How to Apply for IFC Financing and Services
A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly. The investment proposal can be submitted to the IFC field office that is closest to the location of the proposed project.
IFC operates on a commercial basis. It invests exclusively in for-profit projects, fully shares risks with its partners, and charges market rates for its products and services. These cover three broad areas:
- Financial products: IFC’s traditional and largest activity is to finance private sector projects in developing countries. IFC provides loans, equity finance, and quasi-equity. It also offers financial risk management products and intermediary finance.
- Advisory services: IFC provides advice and technical assistance to private businesses and governments in developing countries. Areas include privatization, business-related public policy, and industry-specific issues.
- Resource mobilization: IFC helps companies in developing countries tap into international capital markets. The cornerstone of this effort is the loan participation program, which arranges syndicated loans from banks.
- The project must be located in a developing country that is a member of IFC.
- It must be in the private sector.
- It must be technically sound.
- It must have good prospects of being profitable.
- It must benefit the local economy.
- It must be environmentally and socially sound, satisfying IFC standards and those of the host country.
A unique role: Although IFC lends on market terms, it does not compete with, but complements, private capital.
IFC is a long-term partner for good and bad times
. IFC invests in projects that meet its investment criteria, but that cannot get financing or technical expertise elsewhere on reasonable terms.
Relationships and experience: IFC has extensive knowledge of how to do business in developing countries and excellent relationships with developing country governments. As an independent international organization, IFC can help companies and sponsors negotiate with host governments.
Expertise on sustainability: By working with IFC, companies draw on the expertise and reputation of a partner recognized for its strong social and environmental safeguards. Companies worldwide are recognizing that long-term profitability is best enhanced when investments are made in a sustainable way.
