About IFC Financing

IFC offers a wide variety of financial products for private sector projects in developing countries.

To be eligible for IFC funding, a project must meet a number of criteria. The project must: Be located in a developing country* that is a member of IFC; Be in the private sector; Be technically sound; Have good prospects of being profitable; Benefit the local economy; and Be environmentally and socially sound, satisfying IFC environmental and social standards as well as those of the host country.

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.

Investment Proposals

A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly by submitting an investment proposal.

After this initial contact and a preliminary review, IFC may proceed by requesting a detailed feasibility study or business plan to determine whether or not to appraise the project.

IFC's project/investment cycle illustrates the stages a business idea goes through as it becomes an IFC-financed project.

Government Cooperation

Although IFC is primarily a financier of private sector projects, it may provide finance for a company with some government ownership, provided there is private sector participation and the venture is run on a commercial basis.

Although IFC does not accept government guarantees for its financing, its work often requires close cooperation with government agencies in developing countries.

Pricing & Financing Ceilings

To ensure the participation of investors and lenders from the private sector, IFC limits the total amount of own-account debt and equity financing it will provide for any single project.

For new projects the maximum is 25 percent of the total estimated project costs, or, on an exceptional basis, up to 35 percent in small projects. For expansion projects, IFC may provide up to 50 percent of the project cost, provided its investments do not exceed 25 percent of the total capitalization of the project company.

IFC provides a wide variety of financial products and services to its clients and can offer a mix of financing and advice that is tailored to meet the needs of each project. However, the bulk of the funding, as well as leadership and management responsibility, lie with private sector owners.

Like other private sector investors and commercial lenders, IFC: Seeks profitable returns; Prices its finance and services in line with the market; and Fully shares risks with its partners.

* Projects in sectors such as information technology may be located in an industrialized country if the benefits of the project primarily accrue to a developing country or countries.