Submitted by: International Finance Corporation
Categories: Business Ethics
Posted: Sep 19, 2006 – 11:00 PM EST
Record Investment Commitments
Record Investment Commitments
Sep. 19 /CSRwire/ -
"We made tremendous progress this year targeting financing and technical assistance in areas where IFC's help is needed most," said Lars Thunell, IFC's Executive Vice President.
He added that, "IFC's investments in Africa and the Middle East increased 80 percent in fiscal year 2006. Our investments in infrastructure and private sector health and education projects were up more than 50 percent."
The Corporation has been consistently profitable since its inception in 1956, demonstrating the profit potential of private sector investments in developing countries. In FY06, IFC earned net income of $1.3 billion, compared to $2.0 billion in FY05. Operating income was $1.4 billion in FY06, compared to $2.0 billion for the previous fiscal year.
Mr. Thunell noted several highlights of the past fiscal year:
Mr. Thunell noted that, "Our record investment commitments reflect our success in delivering on IFC's long-term growth strategy. While we are increasing our activities, we are also improving measurement of our development effectiveness and of the economic, environmental, and social sustainability of our projects."
The Corporation's investments in telecommunications have helped 62 million people gain access to phone service since 1996. Oil, gas, and mining companies IFC has invested in have created 50,000 jobs and contributed $4.4 billion to government revenues in developing nations last year.
Of the $6.7 billion in commitments IFC signed for its own account in FY06, $5.0 billion were in loans, $1.1 million were for equity, and $611 million were in guarantees and risk management products. IFC's committed portfolio for its own account grew to $21.6 billion during the year, an increase of nearly 12 percent.
Expenditures for IFC's technical assistance and advisory activities, which are delivered through a network of donor-funded facilities and programs, were about $134 million for FY06, a 23 percent increase.
During FY06 IFC adopted new environmental and social standards. These standards have been adopted by 42 international financial institutions as the Equator Principles II.
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit www.ifc.org.
Additional information about IFC's fiscal year results can be found at: http://www.ifc.org/ar2006
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