Guinea has nearly one-third of the world’s reserves of bauxite, the primary source of aluminum. Yet the country’s mining sector has long struggled to reach its potential. IFC is working in partnership with the government, mining companies, investors, and local communities to help the country develop this resource and achieve its economic goals.
The IFC-supported Sangarédi-GAC bauxite mine — one of the largest foreign investments in Guinea — will strengthen the country’s status as a world-class producer and exporter of bauxite and develop new infrastructure to ease integration between the country’s mining sector and global markets. Collaboration across the World Bank Group made significant financing possible for the $1.5 billion Sangarédi project. IFC’s expertise in mobilizing private capital on a vast scale helped deliver $750 million in financing to the project — $150 million for our own account and the remainder mobilized from a group of investors including seven commercial banks. The World Bank’s support for sector reforms and transparency initiatives and for technical assistance in public financial management paved the way for the investment. A political-risk insurance policy issued by the Multilateral Investment Guarantee Agency (MIGA) gave additional comfort to investors.
IFC mobilizes private capital through two primary platforms. The first is our debt syndications program, which since 1959 has mobilized more than $70 billion from over 500 financing partners for more than 1,100 projects in over 115 emerging markets. Our syndications portfolio of outstanding investment commitments totaled $16 billion as of June 2019. In FY19, IFC mobilized $5.8 billion for debt investments in developing countries. The second platform, IFC Asset Management Company, has raised $10.1 billion in assets and manages 12 investment funds.
We continue to innovate and develop new products, expanding our debt platforms to reach a bigger share of the potential $80 trillion in untapped liquidity from global institutional investors. These products and platforms, together with our traditional syndications products, enable us to mobilize billions in private capital to emerging economies, including to the world’s poorest countries — those eligible to borrow from the World Bank’s IDA.
In FY19, we provided an additional $600 million financing to 22 projects in 17 countries using credit insurance policies as de-risking tools provided by private insurance companies. Some of these projects are taking place in fragile economies with limited or no alternative financing resources. We continued to expand the Managed Co-Lending Portfolio Program (MCPP), created in 2013.
Delivering local-currency financing solutions to our clients was another focus area in FY19. We mobilized the equivalent of $1.2 billion in local currencies to 11 projects in six countries, using various local-currency loan-syndication products. In Brazil, IFC mobilized an additional 150 million reais (about $40 million) following a similar investment to support the development of digital infrastructure by Phoenix Towers. The company builds telecommunications towers that allow mobile network operators to deploy 4G networks in underserved parts of the country.