With the Scaling4Impact program already awarded multiple accolades, including the prestigious Securitization Deal of the Year by the IJGlobal Investor Awards in 2025, the reaffirmation of this program signifies investor confidence in MDB-backed transactions.

Importance of Long-Term Partnerships

Molly Whitehouse, a portfolio manager for Newmarket's SRT platform, reiterated the significance of longstanding partnerships, emphasizing their role in creating new avenues for private market investors to engage in funding development. This sentiment aligns with the overarching goal of increasing private capital flow into essential development projects. The transaction illustrates the critical nature of SRT deals in assisting lending institutions to continue their vital loan operations.

Contribution to Global Development Reform

The retap is aligned with G20-approved MDB reforms which promote financial innovation and the attraction of private capital, optimizing the financial landscape through data performance metrics sourced from the Global Emerging Markets (GEMs) database. Such reforms aim to foster a cooperative environment between public and private sectors to stimulate growth within the developing landscapes of Latin America and the Caribbean.

In conclusion, IDB Invest’s recent activities spotlight the vital intersection of innovative finance and sustainable development, presenting a model that not only addresses immediate financial needs but also paves the way for a more sustainable and efficient future in private sector investment for development.

Advisory Role

As part of this significant venture, Santander Corporate Investment Banking and Clifford Chance served as advisors, ensuring that the transition and execution of these financial strategies align with best practices and achieve the desired impact within the target markets.