What is IFC’s rate of interest?
IFC’s financing is based on market rates. Interest rates are based on many factors, including country of investment, project risk profile, currency, and security package. Depending on the local environment, we may be more competitive in some countries or currencies than in others. IFC can tailor financing to the specific needs of organizations through grace periods (during project development and early ramp-up of operations) and long-term repayment periods appropriate to the project being financed.
How does IFC’s due diligence compare with that of other banks?
Our financial due diligence is similar to that of leading financial institutions. We emphasize financial transparency and examine reporting standards. We also look at quality standards, clinical audit and governance, fire safety, social responsibility, and environmental impact. We stake our reputation by the projects we invest in. This is a key factor in attracting other investors, gaining government support, and earning the confidence of local professionals and the general public. Specific findings of each due diligence are kept confidential.
How long does it take to access IFC financing?
As with other banks, this depends on many factors including, the complexity of the financial package and the availability of relevant information and documentation required. For typical steps in a project appraisal cycle see IFC Project/Investment Cycle.
Can IFC support organizations based in developed countries?
We can offer financing to health care organizations based in high-income countries, where the purpose of the financing is to invest in a developing country that qualifies for IFC financing. We are not permitted to support projects based in industrialized high-income countries.
Can IFC offer grants or subsidies for projects in developing countries?
No. All IFC projects must be commercially self-sustainable. In certain cases, IFC can provide advisory services to help develop health or education services, particularly in high-risk or low-income countries and regions or “frontier” markets.
Does IFC offer Islamic-compliant financing?
Yes. In recent years, an increasing proportion of our financing of health and education projects has been through Islamic financing.
Can IFC support private not-for-profit organizations?
Yes, so long as the organization can demonstrate a capacity to operate in a business-like, self-sustaining manner and maintain regular surpluses to service loans. Terms are market-based as with for-profit organizations.
Does IFC work with other banks?
Yes. We frequently collaborate with local and international commercial banks, either as co-lenders, or through our syndicated loans service. We also collaborate with other multilateral and bilateral development banks including, the Asian Development Bank, the Islamic Development Bank, and Proparco.
Why does IFC not consider a financing of less than $5 million?
IFC considers smaller projects, particularly in more difficult frontier markets, or projects that are ground-breaking and may lead to larger follow-on investment. We also work increasingly through local financial intermediaries that invest in smaller projects.
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