Overview：
The International Finance Corporation (IFC), a member of the World Bank Group, is the world’s largest private-sector development agency focused on emerging markets. In fiscal year 2023 (FY23), IFC provided a record $43.7 billion in own-account investments and third-party mobilization funding* to private companies and financial institutions in developing countries in more than 100 countries. IFC partners with multinationals and medium-sized companies interested in investing in emerging markets. As of June 2023, IFC’s long-term commitment portfolio with German partners is close to $1.6 billion, covering multiple industries and regions.
Long-term portfolio with German sponsors
As of FY23, IFC’s long-term portfolio with German sponsors is close to $1.6 billion. German private companies benefit from joint investments with IFC while making a significant contribution to the development cause.
IFC Long-Term Portfolio by Industry ($1.6 Billion, June 2023)
Manufacturing, agribusiness and services: 26%
Infrastructure: 53%
Financial institutions: 25%
IFC Long-Term Portfolio by Sector (June 2023, Unit: $million)
Tourism, retail, construction and real estate: 59
Traffic: 282
Manufacturing: 172
Discrete assets: 159
Microcredit: 109
Energy: 69
Municipal and environmental infrastructure/non-viable financial institutions: 50
Health, education and life sciences: 49
Agro-forestry: 40
Banking: 31
Telecommunications, Media and Technology (TMT): 19
Insurance and pensions: 12
Funds: 6
Total:1570
IFC Long-Term Portfolio by Region ($1.6 Billion, June 2023)
Europe: 17%
Africa: 6%
Latin America and the Caribbean: 11%
Middle East, Central Asia, Turkey, Afghanistan and Pakistan: 13%
South Asia: 17%
Worldwide: 6%
Funding Mobilization
IFC has close relationships with German financial institutions (FIs) and actively cooperates with cross-industry companies. As of June 2023, German financial institutions hold nearly $400 million in IFC syndicate loans.
Global Trade Finance Programme (GTFP)
Since its inception in 2005 and until June 2023, IFC has provided nearly 600 guarantees to Deutsche Banken for a total of more than $12 billion. Deutsche Commerzbank is the most active validation bank.
Cooperation with Governments and development financial institutions
The German Development Agency is an important partner of IFC. The Deutsche Bank für Wiederherstellung (KfW, including DEG) is involved as a long-term co-lender in various areas such as agricultural finance, microcredit and sustainable energy. DEG is one of IFC’s most valued long-term partners.
In fiscal 2019-23, Germany provided nearly $133 million in funding to support IFC’s advisory services, including:
Federal Ministry for Economic Cooperation and Development (BMZ) funded African food systems, PPP consulting and capital markets projects;
The Federal Ministry for Economic Affairs and Climate Action (BMWK) supports green finance projects.
* The financial year of the World Bank Group runs from 1 July to 30 June each year.
Successful cooperation cases
Frankfurt Airport Group (Fraport), Turkey
In March 2023, IFC provided a €150 million loan to Fraport TAV Antalya for Antalya Airport (Turkey’s main leisure tourism airport) The project, co-sponsored by the German airport management giant Frankfurt Airport Group, is IFC’s first investment in Turkish airports. IFC’s funding will help upgrade the airport, boost Turkey’s competitiveness as a global tourist destination, and drive the project towards the Paris Agreement’s carbon reduction targets through the use of renewable energy and the construction of energy-saving terminals, which are expected to save 24%.
HDI Global Insurance, Vietnam
In May 2021, IFC joined forces with the Emerging Asian Fund and the Financial Institution Growth Fund to invest $25 million in PVI Holding in Vietnam. PVI is owned by HDI Global Insurance Holding in Germany and IFC’s investments will help it improve corporate governance, expand insurance coverage and promote the sustainable development of the non-life insurance industry in Vietnam.
K+S Group, Uganda
In September 2019, IFC provided a $11 million Class A loan to Grainpulse in Uganda. The company was established by a joint venture with German potassium salt giant K+S to focus on coffee and grain supply chain management. IFC funded its $18 million investment program, including the expansion of corn processing plants, feed plants and grain storage facilities, to benefit local smallholder farmers and to facilitate the transformation of Uganda’s fertilizer market through capacity building.
Contact details
Jan van Bilsen
Tel: +49 69 74 34 82 50
Email: jvanbilsen@ifc.org
Frankfurt Office
Address: Bockenheimer Landstrasse 43, 60325 Frankfurt am Main, Germany
Tel: +49 69 743 48230
September 2023
International Finance Corporation · World Bank Group
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