Finances investment loans and investment guarantees to subsovereign eligible entities in borrowing member countries without the guarantee and/or counterguarantee of the sovereign. Investment modalities described in this section will apply.
Subnational governments (SNGs) will need to demonstrate (i) legal ability to obtain external financing from IDB, (ii) be creditworthy and (iii) have a solid governance and institutional performance record.
Projects should aim to support participating SNGs to increase access to the private sector over time. They will also help SNGs improve efficiency and effectiveness, financial and debt management.
- Lending terms and conditions are determined on a market-based approach.
- Loans can be approved in U.S. dollars or in local currency, subject to market availability and operational, legal, and risk management considerations.
- Interest rate and currency conversion options are available.
Immediate Response Facility for Emergencies caused by disasters
(IRF)
Provides rapid financial support for addressing the effects of disasters.
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Partial Credit Guarantees
(PCG)
Provides credit enhancement for loans, bonds, or other debt instruments by covering various risks that could lead to default.
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Political Risk Guarantees
(PRG)
Covers sovereign non-performance risks of contractual obligations that could trigger debt payment default.
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Specific Investment Loans
(ESP)
Finances one or more specific projects or subprojects that are wholly defined at the time the IDB's loan is approved.
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Contingent Credit Facility for Natural Disaster and Public Health Emergencies
(CCF)
Provides resources for immediate response after a natural disaster or a public health event of severe catastrophic proportions.
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Results-Based Loans
(LBR)
Finances the achievement of results under a new or existing government program. The loan disburses once results have been achieved.
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Multiple Works Financing
(GOM)
Finances groups of similar, small, independent works with specific characteristics, a sample of which is fully defined.
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Global Credit Financing
(GCR)
Provides financing to enable borrowers to on-lend and/or issue guarantees to support the financing of multi-sector projects.
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Reimbursable Technical Cooperation
(TCR)
Transfers technical know-how to strengthen the capacity of entities in developing countries and requires repayment like a regular investment loan.
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Projects Preparation, Execution and Evaluation Facility
(PROPEF)
Finances projects preparation for individual operations under a global line of credit.
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Conditional Credit Line for Integrated Projects
(CCLIP)
Supports a long-term plan that combines funding, policy support, and technical assistance into one coordinated programmatic framework.
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Investment Financing with Deferred Drawdown Option
(IF-DDO)
Investment loans may include a Deferred Drawdown Option (DDO) to address catastrophic natural disasters or public health events.
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Investment Guarantee
(GUA)
Sovereign-guaranteed (SG) investment guarantees are designed to mobilize private financing by improving financing conditions or generating savings from liability management and catalyze private investment by covering specific risks that investors are...
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