In response to international banks' retrenchment from cross-border emerging market lending in FY09, IFC began syndicating parallel loans to International Financial Institutions (IFIs), and other ineligible B Lenders.
Under this new approach, IFC acts as arranger (and can also act as administrative agent) by using its existing syndication platform, deal-structuring expertise and global presence to identify investments, perform due diligence, and negotiate loan documents in cooperation with parallel lenders.
In order to streamline cooperation with IFIs, IFC developed a Master Cooperation Agreement (MCA) in 2009 which details the manner in which IFIs work together to co-finance projects when IFC is the mandated lead arranger. In addition to the MCA, a suite of specimen legal documents have also been developed, including a Mandate Letter, enhanced Confidentiality Agreement, Common Terms Agreement (CTA) with Administrative Agency provisions and a simplified Loan Agreement.
As of June 30, 2012, CSLLM had $2.6 billion Agented Parallel Loans under management, representing 27% of the total committed Syndicated Loan Portfolio.
Administrative Agent Responsibilities
When CSLLM acts as Administrative Agent for Syndicated Parallel Loans, its main responsibilities are as follows: