STEPPING UP

IN A TIME OF UNCERTAINTY
2022 ANNUAL REPORT		CONTENTS
2 Letter from the IFC Board
4 Letter from David Malpass, World Bank Group President
6 Letter from Makhtar Diop, IFC Managing Director
9 Our Management Team		RESULTS
10 World Bank Group 2022 Summary Results
12 IFC 2022 Year in Review

		 STRATEGY IN ACTION
16 	Stepping Up in a Time of Uncertainty
		CRITICAL FUNCTIONS
50 Measuring Up
52 Sustainability
54 	Accountability and Oversight56 	Diversity, Equity, and Inclusion		Additional information is available on IFC’s Annual
Report 2022 website: www.ifc.org/AnnualReport.

Cover (Vietnam): Stepping Up in a Time of Uncertainty
tells the story of IFC’s determined effort to move
forward, with urgency, despite mounting challenges
worldwide.

ABOUT IFC
IFC — a member of the World Bank Group — is thelargest global development institution focused on
the private sector in emerging markets. We work inmore than 100 countries, using our capital, expertise,and influence to create markets and opportunities indeveloping countries.
In fiscal year 2022, IFC committed a record $32.8 billion
to private companies and financial institutions indeveloping countries, leveraging the power of theprivate sector to end extreme poverty and boost sharedprosperity as economies grapple with the impacts ofglobal compounding crises. For more information, visit
www.ifc.org.

IFC ANNUAL REPORT 2022

1

IFC BOARD

LETTER FROM THE IFC BOARD

Over the last year, our shareholders
asked the World Bank Group to provide
exceptional support in response to thecompounding crises of the COVID-19
pandemic and the war in Ukraine, in
addition to its ongoing and extensive
portfolio of work. This resulted in
unprecedented levels of financing by theWorld Bank Group in fiscal 2022, including$70.8 billion by IBRD and IDA, $32.8 billion(including mobilization) by IFC, and$4.9 billion in guarantees by MIGA.
By financing health operations, vaccine procurement,
and other initiatives, the World Bank Group has
helped developing countries and their people andbusinesses continue to address the impacts ofthe pandemic on poverty, health care, human andeconomic development, and well-being. The WorldBank Group has also rapidly addressed the farreaching consequences of a new crisis, the war in
Ukraine. The spillover effects are many — beyond theimpacts related to refugees, food security, and energy,
the conflict poses uncertain and potentially lasting
consequences on trade channels, foreign investment,
global confidence, and financial stress. Anchored by theWorld Bank Group’s twin goals of poverty reduction
and shared prosperity, with a focus on fosteringgreen, resilient, and inclusive development, the Board
discussed and approved several important initiatives
and programs to respond to these crises.
2 IFC ANNUAL REPORT 2022

But the needs are many, and more can be done. The
World Bank Group is working with donor countries
to mobilize financial support through diverse channels,
including the Fund for Pandemic Prevention,
Preparedness, and Response, as well as special
guarantees and grant financing for Ukraine. The
World Bank Group is also working with stakeholders
on the ground to implement important programs,
such as the World Bank Group Climate Change Action
Plan (CCAP), IFC’s Global Health Platform, MIGA’s
Fast-Track COVID-19 Response Program and theWorld Bank’s COVID-19 Strategic Preparedness andResponse Program, as well as efforts to address debt
vulnerabilities, boost the resilience of food systems, andsupport energy access and transition. We continue tostress the need to address the key drivers of fragility
and poverty — in Afghanistan, Haiti, Sudan, Yemen andelsewhere — in order to build human capital, reduce
inequality, promote jobs, and foster economic recovery.
Given the immense need for financing, the IDA20
replenishment process was advanced by a year, anda $93 billion replenishment package was agreed toin December 2021. This financing is the largest evermobilized in IDA’s 61-year history and will help lowincome countries respond to today’s multiple
crises and build a greener, more resilient, and more
inclusive future. Donor countries also agreed to areview of IDA voting rights, resulting in a significant
adjustment to its voting rights framework. This will
help ensure fairness among all donors while protecting
and enhancing recipients’ voting power.
At the 2021 Annual Meetings and 2022 Spring
Meetings, the Development Committee asked theWorld Bank to help countries address immediate
food security and social protection needs; to help

manufacture and deploy vaccines, invest in diagnostics
and therapeutics, and strengthen health systems;
to continue supporting debt sustainability andtransparency; to build on the CCAP to protect natural
capital and biodiversity; to promote digitalization; toincrease private sector financing mobilization; and,with the IMF, to coordinate actions and orient country
engagements toward a green, resilient, and inclusive
economic recovery. It urged the World Bank to work
toward these objectives while remaining focusedon the twin goals of ending extreme poverty andboosting shared prosperity as well as helping countries
achieve the Sustainable Development Goals.
We strongly support the important efforts undertaken
this year by World Bank Group senior leadership andstaff to address racial injustice and workplace culture
through recommendations from the staff task forces.
We welcome these improvements as we transition toa hybrid work model. We were also pleased to travel asa group to client countries in fiscal 2022 — the first timesince the pandemic started — and observe in person
the impact of the World Bank Group’s engagement.
We sincerely appreciate the ongoing commitment ofstaff across the institutions, including our own teams,
to the World Bank Group’s mission and their hard
work during these exceptional and challenging times.
We also extend a special thanks to the Emergency
Management Team, who worked tirelessly to bringus back into our offices safely and securely after an
extended period of home-based work.
Amid the many current crises, the World Bank Group
stands ready to help countries and people across the globe
as they work to address human and economic challenges
and achieve progress on the path of development.

PHOTO SEATED BOTTOM, LEFT TO RIGHT:

PHOTO STANDING TOP, LEFT TO RIGHT:

Katharine RechicoCanadaMatteo Bugamelli
Italy

Alphonse Ibi Kouagou
Benin

Takashi Miyahara
Japan

Michael Krake
Germany

Koen Davidse
The Netherlands — Co-Dean

Nigel Ray
Australia

Katarzyna Zajdel-Kurowska
PolandAdriana Kugler
United States

Taufila Nyamadzabo
Botswana

Monica E. Medina
Peru

Lene Lind
NorwayRoman Marshavin
Russian Federation

Arnaud BuisséFranceErivaldo Gomes
BrazilAbdulmuhsen Saad Alkhalaf
Saudi Arabia

Richard Hugh Montgomery
United Kingdom

Mohd Hassan Ahmad
Malaysia

Eva Valle Maestro
Spain

Armando ManuelAngolaMerza Hussain Hasan
Kuwait — Dean

Rajesh Khullar
India

Abdelhak Bedjaoui
Algeria

Hayrettin Demircan
TürkiyeJunhong Chang
China

IFC ANNUAL REPORT 2022

3

LETTER FROM DAVID MALPASS
President of the World Bank GroupThe world is facing dangerous crises that are hammering developing
countries, hitting the poor and vulnerable, and worsening global inequality.
High inflation, war in Ukraine, large macroeconomic imbalances, andshortages of energy, fertilizer, and food have caused the sharpest global
economic downturn in 80 years, compounding the death tolls, economic
shutdowns, and school closures of the COVID-19 pandemic. Low- and middleincome countries now face surging prices for natural gas and fertilizer and theworst food crisis in a decade, as they work to achieve progress on long-term
development needs­— including clean water, electricity access, reading skills,
quality infrastructure, and climate-related investments.
In the global fight to alleviate poverty and raise living standards, 2022 is likely to be one of the worst years in
decades. Real median income has declined further in many countries, and the tragic reversals in development
during the pandemic have worsened. Our June Global Economic Prospects report highlighted the risk of stagflationand the concentrated harm to the poor. Inequality is a prominent destabilizer, with global capital and income
allocated primarily to high-income countries through their fiscal, monetary, and regulatory policy choices.
Inequality is expected to worsen in coming years, leaving development goals out of reach for many.

4 IFC ANNUAL REPORT 2022

The World Bank Group is responding to thesechallenges with speed, clarity, scale, and impact.
We’ve committed two consecutive surges of financing,analytical work, advocacy, and policy advice to support
people, preserve jobs, and restore growth — first,$150 billion in response to the COVID-19 pandemic, andnow a 15-month $170 billion response to the food crisis
as well as the war in Ukraine and its spillover effects.
Since the start of the pandemic through fiscal 2022, theWorld Bank Group has provided over $14 billion to help
more than 100 countries respond to the health impactsof COVID-19 and vaccinate their people.
In fiscal 2022, IBRD committed $33.1 billion, including
support for more than 45 middle-income countries.
This includes $300 million to help Türkiye scale up
private sector investment in geothermal energy.
IDA committed $37.7 billion for grants and highly
concessional loans to over 70 countries, including$645 million to support food system resilience andemergency response in Burkina Faso, Cameroon, Mali,
Mauritania, Niger, and Togo. I welcomed our IDA
partners’ agreement in December 2021 to advance the
IDA20 replenishment by one year. Their record threeyear contributions of $23.5 billion will anchor IDA’s
financing of $93 billion for fiscal 2023–25 and help thepoorest countries address urgent priorities — including
jobs and economic transformation, human capital, thereversal in learning and literacy, gender, climate change,
and fragility, conflict, and violence (FCV) — and movetoward restoring growth.
Despite challenging economic headwinds, IFC provided
strong support to the private sector with commitment
volumes totaling $32.8 billion (including mobilization)in fiscal 2022, building on $31.5 billion of investments
in fiscal 2021 and focusing on maximum impact. Asbanks cut back on trade finance, IFC is stepping in to
keep import/export businesses operating despite theconstraints they face. In fiscal 2022, IFC’s commitments
reached $9.7 billion in trade finance, the highest
level ever; nearly 75 percent of this was invested in
IDA countries and countries affected by FCV. In one
example, Coris Bank in Burkina Faso received IFC tradefinance to import rice from various countries.

MIGA issued $4.9 billion in guarantees to help countries
achieve their development goals. These efforts will
provide some 15 million people with new or better
electricity service and enable $1.9 billion in loans,including to local businesses. MIGA remained focusedon its strategic priorities, with 85 percent of its projects
in fiscal 2022 dedicated to countries affected by FCV,IDA countries, and climate mitigation and adaptation.
Fragility, conflict, and violence are rising in much of
the world, including Afghanistan, Ethiopia, the Sahel,and Yemen. In Ukraine, the war has led to lives, homes,
and livelihoods being lost, millions of refugees, andinfrastructure destroyed. The costs of reconstruction
are already in the hundreds of billions. As of August
2022, we have mobilized and facilitated the transfer
of $13 billion in emergency financing, with more than
$9 billion already disbursed to help Ukraine financecritical government services and lessen the human andeconomic impacts. This includes a $1.5 billion WorldBank package, including $1 billion in exceptional support
from IDA, to help pay wages for government and school
employees. World Bank Group support also extends
to countries that are hosting Ukrainian refugees.
With the increase in energy and food costs and Europe’s
huge unmet demand for natural gas, developing
countries are facing new strains on people andeconomies. The sudden spike in food prices threatens
to worsen political and social tensions in many
developing countries, with devastating impacts on
the poorest and most vulnerable. In parts of Easternand Southern Africa, for example, about 66 million
people are at risk of a food emergency or famine. In
May 2022, we announced support for a global responseto the food security crisis, with up to $30 billion in
financing through August 2023, including $12 billion
in new projects, to cushion the effect of higher prices
and boost agricultural production and supply. The
response builds on our experience from the last foodprice crisis and incorporates our data and analyticalwork, including the Commodity Markets Outlook. And in
July 2022, I joined leaders of the IMF and UN agencies
in calling for urgent action to improve global foodsecurity by providing quick support to the vulnerable,facilitating trade and international food supplies,
boosting production, and investing in climate-resilient
agriculture.
The disruption of energy supplies is lowering growth,
especially for economies that depend on fuel imports.
Higher prices for natural gas and shortages are putting
fertilizer supplies and crop yields at risk, destabilizing
electricity grids, and increasing the use of heavily
polluting fuels. The world urgently needs to increase thesupply of energy and massively expand reliable accessto electricity in poorer countries. This will require major
new investments in cleaner energy, energy efficiency,
and electricity grids and transmission. The fundamental
realignment of Europe’s energy sources away fromdependence on Russia requires major increases inelectricity generation from natural gas, hydropower,
geothermal, and nuclear power to provide a lesscarbon-intensive baseload to maintain and expand
electricity grids.
Climate change and extreme weather are steadily
increasing their pressure on economies and societies,
particularly in fragile settings. The World Bank Group’s
Climate Change Action Plan 2021–25 seeks to integrate
climate and development, identify and develop themost impactful projects to reduce greenhouse gas
emissions and adapt to climate change, increase
direct financing throughout the World Bank Group.
It will provide avenues for the global community toprovide the huge flow of new grant funding needed
for global public goods in poorer countries. Innovative
financial tools, such as green bonds and the Wildlife
Conservation Bond we launched in March 2022 —the first of its kind — will need to expand. The Climate
Change Action Plan has also introduced a new corediagnostic: Country Climate and Development Reports.
As of the end of July 2022, we had published the firstof these reports for Türkiye, Vietnam, and the G5 Sahelregion. I’m also pleased that, with this annual report,
we are introducing much greater transparency in theWorld Bank’s climate disclosures.
A major consequence of the current crises is the hugebuildup in government debt. For many of the poorest
countries, the debt burden is unsustainable or athigh risk. Deep debt reduction will be necessary toallow new investment and growth. We work closelywith the IMF and other partners to help countries
strengthen their transparency, governance, andaccountability — all key steps in debt sustainability.
We also continue to call on official and private sector
creditors to participate quickly and fully in efforts to
reduce debt stocks. Under current creditor-country
policies, expected debt payments by the poorest
countries to their creditors in 2022 and 2023 will
greatly exceed all the development assistance available
to these countries. Our World Development Report 2022
examines policies to mitigate interconnected financial
risks and steer the world toward a sustainable andequitable recovery.
I was pleased to welcome many colleagues back to ouroffices this year. We continue to adapt our work model
to protect staff health and well-being while recognizing
the value of physical interaction in delivering highquality results for clients and career development.
The World Bank Group’s anti-racism task force
continues our important work to fight racism and racial
discrimination within our institution and in countries
where we work. I remain committed to fostering aculture of openness and trust and improving diversity
and inclusion across the organization, also through ourtask force on workplace culture.
The crises affecting our client countries are deepseated, but I am confident we can make a difference.
To meet these challenges, we must draw on theinnovation and dedication of our staff, the strengthof our partnerships, and the resolve of the global
community. The World Bank Group remains committed
to helping countries overcome these challenges andwork toward a more resilient and sustainable future.

David Malpass
President of the World Bank Groupand Chairman of theBoard of Executive Directors

IFC ANNUAL REPORT 2022

5

LETTER FROM MAKHTAR DIOPIFC Managing Director

Taken together, these challenges point toward asingular truth: there is no going back to where wewere before. We have entered a new normal, one thatwill require new partnerships and creative mindsets
to pave the way for a more sustainable, resilient, andinclusive future.
What does the new normal demand from IFC? This
topic has weighed heavily on my mind this year. I am
incredibly proud of what our team has accomplishedin the face of unprecedented uncertainty and growing
fragility around the world. Fiscal Year 2022 wasanother record-setting year, with total investmentcommitments of $32.8 billion. These investments
created regional manufacturing hubs that can produce
vaccines and other essential goods, helped commerce
flow in fragile and conflict-affected areas, and kept
climate projects on track amid economic anxiety that
could have derailed them.
When I step back and reflect on the totality of IFC’s
accomplishments, a common thread emerges: IFC’s
ability to defy uncertainty and drive outcomes thatchange lives. Our ability to step up in the mostchallenging circumstances and bring others along.
Our willingness to take risks and seize opportunities.

Stepping up in a time of uncertainty.
The title of our Annual Report reflects our determination to step forward,
with a sense of urgency, when the world needs us most.
In an environment fraught with uncertainties, confronting mounting
challenges with decisiveness and resolve is the only way forward.
Global Challenges
The slow vaccination rates in the developing world and the emergence of new variants prolonged theimpacts of the COVID-19 pandemic. The war in Ukraine unleashed a humanitarian crisis in the region,
triggered a global food crisis, and further disrupted global supply chains. Soaring inflation worsened poverty
and threatened essential investments in emerging markets. More frequent and intense climate events
provided an ominous glimpse at the consequences of a continued disregard for the planet.

6 IFC ANNUAL REPORT 2022

Building Resilience
Countries around the world are carrying the weightof converging crises. They are feeling the pull to turninward, shore up resources, and focus on national
concerns. But strong nations and close global ties are
not and should not be mutually exclusive goals.
To keep trade flowing across borders in turbulent
times, IFC committed record amounts in tradefinancing support to emerging markets, especially
low-income countries.
Another example of what is possible is building
medical supply chains to address the pandemic.
Since March 2020, IFC has invested and mobilized
more than $2.2 billion to help get vaccines, personal
protective equipment, and medical supplies into
emerging markets, with a special focus on regional

facilities and distribution channels in Africa that canserve local populations long after the COVID-19 crisis
subsides.
The potential implications of this approach go far
beyond healthcare. We envision similar opportunities
to build resilient ecosystems in areas like agriculture —and therefore food security — and housing. In fact, weplan to use our Global Health Platform as a model for
addressing food insecurity and targeting assistance tofarmers, food processors, and fertilizer distributors indeveloping countries.
We will also continue to support opportunities thatconnect individuals with training, digital resources,
and capital to launch businesses. These investments
are key to driving the economic engines of emerging
markets and promoting the kinds of innovation thatcan reshape the world.

Multidimensional Development
Consider the energy crisis in the developing world,
where 600 million people in Africa alone still live
without access to electricity. The need to address thisissue is not up for debate. Yet the ever-worsening
impacts of climate change mean we cannot do it in
the same way we always have. We need to find a
new path forward: one that combines advancements
in sustainable technologies, massive investments in
adaptation with innovative trade agreements andfinancing tools. This is the only way we are going tosucceed in powering Africa — while decarbonizing an
industry that is one of the world’s largest contributors
to greenhouse gas emissions — and helping middle
income countries through their energy transition.
This is just one example of multidimensional
development, but there are countless others. We needto both expand capital access for small businesses
and invite in more women and underrepresented
minorities to take part. We need to both build
affordable housing and invest in more sustainablebuilding materials.

It is hard to understate the power of theseopportunities. They have the potential to create true
win-win scenarios that benefit businesses, nations,and the entire global community. But they will also
require sustained effort, new partnerships, and close
collaboration between the public and private sectors
and international development organizations like IFC.

Creating a Stronger IFC
In the new normal, we all have to get comfortabletaking on more challenges, which means taking
more risks and being willing to push the envelope.
We have to want more for the future of the world,
do more to achieve it, and be more like the best
versions of ourselves.
IFC has already taken so many important steps
forward to meet the demands of the moment.
We continue to increase our climate-related
commitments, and we are on track for all direct
investments to be aligned with the Paris Agreement
by 2025. We are also building on our legacy of setting
global standards, launching new green taxonomies forclimate-friendly projects or issuing guidelines for blue
finance to promote the blue economy and save
our oceans.
We continue to build out our capacity for taking
on bold risks in a prudent manner. We know how
important our willingness to push into challenging
markets is, and we remain committed to charting
paths that will encourage others to follow. We
intend to grow our use of blended finance tools to
help rebalance risks for private investors, and we willkeep taking chances on game-changing ideas andinnovations. We know not every investment is goingto pan out, but the potential impact of the ones that
do far outweigh the costs.

ideas into investments that move the needle andcreate new or expand existing markets including infragile countries.
But even with all these initiatives, there is still
more we can and must take on. That is why we areproactively improving how our organization works
around the world. We are implementing changes to
IFC’s organizational structure and decision-making
frameworks that will remove silos, foster greatercollaboration, and streamline decision-making so thatfrontline staff, who know on-the-ground conditions
best, can respond quickly and effectively to clients.
My hope is that these changes will help optimize IFC
for the future. I want us to be an organization thatembraces change and nurtures talent. I want us tohave a culture that is diverse, lively, and inclusive. Put
simply, I want us to be nothing short of the very bestin global development—for our clients, for the people
and communities we serve, and for ourselves.
The new normal is not something we should fear. It
is something that should inspire our work toward abetter, brighter tomorrow.

