IFCs Secured Transactions and Collateral
Registries product focuses on creating the conditions to allow the use of movable assets/property (such as inventory, accounts receivable, vehicles, equipment, crops, livestock, etc.) as collateral to generate loans. The team works with government institutions, financial institutions and the private sector to create better conditions for firms to be able to access more credit.
IFCs Secured Transactions and Collateral Registry Program
IFCs secured transactions and collateral registry program objective is to increase access to credit to firms, especially MSMEs, by developing the appropriate legal and institutional framework to allow and facilitate the use of movable assets as collateral for loans. The Program supports advisory projects primarily in low income and emerging market countries focusing on the following interventions:
Legal Framework: Advice to governments, law and policy makers, and financial sector players on the necessary improvements to the legal and regulatory infrastructure for secured lending.
Development of Collateral Registry: Advice to the government and other stakeholders for the creation of new on-line registry for security interests in movable property or the improvement of the existing ones.
Capacity Building: Training and awareness-building among public stakeholders on implementation of and compliance with new laws and regulations. Awareness-building among creditors on the use of the new system in place and training of creditors on movable asset-based lending products and practices.
Objectives
The overall project objective is to promote financial inclusion to MSMEs by supporting the financial sector to develop movable asset-based lending products and services through the use of modernized laws and collateral registries. Specifically, the objectives of this consultancy are to implement the following in the target countries:
Build market awareness and capacity of the financial sector, MSMEs and relevant government entities to adapt their lending to employ collateral registries and engage in asset-based lending.
Assess the local MSME market for secured transactions and asset-based lending, and assist financial institutions in identifying market actors and market segments, regions and industries, prepared to take advantage of secured transactions with movables.
Provide advisory assistance to financial institutions in designing new commercial lending products, and tailoring current commercial lending product, to take advantage of the new legal systems and collateral registries for all market segments, including MSMESs
Designing and developing new materials to be used in individual advisory engagements focused on asset-based lending with financial institutions. The type of materials to be developed will include manuals, policies,methodologies, best practices, business plans, model loan and security agreements and other such tools related to asset-based lending.
Deliver individual advisory services to develop a sound asset-based lending practice to at least two financial institutions in the target countries.
Scope of Work
Against this background, IFC is looking for a consultant to coordinate and support the management of the development and implementation of the overall project strategy to support the financial sector to develop movable asset-based lending products and services by using modernized laws and collateral registries.
The scope of the work includes:
a. Knowledge awareness and capacity building:
Provide technical input and guidance on newly developed training materials that will be designed to create awareness of the collateral registry in the financial sector, among MSMEs and with relevant government entities and to build capacity on the use of the collateral registry and movable asset-based lending among financial entities;
Provide technical input on training agendas;
Tailor training materials to target markets;
Coordinate the development of training materials;
Deliver trainings on new product development as related to movable asset-based lending.
b. Client development:
Develop pitch books on movable asset-based lending;
Build a pipeline of financial institutions with which IFC can engage in individual advisory projects;
Conduct market assessments in target markets;
Conduct diagnostics of financial institutions;
Develop proposals for individual advisory projects with financial institutions.
c. Advisory services:
Design individual asset-based lending advisory engagements with financial institutions;
Conduct in-depth market studies to identify relevant market segment (industry,client profile, etc.) for IFC clients;
Develop business case/plan (specific to clients economic focus);
Develop credit risk methodology based on client focus and targets clients,lending/portfolio limits;
Develop suite of commercial financing/SME financing products based on clients target markets: inventory financing, equipment financing, revolving lines of credit, floating charge/lien, receivables financing/factoring, financial leasing, agricultural financing, crop financing, manufacturing and production enterprise financing, supply chain financing, MSME financing, cross-border financing;
Develop operation, underwriting and account management process: application, client evaluation, credit risk evaluation/management, underwriting, disbursements/advances, collateral valuation, collateral monitoring, reporting requirements, enforcement process, exit strategy, auditing, due diligence,insurance;
Draft model documents: loan and security agreements for relevant products.
Desired Skills and Experience
Senior Consultants interested in this assignment should demonstrate:
Masters degree in business administration, economics, or equivalent,
15+ years experience in highly developed markets for asset-based lending, commercial, corporate and/or SME banking/financing,
Excellent business development, training and capacity building skills,
Ability to interact with bank Board of Directors, executive management, loan officers,
Familiarity with financial institutions in LAC with a preference for in-depth knowledge of Mexico, Colombia, Costa Rica and/or Honduras,
Experience in providing technical assistance for consulting projects,
Strong project management skills, communication and writing skills,
Fluency in Spanish and English.
Desired skills include strong legal knowledge and/or expertise in contractual aspects of asset-based lending.
Submission Requirement
The World Bank now invites eligible consultants to indicate their interest in providing the services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.
For further details and to apply, please go to: https://wbgeconsult2.worldbank.org/wbgec/index.html# and under Business Opportunities seek selection number 1188824. Deadline to receive expressions of interest is July 16, 2015.
The World Bank Group is committed to achieving diversity in terms of gender, nationality, culture and educational background. Individuals with disabilities are equally encouraged to apply. All applications will be treated in the strictest confidence.