The Caribbean Development Bank (CDB) announced the publication of the Phase 1 Report on the design of an innovative Contingent Capital Facility (CCF) for Multilateral Development Banks (MDBs). This milestone follows the launch of the initiative in June by CDB President Daniel Best, in collaboration with international donors, the MDB Challenge Fund and the Children’s Investment Fund Foundation.
1. EXECUTIVE SUMMARY
2. INTRODUCTION
PROJECT BACKGROUND
3. CCF STRUCTURAL FEATURES
KEY FEATURES
CAPITAL ELIGIBILITY
CONTINGENT CONTRACTS & CAPITAL
4. INTEGRATION INTO MDB RISK MANAGEMENT FRAMEWORKS
RISK MANAGEMENT BEST PRACTICES
RISK MANAGEMENT PRECONDITIONS FOR CCF
5. PRECEDENTS - COMMON FEATURES AND RATINGS TREATMENT
IBRD ENHANCED CALLABLE CAPITAL
SOLVENCY 2 – ANCILLARY OWN FUNDS
GUARANTCO
IFFED
EUROFIMA
OTHER RATINGS CONSIDERATIONS
6. FACILITY DESIGN - KEY CONSIDERATIONS/QUESTIONS
FACILITY PROVIDER
NOTIONAL SIZE OF THE FACILITY MATURITY
CALLABLE FEATURES OF THE CCF TRIGGERS
REMUNERATION
GOVERNING LAW AND OTHER TERMS
7. CONCLUSION AND NEXT STEPS