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This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. What we do. The first pillar of our IFC 3. The second pillar of IFC 3. Our development of the Operating Principles for Impact Management is helping forge a common standard for investments that target measurable positive social, economic or environmental impact alongside financial returns. Explore IFC 3.
This site uses cookies that are set on your browser to optimize functionality and give you the best possible experience. To learn more about cookies and how we use them, please see our Privacy Notice available here. IFC is a member of the World Bank Group , which consists of five closely associated institutions that are owned by member countries.
Each plays a distinct role in helping fight poverty and improve lives. IFC promotes economic development through private sector. Working with business partners, IFC invests in sustainable private enterprises in developing countries without the need for government guarantees. IFC was founded specifically to address this limitation in World Bank lending.
IFC also offers advisory services to support private sector development. Most of these activities are funded in partnership with donor countries; many involve close collaboration with the World Bank. IFC provides a wide range of investment and advisory services that help businesses and entrepreneurs in the developing world meet the challenges they face in the marketplace.
IFC offers innovative financial products to private sector projects in developing countries. These include loans for IFC's own account also called A-loans , equity financing, quasi-equity financing, syndicated loans or B-loans , risk management products, and partial credit guarantees. IFC often provides funding to financial intermediaries that on-lend to clients, especially small and medium enterprises. IFC also provides advisory services that help build businesses.
Much of IFC's advisory work is conducted by facilities managed by IFC but funded through partnerships with donor governments and other multilateral institutions. Other sources of funding include donor country trust funds and IFC's own resources. IFC can provide a mix of financing and advisory services that is tailored to meet the needs of each project.
But the bulk of the funding, as well as leadership and management responsibility, lies with private sector owners and investors. Learn more IFC invests in private enterprises: companies, financial institutions, and other businesses that are majority-owned by the private sector and that operate in IFC's developing member countries.
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.
Many of IFC's investments are provided in combination with advisory services. In partnership with other investors, IFC provides clients with loans and intermediary services, loan participations, equity, structured finance, trade finance, risk management products, and subnational finance.
IFC is providing a rapidly growing share of its financing in local currency. IFC provides a limited amount of grant funding to business initiatives that innovate in specific practice areas: biodiversity, sustainable energy, and corporate responsibility. Such grants are typically provided in much smaller amounts than IFC's investments, and the funding is intended to help recipients demonstrate the commercial viability of new approaches to sustainability. IFC seeks partners for joint ventures and raises additional financing by encouraging other institutions to invest in IFC projects.
Resource mobilization—catalyzing funds from private investors and lenders for private sector projects in developing countries—is one of IFC's most essential functions. The bonds that IFC issues to fund its operations are also an opportunity for investors; see investor information. IFC does not issue stock; it is owned by its member countries, each of which provided share capital when joining IFC.
The IFC Exclusion List defines the types of projects that IFC does not finance, including those that are hazardous to the environment or harmful to human health and well-being. Projects in selected sectors, such as information technology, may be located in an industrialized country if the benefits primarily accrue to a developing country or countries.
To ensure the participation of investors and lenders from the private sector, IFC typically finances no more than 25 percent of the total estimated project costs. There is no standard application form for IFC financing. A company seeking to establish a new venture or expand an existing enterprise can approach IFC directly. To determine the appropriate department to submit the proposal to, read more about IFC's corporate structure and investment operations.
IFC does procure consultancy services within its investment and advisory projects. Please note, only registered vendors can receive contract awards from IFC, but you do not need to be registered to be eligible to participate in bidding opportunities.
Learn about World Bank Group Procurement IFC encourages other organizations to link to our Website but do not accept link exchanges that are not related to our core business. External links to UN institutions, organizations, and other development programs are subject to specific legal terms and conditions. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms World Bank Definition The World Bank is an international organization dedicated to providing financing, advice, and research to developing nations to aid economic advancement.
Microfinance Definition Microfinance is a banking service that is provided to unemployed and low-income individuals who have no other means of gaining financial services. Implementation of a global corporate minimum tax involves complex political, legal, and economic decisions.
Learn the issues and how it could work. What Is a Business? A business is an individual or group engaged in financial transactions. Read about types of businesses, how to start a business, and how to get a business loan.
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