Loans

• IFC finances projects and companies through loans from its own account, typically for 7 to 12 years
  - It can also make loans to intermediary banks, leasing companies, and other financial institutions for on-lending"
• While IFC loans traditionally have been denominated in the currencies of major industrial nations, it has made it a priority to structure local-currency products
  - IFC has provided financing in 74 local currencies"

Equity

• IFC generally invests between 5%–20% of a company’s equity
  - It invests directly in companies’ equity, and also through private-equity funds
  - IFC can also invest through profit-participating loans, convertible loans, and preferred shares"

Trade and Supply-Chain Finance

• The IFC Global Trade Finance Program guarantees trade-related payment obligations of approved financial institutions
• The program extends and complements the capacity of banks to deliver trade finance by providing risk mitigation on a per-transaction basis for more than 287 banks across 87 countries

Syndications

• Managed Co-Lending Portfolio Program (MCPP): Builds a loan portfolio for an investor that mirrors the portfolio IFC is creating for its own account—similar to an index fund
  - MCPP investors and IFC sign upfront administration agreements determining the makeup of the portfolio based on agreed eligibility
  - Investors pledge capital upfront and then as IFC identifies eligible deals, investor exposure is allocated alongside IFC’s own per the terms of the agreement
• B-loan: When an IFC loan includes financing from the market through the B-loan structure, IFC retains a portion of the loan for its own account (the A-loan), and sells participations in the remaining portion to participants (the B-loan)
  - The borrower signs a single Loan Agreement with IFC, and IFC signs a Participation Agreement with the participants; IFC is the sole contractual lender for the borrower"
• Parallel loan: IFC syndicates parallel loans to international financial institutions (IFIs) and other ineligible B-loan participants—under this approach, IFC acts as arranger, as well as administrative assistant
  - The Master Cooperation Agreement (MCA) details the manner in which DFIs work together to co-finance projects when IFC is the mandated lead arranger
  - The MCA also provides documentation templates which significantly reduces costs and increases efficiency
  - The list of MCA signatory countries can be found on IFC’s website
• A-loan participation (ALP): Created through the partial sale of an A-loan to commercial banks or other financial institutions and is governed by a Participation Agreement, similar to the agreement used for IFC B-loans
  - IFC remains the lender of record for the entire A-loan, and an ALP participant shares all project risks with IFC and has the same benefits of a traditional B-loan participant

Treasury Client Solutions

• Local currency finance: IFC provides long-term local currency solutions and helps companies access local capital markets
• Partial credit guarantee: A credit enhancement mechanism for debt instruments, and an irrevocable promise by IFC to pay principal and/or interest up to a pre-determined amount
  - Typically, the guarantee is structured to cover 100% of each debt service payment, subject to a maximum cumulative pay-out equal to the guarantee amount
  - The guarantee amount is usually expressed as a percentage of the principal and amortizes in proportion to the bond or loan
  - In certain circumstances, this percentage can increase or decrease in the later years of the debt obligation, depending upon the needs of the borrower or creditors
• Portfolio risk-sharing facilities (RSF): A bilateral loss-sharing agreement between IFC and an originator (bank or corporation) of assets in which IFC reimburses the originator for a portion of the principal losses incurred on a portfolio of eligible assets
  - RSFs are available to cover loans from a wide variety of sectors, including (but not limited to), mortgage, consumer, student, school, energy efficiency, and SME business
• Securitizations: IFC participates in domestic and cross-border securitizations, generally by investing in the mezzanine portion of risk
  - This investment generally takes the form of either a partial guarantee on the senior tranche, or a partial guarantee on the investment vehicle, and can be denominated in the client’s currency of choice, including local currency

Other Products

• Blended finance: A finance package comprised of concessional funding provided by development partners and commercial funding provided by IFC and co-investors
  - Risk mitigation or guarantees
  - Concessional debt (senior and mezzanine)
  - Equity (direct investments and private equity)
  - Performance-based incentives
• Venture capital: IFC's Venture Capital group invests in ventures and growth stage companies that offer innovative technologies or business models geared at emerging markets
• Advisory services