Dentons advises FCDO on IFC’s US$509 million emerging markets securitisation transaction

London-Dentons has advised the UK's Foreign, Commonwealth & Development Office (FCDO) on its participation in the International Finance Corporation's (IFC) second major securitisation transaction under IFC's Emerging Markets Securitization Program. The FCDO made these investments under its MOBILIST programme, which Dentons also advises.

The US$509 million transaction is designed to help channel private capital into developing economies and support business growth, job creation and economic development. It follows IFC's inaugural EMSP transaction completed in September 2025 and forms part of the World Bank Group's strategy to mobilise institutional investment into emerging markets through scalable, market-based financing structures.

The transaction bundles 62 IFC-originated loans across a range of sectors and countries into a collateralised loan obligation, providing investors with access to a diversified portfolio of emerging market assets. Investor demand exceeded available supply, and the structure included multiple investment tranches tailored to different risk profiles.

A US$59 million equity tranche is jointly held by IFC and FCDO, and US$80 million mezzanine tranche was backed by a consortium of international credit insurers. The senior notes are listed on the London Stock Exchange, supported by the UK government's MOBILIST programme, on which Dentons also advises, and seeks to encourage private investment into developing markets.

Owen McLennan, relationship partner for FCDO at Dentons, said: "We are delighted to have advised FCDO on this important transaction, which demonstrates the role that innovative capital markets structures can play in mobilising institutional investment for emerging markets. The transaction builds on the momentum of IFC's Emerging Markets Securitization Program and supports the wider objective of increasing private capital flows into developing economies."

The Dentons team was led by Owen McLennan and Edward Hickman, Capital Markets partner, with support from Cameron Half, Partner, Kamraan Akhtar, senior associate, and Sandiso Dhlomo, associate, from the Capital Markets team.

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