IFC offers a diverse range of financial products and services for private sector projects in developing countries. These products and services are aimed at helping firms eradicate poverty and spur long-term growth, encourage entrepreneurship, create jobs and mobilize resources that would not be otherwise available.
As a global multilateral institution, IFC’s financial products are tailored to meet the needs of each project and add value through innovative ways. While we provide growth capital, the bulk of the funding as well as leadership and management responsibility comes from private sector owners.
As a rule, IFC finances enterprises that must be majority private sector owned and controlled. Exceptions can be made for state-owned enterprises, depending on the nature of the project and its expected impact.
Although IFC does not take any government guarantees for it’s financing, our work often requires close cooperation with government agencies in developing countries.
IFC invests in infrastructure, strengthens financial institutions, supports transformation of domestic companies into regional and global players, improves access to finance for underserved markets and focuses on the needs of small and medium enterprises.
In FY13, IFC invested $24.8 billion in 612 projects globally. Of this, nearly $6.6 billion went to the poorest countries eligible to borrow from the World Bank’s International Development Association. In addition, we also mobilized nearly $6.5 billion to support the private sector in developing countries.
With over a billion of the world’s poor living in South Asia, IFC helps create opportunities towards improving lives of people in the region. By leveraging our global expertise and presence, we offer and provide investment services to developing countries in South Asia achieve sustainable growth. Through innovative solutions, IFC has continued to address acute needs for energy, food, water, health care, education, and access to financial services.
In FY13, IFC’s investment commitments in South Asia totaled more than $2.5 billion, including $764 million mobilized from other investors.
In South Asia, some of IFC’s recent major investments include Gujarat Pipavav Port and NSL Renewable Power. IFC’s loan to Gujarat Pipavav Port will support expansion of existing container and bulk cargo handling facilities, enabling better infrastructure services, creating more jobs and boosting economic activity. With bulk of financing mobilized from other investors, the investment in Pipavav Port will also help the company diversify sources of raising funds in future. IFC’s investment in NSL Renewable is enabling the company to develop a robust portfolio of wind and hydropower projects, helping expand access to clean energy.
Our initiatives in low income states of India and in other frontier markets of South Asia are strategic to IFC’s goal of promoting inclusive growth. IFC is working closely with various state governments of low income states such as Rajasthan, Odisha, and Bihar to improve the investment climate for private sector. With solar sector in Rajasthan offering huge potential, IFC has provided debt funding to companies like Mahindra Solar One for setting up a solar project that will help expand access to clean energy. In Odisha, IFC has invested in OCL India Limited, a cement manufacturer, to support expansion of its plant in the state.
We have also made critical investments in microfinance institutions like Utkarsh, Bandhan, Ujjivan and Equitas that have operations spread across low income states of Uttar Pradesh, West Bengal, Rajasthan, and Bihar among others. To support lower-income housing, IFC helped establish India's first mortgage insurance company through a public-private partnership with the housing finance regulator and other partners. We also supported in launching Bangladesh’s first-ever alternative dispute resolution center, the Bangladesh International Arbitration Center. IFC also helped Nepal register the Pashmina trademark with 40 countries, resulting in a 50 percent increase in exports.
IFC's Largest Country Exposure
Committed Portfolio for IFC's own account, as of June 30, 2013 ($ million)