How it works

B Loan Program

The IDB serves as a one-stop shop:

  • Borrowers: IDB provides financing that would otherwise be difficult to obtain
  • Participants: IDB invites eligible entities, such as commercial banks and institutional investors, to the transaction as B lenders via the sale of participations

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Key benefits of B Loans:

One Loan Agreement
IDB acts as the Lender of Record and administers the entire loan

Preferred Creditor Status
Participants benefit from IDB’s de facto preferred access to foreign exchange and exclusion from general country debt rescheduling

Tax Exemptions
Participants are exempt from withholding taxes

Longer Tenors
Tenors can go two to three years beyond the commercial market

Backed by AAA and Aaa ratings
Ratings by Standard & Poor’s and Moody’s, respectively

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Parallel Loans

The IDB can also syndicate parallel loans to International Financial Institutions (IFIs) and other B loan participants.

In these cases, IDB acts as Arranger, and uses its syndications expertise to identify investments, structure deals, and negotiate loan documents with the borrower in coordination with all parallel lenders.

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Key benefits for parallel lenders and borrowers:

  • IDB acts as Arranger
  • IDB provides a streamlined approach for loan agreements that saves time and resources
  • All lenders rank pari passu

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