Investment Criteria

Subnational Finance Department

The Subnational Finance Department appraises risk according to a set of criteria that feed into its own scoring model. They include:

1. Financial
   • Predictability of cash flows to service debt without sovereign guarantee
   • Debt Capacity
     
     
2. Socio-economic
   • Robust economic base
     
     
3. Institutional
   • Operational Efficiency
     
     
4. Regulatory
   • Market sophistication
   • Degree of decentralization
     
     
5. Development Impact
   • Essentiality of Investment
   • Strong economic and poverty reduction benefits

These can be applied to individual investments as well as to a portfolio of investments through a financial intermediary.