The global securitisation market remains dominated by developed countries. Expanding the role of securitisation in financing sustainable development in EMDEs requires innovations related to demand, supply, and policy and regulation.
MOBILIST’s investment in an infrastructure, asset-backed, securities vehicle sponsored by Bayfront Infrastructure Management illustrated that investing in the equity tranche of a debt securitisation is commercially viable and can have a significant multiplier effect by enabling both commercial banks and MDBs to recycle capital faster.
This MOBILIST Research Note, Securitisation for Sustainable Development: Accelerating Capital Velocity, compiled shortly after the transaction took place in 2023, shares initial insights from MOBILIST’s precedent-setting equity participation as well as case studies from the African Development Bank (AfDB) and Asian Infrastructure Investment Bank (AIIB).
The Note provides a short introduction to understanding securitisation and summarises the benefits of securitisation for both borrowers and investors. It examines different ways that development finance actors can accelerate the use of securitisation and offers actionable insights for policymakers, DFIs, and investors seeking to scale sustainable finance in EMDEs. This includes covering challenges and policy implications, such as regulatory hurdles, asset valuation issues, and the need for standardised documentation.