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.
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
No Progress
No Progress
No Progress
Moderate Progress