Islamic Development Bank and MDB partners advance common capital mobilization reporting and joint financing

The Islamic Development Bank reported that heads of multilateral development banks agreed to deepen joint efforts to mobilize private capital, expand financing capacity and streamline co-financing for developing countries. Key measures include an updated systemwide methodology for measuring private capital mobilization, under which MDBs will begin reporting in 2027, and progress toward a joint MDB Debt Fund that would give institutional investors access to diversified portfolios of MDB-originated assets. Capital adequacy reforms and financial innovations implemented since 2023 are expected to provide an additional USD 792 billion of lending capacity over the next decade. The MDB heads also backed further work on local currency financing, foreign exchange risk solutions and the targeted use of concessional and blended finance. Joint policy initiatives include a collaboration framework for responsible critical mineral value chains, common approaches to tracking nature finance and measuring jobs outcomes, and closer alignment of procurement and co-financing procedures. They also reviewed initiatives covering climate investment, water security, artificial intelligence and coordination of nuclear energy financing and technical assistance, while setting continued cooperation priorities for 2027 under the European Investment Bank’s chairmanship.