IFC offers a wide variety of financial products for private sector projects in developing countries.
To be eligible for IFC funding, a project must meet a number of criteria. The project must:
• Be located in a developing country that is a member of the IFC. Projects in sectors such as information technology may be located in an industrialized country if the benefits of the project primarily accrue to a developing country or countries
• Be in the private sector
• Be technically sound
• Have good prospects of being profitable
• Benefit the local economy
• Be environmentally and socially sound, meeting IFC environmental and social standards as well as those of the host country
IFC does not lend directly to micro, small, and medium enterprises or individual entrepreneurs, but many of our investment clients are financial intermediaries that on-lend to smaller businesses.
A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly by submitting an investment proposal. After initial contact 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.
Although IFC is primarily a financier of private sector projects, it may provide finance for a company with some government ownership, provided there is private sector participation and the venture is run on a commercial basis.
To ensure the participation of investors and lenders from the private sector, IFC limits the total amount of own-account debt and equity financing it will provide for any single project.
For new projects the maximum is 25 percent of the total estimated project costs, or, on an exceptional basis, up to 35 percent in small projects. For expansion projects, IFC may provide up to 50 percent of the project cost, provided its investments do not exceed 25 percent of the total capitalization of the project company.