IDB Invest Secures $450 Million in Innovative Securitization Efforts

IDB Invest Expands Scaling4Impact Securitization

In a significant stride towards promoting development finance, IDB Invest, a member of the IDB Group, has announced an impressive addition of over $450 million to its $1 billion Scaling4Impact securitization. The original securitization initiative, launched in 2024, is particularly noteworthy as it represents the pioneering effort of a multilateral development bank (MDB) in employing the originate-to-share model to attract private capital for developmental projects.

This innovative transaction not only attests to the efficacy of the securitization process but also reinforces IDB Invest's commitment to optimizing its balance sheet while simultaneously mobilizing private investment. According to Ilan Goldfajn, President of the IDB Group, the infusion of additional funds highlights the significant role of public-private partnerships in fostering economic development and expanding lending capacity for vital projects. "This is an important step in the IDB Invest+ originate-to-share business model and IDB Group's IDBStrategy+ to foster private sector led development," Goldfajn stated.

The newly expanded portfolio encompasses vital sectors including infrastructure, energy, and financial services across Latin America and the Caribbean. Notably, the mezzanine tranche of this transaction was acquired by Newmarket Capital, which also involved insurances from AXA XL and AXIS Capital. Meanwhile, IDB Invest retains ownership of both the senior and junior tranches, further asserting its stake in these developmental initiatives.

James Scriven, CEO of IDB Invest, expressed confidence in the robustness of this model in attracting investor interest. "We've demonstrated that our model works," he asserted. The re-entrance to the market with this retap serves as clear evidence of investor trust in the quality and performance of the development assets that IDB Invest offers.

Molly Whitehouse, a portfolio manager for Newmarket's SRT platform, emphasized the importance of long-term strategic partnerships in facilitating engagements with private market investors. She remarked, "I'm excited to see this expansion of the original Scaling4Impact transaction. It is a testament to the importance of long-term partnerships in creating new pathways for private market investors to participate in development finance."

The original Scaling4Impact securitization has garnered multiple awards, including the prestigious Securitization Deal of the Year in Latin America by the IJGlobal Investor Awards in 2025, celebrating its innovative approach and significant impact.

Through the retap of this award-winning securitization, IDB Invest is driving forward G20-endorsed MDB reforms by fostering financial innovation and enhancing private capital crowd-in, thus promoting sustainable development pathways. Advisors for this transaction included Santander Corporate Investment Banking and Clifford Chance, who have played instrumental roles in facilitating these complex financial arrangements.

Moving forward, IDB Invest aims to utilize the insights and performance data from its diversified assets via the Global Emerging Markets (GEMs) database, further optimizing their balance sheet and enhancing their ability to mobilize private capital for development projects. This new phase in IDB Invest's strategy epitomizes a growing trend among MDBs to become more agile, innovative, and responsive to the evolving landscape of international development finance.