Makhtar Diop
Managing Director

I am especially excited about the growth of ourUpstream program, which has truly gone mainstream
and become a central part of our operations. Now
we’re shifting our focus to execute on a robust pipelineof commercially viable projects and convert these

IFC ANNUAL REPORT 2022

7

IFC FY22: STEPPING UP, DELIVERING RESULTS$32.8 Bin total investment commitments,
as compared to $31.5B in FY21

CLIMATE$4.4 Bin climate
financing forour own account

8 IFC ANNUAL REPORT 2022

TRADE

$9.7 Bin trade finance-OUR HIGHEST
LEVEL EVER

75 %of this amount was invested
in IDA countries and fragile
and conflict-affected
situations

OUR
MANAGEMENT TEAM

IFC’s leadership develops corporate strategies and policies as well as oversees the effective deploymentof our resources. The main focus is on maximizing development impact and meeting client needs. IFC’s
Management Team brings together years of development experience, a broad array of expertise,and complementary cultural perspectives.

Stephanie vonFriedeburg

Georgina Baker*

Elena Bourganskaia

Hela Cheikhrouhou

John Gandolfo

Senior Vice President,
Operations

Regional Vice President,
Latin America and the
Caribbean, and Europe
and Central Asia

Vice President,
Corporate Support

Regional Vice President,
Middle East, Central Asia,
Türkiye, Afghanistan andPakistanVice President andTreasurer

Mohamed Gouled

Ruth Horowitz

Susan M. Lund

Alfonso Garcia Mora

Mary-Jean Moyo

Vice President,
Risk and Finance

Vice President,
Equity Mobilization Division(AMC)

Vice President,
Economics and Private
Sector Development

Regional Vice President,
Asia and PacificChief of Staff

As of June 30, 2022

Emmanuel Nyirinkindi

Sérgio Pimenta

Christopher Stephens*Retired in October 2021

Vice President,
Cross-Cutting Solutions

Regional Vice President,
AfricaVice President andGeneral Counsel, Legaland Compliance Risk

Makhtar Diop
Managing Director

IFC ANNUAL REPORT 2022

9

WORLD BANK GROUP
2022 SUMMARY RESULTS
GLOBAL COMMITMENTS
In fiscal 2022, the World Bank Group
provided much-needed financing;conducted in-depth analysis and research;and partnered with governments, theprivate sector, and other institutions to help
developing countries address urgent needs
and strengthen resilience amid overlapping
crises and rising fragility.

$104.4B(BILLION)

in loans, grants, equity investments, and guarantees
to partner countries and private businesses.
Total includes multiregional and global operations. Regional breakdowns reflect World Bank country classifications.

EAST ASIA
AND THE PACIFIC$12.7B(BILLION)

10 IFC ANNUAL REPORT 2022

EUROPE AND
CENTRAL ASIA

$15.3B(BILLION)LATIN AMERICA AND
THE CARIBBEAN

MIDDLE EAST
AND NORTH AFRICA$17.4B$6.7B(BILLION)(BILLION)

SOUTH
ASIA

SUB-SAHARAN
AFRICA$13.5B(BILLION)$38.5B(BILLION)

The Institutions of theWorld Bank Group
The World Bank Group is one of the world’s
largest sources of financing and knowledge
for developing countries. It consists offive institutions that share a commitment
to reducing poverty, increasing sharedprosperity, and promoting sustainablegrowth and development.
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT(IBRD)
Lends to governments of middle-income andcreditworthy low-income countries.

World Bank Group Financing for Partner Countries
By fiscal year, millions of dollars

World Bank Group

2022

2021

2020

2019

2018

a

104,370
67,041

98,83060,59683,54754,367

68,10549,39574,26545,724

Commitmentsc
Disbursements

33,072
28,16830,523
23,691

27,976
20,23823,191
20,182

23,002
17,38937,727d
21,214d

36,028d
22,921d30,365d
21,179d

21,932d17,54924,010d
14,38322,22913,19820,66911,43817,604
10,518

14,684
9,074

19,027
11,149

4,935

5,199

3,961

5,548

5,251

6,407
4,461

6,411
2,546

3,641
2,433

2,749
2,590

2,976
2,803

Commitments
Disbursementsb

IBRD

IDA
Commitmentsc
Disbursements

IFC
Commitmentse
Disbursements

INTERNATIONAL DEVELOPMENTASSOCIATION (IDA)

MIGA

Provides financing on highly concessional terms togovernments of the poorest countries.

Recipient-Executed Trust Funds

INTERNATIONAL FINANCECORPORATION (IFC)
Provides loans, guarantees, equity, and advisory andproject development services and mobilizes additional
capital from other sources to stimulate private sector
investment in developing countries.

MULTILATERAL INVESTMENT
GUARANTEE AGENCY (MIGA)

Gross issuanceCommitments
Disbursements

a. Includes IBRD, IDA, IFC, Recipient-Executed Trust Fund (RETF) commitments, and MIGA gross issuance. RETF commitments include allrecipient-executed grants; hence, total World Bank Group commitments differ from the amount reported in the Corporate Scorecard,
which includes only a subset of trust-funded activities.
b. Includes IBRD, IDA, IFC, and RETF disbursements.
c. Amounts are net of full terminations and cancellations relating to commitments approved in the same fiscal year.
d. Commitments and disbursements exclude IDA-IFC-MIGA Private Sector Window (PSW) activities.
e. Includes long-term commitments for IFC’s own account and short-term finance commitments. Does not include funds mobilized fromother investors.

Provides political risk insurance and credit
enhancement to investors and lenders to facilitate
foreign direct investment in emerging economies.

INTERNATIONAL CENTRE FORSETTLEMENT OF INVESTMENTDISPUTES (ICSID)
Provides international facilities for conciliation andarbitration of investment disputes.

IFC ANNUAL REPORT 2022

11

IFC 2022 YEARIN REVIEW
IFC operations are guided by our Board-approved IFC 3.0 strategy and the
IFC Strategy and Business Outlook Update FY22-24.

Financial Highlights
Dollars in millions, as of and for the years ended June 30
2022

Net (loss) income1
Grants to IDA(Loss) income before grants to IDA
Total assets
Investments

$

2021

2020

4,209

$ (1,672)– 		 213

–

(464)

$

2019

$

93

2018

$

1,280

– 		 80		(464) 		4,422 		(1,672) 		 93 		1,360$ 99,010$ 105,264$ 95,800$ 99,257$ 94,272

		44,093 		44,991 		41,138 		43,462 		42,264

Key Ratios
Overall liquidity ratio

111%

114%

96%

104%

100%

Debt-to-equity ratio

1.6

2.1

2.2

2.2

2.5

Capital available ($ in billions)

32.5

30.7

28.2

27.8

24.7

Capital required ($ in billions)

20.1

20.5

20.3

21.8

20.1

Total reserve against losses on loans to total disbursed
portfolio

4.4%

4.9%

6.3%

4.7%

5.1%

1. Financial results are not directly comparable due to the adoption of ASU 2016-01 on July 1, 2019, which resulted in all unrealized gains andlosses on equity investments being reported in Net Income since the fiscal year 2019.

12 IFC ANNUAL REPORT 2022

Operational Highlights
Dollars in millions, for the years ended June 30

Investment Commitments1

2022

2021

2020

2019

2018

$32,825$ 31,500$ 28,430$ 24,890$ 30,699$ 12,569$ 12,474$ 11,135$ 8,920$ 11,629

Long-Term Investment Commitments
FOR IFC’S OWN ACCOUNT
Number of projects

296

		

313

		

282

		

269

		

366

Number of countries

68

		

71

		

67

		

65

		

74

MOBILIZATION2$ 10,596$ 10,831$ 10,826$ 10,206$ 11,671

Syndicated loans$ 3,475$ 3,647$ 4,989$ 5,824$ 7,745

IFC initiatives & other$ 3,311$ 3,693$ 3,370$ 2,857$ 2,619

Asset Management Company (AMC) Funds

$

$

$

$

$

Advisory Mobilization3$ 3,562$ 3,246$ 2,417$ 1,137$ 1,044$ 23,166$ 23,305$ 21,961$ 19,126$ 23,301

TOTAL LONG-TERM INVESTMENT COMMITMENTS

248

244

50

388

263

Short-Term Investment Commitments
Annual Commitments4$ 9,659$ 8,195$ 6,469$ 5,764$ 7,398

For IFC’s account$ 13,198$ 11,438$ 10,518$ 9,074$ 11,149

Syndicated loans$ 2,589$ 1,309$ 2,231$ 2,510$ 1,984

TOTAL INVESTMENT DISBURSEMENTS$ 15,787$ 12,747$ 12,749$ 11,584$ 13,133

Number of firms

1,848

		 1,822

		 1,880

		 1,930

		 1,977

For IFC’s account$ 63,763$ 64,092$ 58,650$ 58,847$ 57,173

Syndicated loans$ 15,235$ 15,658$ 16,161$ 15,787$ 16,210

TOTAL PORTFOLIO EXPOSURE$ 78,998$ 79,750$ 74,811$ 74,635$ 73,383

Investment Disbursements

Portfolio Exposure5

Advisory Services
Advisory Services program expenditures
Share of program in IDA countries6$ 250.6$ 244.0$ 274.4$ 295.1$ 273.4

51% 		54% 		57% 		59% 		57%

1. Investment Commitments include Long-Term Investment
Commitments and Short-Term Investment Commitments.
2. Defined as “core mobilization” — Non-IFC financing or risk
sharing arranged on commercial terms due to the active anddirect involvement of IFC for the benefit of a client. Excludes$895 million of unfunded risk transfers that are accounted forunder IFC’s own account.
3. Advisory Mobilization includes third-party private financingthat has been mobilized for Public Private Partnerships, as aresult of IFC’s role as lead transaction advisor. It also includes
Corporate Finance Services, for projects in which IFC has provided
transaction advisory services to help private sector clients expand
into new markets, diversify and restructure operations or bring in
new equity investors.
4.FY20 Annual Report reflected Short Term Finance (“STF”) Average
Outstanding Balance for FY17-FY19. FY21 Annual Report used
Short-Term Investment commitment for FY17-FY21. In FY20 Annual
Report, Short-Term Investment commitment was reported as$6,473 million; the figure has been revised to $6,469 million. ShortTerm Finance includes Global Trade Finance Program (GTFP) andGlobal Trade Supplier Finance Program (GTSF).
5. Portfolio exposure is defined as the sum of the (i) committed
exposure for IFC’s debt investments, (ii) fair market value of
IFC’s equity investments, and (iii) total undisbursed equity
commitments. Effective July 1, 2018, to accommodate changein accounting standards impacting how IFC reports its equity
holdings, IFC has introduced the new term “Portfolio Exposure,”
which, instead of disbursed and outstanding balance, uses thefair market value of IFC’s equity investments. Therefore, FY19
onwards Portfolio Exposure For IFC’s account and prior years are
not directly comparable.
6. All references in this report to percentages of advisory program
expenditures in IDA countries and fragile and conflict-affectedareas exclude global projects.

IFC ANNUAL REPORT 2022

13

FY22 Long-Term Commitments

FY22 Portfolio Exposure4

Dollar amounts in millions, for IFC’s own account as of June 30, 2022

Dollar amounts in millions, for IFC’s own account as of June 30, 2022

Total

$ 12,569

100.00%

$
$
$
$
$
$
$
$
$

6,189
1,596
1,093
809
765
706
656
655
100

49.24%
12.70%
8.69%
6.44%
6.09%
5.62%
5.22%
5.21%
0.80%

$
$
$
$
$
$
$
$

3,164
2,965
2,643
1,605
1,024
906
254
8

25.17%
23.59%
21.02%
12.77%
8.15%
7.20%
2.02%
0.07%

$ 10,190$ 1,622$720
38$81.07%
12.90%
5.72%
0.30%

By Industry
Financial Markets
Infrastructure
Manufacturing
Health & Education
Funds
Agribusiness & Forestry
Telecommunications & Information Technology
Tourism, Retail & Property
Natural Resources 1

By Product
Loans2Equity3
Guarantees
Risk-management products
1. Includes IFC’s activities in oil, gas, and mining. ­2. Includes loan-type, quasi-loan products.
3. Includes equity-type, quasi-equity products.

$ 63,763

100%$ 24,312$ 9,058$ 6,605$ 4,471$ 4,037$ 3,951$ 3,826$ 3,406$ 2,644$ 1,451

38%
14%
10%
7%
6%
6%
6%
5%
4%
2%

$ 13,345$ 12,956$ 12,593$ 8,637$ 5,641$ 4,357$ 3,620$ 2,614

21%
20%
20%
14%
9%
7%
6%
4%

$ 44,011$ 14,504$ 4,883
364
$

69%
23%
8%
1%

By Industry

By Region
Latin America and the Caribbean
East Asia and the Pacific
AfricaSouth Asia
Central Asia and Türkiye
EuropeMiddle East
GlobalTotal

Financial Markets
Infrastructure
Funds
Manufacturing
Health & Education
Agribusiness & Forestry
Tourism, Retail & Property
Trade FinanceTelecommunications & Information Technology
Natural Resources 1

By Region5
AfricaLatin America and the Caribbean
East Asia and the PacificSouth Asia
GlobalCentral Asia and Türkiye
EuropeMiddle East

By Product
Loans2Equity3
Guarantees
Risk-management products

4. Portfolio exposure is defined as the sum of the (i) committed exposure for IFC’s debt investments,(ii) fair market value of IFC’s equity investments, and (iii) total undisbursed equity commitments.
5. Excludes individual country shares of regional and global projects.

14 IFC ANNUAL REPORT 2022

IFC’s Largest Country Exposures6

FY22 Advisory Services Program Expenditures

As of June 30, 2022 (Based on IFC’s account)

Dollar amounts in millions

GLOBAL COUNTRY RANKPORTFOLIO EXPOSURE($ MILLIONS)% OF GLOBALPORTFOLIO$ 6,742$ 4,223$ 4,212$ 3,830$ 2,624$ 2,279$ 2,242$ 1,979$ 1,843$ 1,457

10.57%
6.62%
6.61%
6.01%
4.11%
3.57%
3.52%
3.10%
2.89%
2.29%

1 India
2 Brazil
3 China
4 Türkiye
5 South Africa
6 Vietnam
7 Nigeria
8 Colombia
9 Indonesia
10 Mexico
6. Excludes individual country shares of regional and global projects.

FY22 Long-Term Commitments by Environmental
and Social Category
CATEGORY

A
B
C
FI7
FI-1
FI-2
FI-3
Total

COMMITMENTS($ MILLIONS)NUMBER OF NEW
PROJECTS$
598$ 4,910
$
138
13
$
$
289
$ 4,429$ 2,192$ 12,569

8
122
23
1
4
95
43
296

$ 250.6

100%

$
$
$
$
$
$
$
$

98.7
31.2
28.9
26.1
20.0
19.9
14.9
10.9

39%
12%
12%
10%
8%
8%
6%
4%

IFC Industries
Financial Institutions Group
Manufacturing, Agribusiness & Services
Transaction Advisory
Infrastructure & Natural Resources
Disruptive Technologies & Funds$ 169.7
62.3
44.0
35.1
22.6
5.7

68%
25%
18%
14%
9%
2%

Other Advisory, including Environment, Social &Governance
Creating Markets Regional Advisory

$
$

12%
21%

Total

By Region
AfricaGlobalEast Asia and the Pacific
Latin America and the Caribbean
South Asia
EuropeMiddle East
Central Asia and Türkiye

By Business Area

28.9
52.0

7. FI category applies to new commitments on previously existing projects.
Visit www.ifc.org/escategories for information on category definitions.

IFC ANNUAL REPORT 2022

15

STEPPING UP

IN A TIME OF UNCERTAINTYThis year, emerging markets and developing
economies faced serious challenges: continuing waves
of COVID-19 infections, soaring inflation, high levels of
public and private debt, and the accelerating impact
of climate change. The war in Ukraine added to thegrowing uncertainty and fragility, calling global peaceand security into question. Supply chains, financial
systems, food security, and access to energy wereseverely disrupted. IFC’s countries of operations, manyof which became increasingly fragile, struggled toprotect their economies.

IFC’s role is to connect people with jobs and essential
services at a time when public finances have been
weakened by the pandemic, conflict, and climatechange. We help countries grow stronger by building
supply chains, facilitating the flow of trade, bridging
the digital divide, offering climate-smart businesssolutions, and making healthcare systems stronger.
Our priority is to achieve measurable results with bothbottom-line benefits and strong development impact,with the aim of building a green, resilient, and inclusive
recovery across the developing world.

As the largest global development finance institution
focused on the private sector, IFC is stepping up to
help our clients build resilience in the face of persistentuncertainty. Working closely with our partners andstakeholders, we are addressing global challenges
with a renewed sense of urgency and a laser focus
on scaling up impact. Together, we are finding new
ways to unleash the power of the private sector tohelp those most in need.

Three common themes ran through our work
this year:

16 IFC ANNUAL REPORT 2022

INNOVATIONINCLUSIONSETTING STANDARDS
Focusing on a range of critical issues, we continued toopen new pathways for private sector development,
finding opportunities to lead amid uncertainty
and promoting growth for years to come. We also
continued adapting to meet the evolving needs ofour clients, becoming nimbler and faster to rise to thechallenges of our times.

Supervising climate-smart refrigeration
system upgrades, Romania
IFC ANNUAL REPORT 2022

17

CLIENT AND PARTNER VOICESWORKINGTOGETHER,
IFC is collaborating with moretypes of clients and partners thanever before. Here are a few thoughtsthat they shared this year.

ACHIEVINGRESULTS

Oleksandr Mostipan

Rafael Benini

Owner of Nyva Pereyaslavshchyny, Ukraine

Director of Empresa de Planejamento e Logística, agovernment entity in Brazil working with IFC to attract$16 billion in private investment for 6,000 kilometers of
new highway concessions.

Support During Crisis“In the first weeks after Russia’s invasionof Ukraine, IFC stepped in to support Nyva,
one of Ukraine’s leading food producers. The
working capital financing we received helped
us limit potential supply chain disruptions andaddress food security concerns ... all of our 1,700
employees have retained their jobs, getting theirwages on time. We are able to pay taxes to thestate and local budgets and are also engaged incharity actions to support local communities.”

Her Majesty Queen Máxima
OF THE NETHERLANDSThe UN Secretary-General’s Special Advocate for
Inclusive Finance for Development, speaking at the IFChosted Sustainable Banking and Finance Network global
meeting.

Furthering Global Support for
Inclusive Finance“Above all, let us recognize this fundamental
reality: that there is no stability without inclusion,and no sustainability finance without inclusive
finance.”

Tarek Assaad
Managing Partner at Algebra Ventures, the world’s first
venture capital fund focused on Egypt and part of IFC’s$1.6 billion global venture capital portfolio.

Financing a Vision“IFC has been one of our strongest partners since
Day One. They believed in our vision when there
was no venture capital to speak of in Egypt.”

18 IFC ANNUAL REPORT 2022

Promoting Innovation“With support from IFC, we are introducing
innovations to the road concession model in Brazilthat are helping boost much-needed investmentsfrom a diversified local and international range ofprivate sector players. One of the most relevant
features of this new model is the compliancewith IFC’s Performance Standards, which are
granting the projects internationally recognizedhigh environmental and social standards. Thisis key not only to allow us to attract interest
from investors, but also to assure the long-termsustainability of the concessions.”

Simballa Sylla
Managing Director of Mali Shi, a shea nut processing
company. Its growth will increase the incomes of about
120,000 smallholder collectors who live near Bamako.

Raising Standards“IFC’s financing and advisory services will help us
meet international standards in an industry where
our international clients’ quality requirement isvery high.”

Yasmine Mokhtar
Chief Financial Officer of HSA Group, Yemen’s leading
staple food producer and a key provider to World Food
Program relief in that country.

Maintaining Operations“IFC’s working capital funding was a criticalenabler for us.”Iván DuquePRESIDENT OF COLOMBIA 2018–2022
Citing the benefits of IFC’s EDGE green building
certification program. With EDGE support, Colombia
now has one of the highest rates of green building
certification in the developing world.

Achieving Climate Goals“EDGE certification is successful in Colombia
because it addresses three essential components
of a sustainability strategy: it assures quantified
environmental benefits, it leverages green
finance, and it contributes to the social welfare ofthose who need it most.”

Strive Masiyiwa
Founder and Executive Chairman of Cassava
Technologies, whose businesses include LiquidIntelligent Technologies, Africa’s leading independentfiber and digital services provider.

Developing Africa’s Digital
Economy“We have a long-term relationship with IFC,
because we are both being mandated to develop
the African continent. With the support we’re
now getting from IFC as long-term patient
capital, we’re able to go into areas where we’d
not normally be able to go as a purely commercial
player. We’re beginning to go into deep rural
areas and provide connectivity for schools andhospitals and make it possible for our young
people to come into the digital economy morecheaply.”

Strengthening agribusinesssupply chains, Kenya
IFC ANNUAL REPORT 2022

19

STAFF VOICESRESILIENCE AND
OPPORTUNITY
Our staff members embody a remarkable diversityof skills, experiences, and backgrounds.
Many spent much of this year defying uncertainty,
taking remarkable steps to deliver on IFC’s mission,no matter how difficult the conditions. Here aresome of their stories.

20 IFC ANNUAL REPORT 2022

Oleg
Kudashov
Vienna, Austria“We’re not walking away. Our
message to the government is ‘We
stand by you. We’re eager to support
Ukraine’s reconstruction.’”Oleg Kudashov had worked tirelessly in his
home country of Ukraine since 2015, helping todesign landmark public-private partnerships intransportation — including ones addressing chronic
underinvestment in critical ports. All was going well in
February 2022, with new private operators agreeing
to invest a combined $137 million in the Black Sea
ports of Kherson and Olvia, and new work underway
to attract others for a larger upgrade project inChornomorsk. Then Russia invaded Ukraine. All work
had to be suspended, with most staff from IFC’s Kyiv
office evacuated. Fortunately, the ports have received
little damage to date. Whenever conditions allow,
Kudashov and his colleagues are ready to resume,
starting right where they left off to make Ukraine’s
maritime trade infrastructure more efficient.

AngeloTan
Manila, Philippines

MilicaSredanovic
Belgrade, Serbia“We are there to find ways
for a good project to proceed.”
The global pandemic proved to be no obstacle to
Milica Sredanovic, the investment team lead on a$222.2 million IFC financing package to modernize
Kazakhstan’s Almaty Airport under new lead owner
TAV Airports of Türkiye. Negotiations began in
March 2020, just as the global pandemic began. The
discussions quickly moved online and continued
virtually for months. Sredanovic and her teamcoordinated multiple players remotely from different
locations at all hours of the day until initial agreements
were reached in September 2021. The country’s
regulatory environment and the first-time entry ofprofessional airport managers posed even larger
challenges, reinforcing the importance of the strong
relationship between IFC and TAV, a longtime client.
Then, just as financial close was nearing in January2022, unexpected political turmoil in Kazakhstan
challenged all project stakeholders. But with renewed
persistence, a path forward eventually emerged. Now
a new terminal is at last under construction in Almaty,
the busiest air transport hub in Central Asia.

“The work has never felt asurgent as it does today.”
The Philippines is one of the fastest-urbanizing
countries in East Asia and the Pacific, with new realestate development that too often results in increased
environmental degradation and climate vulnerability.
Since joining IFC in 2020, Operations Officer
Angelo Tan has been increasing the sustainabilityof real estate in the Philippines. What made him
the happiest? Seeing IFC’s EDGE green building
certification and Building Resilience Index reach his
hometown of La Union for the first time this year.
Tan is proud to be witnessing the growth of green
construction in the Philippines, where residential andcommercial buildings account for half of all power
consumption.

IFC ANNUAL REPORT 2022

21

Marcela
Ponce
Mexico City, Mexico

Steffie
MahoroBujumbura, Burundi“Having people on the ground iscritical. If you’re going to do businessin a country, you have to be there
and have relationships with thegovernment and the private sector.”
From her base in Burundi, Steffie Mahoro contributed
to the country’s first IFC/World Bank private sector
diagnostic report, setting priorities for private sector
development that the government has now embraced.
The report spotlighted the need to improve access tocredit for small- and medium-sized enterprises in the
country. IFC is addressing the issue with a $5 million
loan to CRDB Bank Burundi, which supports lending
to smaller businesses. The new loan is IFC’s firstinvestment in Burundi in nine years. More investment
support is expected in the coming years as part of
IFC’s Africa Fragility Initiative, a $74 million program tocatalyze investment in countries where development
needs are great, but business costs are high andoperational challenges are formidable.

22 IFC ANNUAL REPORT 2022

“Long-term relationships and early engagementon the knowledge-sharing side were the key todeveloping this innovative transaction.”
Guatemala is highly vulnerable to the impacts of climate change, withmost of its GDP produced in areas of considerable climate risk. But until
this year none of its banks had taken any significant steps in response,
holding back an important potential source of investment.
Well-versed in global trends in green banking, IFC climate financespecialist Marcela Ponce and her colleagues in the investment andadvisory teams began working with long-time Guatemalan client Banco
G&T Continental in 2018. Since then, they have been steadily building
institutional awareness of the many opportunities in sustainability
through IFC’s Green Banking Academy, a knowledge and capacitybuilding initiative to support banks in making a green transformation.
Their work paved the way for a new $80 million IFC subordinated loanthat is enabling the bank to launch a climate finance business. Banco G&T
Continental is now the country’s first financial institution to focus on
green buildings and energy efficiency for small and medium enterprises.
Related IFC advisory services will help this bank build an important new
business line, providing climate-smart solutions across Guatemala.

Anissa
KanounDubai, United
Arab Emirates“At a time of crisis, we were able tosupport our client in its efforts to spur
innovation, entrepreneurship, and job
creation in a frontier region like theWest Bank and Gaza. It’s important
to make a difference in difficult times.
That’s why I joined IFC — to do deals
like this.”
Many company founders in the West Bank and Gaza
struggle to access the financing and mentorship theyneed to grow. IFC is addressing this issue by investing$2.5 million in Ibtikar Fund II, a venture capital vehicle
for Palestinian technology startups. Our investment
comes with an additional $500,000 from the Women
Entrepreneurs Finance Initiative (We-Fi) to ensure
continued support to women-led startups.
Investment officer Anissa Kanoun worked to develop
the transaction in April and May 2021, just as a newround of armed conflict was breaking out. She wasundeterred by the challenging context, seeing it
instead as a chance to build a better future in theWest Bank and Gaza.

Saramory (Sary)
Kampo
AND

Fatoumata (Mimi)
Keita
Conakry, Guinea“Mining is by far the biggest sector in the Guinean
economy. We’re working to extend its benefits more
broadly to local communities and businesses inGuinea, especially in empowering women and youth.”
Guinea has extensive natural resources, including the world’s largest reservesof bauxite, the ore from which aluminum is produced.
Sary Kampo and Mimi Keita, by collaborating closely with the World Bank, thegovernment of Canada, UN agencies, IFC investee clients, the governmentof Guinea, local community organizations, civil society and others, haveled a multi-tiered program that shows many results in sustainable bauxite
development. These include the Buyers and Suppliers Marketplace, a local
content and business linkage initiative with a digital platform. Since its launch
in 2018, the project has helped Guinean small and medium enterprises toboost their competitiveness, resulting in more than $16 million in contracts
with the natural resources industry. It now targets opportunities in otherindustries as well. In addition, the team supports gender inclusion in themining industry and alternative livelihoods for hundreds of women and youth
from host communities.

IFC ANNUAL REPORT 2022

23

BENEFICIARY VOICES

Gabriel Muli
Kenya

FROM THEPEOPLE WE SERVE
Through investment, advisory services, and a wide
range of broader initiatives, IFC makes a differencein people’s lives. Here are some reflections fromthose who have recently benefited from our work.

Co-owner of Elex Products, a Kenyan small business,
which pivoted to start producing hand sanitizer forthe local market with financing from IFC client
Co-operative Bank of Kenya.

Pivoting in the Pandemic“Simply put, the pandemic was an opportunity
to serve our community by providing sanitizers
and empathizing with locals who had lost theirjobs by creating employment opportunities. We
were able to adapt our business practices andmake quick decisions because we had support.”

Remzi Bala
KosovoWhose small family farm in Kosovo can withstandmarket disruptions because of financing it received
from KEP Trust, an IFC-supported microfinanceinstitution, during the pandemic.

Improving Living
Standards“I can buy books and clothes for my fourchildren — and not worry.”

24 IFC ANNUAL REPORT 2022

Hina Khan

Siny Samba

Geetha ManjunathPakistan

SenegalIndia

An employee of Artistic Milliners in Pakistan, which
opened its first on-site daycare center with IFC’s
support as part of an effort to improve female labor
force participation in its workforce.

CEO of Senegalese baby food producer Le Lionceau,
which is expanding the market for locally made baby
food in West Africa. Samba is using financing from an
IFC client SME investment group to help farmers in her
supply chain become more efficient.

CEO and Founder of NIRAMAI, a low-cost, softwarebased medical device to detect early-stage breast
cancer. NIRAMAI is one of the winning startups
selected by a panel of experts as part of the Global
Women’s HealthTech Awards, supported by IFC,
the World Bank, and the Consumer Technology
Association.

Giving Peace of Mind
“I used to leave my child with my neighbor,landlady or relatives. I used to leave him there,
but my heart was never satisfied. I feel muchbetter now that my child has started coming to
the daycare center. Now I have no tension. I’mmuch more relaxed mentally at work.”

Javier Hernández
Honduras
One of more than 3,000 Honduran small-scale
farmers who have improved crop yields with financing
from IFC’s AgroMoney program with local client
Grupo Cadelga.

Rural Credit“I was impressed by the very good service fromthose responsible for providing the credit lines.
I like the ease with which you can get a loan.”

Entrepreneurial
Energy“The more you help [local farmers] build theircapacities, the more efficient their yields are, andmore markets can be created. Everybody wins.”

Offering Global
Recognition“Winning this Global Health Tech Award means
a lot to the NIRAMAI team, which has been
striving very hard to create a novel solution to
detecting breast cancer and taking the solution
to women in India — and globally as well.”

Malek Sukkar
Pakistan
CEO of Averda, a Dubai-based waste management
firm that is scaling up its innovative solutions in newmarkets with a $30 million IFC financing package.

Expanding for Impact“This IFC loan will help us all by significantly
accelerating our sustainable projects in Oman,
Morocco, and South Africa.”

IFC ANNUAL REPORT 2022

25

COVID-19 RELIEF

FOCUSED ON A

RESILIENTRECOVERY
Photo left & right:
Biological E. Limited, India

26 IFC ANNUAL REPORT 2022

With the global pandemic taking an ongoing heavy
toll, IFC continued to provide large-scale COVID-19
relief financing in FY22, supporting our clients in timesof volatility and uncertainty. We focused on threecomplementary areas: relief, restructuring, and resilient
recovery. Our financing packages target the places andpeople that need it most, often complemented withadditional funds mobilized from others.

The Facility provided more than $7.4 billion to finance
104 projects that are providing liquidity, working
capital, and trade finance to keep companies inbusiness, especially in the industries most affectedby COVID-19, such as financial services andmanufacturing. IFC’s work contributed to the WorldBank Group’s larger crisis response initiative to saveboth lives and livelihoods.

IFC’s Fast-Track COVID-19 Facility, launched in 2020, has
now increased from $8 billion to $8.6 billion. This includes a
Base of the Pyramid Program for financial service providers
targeting lower-income borrowers. The Program, which
offers additional support to the poorest and those hardest
hit by the pandemic, launched at $400 million last year
and then received an additional $200 million in funding
this year.

With vaccination campaigns well underway in many
countries, IFC sharpened its focus on the regions whereneed is greatest. Our $30 million financing package willassist India’s Biological E. in expanding its supply of lowpriced, generic vaccines for the routine immunizationof children and expand into new vaccines. New
agreements with Senegal’s Institut Pasteur de Dakar
and the Rwanda Development Board will increasevaccine production across Africa.

$8.6B
FUNDING
IFC’S FAST-TRACK COVID-19 FACILITYCONTRIBUTED TO SAVE BOTH LIVES
AND LIVELIHOODS

Drawing on its Global Health Platform (GHP), IFC also
increased the delivery of vaccines, personal protective
equipment, and medical supplies throughout emerging
market economies. The $4 billion platform, createdin 2020, is a financing platform to increase local
companies’ supply of critical medical equipment andservices. In February 2022, the Board confirmed theextension of the GHP for an additional one and a halfyears. To date, IFC has invested about $1.1 billion fromour own account in addition to $576 million mobilized
from others. IFC’s investment pipeline for the platformstood at around $800 million at the end of FY22.

IFC ANNUAL REPORT 2022

27

UKRAINE INVASION
AND FOOD INSECURITYRESPONDINGTO INTERRELATED CRISES
Even before the war in Ukraine, the global recovery
was highly uneven, with emerging markets anddeveloping economies struggling to keep pacewith wealthier nations. The war unleashed new
shockwaves, making the recovery even more
uncertain. Russia and Ukraine are among the top
global producers and exporters of wheat, corn, barley,
sunflower seeds, and sunflower oil. Russia is also amajor supplier of crude oil and natural gas in addition
to fertilizer and agricultural commodities. Disruptionsof these supplies fueled a surge in prices, with negative
consequences for global trade and welfare, and theburden falling heaviest on developing countries that
rely on imports to feed their populations.

to alleviate food-security concerns. However, we
realized that other countries in the region would alsoneed support to buffer the impacts of the war. We
understood that the spike in food prices would havedramatic impacts on developing countries alreadystruggling to feed their people.

IFC responded quickly to provide working-capitalfinancing to our clients in Ukraine, enabling continued
access to food, fuel, and medicine. We also kept
our trade lines open to support the import ofcritical supplies. We helped one of Ukraine’s leading
agricultural producers stay in business, so it could
proceed with spring planting and procure grains• T he second platform would support global food

28 IFC ANNUAL REPORT 2022

As a result, we are preparing to launch two new
financing platforms:• T he first platform would support projects in

Ukraine, leveraging blended finance. It will prioritize
investments to support the resilience of businesses,
displaced people, and affected municipalities andaddress immediate logistics and energy needs.
security. The Global Food Security Platform will
facilitate the trade of food commodities and thedelivery of inputs to farmers, supporting efficient
production and effective distribution of foodproducts in destination countries, in addition to
improving the resilience of the global food system.

TRADEKEEPING TRADEFLOWS ALIVE
In uncertain times, continued access to trade finance isessential to keep companies afloat and preserve jobs,
especially in emerging markets. But in today’s difficult
conditions, with growing supply chain disruptions
as well as rising inflation and food security issues,
many international banks are pulling back from tradefinance. Their retreat severely limits local lenders’ability to finance clients’ import and export needs.

$200B+of trade supported
in developing
economies since
2004

IFC has supported more than $200 billion of tradein developing economies since 2004 and forecasts
providing nearly $100 billion more by 2030. This year,
we began preparing a $1 billion Africa Trade and Supply
Chain Recovery Initiative to address trade and valuechain financing needs across Africa in the wake of the
COVID-19 pandemic. We also continued to develop
our capital relief products with major global banks
and provided one of the world’s largest synthetic
risk transfers to date. A landmark IFC guarantee ofa $4 billion-equivalent Crédit Agricole CIB reference
portfolio will help the bank significantly expand its
trade finance in emerging markets.
Looking ahead, the digitalization of trade transactions
and blockchain will increasingly define the futureof trade. Both offer great potential for promoting
integration and inclusion. Our first digital tradetransaction occurred in July 2021, supporting a coffee
purchase contract guarantee by Vietnam’s Prosperity
Joint Stock Commercial Bank, processed via a global
digital trade finance platform. We will be more activein these kinds of transactions, while also providing
capacity-building programs with the World Trade
Organization and other partners. Our partnerships will
help emerging market banks and small- to mediumsized enterprises address challenges provoked bysupply chain disruptions.

The situation is creating record demand for IFC’strade and supply chain platforms. IFC helped to
rapidly fill the gap with risk mitigation in challenging
markets where trade lines are constrained. Combinedcommitments increased by 14 percent from last year,
reaching their highest-ever level of $9.7 billion. About
75 percent of this amount was invested in low-income
and fragile countries. IFC’s trade facilities of up to$24 million to Vista Bank’s subsidiaries in Guinea andBurkina Faso ($12 million each) will help the banks tofinance imports of foodstuffs, raw materials, refined
oil products, equipment, consumer goods, and otherimportant items. By joining IFC’s Global Trade Finance
Program, Vista Bank will gain access to a network ofcorrespondent banks, enhancing its ability to meet thefinancing needs of SMEs.

IFC ANNUAL REPORT 2022

29

PARTNERSHIPSCOLLABORATING TO

CREATE MARKETSANDMOBILIZE PRIVATEINVESTMENTFOR DEVELOPMENT

Family healthcare,
Pakistan
30 IFC ANNUAL REPORT 2022

Support from our development partners is integral tothe accomplishment of IFC’s mission. Our partnerships
strengthen IFC’s impact by channeling resources toprograms that improve the lives of the poor, create jobs,
empower women and youth, grow opportunities in fragile
and conflict-affected states, and support the planet
through climate change mitigation and adaptation.
IFC partners with more than 30 government development
agencies, foundations, corporations, and multilateralorganizations. In FY22, our development partners
committed about $175 million for IFC’s advisory services
and early-stage market and project preparation(“Upstream”) work. In addition, they committed about$40 million for blended finance initiatives, which involves
the use of relatively small amounts of concessional donor
funds to mitigate specific investment risks and help
rebalance risk-reward profiles of pioneering investmentsthat are unable to proceed on strictly commercial terms.
These contributions support IFC’s capacity to build
business and institutional capacity, take on more risk, andinvest in high-impact projects.

urgency to this work. IFC is responding proactively,
working with a growing variety of development
partners.
Increasingly, we are partnering through multi-sector
thematic and country platforms — a strategic andefficient way to collaborate and crowd in funds
from multiple development partners with sharedvisions and objectives. IFC has launched platforms
for innovative efforts in climate, healthcare, fragility,
SMEs, and other areas, and anticipates new platforms
being developed in the coming year in response to
emerging priorities. These platforms provide theflexibility needed to fund multiple projects, expediting
IFC’s ability to create markets, maximize development
impact, and enable more private sector participation
across emerging markets in a cost-effective manner.

Our partners also support IFC’s work to improve global
standards and knowledge transfer while enabling us todeliver on our global and country-level strategic priorities.
We are collaborating with our partners on many strategic
priorities, such as ongoing relief and recovery efforts,
climate response and energy transition, healthcare
resilience, food and energy security, a sharpened focus on
fragility, and digital transformation.
As a market leader, IFC is able to incubate new ideas andscale proven solutions with flexibility. Setting market
precedents and demonstrating impact creates pathways
for others, thereby mobilizing additional sources of capitalto create development impact. Today’s global operating
environment adds increased complexity, uncertainty, andIFC ANNUAL REPORT 2022

31

IDA PSW AND LOCAL CURRENCYESSENTIAL TOOLSIN IFC’S TOOLKITThe IDA Private Sector Window
Blended finance is one of IFC’s
essential tools — one that involves
close collaboration with development
partners to mobilize private investment
in pioneering projects and challenging
environments. By using relatively small
amounts of concessional donor funds
alongside IFC’s own resources, we canmitigate specific investment risks andsupport investments that otherwise could
not proceed on strictly commercial terms.
32 IFC ANNUAL REPORT 2022

Local Currency Financing

Much of this support comes from the IDA Private
Sector Window (PSW), which was established in2017 to help catalyze private sector investment in
the poorest and most fragile countries. Since then,more than $2.6 billion of PSW funds have supported
128 IFC transactions across 33 fragile and low-income
countries.
IFC’s PSW commitments reached $992 million
in FY22.
Among other projects, PSW support allowed IFC tofinance the expansion of Robust International, anagribusiness firm that has the potential to improve
livelihoods for thousands of smallholder farmers inconflict-affected northern Nigeria, where poverty
levels are five times higher than in the south. The IFC
financing package of $18 million includes a $9 million
loan from IFC’s own account and a $9 million
concessional loan from the PSW. Robust will use
the loan proceeds to build modern warehouses andsesame processing facilities. As a result, farmers will
no longer need to store their crops under today’s poor
conditions, which lead to high post-harvest losses andcontribute to greenhouse gas emissions. The project
would not be possible without PSW support due tolimited collateral availability and potential security
risks in the country.
July 1, 2022, marked the beginning of a new three-year
IDA cycle, with an initial allocation of $2 billion in PSW
funding available to enable more IFC transactions of
this kind in the most challenging markets.

