International Finance Corporation
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The International Finance Corporation (IFC) is the private sector arm of the World Bank Group. The IFC aims to advance economic development and reduce poverty by investing strictly in for-profit private sector firms. With a global presence in more than 100 countries, a network of nearly 1,000 financial institutions and more than 2,000 private sector clients, IFC facilitates and supports business opportunities in developing countries through its three business areas: investment services (loans, equity, trade finance, structured finance, syndication); advisory services (advice, problem solving and training), and asset management (mobilizing and managing third-party capital funds for investments in developing markets). In financial year 2014, the IFC invested more than US$17.26 billion.
|Latin America & Caribbean||$4,057||24%|
|Europe & Central Asia||$3,478||20%|
|East Asia & Pacific||$2,771||16%|
|Middle East & North Africa||$1,698||10%|
|Agribusiness & Forestry||$1,051||6%|
|Consumer & Social Services||$928||5.4%|
|Telecommunications & IT||$489||2.8%|
|Oil, Gas & Mining||$441||2.6%|
Projects must: (1) be located in an IFC-member developing country; (2) be private sector-led; (3) be technically sound; (4) have a high likelihood of profitability; (5) benefit the local economy; and (6) satisfy both the IFC’s and the host country’s environmental and social standards.
IFC’s financial products help firms manage risk and broaden their access to foreign and domestic capital markets.
Loans: IFC operates on a commercial basis investing exclusively in for-profit projects in developing countries, offering both fixed rate and variable loans at market rates. Loans typically have maturities of 7 to 12 years with possible extension to 20 years.
Syndicated Loans: IFC acts as a catalyst - raising capital from foreign and domestic sources, in both private and public markets for private sector projects in member countries.
Equity Finance: IFC takes equity stakes in private sector companies and other entities for up to 15 years.
Structured Finance: IFC structuring helps clients diversify funding, extend maturities, access new investors, and obtain local currency funding. IFC has completed structured finance transactions in over 40 countries.
Risk Management Products: IFC is one of the few organizations providing long-maturity risk management products to clients in emerging markets. Clients can access the international derivatives markets in order to hedge currency, interest rate, or commodity price exposure.
Local Currency Financing: IFC provides local currency debt financing in three ways: (1) loans denominated in local currency; (2) risk management swaps to hedge foreign currency denominated liabilities; and (3) structured finance.
Private Equity and Investment Funds: Currently IFC is looking to commit up to US$500M a year in 20-25 funds globally, emphasizing growth equity funds, climate change and SME funds.
Trade Finance: Through its Global Trade Finance Program, IFC issues credit guarantees where others will not.
Canadian firms can obtain additional information and support by contacting representatives from the Canadian Aid Market Support Network
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