International Finance Corporation

About Organization...

the International Finance Corporation (IFC) is a structural subdivision of the World Bank realizing financing of the medium-term and long-term investment projects in the private sector. The primary goal of the IFC is the assistance to the stable economic development due to the growth of the promising enterprises and the capital markets in the 176 states-participants. Today the IFC is the largest international source of the loan and share capital for the private projects in the developing countries. The capital of the IFC has been formed with the contributions of the 176 countries-participants, which collectively define its politics and the directions of activity.

developing countries and the countries with the transitional economy

the financing of the projects is realized only together with the private investors. The investment project should meet the following criteria:
1) Affiliation with the private sector;
2) Technical competence
3) High potential of profitability;
4) Importance for the local economy;
5) Ecological safety (compliance both with the criteria of the project's country of origin and the requirements of the World Bank)

credits, share capital

Minimum investment: 100 000 $
Maximum investment: 1 000 000 $
Period of investment: 8-12 years for the credits;
8-15 years for the share capital.

the International Finance Corporation finances, as a rule, no more than 25 % of the total cost of the project. The forms of financing can be various and are usually combined within the framework of each individual project. The interest rate and the period of delay of the first credit payment are stipulated individually for each project.

business-plan or detailed technical-and-economic assessment. Preliminary information about the project (for the initial contact with IFC). Contents of the preliminary information about the project:
1) Brief characteristic of the project;
2) Management structure of the project - the list and characteristic of the founders, including their financial information;
- prospective structure of the management of the project and its leaders' resumes;
- technical and other external support of the project in the field of management, production, marketing, finances, etc.);
3) Marketing and sales of products - the basic market orientation of the enterprise (local market, market of the region, country or foreign states);
- Planned volumes of production, prices of the products, purpose of production, portion of the market of the planned project;
- Competition and evaluation of possibilities of saturating the market with the goods-substitutes;
- Tariff regulation and import limitations as regards the planned goods;
- Major factors determining the market potential of the product.
4) Technical competence of the project, human resources, sources of raw materials, environmental protection - Brief characteristic of the production process;
- Probable technical complications, necessity of know-how and special skills;
- Possible suppliers of the equipment;
- Availability of labor force and industrial infrastructure (transport and communications, electric power, water, etc.)
- Determination of the planned operational costs for the basic categories and articles of expenditures;
- Sources, prices and natural need for the raw and other materials. Relations with the suppliers;
- Assessment of the site of the enterprise from the point of view of its proximity to the suppliers, markets, infrastructure companies;
- Possible ecological problems of the project and the ways of their resolution.
5. Investment needs of the project, sources of financing and planned incomes - Estimation of the total cost of the project with the component breakdown (right to land, construction, equipment, working capital); the exchange rates must be indicated - Prospective structure of capitalization of the project with the indication of the sources and conditions of attracting the share and loan capital;
- Form of financing, expected from the International Finance Corporation (share capital, credit or combination of both). The sum required;
- Financial plan including the information on the profit and the proceeds from the invested capital;
- Major factors determining the profitability of the project.
6. Support and regulation on the part of the state. Compliance of the project with the governmental programs of development and investments;
- Special state incentives and support with regard to the project;
- Expected contribution of the project to the economic development;
- Description of the state regulations with regard to the currency exchange and conditions of the capital import and export.
7. Time required for the preparation and realization of the project.

There is no standard form of the application for receiving financing. The enterprise must forward the preliminary information about the project directly to the IFC. After the preliminary consideration of the project, the IFC may request the business-plan or detailed technical-and-economic assessment of the project in order to decide whether or not to finance it. The IFC investment project evaluation group usually includes a financial expert with the experience of work in the country of the realization of the project and a technical expert. The technical, financial and economic aspects of the project are subject to assessment. The process of evaluation presupposes visiting the place of the realization of the project and holding discussions with its initiators. At the close of the visit, the group presents the recommendations to the leadership of the Corporation. If the decision is made in favor of allocating financing, the legal department of the IFC prepares the relevant documents. All external matters of the project are discussed with the enterprise-applicant, participating state bodies and financial organizations. Then the finished project is directed to the IFC Board of Directors for approval. IFC exercises tight control over the utilization of the given investments, paying periodic visits to the enterprise and giving advice to its management. It is mandatory to present quarterly reports about the course of the project realization, as well as information about all the factors, which can influence the material state of the enterprise. It is also obligatory to carry out independent auditing of the enterprise annually.

Address: IFC Office
7/5 building
2 Bolshaia Dmitrovka
103009 Moscow
Phone: 7-(095) 755-8818
Fax: 7-(095) 755-8296
E-mail: Webmaster@ifc.org
Internet: http://www.ifc.org

contact information for submitting the preliminary credit applications: http://www.ifc.org/about/contacts/sectors/sectors.html IFC Representation in Moscow. Contact person: Edward Nassim, director of the Russian representation, 103012 Moscow, Pushechnaya St., 2, building of the Schepkinskoye drama shcool. Tel.: (7-501) 883-7054, (7-501) 755-8818, (7-095) 913-7054 Fax: (7-501) 883-7053, (7-095) 923-2742, (7-095) 913-7053

Attention of investors: If your organization is interested in investing to Voronezh region enterprises, please contact us for placing your information in this section.