IFC provides long-term local currency
financing in more than 70 currencies.
It is one of our core development
finance products, helping clients whoearn most of their revenues locally
avoid the exchange rate risk thatcomes with borrowing in dollars,
euros, or other hard currencies.
We do so through a variety of market-based
approaches, including the use of local swap markets
and structured finance solutions. In countries where
capital markets are not developed and market
solutions are not sufficiently available, we draw onblended finance from the IDA PSW’s Local Currency
Facility for support. For additional impact, we also
issue and purchase landmark local currency bonds thatstrengthen local capital markets.
These steps to provide local currency financing areespecially important in sectors like infrastructure,
housing, and SMEs. In FY22, we provided the equivalentof $3.9 billion in local currency financing in a wide
range of countries as compared with $2.1 billion in
FY21 — an almost two-fold increase. In Tajikistan, a$5 million-equivalent IFC loan in Tajik somoni is helping
IMON International, a leading microfinance institution,
increase its lending to micro, small and medium
enterprises (MSMEs) affected by the COVID-19
pandemic. In Tanzania, more than 2,000 womenowned small businesses will grow with proceeds of agender bond for the Tanzanian shilling equivalent of$32 million that NMB Bank issued on the Dar es Salaam
Stock Exchange with IFC as an anchor investor.

IFC ANNUAL REPORT 2022

33

INNOVATIONLEANING
INTO THE
FUTURE
Today’s conditions of global uncertainty
mean IFC can no longer do businessas usual. New products and platforms
are essential for meeting our ambitious
goals to increase the private sector’s
contribution to development.
Digital payment systems forsmall business owners, Egypt
34 IFC ANNUAL REPORT 2022

Mobilizing Finance to Reduce
Climate Change Vulnerability
At a time when government budgets are stretched,
it is critical to mobilize private finance andhelp countries mitigate climate change. IFC isdeveloping novel ways to increase climate-related
financing in areas like energy, transport, andmanufacturing.
One new program builds on the IFC Managed Co-Lending Portfolio
Program (MCPP) model, which has successfully raised more than $10 billion
for direct lending to private firms across more than 50 developing
economies since 2013. The new platform, MCPP One Planet, is the world’s
first cross-sectoral portfolio of emerging market loans aligned with theParis Agreement, an international treaty to combat climate change. MCPP
One Planet, which was launched in November 2021 at the UN Climate
Change Conference in Glasgow (COP26), combines institutional investor
contributions with IFC’s own funds to maximize available financing forprivate sector firms on the front lines of climate change.
In FY22, IFC joined with partners to substantially increase finance forclimate mitigation. IFC and Amundi, a French asset managementcompany, agreed to establish a new $2 billion fund to fight inequality andclimate change. The initiative expands availability and demand for new
segments of the sustainable bond market. The fund will help developing
nations recover from COVID-19 and strengthen resources to make future
crises less severe.

For IFC’s reporting under the guidelines
recommended by the Task Force on Climaterelated Financial Disclosures (TCFD), see ouronline report.

Accelerating Investment
in Mini-Grids
An estimated 600 million people across
Africa — and 759 million people globally — lackaccess to electricity, an essential foundation fordevelopment.
Mini-grid systems offer an excellent solution in many regions, using
primarily renewable energy sources to efficiently deliver reliable, lowcost power in cities and rural areas beyond the reach of national grids.
This promising industry is poised for growth but has been held backby a lack of stable public-private partnership frameworks and otherobstacles, resulting in low levels of private investment.
The World Bank Group’s Scaling Mini-Grid initiative addresses thebarriers that impede large-scale projects and investment. IFC, in close
collaboration with the World Bank and MIGA, worked “Upstream” todevelop a comprehensive mini-grid platform that offers governments
and the private sector necessary financing, advisory support, andrisk mitigation. A major advantage of the platform is its replicability:
the Scaling Mini-Grid approach can be adopted in multiple locations,promoting the efficient, timely completion of projects — with thepotential to significantly increase the development of mini-grids globally.
The Scaling Mini-Grid initiative is modeled after Scaling Solar, another
World Bank Group collaboration that successfully unlocked private
investment in solar power in several African countries before expanding
to Uzbekistan.
The first country-level delivery of the Scaling Mini-Grid initiative kicked
off in October 2021, when a mandate was signed with the governmentof the Democratic Republic of Congo. The initiative is supporting an
upcoming mini-grid project that will add more than 200 megawattsof capacity, contributing to the Government’s objective to increase thelocal population’s electricity supply rate to 30 percent by 2024 — up
from the current 19 percent. This will especially aid two of the country’s
largest cities: Mbuji-Mayi and Kananga, with combined populations ofmore than 4 million.
IFC ANNUAL REPORT 2022

35

Making Healthcare Systems
in Africa More Resilient
The fact that African countries received fewer
COVID-19 vaccines from the global supply than
the rest of the world highlighted the urgent needto improve Africa’s capacity to produce its own
vaccines, whether for COVID-19 or other diseases.
Africa imports 99 percent of its vaccine supply,with just 1 percent covered by local manufacturing.
The African Union aims to have 60 percent of thecontinent’s routine vaccines manufactured locallyby 2040.
IFC signed a mandate letter in March 2022 with the Institut Pasteurde Dakar, launching a collaborative effort to build a new vaccine
manufacturing facility in Senegal. The $222 million facility will be financedwith a mix of public, grant, and private funding and will be able to produce
up to 300 million vaccine doses annually, for both COVID-19 and routine
shots. “Fast-tracking vaccine production for Africa in Africa is paramountto facing down this unprecedented pandemic and mitigating future waves
of COVID-19,” said IFC Managing Director Makhtar Diop.
The Africa Centres for Disease Control and Prevention have identified
Senegal, Rwanda, and South Africa as potential hub countries for vaccine
manufacturing. IFC is now working with the Rwanda Development Board
to develop the country’s vaccine capacity, with the goal of strengthening
regional supply chains and developing a successful technical and policy
framework for Rwanda’s new collaborations with BioNTech and thekENUP Foundation.
Across the continent, IFC’s Africa Medical Equipment Facility makes
affordable long-term financing available for the rental or purchase ofadvanced medical supplies by small- and medium-sized health companies
so that they can provide more advanced and higher quality care. Getinge,
a firm headquartered in Sweden, joined the Africa Medical Equipment
Facility in April 2022, increasing the availability of life-saving surgicalequipment.
36 IFC ANNUAL REPORT 2022

Digital Transformationfor Small-Scale Retailers
New technology platforms are changing thegame for small farmers and informal retailers.
Local app-based solutions now provide opportunities for significant
income growth by correcting inefficiencies that have hampered growth.
Unthinkable only a few years ago, such technology is giving smallholders
and informal retailers greater transparency and insight into supply,
distribution, pricing, and payment — the fundamentals to making more
profitable sales. IFC’s venture capital investments in firms in this fastemerging industry open significant new opportunities for inclusion.
This year, IFC invested $10 million in Sayurbox, Indonesia’s leading
e-grocery start-up. Part of a $120 million overall fundraising round, theinvestment allows Sayurbox to scale up its innovative digital platform.
Sayurbox’s proprietary algorithm forecasts demand and optimizes
delivery routes for some 5,000 food products, allowing consumers in
Jakarta and Surabaya to buy straight from the farm. By eliminatingintermediaries, Sayurbox’s model allows farmers to enjoy substantial
income gains. The firm, founded in 2017, expects to quadruple thenumber of farmers on its platform to 40,000 by 2024.
GrowSari, a tech-enabled B2B platform in the Philippines, is anotherrecipient of IFC’s early-stage equity investment, receiving $10.5 million in
two venture capital rounds. Named for the country’s small sari-sari retailstores, GrowSari aims to increase the profitability of MSMEs. As of May
2022, GrowSari has raised about $110 million, the largest sum to dateraised in the regional B2B and MSME space. GrowSari has supported
small roadside and market shops since 2016, many of them owned by
women. It provides bill payment as well as telecom services and credit,
allowing informal businesses to implement digital upgrades. GrowSari
now serves over 150,000 stores in more than 220 municipalities.

Sayurbox links farmers
and markets, Indonesia
IFC ANNUAL REPORT 2022

37

UPSTREAMFROM
IDEAS TOIMPACT
38 IFC ANNUAL REPORT 2022

IFC’S EARLY-STAGE
MARKET AND PROJECTPREPARATION WORKOne of the greatest obstacles
to increased private sector
investment aligned with
development goals is not theavailability of capital. It is theshortage of well-prepared,commercially-viable investment
opportunities.

To fill the void, IFC has, since 2019, significantly
expanded focus on Upstream, early-stage market
and project preparation work. We are focused on
finding imaginative — and replicable — solutions
to some of the world’s toughest development
problems, working proactively to remove
investment barriers and create opportunities that
attract private capital where it is needed most.
IFC took several steps to lay the groundwork forsuccess. We defined our approach and businessmodel; increased our capacity (hiring dedicatedstaff); developed our systems and operations;and built a robust, credible pipeline of marketlevel and project-specific interventions thatseeks to unlock investment within the next five
years. The pipeline has grown quickly: from
$5 billion at the end of FY20, to $16 billion at theend of FY21, then $29 billion at the end of FY22.
It also reflects IFC’s strategic focus areas, with

52 percent of that potential investment in climate
mitigating activities, 31 percent in IDA-Fragile andConflict-Affected Situations (IDA-FCS) countries
and 15 percent in Low-Income IDA Fragile
and Conflict-Affected Situations (LICIDA-FCS)
countries.
Not all of the pipeline will successfully convert
into investments. This type of work is experimental,
and it is time and resource intensive. It requires
patience and a willingness to fail. But in FY22,
IFC saw good early progress. As our operations
matured, we focused not just on building thepipeline, but also on advancing the projects
in it and converting some of the successful
engagements into committed investments for
IFC, alongside mobilized private capital.
Our five-year pipeline remains strong andcontinued to grow in FY22, with one third focusedon IDA/FCS countries. Almost 80 percent of thepipeline involves infrastructure and manufacturing
projects, which have a direct impact on the real
economy. From a regional perspective, Asia andAfrica make up the largest geographic distribution,
providing fertile ground for our Upstream
projects to open new channels of investment
and development.

IFC ANNUAL REPORT 2022

39

UNLOCKING INVESTMENT:
Establishing a New Trade
Hub in Southeast Asia
Development challenge: Overcoming barriers
to trade in Lao PDR, a land-locked country withinadequate transport and logistics infrastructure.
Upstream solution: The government of
Lao awarded a concession for a “dry port,” aninland logistics hub, to a local sponsor. But an
infrastructure PPP on such a scale was a firstfor both the government and the sponsor. IFC
partnered with the sponsor to provide earlystage, project development support. Beginningin 2020, IFC strengthened the bankabilityof the concession agreement, and helped tomitigate risks and build client capacity, bringing
the project to international project financestandards.

Enabling investment
This project development work enabled an IFCled financing commitment of $67 million. The dry
port, when constructed, will facilitate efficient,cost-effective bilateral and transit trade in theregion, with connections to Thailand, China, andVietnam.

DELIVERING REPLICABLE
PRODUCTS AT SCALE:
Helping Utilities Adapt to Climate
ChangeDevelopment challenge: Helping subnational
water utilities across emerging markets respond toclimate change. Many utilities, reliant on insufficientpublic sector funding, lacking access to commercial
finance, and in need of technical assistance, cannot
address climate goals while meeting basic service
needs. The utilities need investment and knowledge
to plan for the future.
Upstream solution: IFC launched the Utilities
for Climate (U4C) initiative to help utilities
adapt to climate change and to unlock water
infrastructure investment opportunities. U4C
offers water utilities tailored advice to reducewater losses and improve efficiency, peer-topeer learning with other utilities facing similar
challenges, and investment products to support
any resulting capital expenditure plans.

Enabling investment
Since its launch in 2021, the initiative has
supported five utilities in three countries andgenerated of $238 million in investment. One
engagement with Corsan, a water company
with 6.3 million customers in Brazil, is helping
the company reduce losses from 44 percent
currently to 35 percent by 2024, by developing aplan to install water meters and replace obsolete
electric pumps and hydrometers. The plan is
supported by a $58 million loan.

Corsan, Brazil

40 IFC ANNUAL REPORT 2022

RAPID INNOVATION,
DELIVERED AT SCALE:
Enabling the Digital Transformationof Higher Education

CLEAN ENERGYSOLUTIONS:
Privately Financed Hydropowerin Africa

Development challenge: Assisting universities
in developing countries to quickly transform theirbusiness models to meet the suddenly accelerated
demand for online learning resulting from the
COVID-19 pandemic, in a commercially viable,
sustainable way.

Development challenge: Meeting Gabon’s
increasing demand for power in a sustainable,commercially viable way.

Upstream solution: IFC created the Digital for
Tertiary Education Program (D4TEP) to advise
higher education institutions on developing andfunding their digital transformation strategies,
from online learning to admissions, instruction,
and administration. Developed rapidly inresponse to the pandemic, the product waspiloted with four clients across multiple regionsin 2020. It was then launched in Latin America in
2021, with five higher education institutions, andglobally in 2022, with six additional universities inAfrica, Asia, and Latin America.

Enabling investment
The product expanded significantly in FY22,
increasing from 9 to 15 engagements withinstitutions across all IFC regions of operationand enabling $100 million of committed
investments. One university participating in
the initiative, Colombia’s Uniminuto, targets
lower-income students, primarily women.
It offers distance and virtual learning as wellas traditional classroom instruction and isusing IFC advice, along with a $25 million loan,
to make new technology investments andexpand to new campuses — all part of its digitaltransformation agenda.

Upstream solution: Hydropower offers great
potential for sustainable, reliable energy in
Gabon. However, in 2018, there were significant
hurdles to the development and preparation of
the country’s first independent power producer(IPP) hydropower project. IFC’s Upstream work
focused on making the project more appealing
to investors. We helped to secure concretecommitments from public counterparts on the
power sector’s financial sustainability; developed
a bankable contractual framework underpinnedby an innovative credit enhancement
mechanism; and established the project’s
biodiversity action plan.

Enabling investment
Our activities proved pivotal in helping lenders
conduct their due diligence and obtain internal
approvals. The result? Meridiam, a French
infrastructure firm, is now working with FGIS,
Gabon’s sovereign wealth fund, to develop the
new 34 megawatt Kinguele Aval hydropower
project. IFC put together a comprehensive
financing package for the €178 million project,lending €33 million, providing a concessional loanof €20 million from the Canada-IFC Renewable
Energy Program for Africa, and mobilizing an
additional €98 million from other institutions.
Working alongside World Bank Group colleagues
is critical to success. MIGA has also issued
guarantees to Meridiam.

IFC ANNUAL REPORT 2022

41

INCLUSIONOPENINGNEW DOORSIFC seeks to engage more diverse players, using
new approaches to reach more people in need,helping them move from the margins of society to
the economic mainstream. In this way, our efforts
will help address significant, interrelated problems
due to COVID-19, climate change, conflict, foodinsecurity, and energy shortages.

42 IFC ANNUAL REPORT 2022

Narrowing theGender Gap for
Women-Led Startups
In the Middle East and North Africa, women-led
startups receive a mere six percent of all private equity
and venture capital funding.
IFC and the Abu Dhabi Global Market, the UAE-based
financial center, aim to improve those numbers.
They joined together in December 2021 to launch She
Wins Arabia, a program designed to tackle genderinequality in the startup space. They aspire to create
an “entrepreneurial ecosystem” that allows womenled startups to grow and thrive.
In a short time, the program has trained women
entrepreneurs and connected them with mentors andwith investors. It has also worked with acceleratorsand venture capital funds, helping them to provide
stronger support to women entrepreneurs.

In March 2022, She Wins Arabia brought together in
Dubai, United Arab Emirates some 80 entrepreneurs
to provide training in how to pitch to investors, how
to gauge the size of a market, and how to develop
a business plan. She Wins Arabia hosted a pitchcompetition, with three women winning in-kindprizes, including mentoring sessions, business strategy
support, and credits with Amazon Web Services.
She Wins Arabia is part of a larger IFC effort tocreate more economic opportunities for womenacross the Middle East and North Africa. Fewer than
20 percent of women in the region are in the labor
force. The program also contributes to an effort toleverage technology to address a range of longstanding challenges in the Middle East and North
Africa, including unemployment and a lack of accessto finance.

IFC ANNUAL REPORT 2022

43

Supporting Refugees
and Migrants in
Accessing Financial
Services
Many refugees and migrants have no access to a bankaccount, severely hindering their ability to get a loanand start a new business. This limits their participationin the economies of the new countries in which
they are living. Women, who are often the primary
caretakers for children, are especially vulnerable andoften without childcare needed to enable them towork. In FY22, IFC took several actions to promote thefinancial inclusion of this vulnerable population — andsupport their host communities.
In May 2022, the Kakuma Kalobeyei Challenge Fundcompetition, sponsored by IFC, announced thewinners of its first round of grants and technicalsupport to 40 recipients in Turkana West, Kenya. The
area hosts a large population of refugees, and the
support offered by the awards is creating hundredsof jobs, including opportunities for women andyoung people. The competition supports IFC’s goalof empowering host communities and refugees bypromoting private sector development in and aroundthe Kakuma refugee camp. The next awardees will beselected in the later part of 2022.
IFC and Colombia’s first microfinance bank, Bancamía,
launched a pilot program in partnership with We-Fi
and FIAS in November 2021, which helps migrants
access banking services. The program is designed for
local Venezuelans who have fled turmoil in their homecountry. Almost 5,300 loans have been administeredalready, and more than half of the recipients are
women. The loans allow women and men to startsmall businesses and become independent.

44 IFC ANNUAL REPORT 2022

A Seat in the
Boardroom
IFC, as an equity investor that often takes influential
minority stakes in client companies, can provide
hands-on strategic guidance to critical players inlocal and regional economies. We sometimes do soby placing IFC nominees on their boards of directors.
Each of the directors is an experienced industry
professional who adds value to the board by putting agreater emphasis on inclusion and sustainability and inother areas of his or her expertise.
We now actively manage 157 board seats — a growing
community actively supported by IFC’s Nominee
Directorship Center through ongoing education
and resources for enhanced board oversight. At theend of this fiscal year, 62 percent of IFC nominee
directors were women, our highest total to date. IFC’s
nominees provide leadership on the full spectrum ofenvironmental, social and governance issues, including
gender equality.
Monica Aparicio, the former CEO of Santander Bank,
served on the board of BanBif in Peru for six years.
She encouraged BanBif to assign more women tosenior management roles and increase its focus onsustainable investment, now one of its differentiators
in Peru’s highly competitive banking market. This yearGiving Creative
Industries the Spotlight
IFC lent BanBif $25 million to finance green housing,helping local building developers decrease theirenvironmental footprint.
Oscar Chemerinski, a former IFC global agribusinessdirector, serves on the board of South Africa’s Hans
Merensky Holdings, the parent company of Westfalia
Fruit, the world’s global leader in fresh avocados. He
has championed Westfalia’s use of inclusive businesspractices and strong commitment to local community
engagement. Since IFC first invested in the company
in 2012, Westfalia has introduced modern avocado
production to Colombia, Kenya, Mozambique, and Peru,
linking local growers to global markets. It now alsobuys mangoes from more than 2,000 smallholders in
Burkina Faso, drying them for export to Europe and theUnited States.
Proactively and strategically managing our equity
portfolio, as well as making full use of nominee
directors who further IFC’s values and mission,
enable us to serve as a positive force for long-termsustainable investments in emerging markets.

