The International Finance Corporation (IFC) is the largest multilateral source of debt and equity financing for private enterprises in the developing world and provides a full range of innovative financial products and advisory services tailored to entrepreneurs and companies. IFC was created at a time when the private sector was considered a marginal force in the economic development of poorer countries. But today the private sector is the key engine of growth and poverty reduction, and IFC’s vision of private sector–led growth, along with its capital, financial expertise, advisory services, and leadership in standard setting, reaches some 140 emerging markets. We put our clients first. We can work with you anywhere in the developing world, building long-term partnerships, exchanging knowledge, and growing together—“win-win” results. Our broad range of Financial Products and Advisory Services support one goal: improving lives and raising living standards through sustainable private sector development. They are flexible and can be tailored to a client’s specific needs. In 2007, we invested approximately $8.2 billion for our own account in 69 countries, mobilized another $3.9 billion in syndications, and provided advisory services in 125 countries. IFC operates on a commercial basis. It invests exclusively in for-profit projects, fully shares risks with its partners, and charges market rates for its products and services. These cover three broad areas: Financial products. IFC’s traditional and largest activity is to finance private sector projects in developing countries. IFC provides loans, equity finance, and quasi-equity. It also offers financial risk management products and intermediary finance. Advisory services. IFC provides advisory services to private businesses and governments in developing countries. Areas include privatization, business-related public policy, and industry-specific issues. Resource mobilization. IFC helps companies in developing countries tap into international capital markets. This effort includes the loan participation program, which arranges syndicated loans from banks, as well as structured finance transactions.
IFC’s Added Value A unique role. Although IFC lends on market terms, it does not compete with, but complements, private capital. IFC is a long-term partner for good and bad times. IFC invests in projects that meet its investment criteria, but that cannot get financing or technical expertise elsewhere on reasonable terms. Relationships and experience. IFC has extensive knowledge of how to do business in developing countries and excellent relationships with developing country governments. As an independent international organization, IFC can help companies and sponsors negotiate with host governments. Expertise on sustainability. By working with IFC, companies draw on the expertise and reputation of a partner recognized for its strong social and environmental safeguards. Companies worldwide are recognizing that long-term profitability is best enhanced when investments are made in a sustainable way.
How to Apply for IFC Financing and Services
A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach the IFC field office that is closest to the location of the proposed project. You can request a meeting or submit a preliminary project 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. Once IFC reviews the proposal and decides to evaluate the project, a project team consisting of an investment officer with financial expertise and an engineer with relevant technical expertise visits the client for detailed discussions. After favorable findings, the team recommends the project for further consideration by IFC management and the Board of Directors. IFC investments generally range from $2 million to $150 million. IFC generally limits the total amount of debt and equity financing to 25% of total estimated project cost. IFC’s financing can reach up to 50% in the case of expansion projects. IFC may also provide up to 35% of the equity capital for a project as long as IFC is not the largest shareholder. 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. Be environmentally and socially sound, satisfying IFC standards and those of the host country.
For more information please visit www.ifc.orgor contact: Gorton De Mond
Regional Representative
& Kyrgyzstan Country Manager, IFC
Phone: +7 (3272) 980-580
E-mail: GMond@ifc.org
Goulnoura Djuzenova
Kyrgyzstan Country Officer, IFC
Phone: +996 (312) 610-650
E-mail: Gdjuzenova@ifc.org ****
IFC in the Kyrgyz Republic Kyrgyz Republic became a member of IFC in 1993. As of January 1, 2008 IFC committed portfolio is around US$16 million and the total investments made to Kyrgyz economy since 1996 amounted to $65 million. The largest investment which IFC has made in Kyrgyz Republic (KR) was the Kumtor Gold Mine. In 2005-2008 IFC has actively continued its investment and technical assistance program in KR. It has approved and committed two credits lines for SMEs financing to Kyrgyz Investment Credit Bank ($6.5 million), Bai-Tushum Microfinance Agency ($2.2 million), and the second project with Altyn-Ajydar for expansion its corrugated packaging and paper productions ($1.4 million). Also, IFC has provided the credit line of $2.0 million to Kazcommertsbank under the framework of MSEF joint project with EBRD. In addition, IFC has disbursed the second trance of $1 million loan to Akun milling plant for expanding pasta production. In 2007 IFC has approved $1.5 mm dollars loan to Magic Box printing company. In 2005-2008 the IFC investments in Kyrgyz Republic has amounted to $15.00 million. IFC intends to continue: Promoting micro/small and medium enterprises Assisting the agri-business sector Strengthening the financial sector Development of leasing Provision of equity capital through equity investment funds Developing tourism Expanding investment in the mining sector Assisting privatization opportunities
We will also help catalyze foreign direct investment in mining, tourism, and agriculture projects and assist in the privatization of strategic companies in infrastructure and other sectors.
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