HOME

TheInfoList




The International Finance Corporation (IFC) is an
international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, alth ...
that offers
investment Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance Finance is the study of financial institution ...

investment
, advisory, and asset-management services to encourage private-sector development in
less developed countries 450px, Example of Older Classifications by the IMF and the United Nations, UN from 2008 A developing country is a country with a less developed industrial base and a low Human Development Index (HDI) relative to other countries. However, ...
. The IFC is a member of the
World Bank Group The World Bank Group (WBG) is a family of five international organization ''International Organization'' is a quarterly peer-reviewed academic journal that covers the entire field of international relations, international affairs. It was establ ...

World Bank Group
and is headquartered in
Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The Washington Monument is an obelisk within the National Mall The National Mall is a Landscape architecture, landscaped ...
in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
. It was established in 1956, as the private-sector arm of the World Bank Group, to advance
economic development In the economic An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act o ...
by investing in for-profit and commercial projects for
poverty reduction Poverty reduction, poverty relief, or poverty alleviation, is a set of measures, both economic An economy (; ) is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption ...
and promoting development. The IFC's stated aim is to create opportunities for people to escape poverty and achieve better living standards by mobilizing financial resources for private enterprise, promoting accessible and competitive markets, supporting businesses and other private-sector entities, and creating jobs and delivering necessary services to those who are poverty stricken or otherwise vulnerable.name="IFC Vision 2012" Since 2009, the IFC has focused on a set of development goals that its projects are expected to target. Its goals are to increase
sustainable agriculture Sustainable agriculture is farming Agriculture is the science, art and practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary Image:Family watching television 1958.jpg, Exercise tren ...

sustainable agriculture
opportunities, improve
healthcare Healthcare is the maintenance or improvement of health Health, according to the , is "a state of complete physical, and social and not merely the absence of and ".. (2006)''Constitution of the World Health Organization''– ''Basic Docume ...

healthcare
and
education Education is the process of facilitating learning, or the acquisition of knowledge, skills, value (ethics), values, morals, beliefs, habits, and personal development. Educational methods include teaching, training, storytelling, discussion ...

education
, increase access to financing for
microfinance Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings a ...

microfinance
and business clients, advance
infrastructure Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. Serving a country, city, or other area, including the services and facilities necessary for its economy An ec ...

infrastructure
, help small businesses grow revenues, and invest in
climate Climate is the long-term pattern of weather Weather is the state of the atmosphere An atmosphere (from the greek words ἀτμός ''(atmos)'', meaning 'vapour', and σφαῖρα ''(sphaira)'', meaning 'ball' or 'sphere') is a la ...
health. The IFC is owned and governed by its member countries but has its own executive leadership and staff that conduct its normal business operations. It is a
corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal ...

corporation
whose
shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a Trust law, trust or partnership) that is registered by the corporation as the ...
s are member governments that provide paid-in capital and have the right to vote on its matters. Originally, it was more financially integrated with the World Bank Group, but later, the IFC was established separately and eventually became authorized to operate as a financially autonomous entity and make independent investment decisions. It offers an array of
debt Debt is an obligation that requires one party, the debtor A debtor or debitor is a legal entity (legal person) that owes a debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to ...

debt
and
equity Equity may refer to: Finance, accounting and ownership *Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the differe ...
financing services and helps companies face their risk exposures while refraining from participating in a
management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, West Germanic language first spok ...

management
capacity. The corporation also offers advice to companies on making decisions, evaluating their impact on the environment and society, and being responsible. It advises governments on building infrastructure and partnerships to further support private sector development. The corporation is assessed by an independent evaluator each year. In 2011, its evaluation report recognized that its investments performed well and reduced poverty, but recommended that the corporation define poverty and expected outcomes more explicitly to better-understand its effectiveness and approach poverty reduction more strategically. The corporation's total investments in 2011 amounted to $18.66 billion. It committed $820 million to advisory services for 642 projects in 2011, and held $24.5 billion worth of liquid assets. The IFC is in good financial standing and received the highest ratings from two independent
credit rating agencies A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratingA credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ab ...
in 2018. IFC comes under frequent criticism from NGOs that it is not able to track its money because of its use of financial intermediaries. For example, a report by
Oxfam International Oxfam is a confederation of 20 independent charitable organization A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, Religion, religious or other activit ...