Whether music, film, fashion, or video games,
developing countries generate — and sell — many
creative products that contribute to worldwide
economic growth.
The creative economy is projected to reach a global
valuation of $985 billion by 2023, according to the thinktank G20 Insights, with the potential to represent
10 percent of global GDP before 2030. Digitalplatforms, which enable artists and performers toreach new audiences, are contributing to exponential
growth of the sector. In Africa, revenue from digitalmusic streaming is expected to reach $500 million by2025, up from only $100 million in 2017, according to
the World Bank.
“Digitization is bridging the gap between the creative
economies of developing countries and world
markets,” says IFC Managing Director Makhtar Diop.
“This is important because the transmission of cultural
wealth can mobilize social change and provide jobs foryoung people.”
In FY22, IFC embarked on a new journey to tap into
the creative industries market and unlock its potential
to significantly improve development outcomes. The
COVID-19 pandemic, which caused an increase in athome entertainment and a rapid growth of streaming
services, offered an optimal opportunity for this
exploration.

In November 2021, we hosted IFC UpNext, our firsthigh-level virtual event highlighting investment
opportunities in Africa’s creative economy and its
role in sustainable development. The event featured
creative industry leaders in African music, fashion,and film, who used performances, storytelling, anddiscussions to generate new ideas on how to promote
progress. In June 2022, we hosted a similar IFC UpNext
event focused on opportunities in Latin America andthe Caribbean’s creative economy.
Diop kept the conversation on creative industries
going by launching a new podcast, “Creative
Development with IFC.” Episodes explored how
finance and economic development influence — andare influenced by — creative industries around theworld. Diop’s guests included actors Don Cheadle andIdris Elba, fashion designer Selly Raby Kane, and singer
Baaba Maal.
IFC is undertaking an in-depth mapping of the creative
industries market, with the intent of investing in thecreative economy in the immediate future.

IFC ANNUAL REPORT 2022

45

SETTING STANDARDSREACHING FARTHER FOR

GREATER IMPACT
IFC continues to set standards and demonstrate its leadership in accountability.
In addition to investing, advising, and mobilizing capital, IFC plays a criticalrole in helping to raise standards for sustainability-driven business in a host ofindustries — creating opportunities for increased investment flows. Often, weinvest in groundbreaking transactions that prove the business case for these highstandards. This work builds on IFC’s history of standard setting, beginning with thecreation of our environmental and social performance standards that formed thebasis for the Equator Principles, the financial industry’s benchmark for assessing
environmental and social risk in projects launched in 2003. Our work continued
with the creation of the Impact Principles in 2019, a framework to ensure impact
considerations are integrated throughout the investment lifecycle. The Impact
Principles now have 161 signatories from 38 countries.

46 IFC ANNUAL REPORT 2022

Guiding Investments
to Support the Blue
EconomyBlue finance, defined as investment or refinanceactivity that contributes to ocean protection andsustainable freshwater management, is a growing
market — and an essential tool for helping countries
meet sustainability targets. By 2030, the blue economy
is projected to reach $3 trillion, employing as many as
40 million people. In addition to attracting potential
investors, blue finance investment aids in securing
coastal livelihoods, improving access to clean water,
and preserving saline and freshwater ecosystems.
As blue finance becomes more mainstream, IFC isoffering guidance and encouraging best practices forinvestment. IFC’s FY22 publication, Guidelines for Blue
Finance, identifies eligible blue project categories toguide IFC’s investments. The document covers project

selection, management of proceeds, impact reporting,and external review for blue development projects.
The guidelines build on existing green bond and green
loan principles, clearly explaining how ocean andfreshwater projects need to be framed to achieve
desired environmental, social, and governance goals,
in credible, evidence-backed ways.
In June 2022, IFC issued the first blue financing loanin Central and Eastern Europe to increase funding forblue economy projects in Romania. IFC extended thelandmark €100 million loan to Banca Transilvania SA(BT), the largest bank in the country. IFC’s support
will help the bank establish a blue finance product toextend loans to MSMEs in line with IFC’s guidelines.
Further blue bond issuances by IFC partners are
expected in China, India, Indonesia, and Thailand.

IFC ANNUAL REPORT 2022

47

Providing an
International Standard
for Green Buildings
Green buildings represent a significant low-carbon
investment opportunity in emerging markets: about$24.7 trillion by 2030.
Predicting the carbon footprint of a building project
can be complicated and expensive. IFC’s EDGE
(Excellence in Design for Greater Efficiencies)
program has simplified the process. EDGE offers astraightforward certification process that makes
it faster, easier, and more affordable to design andcertify resource-efficient and zero carbon buildings.
The EDGE app is just one tool to help identify the mostcost-effective ways to reduce the resource intensity ofa building.
So far, EDGE has given its green approval to morethan 42 million square meters of floor space aroundthe world. Participating buildings are saving morethan 65 billion cubic meters of water each year andembodied energy savings in materials exceed 84 billion
gigajoules.
In FY22, IFC partnered with banks and property
developers to expand the scale, scope, and impact of
its EDGE program. In December 2021, South Africa’s
Nedbank issued a $65.2 million green bond, with IFC
as an anchor investor. The bond will enable Nedbank
to expand its portfolio of EDGE-certified buildings.
Scaling up financing for green buildings, particularlyin the residential sector, is critical to supporting the

48 IFC ANNUAL REPORT 2022

decarbonization of South Africa’s energy sector andaddressing the country’s large housing deficit.
In Latin America, IFC signed a $60 million loan tosupport BBVA Peru’s green building business line byfinancing homebuyers’ green mortgages and providing
advisory services through EDGE. The investment is
IFC’s first green project in Peru supported by the
UK-IFC Market Accelerator for Green Construction
program, which helps increase green construction
across emerging markets by incentivizing financial
intermediaries to scale up green residential
construction.

Building a Market for
Sustainability-Linked
Bonds
Global capital markets are a vast source of private
sector funding for climate-friendly projects, driven
by institutional investors who stand ready to financewell-defined green business ventures under theright conditions. Growth increasingly comes fromnew products like sustainability-linked bonds — debt
instruments whose issuers set hard, independently
verified targets for improving their environmental,social, and governance performance over time and thenaward issuers interest-rate reductions when they hit
the targets (or penalize issuers when they miss).

IFC guided the development of the growing
sustainability-linked bonds market by chairing theinfluential executive committee of the SustainabilityLinked Bonds Principles throughout FY22. The
principles, launched in June 2020, give investors
confidence by setting clear and transparent definitions
for these eco-friendly debt instruments. Before the endof 2020, $11.4 billion in sustainability-linked bonds had
been issued already, with the total rising to $118.8 billion
in 2021.
In September 2021, IFC further helped broaden theimpact of sustainability-linked bonds by serving as
the anchor investor in the first sustainability-linked
bond issuance by an energy company in Southeast
Asia, a 10.5-year, 675 million Singapore dollars(approximately $485 million) issue from Sembcorp
Industries, a Singapore-based pan-Asian energy andurban solutions provider. The investment marked
IFC’s first sustainability-linked bond investment
globally, supporting Sembcorp’s drive to increase
renewable energy capacity in its key markets. Under
the incentive-based deal’s structure, pricing will riseby 0.25 percent starting in April 2026 if Sembcorp does
not reach its agreed sustainability target: greenhousegas emissions intensity reduction to 0.40 tons ofcarbon dioxide equivalent per megawatt hour or
lower.

IFC ANNUAL REPORT 2022

49

MEASURING UP:OUR IMPACT
Measuring the results of our work and evaluating our effectiveness is fundamental to
our approach to development.
IFC has developed a comprehensive system to guide operations to maximize ourdevelopment impact. This helps ensure that IFC and our clients are reaching thepeople and markets that most need our help.

AIMM — ASSESSING EXPECTED DEVELOPMENTIMPACT AND MEASURING RESULTS
IFC’s impact assessment tool, Anticipated Impact Measurement and Monitoring(AIMM), enables IFC to better define, measure, and monitor the development
impact of each project. IFC rates all investment and selected advisory projects fordevelopment impact using the AIMM framework, which then allows development
impact considerations to be weighed against a range of strategic objectives,
including volume, financial return, risk, and thematic priorities.
Since the AIMM framework was introduced in 2017, IFC has rated over 2,000 investment
projects and over 100 advisory projects for their expected development impact.

In FY22, IFC own account climate-related investment commitments reachedover $4.4 billion.

Share of Project Ratings for Committed Projects —Ex-ante AIMM Ratings
RATING DISTRIBUTIONSDESCRIPTION

FY22

FY21

Projects Rated “Excellent” (AIMM scores 68 to 100)
Projects Rated “Good” (AIMM scores 43 to 67)
Projects Rated “Satisfactory” (AIMM scores 23 to 42)
Projects Rated “Low” (scores 10–22)

11%
61%
28%
0%

6%
78%
16%
0%

In addition to assessing the expected development impact of projects, IFC conducts
portfolio monitoring for all of its active and mature investment projects1 after theycome into portfolio. IFC teams collect self-reported data from clients, and economists
use these data to assess and update AIMM project scores. Updated portfolio AIMM
scores and results for selected corporate reporting indicators go through internaland external quality assurance processes before they are aggregated for IFC
corporate reporting.

Share of Project Ratings — Portfolio AIMM Ratings
RATING DISTRIBUTIONSDESCRIPTION

FY22

FY21

Projects Rated “Excellent” (AIMM scores 68 to 100)
Projects Rated “Good” (AIMM scores 43 to 67)
Projects Rated “Satisfactory” (AIMM scores 23 to 42)

8%
55%
27%

8%
49%
32%

Projects Rated “Low” (scores 10–22)

10%

11%

1. Exemptions apply. Exemption criteria and exemption cases are reviewed by the external auditor.

50 IFC ANNUAL REPORT 2022

DEVELOPING COMMON INDICATORS TO
MONITOR IMPACT

WHAT WE LEARNED FROM RESEARCH &SELF-EVALUATION RESULTS

The decade-long Harmonized Indicators for Private Sector Operations partnershipof 38 development finance institutions develops metrics for sectors and themes
including job quality, biodiversity, land, digital and disruptive technologies,
agribusiness, health, and education.

IFC uses a combination of research, data analytics, and self-evaluations to fillknowledge gaps and provide real-time solutions.

The initiative continues to harmonize, refine and expand sector-level impact metrics
that have informed UN-led initiatives, such as the UN CFO Coalition for the SDGs
and the Global Investors for Sustainable Development Alliance. This past year, IFC,
together with other multilateral development banks and the International Monetary
Fund, started to work on developing a set of harmonized and flexible principles for
multilateral development banks to articulate their contribution to the Sustainable
Development Goals.

EFFECTIVENESS RESULTS OF IFC ADVISORYPROJECTSIn FY22, 102 completed advisory projects were self-assessed for developmenteffectiveness ratings. Seventy-one percent of the projects were rated mostly
successful or better, remaining stable relative to FY21. Some regions recorded
declines — East Asia and the Pacific, Latin America and the Caribbean, and the
Middle East — due to the effect of the COVID-19 pandemic.

The insights from these publicly available research and data analytics generate
important lessons that inform the way we assess development impact and refine
AIMM frameworks. Notable examples completed in FY22 include:
Unleashing the Power of Educational Technology in Technical and Vocational Education
and Training (TVET) Systems demonstrates the accelerated development of
EdTech during COVID-19 and its future potentials. It provides recommendations
for policy makers on how to develop EdTech for skills development to ensure it isused effectively.
The Impact of Internet Access on Innovation and Entrepreneurship in Africa shows apositive effect of access to high-speed internet on innovation at the firm level, withavailability of digital skills within the firm playing a key role. It also found evidence ofinternet-induced entrepreneurship concentrated in the service sector.
Introducing the Adequate Housing Index (AHI) provides a comparative assessmentof adequate housing, harmonizing the most recent household expenditure andconsumption surveys. Using the AHI, the paper estimated considerable sizes of
housing deficit and inadequacy across 64 sampled emerging economies.
Self-evaluations of mature or completed projects are another important componentof our impact-assessment framework. In FY22, our evaluation agenda was focusedon performance evaluations of key partnerships with donors and rapid assessments.
IFC completed five evaluations in FY22 that helped us better understand the impactof our investments beyond individual projects and capture valuable lessons learned
that will inform industry strategies and operations.
An Impact Evaluation of Drip Irrigation tested the viability and sustainability of a
private sector approach to promoting drip irrigation technologies and solar powered
water pumps among smallholder farmers in Niger. Over the lifetime of the project,roughly 1,100 Nigerien farmers were trained, approximately half being women, on theuse of drip irrigation and solar pumping systems. An ecosystem of SMEs providing
operations and maintenance support was also established to deliver irrigation
services to farmers. The benefits for farmers included more reliable access to drip
irrigation and technical support and increased farm productivity. The assessment,
based on surveys of 1,250 participating and non-participating farmers, confirmedthat the majority of participating farmers had greater agronomic productivity andmore crop cycles per year compared to non-participants, validating the envisioned
outcomes of the approach, as well as providing insights on several additional
impacts, especially for women, such as improved personal security.

IFC ANNUAL REPORT 2022

51

SUSTAINABILITY
Sustainability is a critical component of IFC’soperations and fundamental to achieving
development impact. As IFC’s business
shifts more to fragile and conflict-affected
contexts with challenging and complex
environmental, social, and governance(ESG) risk profiles, supporting clients inmanaging these risks becomes increasingly
critical. Our ESG approach is anchored in our
Sustainability Framework and Corporate
Governance Methodology, integral partsof our approach to ESG risk managementin our investments. Both the Sustainability
Framework and the Corporate Governance
Methodology lay the foundation for ourclient and market-level capacity-building
efforts as well as for our sustainability
investments, climate and gender work,green and sustainability bond issuances, andimpact investing.

52 IFC ANNUAL REPORT 2022

STRENGTHENING ESG RISKMANAGEMENT
We continued our dynamic change process tomanage E&S risks more effectively by enhancing ourinternal and external capacity, and overhauling andmodernizing our processes, systems and tools.
In FY22, IFC updated its internal Environmental andSocial Review Procedures (ESRP) for Investment
Operations, which introduced a more efficient,differentiated process for regular and high-risk projects
to deliver more business in challenging markets and ina sustainable way.
We strengthened our E&S risk management approach
to financial intermediaries (FIs). We clarified thedefinition of higher risk projects that triggers additional
E&S due diligence requirements and enhanced IFC
support. We launched IFC’s Environmental and Social
Management System (ESMS) Diagnostic Tool for FIs,
which is designed to assess the quality of an ESMS andbenchmark it against IFC’s Performance Standard 1 andgood market practices.
We continued developing our tools to identify andassess contextual risks in the broader operating
environment of projects in support of our E&S due
diligence and project supervision. The Contextual

Risk Framework comprises nine dimensions and 33
indicators. We launched the Contextual Risk Good
Practice Note for public consultation in April 2022.
The note is being revised to address feedback and isanticipated to be finalized in FY23.
We also continued strengthening IFC’s institutional
capacity and approach to grievance response, with afocus on proactive and early resolution of complaints
as well as enhancing project-level grievancemechanisms to better handle complaints.
For our clients and the broader market, we offer aseries of publications and tools to support best practice
adoption in respect of sustainability and corporate
governance issues. In the last fiscal year, our external
publications tackled topics such as women in businessleadership, internal controls, grievance mechanisms,
and gender-based violence prevention. We also offer
training and guidance to our specialists and staff
on emerging ESG issues. Where possible, we use an“integrated ESG” approach, for example by leveraging
our corporate governance investment due diligence tosupport the effective oversight and management ofgender-based violence and harassment.

IFC AS AN ESG STANDARD
SETTER
The value of our standards goes far beyond managing
ESG risks and enhancing ESG performance in our
portfolio. The broad adoption of IFC’s standards
among development finance actors and emerging
market participants helps create a benchmark for ESG
practices to foster continuous improvement of ESG
performance for private firms in emerging markets.
IFC’s Environmental and Social Performance Standards
have been accepted by financial institutions, export
credit agencies, and development finance institutions
across the world. Through our partnership with the
Equator Principles Association and collaboration
with the OECD, we delivered a series of learning
events on key E&S issues. We play an active role in
the Corporate Governance Development Framework,
which convenes 35 development finance institutions
using the Corporate Governance Methodology as acommon approach to corporate governance risks andopportunities in investment operations. To translate
our ESG approach to capital markets, we launched
the ESG Performance Indicators for Capital Markets,allowing emerging market companies to disclose
through platforms such as ESG Books, of which IFC
is a founding partner. We have strengthened ourpartnership with the United Nations Sustainable
Stock Exchanges initiative (UN SSE) to cover areas
such as disclosure, women in business leadership(including updated guidance on how exchanges canadvance gender equality) and sustainability for small
and medium enterprises. IFC, in collaboration with
the UN SSE and the CDP (formerly known as the
Carbon Disclosure Project), offered Task Force on
Climate-Related Financial Disclosures (TCFD) training
courses. These courses reached 8,600 participantsin 33 markets, with 5,800 participants joining fromemerging market locations.

This fiscal year, the Sustainable Banking Network
was renamed the Sustainable Banking and
Finance Network (SBFN) to reflect its engagementin the broader financial sector ecosystem,
including capital markets, pensions, insurance,
and asset management. IFC hosts the SBFN
Secretariat and provides technical assistance toits 72 member institutions from 62 countries inthe development and adoption of sustainablefinance frameworks. This year, SBFN is celebratingits 10th anniversary. Over 500 participants from
more than 100 countries gathered for its seventh
Global Meeting held in April 2022, to discuss policy
frameworks for a strong pipeline of sustainable
investments across emerging markets.

LEVERAGING TECHNOLOGYAND INNOVATIONThis fiscal year, we continued the development of
an ESG artificial intelligence tool, Machine Learning
Environment Analyst (MALENA). Developed inpartnership with FIAS, Denmark and the Republic ofKorea, MALENA uses natural language processing,machine learning, and prediction analytics to help
inform our ESG due diligence. In January 2022, MALENA
was selected as a Global Top 100 project for solving
problems related to the Sustainable Development
Goals through Artificial Intelligence. We have also
made progress on the development of IFC’s Sustainable
Rating Tool (SRT), with the beta launch of the E&S
and corporate governance components. The SRT will
provide a dynamic ESG rating to improve our internalrisk management processes and operational efficiency.

ADDRESSING CLIMATE RISKS
We are working on the development of an ESG
module for IFC’s climate risk assessment tool. This
module will leverage the Performance Standards
and Corporate Governance Methodology to identify
project-level impacts, conduct risk assessments,
propose adaptation measures, assess internal controls
over climate risks and the consideration of climate risks
and opportunities in sponsor strategy, supporting ourcommitments relating to Paris Alignment.
We are also updating IFC’s Corporate Governance
Methodology to include a “Climate Governance”
parameter, focused on climate-related risk
management in our investment operations. This work
will allow the development of an advisory service
offering and knowledge products to help boards andsenior management address climate risk.

IFC ANNUAL REPORT 2022

53

ACCOUNTABILITYAND OVERSIGHT
We are accountable to our partners,clients, and communities as we work
toward our development objectives in anenvironmentally and socially responsible
manner. IFC continues to prioritize efforts tostrengthen accountability and transparency
across the institution, including in responseto an independent external review of
IFC’s environmental and social (E&S)
accountability completed in 2020.
This year, a key area of focus included training staff on
implementation of the new IFC/MIGA Independent
Accountability Mechanism (CAO) Policy, which became
operational on July 1, 2021. Additionally, IFC continues
to improve systems and procedures for E&S due
diligence and supervision as well as strengthening
grievance response. An effort is also underway to
explore options for remedial actions to address adverse
E&S impacts in projects financed by IFC and pilot a
principles-based approach to responsible exit from ourinvestments.
We have also taken several steps to improvetransparency around our use of blended finance andour investments in financial intermediaries (FIs).
We believe that continuous evolution toward moretransparency is one of the most important things we
can do as a development institution to maintain the

54 IFC ANNUAL REPORT 2022

trust of our stakeholders and gain crucial feedback as
we develop new solutions to the biggest development
challenges.

