PROJECT

Projects

Summary of Collaboration or Co-Development Project

Project Number

46713

Sponsor

NPL Markets Limited

Date SCCP Disclosed

Jun 9, 2022

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Sep 30, 2022

Industry

Financial Markets

Sector

Exchanges (Trading Systems)

Department

CFGUP - Global Industry, Financial Markets/Upstream - FIG

Project Description

The International Finance Corporation (IFC), a member of the World Bank Group (WBG), is collaborating with NPL Markets Limited through an Upstream Collaboration Agreement in Brazil and Mexico. The Project, also known as Digital Asset Exchange Platforms (DAEP), will support NPL Markets Limited in geographically expanding their existing online marketplace and cutting-edge technology for trading, valuing and reporting activities on distressed and other illiquid assets.

E & S Information

IFC funding will, among others, be used to incubate and scale up NPLM’s online platform in Brazil. The platform will be designed, constructed, and operated in compliance with IFC PSs and other relevant and applicable E&S requirements.

The E&S risks and impacts of the project are reputational in nature and associated mainly with: (i) the portfolio of distressed and illiquid assets that will be traded online on the company’s platform; (ii) NPLM’s institutional approach (if any) for onboarding buyers and sellers. These could include labour practices in the portfolio, ongoing retrenchments or disputes arising from restructuring of the assets, sellers or buyers being on IFC’s exclusion list and list of restricted activities, assets serving as collateral with E&S liabilities; sellers or buyers having unresolved or ongoing E&S non- compliance