Building on insights from a roundtable series, MOBILIST’s research has identified five models through which securitisation can be scaled in development finance. MDBs and DFIs can play multiple roles in each of these models acting as originators, investors in securitisation platforms, equity investors in individual transactions, guarantors of specific tranches, and debt investors in asset-backed notes.
MOBILIST evaluated these models against the programme’s investment criteria. While all five models are technologically feasible, no single one is superior in terms of commercial viability, additionality, scalability, and replicability. These models demonstrate that MDBs and DFIs can play diverse roles in securitisation structures. Yet, no single model or role is optimal for all.
The choice of model will ultimately depend on the strategic objectives of the MDB or DFI, including balance sheet optimisati0n and strategic private capital mobilisation considerations. The best solution is likely to include a mix of these models that offer originators and investors a range of tools to meet their diverse objectives and manage different constraints.
The preferred routes to scale will reflect these priorities, as well as the constraints of individual MDBs or DFIs. Over time, demonstration effects from early movers like African Development Bank (AfDB), Banque Ouest Africaine de Développement (BOAD), IDB Invest, and those involved in Bayfront Infrastructure Management’s infrastructure asset-backed securitisation series, can pave the way for more standardised, widely replicable structures that deepen markets and mobilise private capital at scale.