Accountability
OFFICE OF THE COMPLIANCEADVISOR OMBUDSMAN (CAO)
People affected by adverse environmental and social
impacts of IFC projects may voice their concerns to
CAO, the independent accountability mechanism
for IFC. As of July 1, 2021, with the implementationof the IFC/MIGA Independent Accountability
Mechanism (CAO) Policy, CAO reports to the Boardsof IFC and MIGA, strengthening the Board’s role in
the accountability process and enhancing CAO’s
independence. CAO is mandated to facilitate theresolution of complaints from people affected by IFC
projects in a fair, objective, and constructive manner;enhance environmental and social project outcomes;
and foster public accountability and learning to
improve IFC performance and reduce the risk of harmto people and the environment. CAO helps resolve
issues between affected people and IFC project
operators using a neutral, collaborative problemsolving approach through its dispute resolutionfunction. CAO’s compliance function carries out
reviews of IFC’s compliance with environmental andsocial policies, assesses related harm, and recommends
remedial actions where appropriate. Through its

advisory function, CAO provides advice with the
purpose of improving IFC’s systemic performance on
environmental and social sustainability. In FY22, CAO
handled 53 cases related to IFC and MIGA projects in
30 countries. During FY22, CAO received 11 new eligible
complaints of which 5 were referred to IFC.1 CAO
released 5 compliance investigations of IFC projects
and closed 4 cases after compliance review.

NEW CAO POLICY
The new CAO Policy, which went into effect at thestart of this fiscal year, ensures public access to a
predictable and transparent complaints process, withan increased focus on outcomes for communities, IFC/MIGA clients, and other stakeholders. It puts greater
emphasis on resolving complaints early and proactively
and includes timebound management action plansdeveloped in consultation with complainants andclients. The CAO Policy also provides clear eligibility
requirements for complaints related to FI clients andsupply chains and includes a provision for considering
complaints under exceptional circumstances for
projects where IFC and MIGA have exited (for up to 15
months). This year, in collaboration with CAO, IFC held
introductory trainings for E&S and operational staff on
the new CAO Policy.

1. This is a new provision in the CAO Policy that supports
complainants to engage in good faith efforts with IFC/MIGAor the client to resolve issues prior to initiating a CAO process.

INDEPENDENT EVALUATIONGROUPThe Independent Evaluation Group (IEG) is anindependent unit that reports directly to the World Bank
Group’s Board of Directors. IEG’s mission is to strengthen
World Bank Group institutions through evaluations that
inform strategies and future work — and lead to greater
development effectiveness. IEG assesses the resultsof IFC operations and offers recommendations for
improvement. IEG also contributes to internal learning
by informing new directions, policies and procedures,and country and sector strategies. IEG’s annual reviewsof World Bank Group results and performance and ofother major reports are available on IEG’s website at
http://ieg.worldbankgroup.org.

Oversight
GROUP INTERNAL AUDIT VICEPRESIDENCY
The Group Internal Audit (GIA) Vice Presidency
provides independent and objective risk-based
assurance, insight, and advice to protect and enhancethe value of the World Bank Group. GIA gives
management and the Board of Directors reasonableassurance that processes for managing and controllingrisks — as well as their overall governance — areadequately designed and functioning effectively. GIA
reports to the President and is under the oversight of
the Audit Committee. For more information on GIA,
visit: www.worldbank.org/internalaudit.

INTEGRITY VICE PRESIDENCY
Reflecting the World Bank Group’s commitment
to fight and prevent corruption, the Integrity Vice
Presidency (INT) detects, deters, and prevents fraudand corruption in World Bank Group-financed projects
and involving World Bank Group staff and corporate
vendors. As an independent unit within the institution,
INT plays a fundamental role in supporting theWorld Bank Group’s fiduciary responsibility over thedevelopment resources it manages, by investigating
allegations and pursuing sanctions against outsidefirms and individuals, and discipline against WorldBank Group staff, found to have engaged in fraud,corruption, collusion, coercion, or obstruction. Following
sanctioning decisions, the Integrity Compliance Office(ICO) engages with sanctioned firms and individuals inworking toward meeting their conditions for releasefrom sanction. In addition, preventive efforts by INT thisyear helped to identify, monitor, and mitigate integrity
risks. In FY22, the World Bank Group sanctioned 35 firms
and individuals. Based on ICO determinations, the WorldBank Group also removed 22 entities from sanction andconverted the debarments with conditional release of
one entity to conditional non-debarments. The WorldBank Group recognized 72 cross-debarments fromother multilateral development banks (MDBs). Twentyeight World Bank Group debarments were eligible forrecognition by other MDBs. For more information andthe World Bank Group Sanctions System Annual Report,
visit www.worldbank.org/integrity. To report suspectedfraud or corruption in World Bank Group-financed
projects, visit www.worldbank.org/fraudandcorruption.

IFC ANNUAL REPORT 2022

55

DIVERSITY, EQUITY,
AND INCLUSION
IFC employs over 4,200 people, who
represent over 150 nationalities and speak
more than 50 languages. This makes it
essential to create a culture that recognizes,
values, and harnesses what makes every
individual unique. Diversity, Equity andInclusion (DEI) is a strategic priority anda critical element of IFC’s employee value
proposition.
FY22 marked the first full year of dedicated DEI
program management at IFC. We took major steps
on our DEI journey, focusing on building inclusive
leadership and strengthening accountability toward
the achievement of our DEI objectives. We expanded
the DEI team, enhancing our project management,
data analytics, learning, and communication
capabilities. We also refreshed our DEI Council to
include representation from all of IFC’s regions ofoperations. This Council promotes initiatives andadvises IFC’s management team on how to meet
diversity goals and foster a diverse, equitable, andinclusive environment.

56 IFC ANNUAL REPORT 2022

Our DEI efforts focus on three strategic priority areas:
1. Inclusive Leadership skills enable IFC’s managers tolead diverse and equitable teams.
In FY22, IFC continued with the third cohort of its
sponsorship and the second cohort of its reverse
mentoring programs, involving over 70 staff who
have demonstrated leadership potential, serving
as mentees, advisees, sponsors, or mentors. These
programs assist in building a pipeline of leaders withinclusive leadership capabilities.
IFC also introduced an inclusive leadership learning
program for over 700 managers which includes
training on how to address unconscious bias inperformance management conversations.
One of the ways we measure inclusive leadershipis through IFC’s Inclusion Index, which we derivefrom our Employee Engagement Survey (EES).
At 63 percent, our overall Inclusion Index has
remained steady since 2019 and has increased bythree percentage points since 2016.
2. Performance Management Culture creates
accountability as we move toward our DEI goals.
We use a data-driven approach to define, measure,and report on our DEI program. This year, IFC
released its first DEI public disclosure document todemonstrate our progress.

Our ongoing iCount initiative, which achieved acompletion rate of 61 percent, up from 49 percent
one year ago, encourages staff’s voluntary selfidentification in terms of nationality; race andethnicity; sexual orientation and gender identity;and disability status. By providing managementwith a more accurate picture of the organization
and a better understanding of how staff
experience promotions and progressions, mobility,compensation, and performance management, thisdata is helping to build a culture of accountability.
3. Gender Equality ensures equity for women with respect
to career advancement and development.
In FY22, IFC increased the share of seniorprofessionals who identify as female to 45 percent.
IFC also earned the second level certification of
EDGE (Economic Dividends for Gender Equality)
following an independent audit on gender balance,
gender pay equity, policies and practices forequitable career flows, and inclusive workplaceculture. Our action plan for the next certification
cycle focuses on continuing to ensure equal pay
for equal work, awareness training on genderbiases, introducing gender equality objectives into
performance evaluation plans for managers, andencouraging men to take full parental leave.

Employee Resource Group Initiatives
Volunteer staff members lead our four Employee
Resource Groups (ERGs), which foster an inclusive
culture, cultivate support networks, expand knowledge
sharing, and increase a sense of belonging across theorganization. ERG co-leads are part of the DEI Council
and help advance IFC’s DEI goals through diverse
perspectives.
Beyond our ERGs, IFC participates in the WBG
Disability Advocacy and Resource Employee Group(DARE) to further build a space for staff memberswith disabilities and advocate for the interests ofthis community.

IFC GLOBE

Millennial Resource Group+

A network for lesbian, gay, bisexual,and transgender (LGBT+) staff

A group for Millennials and others
to support generational diversity
and inclusion

This year, the network held its first elections
for co-leads and board members, executed anorganization-wide campaign to celebrate LGBT+
allyship in the workplace, and launched the Out &Proud awards for LGBT+ role models.

In FY22, the group launched a chapter in Asia,
complementing similar efforts in Africa andheadquarters. It also held a series of events on
topics ranging from women’s rights to DEI.

Women’s Network

African Descent Alliance

A network fostering the recruitment,
development, and retention ofdiverse talent

A staff community focused on providing
equal opportunity and leveraging
talents, ideas, skills, and experience ofprofessionals of African descent

The network held a townhall with IFC’s
Managing Director Makhtar Diop and offereda series on workshops and events throughout
the year focused on female leadership, work-lifebalance, and career narrative.

During Black History Month, the groupsupported an interactive session on IFC’s African
American Talent Outreach. In addition, thenetwork hosted a reception to honor Juneteenthfeaturing a black-owned business and providing
the opportunity to learn about the history of this
newly acknowledged federal holiday.

IFC ANNUAL REPORT 2022

57

AUDITOR’S REPORTIFC has requested EY to perform alimited assurance engagement on aselection of sustainable development
information disclosed in the Annual
Report. The nature, scope andconclusion of this engagement aredescribed in EY’s limited assurance
report, available in the online IFC
annual report.

LETTER TO THE BOARD
OF GOVERNORSThe Board of Directors of IFC has
had this annual report prepared inaccordance with the Corporation’s
by-laws. The President of IFC andChairman of the Board of Directors
has submitted this report with theaudited financial statements to theBoard of Governors.

STAY CONNECTED
Web & Social Media Resources
IFC’s website, www.ifc.org, provides
comprehensive information on every
aspect of our activities. It includes
contact information for offices
worldwide, news releases and featurestories, data on results measurement,
disclosure documents for proposed
investments, and key policies andguidelines.
The online version of IFC’s 2022
Annual Report, www.ifc.org/
annualreport, provides downloadable
PDFs of all materials in this volume
and translations as they become
available.

58 IFC ANNUAL REPORT 2022

REPORTING UNDER
THE TASK FORCEON CLIMATE-RELATEDFINANCIAL DISCLOSURESCLIMATE-RELATED FINANCIALDISCLOSURE
This report is IFC’s fifth consecutive
disclosure under the guidelines
recommended by the Task Force on
Climate-related Financial Disclosures(TCFD). The report reflects IFC’s
continued commitment to maintainand strengthen our climate-related
financial risk assessment, management,
and reporting practices. All five reports
can be found online at www.ifc.org/
AnnualReport with links to relevant
references.
IFC has its TCFD reporting audited by
EY, a recognized third party, as part of
the annual review of IFC’s non-financial
reporting. This review of our qualitativeand quantitative disclosures helps us
improve our TCFD reporting every
year and ensures that the information
provided is material to stakeholders andis in-line with global best practices.

GOVERNANCE

What’s New?
• Deepened the integration of climate champions
across the organization through the hiring ofRegional Industry Climate Business Development
Leads• Developed and rolled out the frameworks for Paris
Alignment in coordination with other multilateraldevelopment banks (MDBs)• Discussed with the Management Team andBoard the Paris Alignment approach and plans for
implementation• Established a Climate Risk Working Group to oversee
the development of methodologies for managing
climate risks on the portfolio and balance sheet

IFC’s climate business and risk are overseen by
IFC’s Managing Director (MD) and Executive Vice
President, who reports to the President of the WorldBank Group on all climate commitments such as
climate business performance, climate risk evaluation,
and Paris Alignment of IFC’s operations. The WorldBank Group President reports to the World Bank Group(IBRD, IDA, IFC, MIGA) Board of Directors. Following
the climate commitments as part of the 2018 capitalincrease, in FY21 the Board approved IFC’s commitment
to align its investments with the goals of the Paris
Agreement. As part of IFC’s capital increase and Paris
Alignment commitments, all investments are now
screened for physical climate risk. IFC has committed
to aligning all new investments with the goals of theParis Agreement starting in July 2025, and further
scaling climate finance in 2030.
The President of the World Bank Group sets theGroup’s public climate targets. Progress on targets
is reported to the IFC Management Team and theBoard as part of the Corporation’s Quarterly Updates
to the Board. Separately, the World Bank Group also
reports annually to the Board of Directors specifically

60 IFC ANNUAL REPORT 2022

on climate including progress toward all climate
commitments (see Metrics and Targets section forfurther details). The most recent climate update to theManagement Team was held on June 27, 2022, and to
the Board on July 7, 2022.
Additional touch points with the Board andManagement Team are integrated into our businessand reporting processes, through written and verbal
communications including the Investment Operations
Report, Annual Portfolio Review (with RAROC on
climate and non-climate), Strategic Business Outlook,annual Climate Change Action Plan (CCAP) updates,
carbon pricing and climate risk discussions in project
Board papers, and deep dives and technical briefings
as requested.
Climate is integrated into IFC’s organizational structure
following a hub-and-spoke model. Responsibility
for providing deep in-house expertise on climate
and guiding the achievement of our climate targets
rests with the hub, a dedicated Climate Business
Department, which enables the investment
departments and others — ​the spokes — ​to engage
with our clients on climate and broaden our impact.
The Climate Business Department helps set corporate
climate strategy and shape policy, and supports
investment teams to identify climate investment
opportunities and mitigate climate risk. The Climate
Business Department is housed under the CrossCutting Solutions Vice Presidency, currently reportingto the MD. This placement reflects IFC’s position thatclimate change is a key implementation priority to be
integrated across all operations, investment cycles, andorganizational processes.
The Climate Business Department conducts andsupports assessment of transition and physicalclimate risk in investment projects. It also works withmainstream investment and business development
teams to identify low-carbon investment opportunities
and align operations with the Paris Agreement
through its industry sector experts, climate financeprofessionals, and policy. It develops and helps
implement and monitor tools and approaches
such as carbon pricing and climate project tagging.

Recognizing the importance of embedding goodclimate governance into the boards of our client andinvestee companies, the department is developing
trainings for IFC Nominee Directors to build andimprove capacity of investee companies on climatechange, including climate finance and climate risk. The
department continues to report individual climate
finance numbers to the Board.

especially Industry Specialists and Environmental andSocial (E&S) Specialists who are core to the project
teams and will be undertaking the Paris Alignment
assessments for projects upon mainstreaming.
Assessment for climate risk and adaptation will bemainstreamed over time through sectoral tools andapproaches that will allow project teams, via industry
and E&S specialists, to conduct project assessments.

Since the signing of the Paris Agreement in 2015, IFC
has worked closely with the World Bank, MIGA, andeight other multilateral development banks (MDBs)
to develop the Joint MDB Framework for Paris
Alignment of MDB Financing. The definition of Paris
Alignment so derived takes into account the specificcontexts of the emerging markets within which IFC
operates. IFC has coordinated closely with the other
MDBs to develop the Joint MDB Framework for
Paris Alignment of Direct Lending (real sectors)
and, along with the European Bank for Reconstruction
and Development (EBRD), led the development of
the Joint MDB Framework for Paris Alignmentof Financial Intermediaries (FIs). IFC’s Climate
Business Department leads and coordinates thedevelopment of the frameworks and implementationof Paris Alignment across IFC’s operations in close
collaboration with relevant industry teams. This
governance structure allows for consistency andstandardization at this early stage of integrating
Paris Alignment into our operations, especially as
implementation requires expert judgement and the useof specialized tools. Meeting Paris Alignment targets ispart of the performance scorecard for the department.
Summaries of the assessment and status of Paris
Alignment of individual projects will be included inproject documentation at investment review stage, forreview by the Investment Committee.

IFC has brought on board seven new staff membersin the Climate Business Department over recent
months to meet the ambitions of its Paris Alignment
commitment as well as to help IFC’s industry teams
build capacity to assess their projects themselves
and integrate Paris Alignment into the existing
project cycle.

As implementation of the Paris Alignment frameworkprogresses and matures, investment teams will be
trained to do the assessments for their projects, withquality review from the Climate Business Department.
Assessment for mitigation issues for more complex
projects will continue to be centralized within the
Climate Business Department. The Department
is helping to build capacity in investment teams,

Climate Risk Working Group. In FY22, IFC’s Corporate
Risk Committee approved the creation of a crosscutting Climate Risk Working Group to oversee thedevelopment of methodologies and recommend
policies and procedures to measure and manage IFC’s
exposure to climate-related risks at the portfolio andbalance sheet level. The Working Group will be led by
the Corporate Risk Management (CRM) and Climate
Business departments, with participation from otherstakeholders as appropriate. The Corporate Risk
Management department is situated within the
Risk and Finance Vice Presidency and supports IFC’s
financial sustainability through activities such as
capital allocation, financial forecasting, stress testing,and exposure limits management. Within CRM, theclimate risk team is exploring the development of tools
and methodologies to measure and manage climate
risks on IFC’s portfolio and balance sheet.
IFC’s Climate Anchors Network continues tointegrate climate business throughout the institution.
The Climate Anchors Network comprises seniorstaff in each industry and regional department aswell as key operational departments including Legaland Compliance Risk, Corporate Risk Management,
and Environmental and Social teams. Regional anddepartmental Climate Anchors jointly report to theirdepartment Director and to the Climate BusinessDirector. This year, IFC has begun hiring Regional
Industry Climate Business Development Leads

for each of IFC’s seven regions of operations, whowill report to their Regional Industry Directors and toleadership in the Climate Business Department. The
role of these leads will be to identify opportunities
to unlock more climate business in their regions,
including cross-cutting opportunities. Regional andindustry teams are also hiring additional staff at alllevels to enhance their climate-related competencies
and offerings.
IFC regularly consults with peers to further common
understanding of good practices. The TCFD informal
working group of MDBs convened by IFC in 2020
continues to share experiences, discuss challenges, andideate solutions to help each organization integrate
the recommendations of TCFD more comprehensively
into their operations.
IFC continues to engage with organizations on climate
risk and opportunities, such as 2⁰ Investing Initiative,
Citi, Oliver Wyman, PCAF-Navigant, Potsdam Institute,Standard Bank, Science-Based Targets Initiative, S&P
Global Trucost, UNEP-FI, and WSP, among others. More
broadly, IFC retains membership in several climaterelated corporate leadership initiatives, such as the
Principles for Responsible Investment, the TCFD (where
IFC is a supporting institution), the Task Force on
Nature-Based Financial Disclosures (TNFD — I​ FC wasa member of the Informal Working Group that shaped
the TNFD and is now a member of the TNFD Forum),
Race to Zero, the Global Green Bond Partnership, theGreen Bond Principles (of which IFC was elected Chair
in 2020) the Carbon Pricing Leadership Coalition, the
CCS+ Initiative (where IFC is a member of the advisorygroup), and the Fashion Industry Charter for Climate
Change (where IFC is a supporting institution).
Beyond strengthening our own climate governance,
we continue to develop and set environmental andsocial standards through our Performance Standards.
In addition, IFC has been supporting the developmentof green and blue taxonomies, as well as nationaltaxonomies for Colombia, Mongolia, South Africa,
Dominican Republic, and others. These domestic
taxonomies are national standards that define what isgreen eligible for investments in those countries.

IFC ANNUAL REPORT 2022

61

STRATEGY

Table 1: Climate Change Commitments: Five-Year Trend

What’s New?

