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)

To know more about it, look at what we have already written on this subject