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Annual Report

Annual Report > Previous Annual Reports  > 2012 Online Report  > Stories of Impact 

The Power of Mobilization

India's Rural Women

Mobilizing funds from other investors allows us to achieve more than we could on our own.

From Mombasa on the Indian Ocean to the shores of Lake Victoria, the Kenya-Uganda railway crosses about 1,500 miles of arid scrublands, highlands, and valleys. It is a vital transport and trade link for East Africa.

Only a few years ago, the rail network was deteriorating after decades of scarce funding and inadequate management. Accidents were frequent. Turnaround times for railcars were unpredictable.

Private investment was essential to bringing this historic line back on track. In 2011, we teamed up with several financial institutions, drawing in about $274 million in financing for the new railway owner, Africa Railways Ltd. The owner invested in new equipment and brought in technical experts to build a faster, safer railroad.

Mobilizing funds from other investors—who invest alongside us—is a central aspect of our strategy. It allows us to achieve more than we could on our own. It allows us to pool not only funding but also knowledge and expertise.

Our record of strong and consistent profitability enables us to mobilize capital effectively. In FY12, we worked with banks, international financial institutions, sovereign funds, foundations, and other partners to mobilize nearly $5 billion for development—about $1.1 billion more than we mobilized in FY07.

IFC typically mobilizes third-party resources through our syndicated lending program, the oldest and largest among multilateral development banks. By providing a variety of syndicated loan products, we let other investors join us in investments in challenging markets. In FY12, we mobilized $2.7 billion in syndicated loans.

IFC Asset Management Company is a fast-growing component of our mobilization efforts. A wholly owned subsidiary of IFC, it lets investors benefit from our expertise while delivering strong equity returns and development impact. In FY12, IFC Asset Management Company accounted for $437 million of the funds we mobilized and committed.

Joining us in the railway project were three European development-finance institutions—FMO of the Netherlands, DEG of Germany, and Proparco of France—and a fund managed by IFC Asset Management Company. The Egypt-based private equity firm Citadel Capital SAE also played a key role.

Improvements in the railway already are evident. Cargo volumes have increased by 8 percent. The frequency of passenger trains has doubled. The accident rate has been cut nearly in  half. We could not have done that alone.

 

$2.7 BILLION

MOBILIZED IN SYNDICATED LOANS

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