Oxfam International
and other NGOs in 2015, "The Suffering of Others," found the IFC was not performing enough
due diligence Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care Standard may re ...
and managing risk in many of its investments in third-party lenders. Other criticism focuses on IFC working excessively with large companies or wealthy individuals already able to finance their investments without help from public institutions such as IFC, and such investments do not have an adequate positive development impact. An example often cited by NGOs and critical journalists is IFC granting financing to a Saudi prince for a five-star hotel in Ghana.


History

The
World Bank The World Bank is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its o ...
and
International Monetary Fund The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument The ...

International Monetary Fund
were designed by delegates at the
Bretton Woods conference The Bretton Woods Conference, formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel The Mount Washington Hotel is a hotel in Bretton ...
in 1944. The World Bank, then consisting of only the
International Bank for Reconstruction and Development The International Bank for Reconstruction and Development (IBRD) is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country ...
, became operational in 1946. Robert L. Garner joined the World Bank in 1947 as a senior executive and expressed his view that private business could play an important role in international development. In 1950, Garner and his colleagues proposed establishing a new institution for the purpose of making private investments in the less developed countries served by the World Bank. The U.S. government encouraged the idea of an international corporation working in tandem with the World Bank to invest in private enterprises without accepting guarantees from governments, without managing those enterprises, and by collaborating with third party investors. When describing the IFC in 1955, World Bank President Eugene R. Black said that the IFC would only invest in private firms, rather than make loans to governments, and it would not manage the projects in which it invests. The concept was nonetheless controversial in the US, where some business interests were uncomfortable with the public ownership of private firms. Nonetheless, in 1956, the International Finance Corporation became operational under the leadership of Garner. It initially had 12 staff members and $100 million (equivalent to $ million in ) in capital. The corporation made its inaugural investment in 1957 by making a $2 million (equivalent to $ million in ) loan to a Brazil-based affiliate of
Siemens & Halske Siemens & Halske AG (or Siemens-Halske) was a German electrical engineering company that later became part of Siemens Siemens AG ( ) is a German multinational conglomerate corporation headquartered in Munich and the largest industrial ...

Siemens & Halske
(now
Siemens AG Siemens AG ( ) is a German multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, ...

Siemens AG
). In 2007, IFC bought 18% stake in the Indian Financial firm,
Angel Broking Angel Broking is an Indian stockbroker firm established in 1987. The company is a member of the Bombay Stock Exchange, National Stock Exchange of India, NCDEX, National Commodity & Derivatives Exchange Limited and Multi Commodity Exchange, Multi ...
. In December 2015, IFC supported
Greek#REDIRECT Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country located in Southeast Europe. Its population is approximately 10.7 million as of ...
banks with 150 million euros by buying shares in four of them:
Alpha Bank Alpha Bank is the second largest Greek bank by total assets, and the largest by market capitalization of €2.13 billion (as of 4 December 2018). It has a subsidiary and branch in London London is the capital city, capital and List of urb ...

Alpha Bank
(60 million), Eurobank (50 million),
Piraeus Bank Piraeus Bank ( el, Τράπεζα Πειραιώς), is a Greece, Greek multinational financial services company with its headquarters in Athens, Greece. Piraeus Bank's stocks are listed on the Athens Exchange, Athens Stock Exchange (Athens Exchang ...
(20 million) and
National Bank of Greece The National Bank of Greece (NBG; el, Εθνική Τράπεζα της Ελλάδος) is a global banking and financial services company with its headquarters in Athens , image_skyline = File:Athens Montage L.png ...

National Bank of Greece
(20 million).


Governance

The IFC is governed by its Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary). Each member typically appoints one governor and also one alternate. Although corporate authority rests with the Board of Governors, the governors delegate most of their corporate powers and their authority over daily matters such as lending and business operations to the board of directors. The IFC's Board of Directors consists of 25 executive directors who meet regularly and work at the IFC's headquarters, and is chaired by the
President of the World Bank Group The President of the World Bank Group is the head of World Bank Group The World Bank Group (WBG) is a family of five international organization ''International Organization'' is a quarterly peer-reviewed academic journal that covers the enti ...

