Water.org Global Credit Enhancement Facility (IFC-41575)

Countries
  • Bangladesh
  • India
  • Indonesia
  • Kenya
  • Philippines
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 22, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Water.org Inc.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 13, 2020

Disclosed by Bank Sep 16, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank document, IFC and Water.org have teamed up to create a market-based, credit enhancement offering called the Global Credit Enhancement Facility (GCEF or Facility). The GCEF is designed to support financial institutions (FIs) such as commercial banks and microfinance banks to increase the availability of water and sanitation (WSS) loans to borrowers at the base of the economic pyramid still lacking basic services.

The Facility will provide credit enhancements structured as risk-sharing facilities for portfolios of water and sanitation loans made by local banks, thus mitigating credit risks and enabling local banks to introduce or scale up lending for WSS assets. GCEF’s credit enhancement offering will consist of guarantor funding raised by Water.org, as the subordinated or first loss tranche, and IFC funding, as the senior or second loss tranche. The GCEF will look to support banks in a number of countries, including India, Kenya, Bangladesh, the Philippines and Indonesia.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed GCEF would be capitalized by a two-tier structure consisting of a first loss tranche of subordinated notes and a mezzanine or second loss tranche of senior notes. GCEF is looking to attract US$50 million in first loss funding and US$50 million in mezzanine funding from IFC. The proposed IFC investment, a second loss credit guarantee facility of up to US$50 million, will be used to purchase tranches of senior notes issued by the GCEF. 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The project sponsor is Water.org, an international non-profit organization that has positively transformed more than 22 million lives around the world through access to safe water and sanitation. Founded by Gary White and Matt Damon, Water.org pioneers market-driven financial solutions to the global water crisis. For more than 25 years, it has been providing women hope, children health and families a future. Water.org currently has active programs in 13 countries located in 3 regions, representing approximately half of the global need for water and sanitation.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

1/ Project Contact

Water.org
Ms. Vedika Bhandarkar
Managing Director, India
+91 22 2361 4123
vbhandarkar@water.org
117 West 20th Street, Suite 203, Kansas City, MO 64108
www.water.org

2/ IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works