Allen & Overy advises IFC on Covid-19 coronavirus Working Capital Solutions facility
22 April 2020
Allen & Overy has been appointed to advise the International Finance Corporation (IFC) on its global USD2bn Working Capital Solutions program to provide funding to emerging market banks to on-lend to businesses in need of urgent financial assistance and liquidity.
IFC's response is part of the USD14bn billion Covid-19 coronavirus fast-track support package deployed by the World Bank. The Allen & Overy team, co-lead by partners Sami Mir and Lorraine Bayliss from the Global Projects, Energy, Natural Resources and Infrastructure Group will support an estimated 30-50 transactions over the next two years to counter the economic effects of the pandemic.
The program deploys funding to emerging market banks, who will be in turn extend financing to small and medium-sized private sector businesses, with a focus on those that are on the front lines of the healthcare crisis and those that are hardest hit by the pandemic’s severe disruption to consumer behaviors and supply chains, including those in the manufacturing and tourism industries. This financing will protect jobs, help businesses sustain operations and a healthy working capital position and help to rebuild economies in the wake of Covid-19 coronavirus.
“This critical mandate is testament to our long-standing relationship with IFC and deep expertise in emerging market financing,” said Sami Mir. “We have rapidly mobilized an integrated team across London, Singapore and Washington, D.C. to support IFC’s efforts to expand credit to the businesses that need it most at this unprecedented time.”
This engagement follows Allen & Overy’s recent role in advising IFC on LIBOR replacement and updating their form documentation, among several other IFC financings, including in Mexico, Thailand and Serbia.
More details on the World Bank/IFC financial relief measures can be found here. For further insights regarding A&O’s Global Projects, Energy, Natural Resources and Infrastructure Group practice in the United States and throughout the world, please contact Julie Simpson or Melanie Gounardes.