President of the World Bank Group
. The executive directors collectively represent all 185 member countries. When the IFC's Board of Directors votes on matters brought before it, each executive director's vote is weighted according to the total share capital of the member countries represented by that director. IFC is now managed by a new leader - Makhtar Diop who is the managing director and EVP at IFC since March 1, 2021. Prior to his appointment, he was the World Bank's vice president for Infrastructure, where he led the Bank's global efforts to build sustainable infrastructure in developing and emerging economies. IFC's Chief Executive Officer oversees its overall direction and daily operations. Philippe Le Houérou is chief executive officer of IFC. Since his appointment by World Bank Group President Jim Yong Kim in March 2016, Mr. Le Houérou has led the organization's new strategy to create markets in less developed countries and redefine development finance by promoting initiatives and reforms that unlock billions of dollars in additional private sector investment. Although the IFC coordinates its activities in many areas with the other World Bank Group institutions, it generally operates independently as it is a separate entity with legal and financial autonomy, established by its own Articles of Agreement. The corporation operates with a staff of over 3,400 employees, of which half are stationed in field offices across its member nations.


Functions


Investment services

The IFC's investment services consist of
loan In finance Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of money and investments. Savers and investors have money avai ...
s, equity,
trade finance Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as bank A bank is a ...
,
syndicated loan A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers. The syndicated loan market is the dominant way for la ...
s, structured and securitized finance, client
risk management Risk management is the identification, evaluation, and prioritization of risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving ...

risk management
services, treasury services, and
liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can qui ...
management. In its fiscal year 2010, the IFC invested $12.7 billion in 528 projects across 103 countries. Of that total investment commitment, approximately 39% ($4.9 billion) was invested into 255 projects across 58 member nations of the World Bank's
International Development Association The International Development Association (IDA) (french: link=no, Association internationale de développement) is an international financial institution which offers concessional loans and grant (money), grants to the world's poorest developing ...

International Development Association
(IDA). The IFC makes loans to businesses and private projects generally with maturities of seven to twelve years. It determines a suitable repayment schedule and grace period for each loan individually to meet borrowers' currency and cash flow requirements. The IFC may provide longer-term loans or extend grace periods if a project is deemed to warrant it.
Leasing A lease is a contract A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. A contract is legally enforceable because it meets the requirements and ...
companies and financial intermediaries may also receive loans from the IFC. Though loans have traditionally been denominated in hard currencies, the IFC has endeavored to structure loan products in local currencies. Its disbursement portfolio included loans denominated in 25 local currencies in 2010, and 45 local currencies in 2011, funded largely through swap markets. Local financial markets development is one of IFC's strategic focus areas. In line with its AAA rating, it has strict concentration, liquidity, asset-liability and other policies. The IFC committed to approximately $5.7 billion in new loans in 2010, and $5 billion in 2011. Although the IFC's shareholders initially only allowed it to make loans, the IFC was authorized in 1961 to make equity investments, the first of which was made in 1962 by taking a stake in FEMSA, a former manufacturer of auto parts in Spain that is now part of Bosch Spain. The IFC invests in businesses' equity either directly or via
private-equity fund A private-equity fund is a collective investment scheme used for making investments in various equity (and to a lesser extent debt) securities according to one of the investment strategies associated with private equity. Private equity funds are t ...
s, generally from five up to twenty percent of a company's total equity. IFC's private-equity portfolio currently stands at roughly $3.0 billion committed to about 180 funds. The portfolio is widely distributed across all regions including Africa, East Asia, South Asia, Eastern Europe, Latin America and the Middle East, and recently has invested in Small Enterprise Assistance Funds' (SEAF)
Caucasus The Caucasus (), or Caucasia (), is a region spanning Europe and Asia. It is situated between the Black Sea and the Caspian Sea and mainly occupied by Armenia, Azerbaijan, Georgia (country), Georgia, and parts of Southern Russia. It is home to ...
Growth Fund, Aureos Capital's Kula Fund II (
Papua New Guinea Papua New Guinea (PNG; , ; tpi, Papua Niugini; ho, Papua Niu Gini), officially the Independent State of Papua New Guinea ( tpi, Independen Stet bilong Papua Niugini; ho, Independen Stet bilong Papua Niu Gini), is a country in Oceania th ...

Papua New Guinea
,
Fiji Fiji ( ; fj, Viti, ; hif, फ़िजी, ''Fijī''), officially the Republic of Fiji, is an island country in Melanesia, part of Oceania in the South Pacific Ocean. It lies about northeast of New Zealand. Fiji consists of an archipelago ...

