Wahba Institute for Strategic Competition - Unleashing Opportunity by Unlocking Private Investment in

Wahba Institute for Strategic Competition Unleashing Opportunity by Unlocking Private Investment in International Infrastructure The Wilson Center’s Wahba Institute for Strategic Competition (WISC) launched a study group comprising leaders in the financial sector who explored how to close the multi-trillion-dollar infrastructure funding gap in emerging markets and developing economies (EMDE). [...] The study group offers the following recommendations to bolster global opportunities, strengthen the rule of law, and expand American exports to advance US national security and foreign policy objectives. [...] First-loss tranches and credit enhancements or liquidity lines to limit risks related to the level of toll-paying traffic on a transportation project or the solvency of the entity contracting to consume energy from an energy project can activate greater private participation.* Including products and services from allied countries in Export-Import Bank country-of-origin requirements would better po. [...] Once an MDB/DFI originates a loan, it remains the lender of record, retaining a portion (the A Loan) and selling participations in the remainder to investors. [...] MDB/DFIs bundling loans into portfolios and then selling participation in the portfolio to investors allows investors to diversify risk.