NEW RESEARCH OPPORTUNITY: Unlocking Capital Through MDB Balance Sheet Recycling and Risk Transfer
New Research Opportunity: Unlocking Capital Through MDB Balance Sheet Recycling and Risk Transfer
MOBILIST, the UK Government’s flagship programme for mobilising institutional capital through public markets, is commissioning a major research study on Multilateral Development Bank (MDB) securitisation and risk-transfer mechanisms. This work, jointly funded by the UK Foreign, Commonwealth & Development Office (FCDO) and Switzerland’s State Secretariat for Economic Affairs (SECO), will explore how MDBs can scale balance sheet optimisation tools to unlock capital and mobilise private finance for sustainable development in emerging and developing economies.
Why This Matters
MDBs are under increasing pressure from shareholders and the G20 to innovate and expand lending capacity without compromising financial integrity. Securitisation and risk-transfer transactions have emerged as promising solutions, but questions remain about investor appetite, credit rating implications, and MDB-specific pricing constraints. This research will provide actionable insights to address these challenges and accelerate adoption of these tools across the development finance system.
Scope of the Research
The selected supplier will deliver three in-depth research notes (10–20 pages each) covering:
- Investor Perspectives: What drives or limits private-sector demand for MDB securitisations? How can MDBs design transactions that attract mainstream institutional investors?
- Credit Rating Agency Analysis: How do CRAs assess MDB securitisations, and what structural innovations help maintain rating stability while achieving genuine risk transfer?
- Pricing Constraints: How do MDB-specific factors shape tranche economics and marketability and what innovations can overcome these barriers?
- The research will draw on case studies such as AfDB’s Room-to-Run, IDB Invest’s Scaling4Impact, BOAD’s impact-linked securitisations, and IFC’s Emerging Market Securitisation Programme.
Who Should Apply
We are seeking suppliers with proven expertise in:
- Structured finance and securitisation mechanics (true-sale and synthetic)
- Credit rating agency methodologies
- Development finance and MDB governance
- Market knowledge of structured credit products and investor dynamics
- Strong research and communication skills to translate technical insights into policy-relevant formats
Impact
This research will inform MDBs, DFIs, donors, and institutional investors, helping to:
- Align incentives between public and private actors
- Reduce misconceptions about balance sheet impacts and rating risks
- Provide replicable models for scaling securitisation in development finance
Deliverables and Timeline
- Contract Duration: February 2026 – June 2026 (5 months)
- Budget: Up to £116,400 (exclusive of taxes)
- Outputs: Inception report, data collection and analysis, three research notes, and dissemination activities including integration into the EMDE Public Markets Coalition Toolkit.
How to Apply
Sign up for the market engagement event at 10:00 UK on 11 December for more information: Register here
Interested Suppliers should submit an Expression of Interest and the CV of the proposed Lead Researcher to [email protected] and [email protected] by 17:00 UK on 19 December.