TOTAL CLIMATE FINANCE COMMITMENTS(US$ MILLIONS)• IFC completed the pilot of the Paris Alignment
Framework for real sectors and is now rolling it out
across operations• IFC led and completed the development of the Paris
Alignment Framework for intermediated financing• FY22 own-account investment in climate:$4.4 billion• FY22 mobilization of private capital for climate:$3.3 billion

FY22

FY21

FY20

FY19

FY18

Own Account Long-Term Finance (LTF)$4,401$4,021$3,324$2,603$3,910Core Mobilization$3,346$3,610$3,500$3,172$4,542

Total$7,747$7,631$6,824$5,775$8,452

Figure 1: IFC Climate Business as a Percentage of Total Own AccountCommitments: Ten-Year Trend
IFC Climate Business
40%

34%

35%

Increasing IFC’s investment inclimate business.

30%

18%

19%

2013

2014

2019

2020

18%

15%

Paris Alignment. In June 2021, the World Bank Group
Board endorsed the new Climate Change Action Plan
(CCAP) for FY 2021-25. The CCAP focuses on increasingclimate finance to reduce emissions, strengthen
climate change adaptation, and align financial flows
with the goals of the Paris Agreement. It provides aroadmap on aligning climate and development goals
using new diagnostics, prioritizing transition in five key
systems that generate 90 percent of emissions andface significant adaptation challenges,1 and increasing
finance to support the transition, including by
mobilizing private capital and supporting global efforts
to raise and deploy concessional finance.

commitments on average over the five-year period,
significantly higher than the 26 percent averageachieved between FY 2016 and FY 2020. IFC also
committed to aligning its financial flows with theobjectives of the Paris Agreement. Starting July 1,
2023, 85 percent of all new investments in all sectors
will be aligned with the Paris Agreement’s goals,
and 100 percent of these will be aligned starting
July 1, 2025. Our work on Paris Alignment has helped
us define an overall climate risk and opportunities
strategy that incorporates governance structures, risk
management, and metrics and targets.

10%
5%
0%

2015

2016

2017

IFC has been working with its sister WBG institutions
and eight other MDBs to create the Joint MDB
Framework on Paris Alignment, in order to develop

1. The five key systems that the CCAP focuses on are: energy; agriculture, food, water, and land; cities; transport; and manufacturing.

62 IFC ANNUAL REPORT 2022

30%

35%

22%

In FY22, IFC’s total climate-related commitments wereover $7.7 billion. At $4.4 billion, our own account longterm finance in climate accounted for 35 percent of our
new investments (see Table 1). Despite the economic
ramifications of the ongoing COVID-19 pandemic,
IFC’s total climate commitments saw a year-onyear increase.

As part of the new commitments, IFC will increase
its direct climate financing to 35 percent of total

29%

32%

25%

25%
20%

% of own account only

2018

2021

2022

a common, comparable, measurable definition onwhat it means to align financial flows with “a pathway
toward low greenhouse gas (GHG) emissions andclimate-resilient development” as articulated in
Article 2 of the Paris Agreement. IFC defines Paris
Alignment as providing support to clients in waysthat are consistent with low-carbon and climateresilient development pathways, aligned with theobjectives of the Paris Agreement, and consistent withclient countries’ nationally determined contributions(NDCs), long-term strategies, and other national
climate commitments. This includes alignment withboth mitigation (Building Block, or BB, 1 of the JointMDB Framework) and adaptation and resilience(Building Block, or BB, 2 of the Joint MDB Framework)
components.

An IFC investment is considered aligned when:(i) on climate mitigation, it has no negative
impact on decarbonization pathways; or
supports low/net-zero GHG emissions activities
in line with decarbonization goals of the Paris
Agreement; or generates GHG emissions but isin line with the country’s low carbon transition
and avoids long-term carbon lock-in; and (ii) on
climate adaptation and resilience, it identifies andmanages vulnerability to physical climate risks
and is considered aligned with a country-specific,
climate-resilient development pathway.

In FY22, IFC conducted over 16 Paris Alignment training
sessions with a cumulative 1,500 staff in attendance
and intends to conduct several more in FY23. These
trainings were delivered to IFC staff from across
IFC’s regions and sectors of operation and leveraged
relevant regional and sectoral case studies. Throughthese trainings, IFC has disbursed internal guidancematerials to support capacity building, including Paris
Alignment assessment questionnaires, case studies,and factsheets.
The integration of Paris Alignment into ouroperations has changed how IFC does business.
Paris Alignment requirements are best met when
integrated into existing business processes, including
due diligence, appraisal, and concept and investment
review. Our implementation plan recognizes andreflects this, with project cycle integration andclear definitions of roles and responsibilities of staff
across IFC a key element of our roll-out. Climate
considerations — ​both mitigation as well as risk andadaptation — a​ re included much earlier in the project
design process, allowing investment teams to bothaddress any climate risks that are foreseen as well
as take advantage of the business opportunities
presented through adaptation measures and helping
clients transition to a low-carbon pathway. Finally,
we are also exploring the overlap between climate,especially Paris Alignment, and IFC’s PerformanceStandards to better integrate into our existing client
requirements and business practices.

To enable comprehensive integration of Paris
Alignment into our operations, IFC has also developedand is conducting trainings for investment staff to help
them communicate the commitments and implicationsof Paris Alignment. To help with this, we are developing
tools, guidance notes, and other relevant material.
These measures will help our clients in emerging
markets to improve their climate risk management
capacity and enable them to report in line with therecommendations of the TCFD, which will provide themarket — ​as well as the client — w​ ith a better insight
into the entity’s climate risk exposure.
Integrating low-carbon and resiliency acrosssectors. IFC continues to diversify its climate business,
identifying new areas of growth. In FY22, IFC retained
strong climate business (our own account investment
as well as mobilization) through FIs ($3 billion), and inresource efficiency ($882 million), renewable energy($1.2 billion), green buildings ($1.2 billion) and urban,
transport, and waste ($1.1 billion).

Focus on Financial Sector
In FY22, IFC’s total overall own account commitments
amounted to $12.5 billion, of which 50 percent — o​r$6.2 billion — c​ omprised of our work with financial
intermediaries. Given that such a significant proportionof our business is in the financial sector, focusing
on this part of our portfolio is crucial to integratingclimate considerations and Paris Alignment across IFC’soperations.
Paris Alignment for IFC’s Intermediated Financing.
IFC and the European Bank for Reconstruction andDevelopment (EBRD) led the development of a Paris
Alignment framework for intermediated financing
in coordination with the other MDBs, which is now
complete. Similar to the approach taken for the pilotof the real sector methodology, IFC will begin piloting
the proposed methodology for financial intermediaries
in FY23. Aligning this part of our portfolio is crucial tointegrating Paris alignment across IFC’s operations.
Our framework for intermediated financing
is two-pronged and includes an approach fortransaction-based assessment (for projects withdefined use of proceeds) and another approach forcounterparty-based assessment (for projects withundefined use of proceeds). We have begun the pilotof this framework on our business with financial
intermediaries that have defined use of proceeds as ofJuly 2022 and intend to roll it out in a phased mannerover the course of FY 2023 with an open feedback loop
to integrate learnings and course correct as needed
before mainstreaming in July 2023. Along with theother MDBs, we intend to publish a technical note on
Paris Alignment of intermediated finance for COP27 as
was done for the real sector before COP26.
In order to ensure transparency, the Paris Alignment
frameworks and methodologies were also discussedwith Civil Society Organizations (CSOs) at the
WBG-IMF Spring Meetings held in April 2022 under
Chatham House rules. IFC intends to engage with
CSOs on the Paris Alignment approach for FIs in the
coming months. Coordination of the engagement will
be undertaken as a joint World Bank Group exercise.
Enhancing IFC FI clients’ capacity. In addition toensuring that our own business is climate resilient andlow-carbon per the Paris Agreement, IFC recognizes
the urgency to help this sector make its businessresilient to climate risks and help our clients movetoward Paris aligned pathways for climate resilient
and low-carbon business. We have developed
and continue to expand training on climate risk
management and TCFD for both financial institutions
and real sector companies. IFC is working withstock exchanges to help them develop disclosure
guidelines for listed entities. IFC is the Secretariatof the Sustainable Banking and Finance Network ofcentral banks and regulators, which is helping banks inmember countries to implement the recommendationsof the TCFD.
IFC offers a range of technical climate assistance,
advisory and investments services according to theclient’s level of maturity and readiness for investment
through its Financial Institutions Group (FIG) offerings.
This includes capacity building support for climate
risk assessment and management to support FIs’alignment with the goals of the Paris Agreement.

IFC ANNUAL REPORT 2022

63

Some additional topics that IFC offers advisory services
to support clients include access to green finance,
green bonds and loans, blue bonds and loans, climaterelated disclosure, and decarbonization pathways.
Through the Green Bond Technical Assistance Program(GB TAP), IFC helps train banks to understand andissue green bonds. The Green Banking Academy trains
financial institutions on the four pillars of a green bank(eco-efficiency (their own footprint), environmental
risk management, green products and services, andgreen strategic commitment) and offers a green
finance certificate to professionals. The Climate
Assessment for Financial Institutions (CAFI) platform
helps our client financial institutions assess the climate
eligibility of their investments and estimate thedevelopment impact of their climate-related activities.
By FY22Q2, 75 percent of active climate partner
financial institutions used the tool and reported over
$7.9 billion in climate loans in CAFI, leading to an
estimated reduction in emissions of 19.5 million tonsof Carbon Dioxide equivalent per year. These advisory
programs not only help us build capacity for our clients
but also let us set and raise market standards on
climate finance, climate risk management, issuance ofgreen bonds, and other important topics.
In addition to the provisions above, IFC is developing
and delivering virtual climate trainings directly tofinancial institutions to create new markets for climate
risk and opportunities. Supported by the governmentsof Japan and the Netherlands, IFC has developed a
training module for banks in emerging markets toraise awareness on climate issues as relevant to thefinancial sector and build their capacity on climate risk
management. These webinars and trainings will befollowed by one-on-one advisory services provided by
the FIG regional teams to help those banks that areinterested in integrating climate into their governance,
strategy, risk management, and metrics and targets as
per the recommendations of TCFD.
Finally, recognizing the need for bankable green
projects as a key hurdle to scaling private climate
finance under the Scaling up Climate Finance through the
Financial Sector (30x30 Zero) Program, IFC is working infour pilot countries to help catalyze the development

64 IFC ANNUAL REPORT 2022

of a pipeline of green projects in target sectors. This
project involves engaging with stakeholders fromthe public, private, and financial sectors to develop aroadmap of actionable solutions on how to incentivize
the development of private sector projects in target
sectors. IFC will work with client financial institutions
to channel private sector capital into these projects,
simultaneously helping to green the financial sector in
the pilot countries.

Exploring Creative Solutions toTarget New Areas of Growth:
In addition to growing its existing climate business,
IFC continues to target new areas of climate resilience
using innovative tools and solutions.
Sustainability-Linked Finance. We are helping
our clients green their operations based on a clearly
identified roadmap of innovative solutions. In FY22,
IFC anchored its first-ever sustainability-linked bond
(SLB) issuance, a 675 million Singapore dollar offeringon the Singapore Stock Exchange, by leading Pan-Asianenergy and sustainable solutions provider Sembcorp
Industries Limited. The transaction formed the first
SLB by an energy company in Southeast Asia andthe region’s largest such issue to date. Under the SLB
terms, Sembcorp committed to reducing its GHG
emissions intensity by 20 percent in the next four
years, with a 0.25 percent margin step-up if this target
is not met.
IFC’s investment comprised an own accountanchor allocation of 150 million Singapore dollars(approximately US$110 million) and mobilizationof approximately 475 million Singapore dollars(approximately US$350 million) to be applied toward
renewable energy projects and potentially othersustainable assets.
In addition to anchoring the issue, IFC helped
Sembcorp develop a sustainable financing framework,
including selection of specific performance targets aswell as systems and processes for implementation. This
successful SLB is expected to contribute significantly
to decarbonization efforts by demonstrating bestpractice and stimulating other corporates, both in
the infrastructure sector and beyond, to adopt similar
ambitious sustainability strategies and targets and tap
novel financing structures such as SLBs.
Country Climate and Development Reports(CCDRs). In FY22, the World Bank Group launched
a new, core diagnostic tool — ​the Country Climate
and Development Report (CCDR). IFC, the World
Bank, and MIGA lead the development of the
CCDRs, along with support from the IMF, and active
engagement with the private sector, government
counterparts, academia, think tanks, and civil society
organizations. The CCDRs aim to (i) integrate climatechange and development considerations and help
client countries prioritize the most impactful actions
that can reduce greenhouse gas (GHG) emissions
and boost adaptation; (ii) explore opportunities,
reforms, and policy instruments to leverage private
sector resources and solutions for both climatechange adaptation and mitigation; and (iii) inform
WBG country engagement products, including IFC’s
Country Private Sector Diagnostics (CPSDs). CCDRs
can serve as an important platform for governments,
their citizens, and our partners to engage with thedevelopment and climate agenda, supported by better
coordination at the country level. CCDRs can also be
deployed to more effectively mobilize resources fromdevelopment financiers, including non-traditional
donors and the private sector. In June 2022, the first
CCDR — ​for Türkiye — ​was released and identified key
priorities for climate action to help Türkiye reduce GHG
emissions and boost resilience. The World Bank Group
expects to publish more than 20 CCDRs in the firsthalf of FY23. These reports will form the foundation
for building internal climate capacity, engaging inmarket development activities in country offices, andintegrating climate opportunities and risks into thecore strategic decisions.
Industry-Specific Decarbonization Strategies. IFC
has been conducting deep dives to embed climate
into sectoral strategies for high-emitting sectors likechemicals and power. IFC’s focus on manufacturing
in particular has evolved over the last few years tobe centered around carbon abatement, industry

transition to lower carbon pathways, greening of
supply chains, waste reduction, and circularity. We lookat investments for their ability to support resilience inregional clusters. A core aspect of this strategy is toensure that our investment evaluation takes a nuanced
approach to the development status, needs andeconomic complexity of a country. In subsectors wherefull abatement is not possible (heavy industries), we
focus on climate transition and lower carbon pathway
approaches. These projects are set up in a way that
supports the reduction of their emissions over the
project lifetime by incorporating new technologies andknowledge, thereby reducing the risk of carbon lock-in.
We have developed comprehensive sector strategies
and roadmaps for key sectors, such as textiles andchemicals, and are developing more for circular
economy, construction materials, electric vehicles (EV)value chain and battery manufacturing value chain.
IFC is also providing clients in hard-to-abate sectors
with advisory services to support the developmentof actionable decarbonization roadmaps thatassess their carbon footprint, identify cost-effective
decarbonization solutions, set targets, and develop
investment programs compliant with sustainablefinance principles.
Biodiversity and Nature-Based Solutions. IFC
recognizes that climate and biodiversity are deeplyinterlinked and managing the risks and opportunities
for one is incomplete without also addressing theother. This principle is enshrined within the WBG CCAP
for FY 2021-25, and we are working to articulate thebusiness case for biodiversity finance and naturebased solutions (NBS) for both climate mitigationand for green infrastructure solutions. We continue
to engage with stakeholders on this issue, intend
to grow our own biodiversity finance business, andcontribute to the growth of the biodiversity financemarket globally. As mentioned earlier, IFC was an early
member of the Informal Working Group that shaped
the TNFD, and we continue to be a part of the TNFD
Forum with likeminded organizations that recognize
the impetus for and opportunity in biodiversity
finance. We have developed a reference guide on
biodiversity finance that fuses conservation needs withsustainable development to provide an indicative listof investment activities that help protect, maintain orenhance biodiversity and ecosystem services as well assustainably manage natural resources. This guide was
opened for public comment in June-July 2022, to which
we received 23 comprehensive responses from entities
including non-profits, academia, cooperative financial
institutions, international organizations, multiutility
operators, and financial and technical advisory firms.
Comments focused on a range of topics including
impact reporting, data and knowledge sharing,elaboration of ties to the Green Bond and Green Loan
Principles, and potential alignment with national andinternational legislation. After an extensive review
process, an updated version of the document will bemade public in the coming months. The Biodiversity
Finance Reference Guide is a living document, and we
expect it to evolve over time as the market develops
and matures.

SECTOR SPOTLIGHT:

Blue Bonds and Loans
The ocean generates more than half of our planet’s
oxygen, is home to most of the world’s biodiversity,and offers food and economic opportunities forbillions of people. It is estimated that the global
value of the blue economy is $2.5 trillion annually,equivalent to the size of the world’s seventh-largest
economy. Blue finance is an emerging area inclimate finance, with growing recognition from themarket of the countless investment opportunities
it offers while simultaneously addressing pressing
global challenges by contributing to economic
growth, improved livelihoods, and the health ofmarine ecosystems. This principle is enshrined in
the World Bank Group’s Climate Change Action Plan
(CCAP) for FY 2021-25.
IFC has been at the forefront of developing market
standards and guidelines on blue finance andlaunched the Blue Finance Guidelines in early 2022.
This document provides guidance on eligible useof proceeds for market participants and private

Building a pipeline of low-carbon and resilient
projects. IFC’s Upstream units are embedded acrossindustries and regions to lay the groundwork forinvestment opportunities within a three-to-five-year
horizon. In the last year, IFC has prioritized climaterelated business development through Upstream andrelated activities such as scaling up climate finance bygreening the financial sector and catalyzing a pipelineof green investments in target markets. IFC is also
investigating possible business models for upstream
activities in adaptation and resilience. Upstream
activities consist of pre-investment work in three
categories, often in collaboration with the World Bankand the Multilateral Investment Guarantee Agency(MIGA): 1) creating markets (regulatory reform or
standard setting), 2) creating opportunities (throughtechnical assistance to private sector clients), andinvestments to build the blue economy and requests
eligible projects to contribute to Sustainable
Development Goal (SDG) 6 (ensure availability andsustainable management of water and sanitation
for all) and SDG 14 (conserve and sustainably use theoceans, seas and marine resources for sustainable
development) without compromising other SDGs.
IFC sees a huge opportunity to develop businesslines for blue finance. We have pioneered
investments in blue finance with key partners
leading to several first-in-the-market transactions.
These include IFC’s subscription of up to$100 million in the first blue bond in the Philippines(FY22) and the first blue bond by a commercial bankin Thailand (FY22). IFC also anchored and mobilized
a $300 million blue loan for Thailand’s Indorama
Ventures exclusively focused on addressing marine
plastic pollution (FY21). Since 2020, IFC has provided
more than $400 million in blue finance to theprivate sector, recognizing the untapped potential
for clients to grow their blue financing products andservices, and to develop a systematic global blue
finance market.

IFC ANNUAL REPORT 2022

65

3) crystallizing opportunities (project risk structuring
and investor mobilization). IFC’s management teamis regularly updated on the climate percentage of the
upstream pipeline, allowing the management teama line of sight on green business opportunities incoming years.
Resilience of strategy/scenario analysis. IFC
continues to explore how to integrate scenario analysis
and climate risk into our overall risk management.
IFC has road-tested leading market approaches toscenario analysis and found them to be unsuitablefor evaluating the resilience and risk of IFC’s portfolio
which mainly comprises unlisted, private clientsin emerging markets. We are in discussion with
MDBs, financial institutions, consulting firms andother stakeholders on the most appropriate factors,
indicators, tools, scenarios, and data sources to develop
an internal approach.

• Project and asset level. IFC has begun to implement
several interim bottom-up measures to ensure theresilience of our investments. Many of these havebeen integrated into our Paris Alignment approachand implementation — ​individual assets andprojects are assessed using tools that incorporate
climate scenarios. Our previously developed
systematic methodology to evaluate the alignmentof our investments in hard-to-abate sectors withcountries’ NDCs on a project-by-project basis has
been incorporated into our methodology for BB1(mitigation). We are evaluating the resilience of ourportfolio by also considering carbon lock-in risk andpotential stranded asset risk of our investments, ina longer time frame than simply our project tenor.
With each project now assessed for adaptation
and resilience compliance with Paris Alignment,
IFC is building a green, low-carbon, climate
resilient portfolio.
• Sector level. In addition, we have taken a sectoral
approach with transport as a pilot. IFC is working
to develop methodologies for applying scenario
analysis to all the modes of transport in which weinvest, starting with roads. The transport model willallow us to test scenarios by stacking interventions

to maximize the emissions reduction potential of the
project. This will serve as a tool to engage further
with clients on project design, while supporting our
ex-ante GHG emissions estimates of absolute andbaseline emissions.
• Portfolio and balance sheet level. IFC is exploring
how to incorporate climate scenarios into its stresstesting framework, as well as the development ofother tools to measure and manage climate risks at
the portfolio and balance sheet level. The Climate
Risk Working Group will oversee this workstream in
FY23 and beyond.

