Originate-to-Distribute Models
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.
2030 Goals
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.
StatusNo progress
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.
Leading Actors
Multilateral Development Banks
African Development Bank (AfDB), Asian Development Bank (ADB), IDB Invest, World Bank
Alliances
Glasgow Financial Alliance for Net Zero (GFANZ)
Milestones
The below events contain milestones related to Originate-to-Distribute Models.
October
WBG/IMF Annual Meetings 2025
Milestones
Originate-to-Distribute Models
Atleast 2 MDBs announce plans to launch their first full-scale securitization pilots under the OtD framework
G20 Finance Ministers and Central Bank Governors Meeting Oct 2025
Milestones
Originate-to-Distribute Models
Discuss the role of OtD and securitization models in facilitating capital flows to developing economies, with a focus on building consensus around standardizing securitization mechanisms to enhance their accessibility and scalability
Resources
The below resources all pertain to the topic of Originate-to-Distribute Models.
An Innovative IFI Operating Model for the 21st Century
MDB Reform, Originate-to-Distribute Models
CPI's work on the topic for capital mobilization
Levering up the World Bank: securitisation plan to turbocharge MDB lending
MDB Reform, Originate-to-Distribute Models
CSO calls for the idea to be further explored