Fiji
,
Pacific Islands This is a list of islands in the Pacific Ocean, collectively called the Pacific Islands. Three major groups of island An island (or isle) is an isolated piece of habitat that is surrounded by a dramatically different habitat, such as ...
) and Leopard Capital’s
Haiti Haiti (; ht, Ayiti ; french: Haïti ), officially the Republic of Haiti (; ), and formerly known as Hayti, is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean Sea, to the east of Cuba and J ...

Haiti
Fund. Other equity investments made by the IFC include
preferred equity Preferred stock (also called preferred shares, preference shares or simply preferreds) is a component of share capital which may have any combination of features not possessed by common stock including properties of both an equity and a debt instru ...
, convertible loans, and participation loans. The IFC prefers to invest for the long-term, usually for a period of eight to fifteen years, before exiting through the sale of shares on a domestic
stock exchange A stock exchange, securities exchange, or bourse is an exchange Exchange may refer to: Places United States * Exchange, Indiana Exchange is an Unincorporated area, unincorporated community in Green Township, Morgan County, Indiana, Green To ...
, usually as part of an
initial public offering An initial public offering (IPO) or stock launch is a public offering A public offering is the offering of securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal defi ...
. When the IFC invests in a company, it does not assume an active role in management of the company. Through its Global Trade Finance Program, the IFC guarantees trade payment obligations of more than 200 approved banks in over 80 countries to mitigate risk for international transactions. The Global Trade Finance Program provides guarantees to cover payment risks for emerging market banks regarding promissory notes, bills of exchange, letters of credit, bid and performance bonds, supplier credit for capital goods imports, and advance payments. The IFC issued $3.46 billion in more than 2,800 guarantees in 2010, of which over 51% targeted IDA member nations. In its fiscal year 2011, the IFC issued $4.6 billion in more than 3,100 guarantees. In 2009, the IFC launched a separate program for crisis response, known as its Global Trade Liquidity Program, which provides liquidity for international trade among less developed countries. Since its establishment in 2009, the Global Trade Liquidity Program assisted with over $15 billion in trade in 2011. The IFC operates a Syndicated Loan Program in an effort to mobilize capital for development goals. The program was created in 1957 and has channeled approximately $38 billion from over 550 financial institutions toward development projects in over 100 different
emerging markets An emerging market (or an emerging country or an emerging economy) is a market that has some characteristics of a developed market In investing, a developed market is a country that is most developed in terms of its economy and capital markets. The ...
. The IFC syndicated a total of $4.7 billion in loans in 2011, twice that of its $2 billion worth of syndications in 2010. Due to banks retrenching from lending across borders in emerging markets, in 2009 the IFC started to syndicate parallel loans to the international financial institutions and other participants. To service clients without ready access to low-cost financing, the IFC relies on structured or securitized financial products such as partial credit guarantees, portfolio risk transfers, and
Islamic finance Islamic banking or Islamic finance ( ar, مصرفية إسلامية) or sharia-compliant finance is banking A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously maki ...
. The IFC committed $797 million in the form of structured and securitized financing in 2010. For companies that face difficulty in obtaining financing due to a perception of high
credit risk A credit risk is risk of default Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance) In finance Finance is the study of financial institutions, financial markets and how they ope ...
, the IFC securitizes assets with predictable cash flows, such as
mortgage A mortgage loan or simply mortgage () is a loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e., the borrower) incurs a ...
s,
credit card #REDIRECT Credit card #REDIRECT Credit card A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for ...

credit card
s, loans,
corporate debt A corporate bond is a bond issued by a corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law 'born out ...
instruments, and revenue streams, in an effort to enhance those companies' credit. Financial
derivative In mathematics Mathematics (from Greek: ) includes the study of such topics as numbers (arithmetic and number theory), formulas and related structures (algebra), shapes and spaces in which they are contained (geometry), and quantities ...
products are made available to the IFC's clients strictly for hedging
interest rate risk Interest rate risk is the risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty Uncertainty refers to Epistemology, epistemic situations involving imperfect or unknown information. It applies to ...
,
exchange rate risk Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk Financial risk is any of various types of risk associated with financingFunding is the act of providing resources to finance a need, program ...
, and commodity risk exposure. It serves as an intermediary between emerging market businesses and international derivatives
market maker A market maker or liquidity provider is a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a ...
s to increase access to risk management instruments. The IFC fulfills a treasury role by borrowing international capital to fund lending activities. It is usually one of the first institutions to issue bonds or to do swaps in emerging markets denominated in those markets' local currencies. The IFC's new international borrowings amounted to $8.8 billion in 2010 and $9.8 billion in 2011. The IFC Treasury actively engages in liquidity management in an effort to maximize returns and assure that funding for its investments is readily available while managing risks to the IFC.


