IFC offers a wide variety of financial products to private sector projects in developing countries. The project cycle illustrates the stages a business idea goes through as it becomes an IFC-financed project.

Application for IFC Financing

• There is no standard application form for IFC financing. A company or entrepreneur, foreign or domestic, seeking to establish a new venture or expand an existing enterprise can approach IFC directly. This is best done by reading How to Apply for IFC Financing and by submitting an Investment Proposal.
• After these initial contacts and a preliminary review, IFC may proceed by requesting a detailed feasibility study or business plan to determine whether or not to appraise the project.

• Typically, an appraisal team consists of an investment officer with financial expertise and knowledge of the country in which the project is located, an engineer with the relevant technical expertise, and an environmental specialist.
• The team is responsible for evaluating the technical, financial, economic and environmental aspects of the project. This process entails visits to the proposed site of the project and extensive discussions with the project sponsors.
• After returning to headquarters, the team submits its recommendations to senior management of the relevant IFC department.
• If financing of the project is approved at the department level, IFC's legal department, with assistance from outside counsel as appropriate, drafts appropriate documents.
• Outstanding issues are negotiated with the company and other involved parties such as governments or financial institutions.

• Before the proposed investment is submitted to the IFC Board for review, the public is notified of the main elements of the project. Environmental review documents are also made available to the public.

• The project is submitted to IFC's Board of Directors, which reviews the proposed investment.

• IFC seeks to mobilize additional finance by encouraging other institutions to make investments in the project.

• If the investment is approved by the Board, and if stipulations from earlier negotiations are fulfilled, IFC and the company will sign the deal, making a legal commitment.

• Funds are disbursed under the terms of the legal commitment signed by all parties.

• Once funds have been disbursed, IFC monitors its investments closely. It consults periodically with management, and it sends field missions to visit the enterprise. It also requires quarterly progress reports together with information on factors that might materially affect the enterprise in which it has invested, including annual financial statements audited by independent public accountants.

• When an investment is repaid in full, or when IFC exits an investment by selling its equity stake, IFC closes its books on the project.