Definition for : Co-financing

"Co-financing" is a practice whereby several entities join together to co-finance a project or provide funds to a company. Multilateral Development Banks (MDBs) promote the practice of co-financing whereby the MDB only finances a minority of the overall Debt or Equity investments, but its presence acts as a Credit enhancement (an umbrella against Political risk in particular).
(See Chapter 22 Shares of the Vernimmen)
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