Advisory services

In addition to its investment activities the IFC provides a range of advisory services to support corporate decisionmaking regarding business, environment, social impact, and sustainability. The IFC's corporate advice targets governance, managerial capacity, scalability, and corporate responsibility. It prioritizes the encouragement of reforms that improve the trade friendliness and ease of doing business in an effort to advise countries on fostering a suitable investment climate. It also offers advice to governments on infrastructure development and public-private partnerships. The IFC attempts to guide businesses toward more sustainable practices particularly with regards to having good governance, supporting women in business, and proactively combating climate change. The International Finance Corporation has stated that cities in emerging markets can attract more than $29 trillion in climate-related sectors by 2030.


Asset management company

The IFC established IFC Asset Management Company LLC (IFC AMC) in 2009 as a wholly owned
subsidiary A subsidiary, subsidiary company or daughter company is a company (law), company owned or controlled by another company, which is called the parent company or holding company. Two subsidiaries that belong to the same parent company are called sis ...
to manage all capital funds to be invested in emerging markets. The AMC manages capital mobilized by the IFC as well as by third parties such as sovereign or pension funds, and other development financing organizations. Despite being owned by the IFC, the AMC has investment decision autonomy and is charged with a fiduciary responsibility to the four individual funds under its management. It also aims to mobilize additional capital for IFC investments as it can make certain types of investments which the IFC cannot. , the AMC managed the IFC Capitalization Fund (Equity) Fund, L.P., the IFC Capitalization (Subordinated Debt) Fund, L.P., the IFC African, Latin American, and Caribbean Fund, L.P., and the Africa Capitalization Fund, Ltd. The IFC Capitalization (Equity) Fund holds $1.3 billion in equity, while the IFC Capitalization (Subordinated Debt) Fund is valued at $1.7 billion. The IFC African, Latin American, and Caribbean Fund (referred to as the IFC ALAC Fund) was created in 2010 and is worth $1 billion. , the ALAC Fund has invested a total of $349.1 million into twelve businesses. The Africa Capitalization Fund was set up in 2011 to invest in commercial banks in both Northern and Sub-Saharan Africa and its commitments totaled $181.8 million in March 2012. , Marcos Brujis serves as CEO of the AMC.


Financial performance

The IFC prepares
consolidated financial statement Consolidated financial statements are the "financial statements Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is pr ...
s in accordance with United States GAAP which are audited by
KPMG KPMG International Limited (or simply KPMG) is a British-Dutch multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple ...

