Leasing

In emerging markets, leasing plays an instrumental role in private sector development. It is often the preferred term financing tool for small and medium enterprises, with the financed asset being the primary security for the lender. Yet in many developing countries, the development of the leasing industry has been hampered by inadequate laws and regulations, lack of specific asset-based finance skills, lack of local term funding sources, and limited development of the capital markets.

IFC’s work in leasing aims at providing the basic building blocks needed to address those gaps:

Providing policy advice to government bodies to help improve regulations and laws.
Investing with local financial institutions – in equity and quasi equity, debt financing, risk-sharing, and structured finance – to support their leasing operations.
Providing advisory services to leasing companies, banks and financial institutions willing to set-up or expand leasing operations.
Partnering with local financial institutions, foreign investors and technical partners to foster the growth of the industry.

Over the past thirty years, IFC has approved investments in 126 leasing projects for US$ 1,300 million, in 58 countries. In 27 countries, IFC participated in the establishment of the first leasing company.

For further information on the leasing program, contact:
Ary Naim | T: 202.458.1471