46878 - MCPP OP Allianz

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Summary of Investment Information

Project Number

46878

Company Name

IEELV S.C.SP.

Date SPI Disclosed

Jun 14, 2022

Country

World Region

Region

Global

Projected Board Date

Jul 15, 2022

Environmental Category

FI-1 - Significant

Status

Active

Last Updated Date

Dec 18, 2022

Department

WBG Prosperity

Industry

Funds

Previous Events

Approved : Jul 28, 2022
Signed : Oct 31, 2022
Invested : Dec 16, 2022

Sector

Other Sector Fund

Project Description

As part of its strategic focus on mobilizing private sector capital supporting the World Bank Groups’ climate agenda in emerging markets, IFC is proposing an additional first loss investment in an Allianz Global Investors managed vehicle, through the purchase of notes issued by the limited partner of the Vehicle. In this way, IFC will provide credit enhancement for Allianz, a private sector insurance investor, to solve for the regulatory requirements that would otherwise have prevented them from participating in this asset class. In addition to investing in this Vehicle, IFC will broaden its Managed Co-Lending Portfolio Program (MCPP) contract with the Vehicle to provide cross-sectoral co-investments in senior loans alongside IFC under MCPP One Planet. Under MCPP, IFC creates loan portfolios for third-party investors based on pre-agreed eligibility criteria. All investments made by the Vehicle will be in IFC-originated senior loans on the same terms and conditions as with IFC’s investment for its own account. All underlying loans will need to meet IFC’s own internal standards, and IFC will be required to seek independent Board approval for each loan following its standard approval process; it is only upon IFC’s commitment to its own account that a portion of the loans would then be allocated to the Vehicle.

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.0
Equity	56.0

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Fund	Funds

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The Fund will invest only in IFC-originated projects in which IFC is already an investor through its A Loans. Therefore the IFC investment in this Fund does not receive an AIMM score. Each IFC-originated project under the fund will receive an individual AIMM rating. As such, the development impact of the proposed first loss investment will mirror the development impact achieved by IFC.

1. MCPP One Planet mobilizes financing for the first-ever portfolio of emerging market loans aligned with the goals of the Paris Agreement on climate, supporting the WBG's new Climate Change Action Plan, including IFC’s commitments to increase climate finance to 35% annually and align 85% of real sector operations to the Paris Climate Agreement by July 2023, and 100% by 2025. 2. IFC has created a sustainable and effective platform that links institutional investors with emerging market opportunities. Through MCPP, IFC can tap into the more than US$100 trillion in assets under management held by Global asset managers and highly concentrated in developed markets. 3. Institutional investors face regulatory, supervisory, capital adequacy, data, and other constraints which limit their ability to reach direct financing opportunities in emerging markets. The MCPP program has been created with legal structures that address and provide a pathway for institutional investors. Since the program was launched in 2013, MCPP has raised over US$10 billion from 11 partners and deployed funds to 200+ private firms in 55 counties, including IDA and FSC countries. 4. Certain investors also face regulatory hurdles which impose punitive capital charges on sub-investment grade assets, such as emerging market loans, making the economics unfavourable for investment. In the MCPP Platform, IFC addressed this constraint by providing a first loss tranche for which the senior investors compensate IFC. 5. All projects funded through MCPP One Planet will follow IFC’s process to be classified as Paris-Aligned to further address the WBG Climate agenda. Further, the MCPP OP platform leverages IFC's impact and sustainability practices to help address ESG-related regulation and corporate policy issues, as well as tangibly demonstrate their development impact and climate contributions.

E&S Category Rationale / Risks and Mitigation

MCPP is a mobilization vehicle that makes co-investments with IFC in IFC-originated projects. As such, IFC will appraise and supervise each underlying transaction according to its existing policies and procedures, including those regarding disclosure, IFC’s Performance Standards, and any other requirement under IFC’s Sustainability Framework. This project has been categorized as FI-1 according to IFC’s Sustainability Policy, though each individual transaction under this facility will be categorized based on their own E&S risks. As with any direct IFC investment, the IFC will specify any identified measures necessary for all underlying projects to meet the Performance standards as conditions of financing. ICF will monitor the ongoing E&S performance of each underlying project by reviewing periodic reports provided by project sponsors and conducting follow-on supervision of project activities.

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for IFC. The CAO is mandated to address complaints from people affected by IFC-supported business activities in a manner that is fair, objective , and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of IFC.

Independent of IFC management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of IFC’s environmental and social performance through its compliance arm.

Complaints may relate to any aspect of IFC-supported business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC-financed business activity. Complaints can be submitted to the CAO in writing to the address below:

Compliance Advisor/Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Room F11K-232
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
E-mail: cao@worldbankgroup.org

The CAO receives and addresses complaints in accordance with the criteria set out in its Operational Guidelines which are available at: www.cao-ombudsman.org

Contacts

For Inquiries About the Project, Contact

International Finance Corporation
Anjali Varma
Principal Syndications Officer
+1 202 473 1000
avarma@ifc.org
2121 Pennsylvania Avenue NW, Washington DC
www.ifc.org

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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