KPMG
. It reported income before grants to IDA members of $2.18 billion in fiscal year 2011, up from $1.95 billion in fiscal 2010 and $299 million in fiscal 2009. The increase in income before grants is ascribed to higher earnings from the IFC's investments and also from higher service fees. The IFC reported a partial offset from lower liquid asset trading income, higher administrative costs, and higher advisory service expenses. The IFC made $600 million in grants to IDA countries in fiscal 2011, up from $200 million in fiscal 2010 and $450 million in fiscal 2009. The IFC reported a
net income In business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a busin ...
of $1.58 billion in fiscal year 2011. In previous years, the IFC had reported a net loss of $151 million in fiscal 2009 and $1.75 billion in fiscal 2010. The IFC's total capital amounted to $20.3 billion in 2011, of which $2.4 billion was paid-in capital from member countries, $16.4 billion was retained earnings, and $1.5 billion was accumulated other comprehensive income. The IFC held $68.49 billion in total assets in 2011. The IFC's return on average assets (GAAP basis) decreased from 3.1% in 2010 to 2.4% in 2011. Its return on average capital (GAAP basis) decreased from 10.1% in 2010 to 8.2% in 2011. The IFC's cash and liquid investments accounted for 83% of its estimated net
cash In economics Economics () is a social science Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within those societie ...
requirements for fiscal years 2012 through 2014. Its external funding liquidity level grew from 190% in 2010 to 266% in 2011. It has a 2.6:1 debt-to-equity ratio and holds 6.6% in reserves against losses on loans to its disbursement portfolio. The IFC's deployable strategic capital decreased from 14% in 2010 to 10% in 2011 as a share of its total resources available, which grew from $16.8 billion in 2010 to $17.9 billion in 2011. In 2011, the IFC reported total funding commitments (consisting of loans, equity, guarantees, and client risk management) of $12.18 billion, slightly lower than its $12.66 billion in commitments in 2010. Its core mobilization, which consists of participation and parallel loans, structured finance, its Asset Management Company funds, and other initiatives, grew from $5.38 billion in 2010 to $6.47 billion in 2011. The IFC's total investment program was reported at a value of $18.66 billion for fiscal year 2011. Its advisory services portfolio included 642 projects valued at $820 million in 2011, compared to 736 projects at $859 million in 2010. The IFC held $24.5 billion in liquid assets in 2011, up from $21 billion in 2010. The IFC received
credit rating A credit rating is an evaluation of the credit risk A credit risk is risk of default Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance) In finance Finance is the study of financ ...

credit rating
s of AAA from
Standard & Poor's S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's abilit ...

Standard & Poor's
in December 2012 and Aaa from
Moody's Investors Service Moody's Investors Service, often referred to as Moody's, is the bond credit rating In investment To invest is to allocate money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed to King ...
in November 2012. S&P rated the IFC as having a strong financial standing with adequate capital and liquidity, cautious management policies, a high level of geographic diversification, and anticipated treatment as a preferred creditor given its membership in the World Bank Group. It noted that the IFC faces a weakness relative to other multilateral institutions of having higher risks due to its mandated emphasis on private sector investing and its income heavily affected by equity markets.


Sustainability

IFC Sustainability Framework articulates IFC's commitment to sustainable development and is part of its approach to risk management. IFC's Environmental and social policies, guidelines, and tools are widely adopted as market standards and embedded in operational policies by corporations, investors, financial intermediaries, stock exchanges, regulators, and countries. In particular, the EHS Guidelines contain the performance levels and measures that are normally acceptable to the World Bank Group, and that are generally considered to be achievable in new facilities at reasonable costs by existing technology.


Green buildings in less developed countries

The IFC has created a mass-market certification system for fast growing emerging markets called EDGE ("Excellence in Design for Greater Efficiencies"). IFC and the
World Green Building Council The World Green Building Council (WorldGBC) is a non-profit organisation and global network of national Green Building Councils (GBCs). It has member councils in over 70 countries worldwide, which collectively have 49,000 members (25,000 member com ...
have partnered to accelerate green building growth in less developed counties. The target is to scale up green buildings over a seven-year period until 20% of the property market is saturated. Certification occurs when the EDGE standard is met, which requires 20% less energy, water, and materials than conventional homes.


See also

*
Environment, Health and SafetyEnvironment (E), health (H) and safety (S), EHS is an acronym for the methodology that studies and implements the practical aspects of protecting the environment and maintaining health and safety at occupation. In simple terms it is what organization ...
*
Global Environment Facility The Global Environment Facility (GEF) was established on the eve of the 1992 Rio Earth Summit to help tackle our planet's most pressing environmental problems. The GEF unites 184 countries in partnership with international institutions, civil socie ...
* Grassroots Business Fund *
Multilateral Investment Guarantee Agency The Multilateral Investment Guarantee Agency (MIGA) is an international financial institution An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence i ...

Multilateral Investment Guarantee Agency
*'' Jam v. International Finance Corp.'' (2019) - a United States Supreme Court case in which Indians in
Gujarat Gujarat (, ) is a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspaper), a daily newspaper i ...

Gujarat
sued the IFC for damages caused by an IFC-funded coal plant


References


External links

*
IFC Articles of Agreement
archived fro
the original
on 22 November 2015 {{good article *International F International development agencies International banking institutions International finance institutions United Nations Development Group Non-profit organizations based in Washington, D.C. Organizations established in 1956 Intergovernmental organizations established by treaty