The International Finance Corporation (IFC), a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets.
Established in 1956, the IFC is owned by 185 member countries, a group that collectively determine its policies.
Although the International Finance Corporation is part of the World Bank Group (WBG), it is a separate and distinct legal entity from IBRD, IDA, MIGA and ICSID, with its own Articles of Agreement, capital stock, financial structure, administration and staff. .
While membership in the IFC is open only to IBRD member countries, the IFC is not responsible for the obligations of other institutions.
International Finance Corporation
IFC works in more than 100 countries, using its capital, experience and influence to create markets and opportunities in developing countries.
In fiscal year 2020 (ending June 30), the IFC invested $ 22 billion in private companies and financial institutions in developing countries, harnessing, in its own words, “the power of the private sector to end poverty extreme and boost shared prosperity ”.
The IFC was established in 1956 to promote economic development in its member countries, encouraging the growth of private enterprise.
Each member is legally and financially independent.
In addition, IFC’s activities are closely coordinated with and complement the overall development objectives of the other World Bank Group institutions.
Together with private investors, IFC helps finance the establishment, improvement, and expansion of private sector companies by providing loans, equity investments, and investments in debt securities when insufficient private capital is available on reasonable terms.
While IFC’s equity capital is provided by its member countries, IFC raises most of the funds for its investment activities by issuing notes, bonds, and other debt securities on the international capital markets.
The IFC also plays a catalytic role in mobilizing additional funds from other investors and lenders through parallel loans, loan participations, partial credit guarantees, loan sales, risk-sharing facilities, fund investments, and other crisis initiatives. of the IFC.
In addition to project financing and mobilization, IFC offers a variety of financial and technical advisory services to private companies in the developing world to increase their chances of success.
He also advises governments on how to create an environment conducive to the growth of private enterprise and foreign investment.