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54-589: The International Finance Corporation ( IFC ) is an international financial institution that offers investment , advisory, and asset-management services to encourage private-sector development in less developed countries . The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States. It was established in 1956, as the private-sector arm of

108-468: A developing country and its emerging market , hence the term bilateral , as opposed to multilateral . Examples include: Financial institutions of neighboring countries established themselves internationally to pursue and finance activities in areas of mutual interest; most of them are central banks , followed by development and investment banks. The table below lists some of them in chronological order of when they were founded or listed as functioning as

162-475: A 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

216-804: 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

270-478: A geographic concentration area for their development objectives. With this geographic and thematic focus, funding for a variety of ventures – often resource-intense infrastructure projects – is provided. Since MDBs have a shareholding structure and are backed by member countries, they tend to profit from favorable loan conditions compared to other banks and can therefore take more risks in their investment strategy. This aids their development-driven cause. Since

324-790: A legal entity. Some institutions were conceived and started working informally 2 decades before their legal inception (e.g. the South East Asian Central Banks Centre) Siemens %26 Halske Siemens & Halske AG (or Siemens-Halske ) was a German electrical engineering company that later became part of Siemens . It was founded on 12 October 1847 as Telegraphen-Bauanstalt von Siemens & Halske by Werner von Siemens and Johann Georg Halske . The company, located in Berlin - Kreuzberg , specialised in manufacturing electrical telegraphs according to Charles Wheatstone 's patent of 1837. In 1848,

378-597: 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 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

432-471: 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

486-587: A perception of high credit risk , the IFC securitizes assets with predictable cash flows, such as mortgages , credit cards , loans, corporate debt instruments, and revenue streams, in an effort to enhance those companies' credit. Financial derivative products are made available to the IFC's clients strictly for hedging interest rate risk , exchange rate risk , and commodity risk exposure . It serves as an intermediary between emerging market businesses and international derivatives market makers to increase access to risk management instruments. The IFC fulfills

540-848: A period of eight to fifteen years, before exiting through the sale of shares on a domestic stock exchange , usually as part of an initial public offering . 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,

594-458: A project is deemed to warrant it. Leasing 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

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648-643: 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 funds , 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

702-453: 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

756-583: A wholly owned subsidiary 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

810-741: Is IFC granting financing to a Saudi prince for a five-star hotel in Ghana. The World Bank and International Monetary Fund were designed by delegates at the Bretton Woods conference in 1944. The World Bank, then consisting of only the International Bank for Reconstruction and Development , 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

864-593: Is a corporation whose shareholders 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 and equity financing services and helps companies face their risk exposures while refraining from participating in

918-460: 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 of $ 1.58 billion in fiscal year 2011. In previous years,

972-445: Is effectively shared responsibility for repayment, the banks can often borrow more cheaply than could any one member nation. These banks include: There are also several multilateral financial institutions (MFIs). MFIs are similar to MDBs but they are sometimes separated since they have more limited memberships and often focus on financing certain types of projects. The best-known IFIs were established after World War II to assist in

1026-493: 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

1080-648: Is met, which requires 20% less energy, water, and materials than conventional homes. [REDACTED]   World Bank Group International financial institutions A Multilateral Development Bank ( MDB ) is a development bank , created by a group of countries, that provides financing , technical assistance and professional advice to enhance development . An MDB has many members, including developed donor countries and developing borrower countries. MDBs finance projects through long-term loans at market rates, very-long-term loans below market rates (also known as credits), and grants. Additionally, MDBs often have

1134-417: 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

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1188-611: 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. The IFC has created

1242-415: Is readily available while managing risks to the IFC. In addition to its investment activities the IFC provides a range of advisory services to support corporate decision-making 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

1296-525: The European Bank for Reconstruction and Development . The Islamic Development Bank is among the leading multilateral development banks. IsDB is the only multilateral development bank after the World Bank that is global in terms of its membership. 56 member countries of IsDB are spread over Asia, Africa, Europe and Latin America. A bilateral development bank is a financial institution set up by one individual country to finance development projects in

1350-509: The Obshchestvo Elektricheskogo Osveshcheniia (Company for Electric Lighting), also known as the 1886 Company . When Siemens & Halske merged parts of its activities with Schuckert & Co. , Nuremberg in 1903 to become Siemens-Schuckert , Siemens & Halske AG specialized in communications engineering. During World War I , rotary engines of advanced and unusual design were produced under

1404-608: The 2020s, in the context of the G20 , the World Bank - IMF Annual Meetings and other International Summits, MDBs have committed to multiple shared reform objectives. This MDBs Reform process aims to integrate MDBs in terms of operational practices, objectives, financial metrics and governance structures, enabling them to work as a system in development projects, to mobilize additional capital and achieve credit rating stability. The Capital Adequacy Framework (CAF) reform has been one of

1458-882: The IFC ALAC Fund) was created in 2010 and is worth $ 1 billion. As of March 2012, 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. As of 2018, Marcos Brujis serves as CEO of the AMC. The IFC prepares consolidated financial statements in accordance with United States GAAP which are audited by 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

1512-560: 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. IFC Sustainability Framework articulates IFC's commitment to sustainable development and

1566-804: The IFC cannot. As of 2011, 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

1620-619: 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. The IFC's investment services consist of loans , equity, trade finance , syndicated loans , structured and securitized finance, client risk management services, treasury services , and liquidity management. In its fiscal year 2010,

1674-778: 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 requirements for fiscal years 2012 through 2014. Its external funding liquidity level grew from 190% in 2010 to 266% in 2011. It has

