Research aims to identify obstacles to MDB securitisation as new asset class gains traction
Risk Control is aiming to identify obstacles to multilateral development bank (MDB) securitisations through a market consultation that launched this week, as well as gauging awareness surrounding the emerging asset class. Findings are set to inform a report for the UK and Swiss governments.
The survey, conducted for the UK’s Mobilist programme – a programme that aims to identify investment products that promote sustainable development in developing countries – and the Swiss State Secretariat for Economic Affairs (SECO), seeks to assess investor familiarity with MDB securitisation.
While total issuance remains comparatively modest – under US$10bn to date, according to Risk Control md William Perraudin – the sector is gaining momentum, with an uptick in activity over the past three years signalling increasing interest.
"The volume is still small, but the activity is very interesting," he says. "MDB lending has performed exceptionally well. Loss rates are in the very low percent, with LGDs typically between 20% and 30%. This is a window into a new investment world."
The market has seen six transactions – spanning both synthetic and true-sale securitisations – since 2023, with some MDBs now beginning to establish long-term programmes.
African Development Bank (AfDB) previously originated two synthetic transactions under the banner Room2Run in 2018 and 2022 respectively. At the end of 2025, it announced a partnership with Société Générale, which will bring about the launch of a landmark multi-originator synthetic securitisation platform this year.
In the true-sale space, the IFC’s Emerging Market Securitisation Programme (EMSP) closed its second US$509m CLO last month. The previous month, it had finalised its inaugural Trade Finance Synthetic Securitisation (TFSS), marking the institution’s first use of SRT technology to mobilise private capital to support trade and jobs in emerging markets. The newly adopted synthetic approach is intended to complement EMSP.
Meanwhile, the European Bank for Reconstruction and Development (EBRD) recently launched its inaugural €1bn Mosaic SRT, as SCI reported in May, with PGGM anchoring a mezzanine tranche that is partially syndicated to insurers.
Risk Control’s survey explores market awareness, perceived obstacles, and potential solutions to scaling MDB securitisation. Key themes include investor familiarity with MDB loan portfolios, the availability of historical credit-performance data and structural challenges, such as standardisation and transaction flow. It also seeks input on what actions could help develop the market, from producing more detailed portfolio information to engaging investors in transaction design.
"We need to raise awareness," Perraudin says. "The survey asks the market what steps MDBs should take to boost activity – because ultimately, this is about mobilising private capital for development."
The findings will contribute to a public report in the coming weeks, offering insights into how MDB securitisation can evolve as both a balance-sheet management tool for MDBs and an investment opportunity for institutional players. With new transactions in the pipeline, Perraudin argues the market is at a pivotal stage.
"There’s a lot of activity – synthetic and true sale structures, CLOs and even sovereign A-B loan models being discussed," he says. "The survey will help shape how this market develops, and whether it can become a significant force in mobilising private capital for emerging markets."
The Risk Control survey is open now, with responses treated confidentially and findings published in aggregated form.