EBRD and AXA XL launch Financial Institutions Portfolio Programme

• EBRD and AXA XL to mobilise private-sector capital for financial institutions
• €150 million programme will provide a structured approach to risk participation
• Automatic 25 per cent unfunded participation for eligible projects across EBRD regions

The European Bank for Reconstruction and Development (EBRD) and AXA XL – the property, casualty and speciality risk division of AXA – have launched a new framework to mobilise private capital for lending to financial institutions in order to scale up positive impact across the EBRD regions.

Under the new Financial Institutions Portfolio Programme (FIPP), AXA XL is committing €150 million of credit risk insurance underwriting capital to participate in eligible transactions on a structured, unfunded basis. Each eligible project is expected to benefit from an automatic 25 per cent unfunded risk participation, enhancing the EBRD’s ability to support clients quickly and effectively.

The programme has a simple operating model and is built on clear rules about which projects qualify. It also removes the need for deal-by-deal insurer approvals, speeding up the process while maintaining robust controls.

FIPP complements the EBRD’s longstanding unfunded risk participation activities by shifting from the assessment of individual transactions to a portfolio-style mechanism, similar to structured co-lending frameworks used in the multilateral development institutions market.

This mechanism will further reinforce the EBRD’s ability to deliver meaningful and sustainable impact in its investee economies by supporting private-sector mobilisation and the expansion of lending to the EBRD’s partner financial institutions – who, in turn, lend to micro-, small and medium-sized enterprises and women-led businesses, as well as lending for investment in green technology.

FIPP also allows AXA XL to further diversify its credit risk insurance portfolio and strengthen its impact across the EBRD regions.

Christian Kleboth, the EBRD’s Head of Debt Mobilisation, said: “FIPP is designed to give our partner banks faster execution and greater certainty. With AXA XL’s committed unfunded support and pre-agreed criteria, we can channel private-sector risk sharing where it’s needed, when it’s needed. This practical step strengthens the EBRD’s ability to support clients and mobilise more capital with less friction.”

Ian Nunn, Head of Political Risk, Credit and Bond for AXA XL’s United Kingdom and Lloyd’s of London Business Unit, said: “The EBRD is a longstanding strategic partner of AXA XL and we are proud to have jointly developed the Financial Institutions Portfolio Programme. The programme is a highly efficient tool for mobilising private-sector insurance capital towards development finance in support of the EBRD’s strategic ambitions, demonstrating our commitment to supporting sustainable economic growth in emerging markets.”

AXA XL provides insurance and risk management products and services for mid-sized companies through to large multinationals, as well as providing reinsurance solutions to insurance companies globally.

The EBRD is one of the strongest mobilisers of private capital in the regions where it operates, unlocking total investment of €26.8 billion in 2024. The Bank partners directly with businesses that are looking to invest in its economies of operation, offering co-financing, technical assistance, concessional support and risk mitigation tools.