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1728-512: The IFC has focused on a set of development goals that its projects are expected to target. Its goals are to increase sustainable agriculture opportunities, improve healthcare and education , increase access to financing for microfinance and business clients, advance infrastructure , help small businesses grow revenues, and invest in climate 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

1782-575: 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

1836-579: 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 (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

1890-565: 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

1944-551: The Middle East, and recently has invested in Small Enterprise Assistance Funds ' (SEAF) Caucasus Growth Fund, Aureos Capital's Kula Fund II ( Papua New Guinea , Fiji , Pacific Islands ) and Leopard Capital 's Haiti Fund. Other equity investments made by the IFC include preferred equity , convertible loans , and participation loans . The IFC prefers to invest for the long-term, usually for

1998-871: The Siemens-Halske brand, like the Siemens-Halske Sh.I and Sh.III . Siemens & Halske also produced large numbers of MG08/15 machineguns deployed for service of the Kaiser Imperial forces in World War I . Later, Siemens established several company subsidiaries for which the Siemens & Halske AG functioned as a holding company. During the Second World War , Siemens & Halske employed slave labour from concentration camps. Among other things, they produced field telephones of

2052-556: The World Bank Group, to advance economic development by investing in for-profit and commercial projects for poverty reduction 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. Since 2009,

2106-764: The World Bank group's activities, but with particular focus on a specific region. Shareholders usually consist of the regional countries plus the major donor countries. The best-known of these regional banks cover regions that roughly correspond to United Nations regional groupings, including the Inter-American Development Bank , the Asian Development Bank ; the African Development Bank ; the Central American Bank for Economic Integration ; and

2160-456: 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 executive directors collectively represent all 186 member countries. When the IFC's Board of Directors votes on matters brought before it, each executive director's vote is weighted according to

2214-498: The company constructed one of the first European telegraph lines from Berlin to Frankfurt am Main . Siemens & Halske was not alone in the realm of electrical engineering. In 1887, Emil Rathenau had established Allgemeine Elektrizitäts-Gesellschaft (AEG), which became a long-time rival. In 1881, Siemens & Halske built the Gross-Lichterfelde Tramway , the world's first electric streetcar line, in

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2268-683: The company in 1867. Werner von Siemens' brother Karl Heinrich, together with Werner's sons Arnold and Georg Wilhelm , grew the firm and erected new Siemens & Halske premises along the banks of the western Spree river, in the Berlin suburb of Charlottenburg, in 1897. The firm's vast new site continued to grow, and from 1899 onwards it was known as Siemensstadt . Siemens & Halske quickly expanded with representatives in Great Britain and Russia as well as its own cable-manufacturing plants at Woolwich and Saint Petersburg . The company's rise

2322-401: 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

2376-751: The highest ratings from two independent credit rating agencies 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 and other NGOs in 2015, "The Suffering of Others," found the IFC was not performing enough due diligence 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

2430-433: 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 . 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

2484-711: The leadership of Garner. It initially had 12 staff members and $ 100 million (equivalent to $ 1121 million in 2023) in capital. The corporation made its inaugural investment in 1957 by making a $ 2 million (equivalent to $ 22 million in 2023) loan to a Brazil-based affiliate of Siemens & Halske (now Siemens AG ). In 2007, IFC bought 18% stake in the Indian Financial firm, Angel Broking . In December 2015, IFC supported Greek banks with 150 million euros by buying shares in four of them: Alpha Bank (60 million), Eurobank (50 million), Piraeus Bank (20 million) and National Bank of Greece (20 million). The IFC

2538-461: The main fields of MDB reform, aiming the enhance financing capacity and harmonize financial metrics among MDBs. The following are usually classified as the main MDBs: There are also several "sub-regional" multilateral development banks. Their membership typically includes only borrowing nations. The banks lend to their members, borrowing from the international capital markets . Because there

2592-652: The reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system . They include the World Bank , the IMF , and the International Finance Corporation . Today the largest IFI in the world is the European Investment Bank which lent 61 billion euros to global projects in 2011. The regional development banks consist of several regional institutions that have functions similar to

2646-656: The southwestern Lichterfelde suburb of Berlin, followed by the Mödling and Hinterbrühl Tram near Vienna , the first electrical interurban tram in Austria-Hungary . 1882 saw the opening of the experimental " Elektromote " track, an early trolleybus concept in the Berlin suburb of Halensee . The rising popularity of telegraphs and electrical tramways, as well as in generators and electric motors, ensured steady growth for Siemens & Halske. Werner von Siemens retired in 1890, while Johann Georg Halske had already left

2700-540: The total share capital of the member countries represented by that director. IFC is currently led by Makhtar Diop who was appointed as the institution's Managing Director and Executive Vice President in February 2021. Prior to this 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. Although

2754-652: 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. The IFC established IFC Asset Management Company LLC (IFC AMC) in 2009 as

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2808-431: Was created in 1957 and as of 2011 has channeled approximately $ 38 billion from over 550 financial institutions toward development projects in over 100 different emerging markets . 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

2862-555: 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 ratings of AAA from Standard & Poor's in December 2012 and AAA from Moody's Investors Service in November 2012. S&P rated

2916-663: Was supported by Werner von Siemens' patent of the electric generator ( dynamo ) in 1867. Carl Wilhelm Siemens represented the company in Great Britain . They developed a cable-manufacturing plant in Woolwich . Carl Heinrich von Siemens represented the company in Russia. He established the Russian branch of the company in 1853, gaining a contract to build the telegraph system. In 1886 they obtained permission to establish

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