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International Finance Corporation (IFC)
Practical Law Glossary Item 0-500-2126 (Approx. 2 pages)
Glossary
International Finance Corporation (IFC)
Established in 1956, the International Finance Corporation (IFC) is one of the five institutions that make up the World Bank Group. The IFC promotes sustainable economic growth in developing countries by:
- Financing private sector investment. The IFC provides financial support (for example, loans, guarantees, convertible debt, and equity) at market rates to qualifying creditworthy companies.
- Providing advisory and risk mitigation services.
- Mobilizing private capital in local and international financial markets. Private sector lenders are usually more willing to finance a project in which the IFC is involved because they believe the risk of default is lower.
For more information on the ITC and its role in project financing, see Practice Notes, Sources of Available Project Financing: The International Finance Corporation and The Equator Principles.