An "originate-to-distribute" model allows MDBs to create portfolios for future private capital refinancing, instead of the current "originate-to-hold" model that keeps loans on MDB accounts.
MDBs agree on a standardized approach to their underwriting criteria with a view to bundle their loans for sale to the private market, removing a significant portion of the loans from their books (likely need to retain a share for alignment of interest), mobilizing private capital, and sharing the risk between financial actors.
No Progress
IDB Invest and AfDB have announced efforts to adopt broad originate to distribute (OtD) models, and the World Bank is exploring OtD through a new group bringing together private sector and institutional investors. EBRD's 2026-2030 strategy includes assessing the feasiblility of an "originate-to-share" model for bank. OtD, along with securitization, have been explored as ways to provide more local currency financing, increase the pace of MDB origination, and mobilize private capital for climate and development projects. While there is a clear need for standardization on the securitization-purchasing side, it is still unclear how the standardization would work on the origination size to support effective securitization.
Cooperation is required between these actors and audiences to drive progress foward in Originate-to-Distribute Models.
Showcasing the key reform milestones for Originate-to-Distribute Models that have been addressed at global events.
Washington, DC
The first "MDB Comparison Report" was published in an effort to share metric and data about the MDBs' finacial standing in a standardized way, as requested by the G20 to increase transparency and comparability of the MDBs. The report provides broad strokes comparisons on liquidity, credit ratings, leverage and risk management. The GEMs Consortium released a new report on default and recovery statistics with more granular data than had previously been released. The data indicated that investment risk in EMDEs was lower than commonly perceived.
Heads of MDBs noted on-going coordination on originate-to-share/distribute models in their shared statement, however no MDB made major announcements on plans to launch full scale securitization pilots under OtD framework.
Publications and educational material to deepen understanding of Originate-to-Distribute Models.
CPI's work on the topic for capital mobilization
Moderate Progress
Moderate Progress
Moderate Progress
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Moderate Progress