RISK MANAGEMENT

What’s New?
• Tools, methodologies, and approaches for physicalclimate risk screening developed for 46 percent of
IFC’s real sectors of operations; 35 percent more
underway• Analysis of IFC’s active portfolio for exposure totransition risk, with the aim to identify key sectors
or regions requiring additional risk mitigation focus• Physical and transition risk incorporated into Paris
Alignment approaches and roll-out

In FY22, IFC continued to expand our existing climate
risk management of both physical and transition
risk, by integrating both into IFC’s Paris Alignment
frameworks.
In its first year of road testing, the framework for Paris
Alignment of real sector investments, IFC has assessed
80 percent of real sector projects that were approved in
FY22 for alignment with both mitigation and adaptation
goals of the Paris Agreement. Assessments are
conducted at the concept development stage to ensurethat the principles of Paris Alignment are enshrined at
the earliest stages of project development.

Physical risk2. IFC screens projects for climate riskin an expanding number of sectors. During projectappraisal, IFC’s project teams assess potential direct
and indirect effects that climate-related impacts may
have on the project’s financial, environmental, andsocial performance. Potential risks are further explored
and, where necessary, addressed and mitigatedthrough a variety of measures that may include
operational or CAPEX interventions.
Physical risk screening for IFC’s projects has been
integrated into the adaptation and resilience (BB2)component of Paris Alignment, where assessment
poses explicit questions on exposure to climate risk
and potential opportunities, measures for climate
risk mitigation, levels of residual risk after adaptation,
potential for maladaptation, and consistency withnational contexts for climate resilience.
IFC has mainstreamed the assessment of the risk
and resilience component of Paris Alignment (BB2)for 46 percent of real sector operations and is in theprocess of mainstreaming for an additional 35 percent.
In this context, sectors are considered ‘mainstreamed’
when a methodology or tool has been developed forindustry and E&S specialists to be able to conduct
climate risk screening for their projects with limited
support from the Climate Business Department.
Sectors for which physical risk screening has been
mainstreamed in this manner include roads, ports
and waterways, airports, forestry insurance, pulp andpaper, mining, hydropower, solar, wind, manufacturing,water, and sanitation. Methodologies and tools
for adaptation and resilience are currently underdevelopment for dairy, waste, financial intermediaries,
tourism, retail and property (TRP), health andeducation, railways, and mass transit sectors. We
expect to complete the mainstreaming of adaptation
and resilience assessments for all real sectors startingin July 2023, thereby completing the integration ofphysical risk screening into IFC’s operations.
In FY22, IFC has also developed two bespoke tools to
help industry teams screen in the interim even thoseprojects for which sector-specific tools are in various

2. Physical risks are those resulting from disruptions and impacts of climate change-related events and can be both acute and chronic. Examples of physical risks include droughts, floods, increasing sea levels, risingtemperatures, and other factors that may have an impact on supply chains, operational capacity, damage to physical assets, and other aspects of the business.

66 IFC ANNUAL REPORT 2022

stages of development. The GeoViewer tool developed
by IFC with support from external consultants,
assesses a project’s exposure to climate hazards basedon location and helps climate specialists provide acomprehensive high-level assessment for adaptation
and resilience. It uses over 50 climate indicatorsand provides data on potential hazards for four
different time horizons based on two Representative
Concentration Pathway (RCP) scenarios for 50th and66th percentile probability. The Portfolio Sensitivity
tool goes one step further and includes factors suchas supply chain and market exposure to provide highlevel information on potential financial exposure toclimate hazards.
We continue to use previously developed tools infurther embedding physical risk screening into ouroperations, including a forward-looking tool to assess
the exposure of IFC’s portfolio to key physical climate
hazards by sector and country developed in FY21. The
dominant drivers in IFC’s most exposed operations
include those related to water, such as water stress,
drought, and flood. This tool was validated using ourportfolio from 2016 to 2019, which was assessed forphysical climate impact using supervision reports.
Transition risk.3 Relative to most large banks
operating in our markets, IFC has limited exposure
to fossil fuels and no exposure to coal power
generation at utility scale in our portfolio. As of FY22,
renewables represented 69 percent of our power
generation portfolio. IFC follows the WBG practiceof not investing in greenfield coal power generation.
In 2019, IFC extended this practice to upstream oil
and gas investments. In the last ten years, IFC has
had no new investments in coal mining or coal power
generation projects.
As part of our efforts to address climate risks andminimize indirect exposure to coal-related projects,
IFC does not provide loans to financial institutions forcoal-related activities. To further reduce exposure tocoal, IFC no longer provides general-purpose loans
to financial institutions. Targeted loans are directed
to key strategic sectors, such as micro-, small-, andmedium-size enterprises, women-owned businesses,
climate-related projects, and housing finance.
The use of proceeds is disclosed on IFC’s Project
Information Portal. Through our Approach to Greening
Equity Investments for new equity and equity-likeinvestments, IFC seeks to help our financial institution
clients increase their climate lending and reduce their
exposure to coal-related projects to zero or near-zeroby 2030.
Despite our low exposure, IFC is currently examining
our portfolio for potentially high-risk projects incarbon-intensive sectors, and potential measures tomitigate transition risk in those sectors. The analysis
is based on historical portfolio data covering thelast decade of IFC’s business, and both total sectoral
emissions and sectoral emissions intensity (based on
project size). Through this effort, IFC has identified thesectors that comprise our largest carbon exposure: gas
distribution, thermal power generation, cement, waste
treatment and management, chemicals, glass, andanimal production. We will be using these categories to
identify which future projects might potentially need
to be subject to additional analysis on transition risk.
IFC continues to use carbon pricing as a measure to
manage transition risk and avoid stranded assets.
Since May 2018, a carbon price has been included in
the economic analysis of project finance and corporateloans with defined use of proceeds in the cement,chemicals, and thermal power generation sectors,
where estimated annual project emissions are over
25,000 tons of carbon dioxide equivalent. IFC includes
the impact of the carbon price on the project’s
economic performance and viability in Board papers.
The price levels continue to be consistent with theHigh-Level Commission on Carbon Prices and with
the World Bank. Carbon pricing is also integrated into
our Anticipated Impact Measurement and Monitoring(AIMM) framework where applicable and will becomea standard part of Paris Alignment assessments for
mitigation for all projects with annual emissions
greater than 25,000 tons of carbon dioxide equivalent.

As noted above, IFC incorporates transition risk into
our Paris alignment process, particularly for the BB1(Mitigation component). The assessment processincludes analysis of consistency with NDCs, longterm strategies, and regional, national, and sectoral
policies on climate change to mitigate policy risk. It
also explicitly includes analysis of stranded asset andcarbon lock-in risk as criteria for evaluation of Parisalignment for IFC projects. We continue to develop
measures to deepen our assessment and managementof transition risk.
IFC has developed decarbonization pathways for hardto-abate sectors such as chemicals, power and textiles,
and continues this work for other carbon-intensive
sectors. Through our Sustainable Infrastructure
Advisory program, IFC supports clients to formulate
and implement decarbonization strategies and net
zero plans through manageable steps, drawing
from over 150 separate science-based solutions andtailoring them to each individual client’s needs. IFC
offers technical assistance and investment services
according to the client’s level of maturity and readinessfor climate investment, including the developmentof low-carbon roadmaps and compliance withsustainable finance principles. We support clients inassessing their carbon footprint, setting baselines
and targets, monitoring and evaluation, developing
results measurement frameworks, and complying withinternational disclosure requirements and standards.
Our counterparty-based approach for Paris Alignmentof financial intermediaries also requires clients tocommit to decarbonization pathways and betterclimate-related risk management.
At IFC, biodiversity risk considerations are
mainstreamed into all IFC projects through theEnvironmental and Social Performance Standards.
Performance Standard 6 on Biodiversity Conservationand Sustainable Management of Living Natural
Resources and Performance Standard 3 on Resource
Efficiency and Pollution Abatement in particularaddress risks associated with deforestation, impact on
species, soil health, pollutants in natural environments,
water use, and other risks to biodiversity.

3. Transition risks are those faced by investors as part of the global shift to a low-carbon economy. Examples of transition impacts include changes in climate and energy policies, a shift to low-carbon technologies,changes in consumer preferences, and reputation and liability issues. Transitional impacts can vary substantially depending on scenarios for policy and technology changes.

IFC ANNUAL REPORT 2022

67

METRICS AND TARGETS

What’s New?
• Climate investments comprised 35 percent of total
own account FY22 commitments• 80 percent of new real sector projects with known
use of proceeds were assessed for Paris Alignment
at Concept Review stage• Responsibility for project GHG accounting was
consolidated in Climate Business Department, witheffect from July 2022

Climate investments are those that reduce GHG
emissions or increase resiliency, as measured by joint
MDB guidelines. The Joint MDB Methodology for
Climate Finance Tracking was updated to accountfor the evolving market context, limit climate-relatedrisks, and take advantage of new climate opportunities.
IFC has applied this updated methodology acrossits operations since July 2021. The revised metrics
include detailed criteria and guidance across sectors.
In October 2021, the methodology was publishedas the Common Principles for Climate Mitigation
Finance Tracking, which are applied to the operationsof all MDBs, including IFC. IFC has been closely
involved in the development and updating of thesemethodologies.
Climate finance targets. In FY22, IFC’s climate
investments comprised 35 percent of total own
account commitments, meeting the corporate target.
As part of the CCAP, the World Bank Group announced
that climate investments4 will comprise, on average,
35 percent of IFC’s own-account investments overthe FY 2021–25 period. The IFC corporate target istranslated to departmental and regional climate
business targets.

Paris Alignment. As discussed previously, IFC
is committed to aligning 85 percent of all new
investments with the goals of the Paris Agreement
starting July 1, 2023, and 100 percent of these startingon July 1, 2025. In FY 2022, IFC screened 80 percent ofreal sector projects with defined use of proceeds atconcept stage for alignment with the Paris Agreement.
The assessment covers both mitigation (greenhousegas) and adaptation (risk and resilience) goals of theParis Agreement. For mitigation, the methodology
covers Scope 1 and 2, and Scope 3 where significant.
As discussed above, IFC has also led the MDBs in
designing a Paris Alignment methodology to assessintermediated financing, which was finalized in FY
2022. The corporation is committed and on trackto achieve both 2023 and 2025 targets for real andfinancial sector operations.
Investment disclosure. IFC reports climate financecommitments in this annual report and in the Joint
Report on Multilateral Development Banks’ Climate Finance.
In our annual Green Bond Impact Report, IFC also reportson the expected environmental impact of projects
financed through the green bonds that IFC issues. As asignatory of the Principles for Responsible Investment(PRI), IFC is mandated to report under PRI’s TCFDaligned indicators.
Emissions calculations. IFC continues to estimate
and report aggregate GHG emissions reductions from
IFC investments (Scope 3 emissions). Through the IFI
GHG Accounting Group, IFC works with the UNFCCC,
other MDBs, some commercial banks and bilateral
DFIs to harmonize Standards for GHG accounting.
This includes development of GHG accounting
methodologies and standard emission factors for
power grid GHG emissions in more than 100 countries.
IFC applies the IFI Harmonized Approach to GHG
Accounting and IFI sector-specific approaches, whereavailable, to estimate absolute, baseline and relative
ex-ante GHG emissions where use of proceeds isdefined. IFC estimates gross GHG emissions for all real

sector projects with emissions over 25,000 metrictons of carbon dioxide equivalent, and net emissions
on a project-by-project basis for real sector projects
where possible. IFC continues to disclose ex-ante
aggregate estimated annual gross GHG emissions
through the publicly available Environmental and Social
Review Summary,5 and project-level emissions throughthe Project Disclosure Portal in support of PerformanceStandard 3.
IFC has begun developing a transition plan totransfer responsibility for ex-ante absolute GHG
project emissions from the E&S Department to
the Climate Business Department. This will involve
working through the project cycle to improve climate
knowledge management and unite processes for Paris
Alignment, GHG accounting, climate finance, andclimate impact data assessment for every investment.
The objective is to ensure more consistent, robust
ex-ante GHG estimates using methodologies that areboth feasible and practical for implementation in thereal world to eventually facilitate ex-post GHG data.
IFC has been carbon neutral in all our business
operations including business travel (Scope 1 and2 emissions) since FY 2009. Prior initiatives havecut energy use in IFC’s headquarters by 18 percent
including installing lighting occupancy sensors,
adjusting building-wide heating and cooling set points,
and reducing an hour of heating, cooling, and lighting
standard operations for the facility. In FY 2019, IFC set
a global, internal carbon-reduction commitment to
cut our facility-related emissions (Scope 1 and 2) by
20 percent by 2026, from a 2016 baseline. This target
is in line with the World Bank Group’s commitment to
reduce facility-related emissions by 28 percent over thesame period. All remaining emissions are compensatedvia carbon offsets.

4. IFC’s Definitions and Metrics for Climate-Related Activities identifies projects and sectors that qualify as climate investments; these definitions are harmonized with other multilateral development banks.
https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/climate+business/resources/ifc-climate-definition-metrics
5. IFC Project Information & Data Portal. https://disclosures.ifc.org/#/landing.

68 IFC ANNUAL REPORT 2022

Essential
Information
The information in this annex will appear in
our online report.

		70

OUR PEOPLE & PRACTICES

70 Compensation and Benefits
71 Financial Commitments to IFC Advisory
Trust Funds
72 Funding
73 Financial Performance Summary

IFC ANNUAL REPORT 2022

69

Compensation and Benefits
Ensuring competitive compensation and benefits, IFC applies the World Bank Group’s compensation framework.
Competitive compensation is essential to attract and retain a highly qualified, diverse staff. Salaries for staff
recruited in Washington, D.C. are based on the U.S. market. Salaries for staff hired outside the United States are
based on local competitiveness as determined by independent local market surveys. Given the World Bank Group’s
status as a multilateral organization, staff salaries are determined on a net-of-tax basis.
As of June 30, 2022, the salary structure (net of tax) and annual average net salaries/benefits for World Bank Group
staff were as follows:

Staff Salary Structure and Benefits (Washington, D.C.)
GRADES

REPRESENTATIVEJOB TITLESMINIMUM MIDPOINT MAXIMUM
(US$)
(US$)
(US$)

STAFF ATGRADELEVEL (%)

AVERAGESALARY/ AVERAGEGRADE BENEFITSa
(US$)
(US$)

GA

Office Assistant29,30041,80054,3000.01%

42,09020,020GBTeam Assistant,
Information Technician

35,10050,20065,3000.07%

49,04323,328GC

Program Assistant,
Information Assistant43,40062,00080,6005.31%

65,11230,971

GD

Senior Program Assistant,
Information Specialist,
Budget Assistant

51,50073,60095,7005.69%

79,65137,887GE

Analyst70,600100,900

131,200

9.60%

93,62744,534

GF

Professional

93,400133,400

173,400

23.60%

121,583

57,832

GG

Senior Professional

120,800

172,600

224,400

37.94%

170,21580,964

GH

Manager, Lead Professional

165,300

236,100

306,900

15.02%

239,612113,973

GI

Director, Senior Advisor

254,000

317,500

381,000

2.29%

309,354

147,146

GJ

Vice President

301,000

354,100

407,200

0.39%

367,691

174,894

GK

Managing Director, Executive Vice
President, Senior Vice President

334,600

393,600

452,600

0.08%

416,214205,741

Note: Because WBG staff, other than U.S. citizens, usually are not required to pay income taxes on their WBG compensation, the salaries are set
on a net-of-tax basis. These salaries are generally equivalent to the after-tax take-home pay of the employees of the comparator organizations
and firms from which WBG salaries are derived. Only a relatively small minority of staff will reach the upper third of the salary range.
a. Includes medical, life and disability insurance; accrued termination benefits; and other non-salary benefits. Excludes tax allowances.

70 IFC ANNUAL REPORT 2022

EXECUTIVE COMPENSATIONThe salary of the President of the World Bank Groupis determined by the Board of Directors. The salarystructure for the IFC Managing Director is determinedby positioning a midpoint between the salarystructure of staff at the highest level, as determinedannually by independent U.S. compensation market
surveys, and the salary of the World Bank Group
President. The compensation of our executive
leadership is transparent.
IFC MD Makhtar Diop received an annual salary of$416,830, net of taxes.

Financial Commitments to IFC Blended Finance
Trust Funds (US$ MILLION EQUIVALENT)

Financial Commitments to IFC Advisory
Trust Funds (US$ MILLION EQUIVALENT)
Summary

FY22

FY21

Governments

FY22

FY21

Governments

148.94179.42

Netherlands

0.00

17.50

Institutional/Multilateral Partners

20.21

31.15

United Kingdom

13.16

53.68

Corporations, Foundations, and NGOs

6.00

0.00

175.16210.57

Institutional/Multilateral Partners

FY20

FY21

Governments

Women Entrepreneurs Finance Initiative (We-Fi)

2.27

0.00

FY22

FY21

Australia

17.00

3.11

Corporations, Foundations, and NGOs

FY20

FY21

Austria

5.63

1.32

Rockefeller Foundation

25.00

0.00

Canada

0.00

3.98

Total

40.42

71.18

Denmark

2.65

3.28

France0.00

2.42

Germany

27.85

63.64

Hungary

0.00

10.00

Ireland

1.08

0.71

Japan

8.93

37.14

Korea, Republic of

0.00

9.00

Netherlands

1.08

21.09

Norway2.27

8.63

Sweden6.57

1.19

Switzerland

68.67

3.80

United Kingdom

0.51

10.11

Total

United States
Total

6.71

0.00

148.94179.42

Institutional/Multilateral Partners

FY22

FY21

European Commission (EC)

5.56

28.07

Global Environment Facility (GEF)

4.20

0.00

Global Infrastructure Facility (GIF)

1.77

3.08

Women Entrepreneurs Finance Initiative (We-Fi)

8.68

0.00

Total

20.21

31.15

Corporations, Foundations, and NGOs

FY22

FY21

Bill & Melinda Gates Foundation

1.00

0.00

Rockefeller Foundation

5.00

0.00

Total

6.00

0.00

IFC ANNUAL REPORT 2022

71

Funding

FY22 TOTAL BORROWINGCURRENCYAMOUNT (US$EQUIVALENT)%IFC raises funds in the international capital markets forprivate sector lending and to safeguard IFC’s triple-A
credit ratings by ensuring adequate liquidity.

U.S. dollar

USD

3,868,000,000

42.5%Australian dollar

AUD

1,652,917,600

18.2%

British pound

GBP

926,742,000

10.2%Issuances include benchmark bonds in core currencies
such as U.S. dollars, thematic issuances to promotestrategic priorities such as addressing climate change,
and issuances in emerging-market currencies tosupport the development of capital markets. Mostof IFC’s lending is denominated in U.S. dollars, but
we borrow in many currencies to diversify access tofunding, reduce borrowing costs, and encourage thegrowth of local capital markets.

New Zealand dollar

NZD

416,580,000

4.6%

Canadian dollar

CAD

400,320,256

4.4%

Kazakhstani tenge

KZT

226,445,877

2.5%

Chinese yuan
(Renminbi)

CNY

224,590,011

2.5%

Euro

EUR

202,905,123

2.2%

Hong Kong dollar

HKD

166,350,130

1.8%

Hungarian forint

HUF

160,327,027

1.8%Japanese yen

JPY138,544,454

1.5%

Mexican peso

MXN

107,120,278

1.2%

Uzbekistani so'm

UZS

103,816,836

1.1%

508,650,343

5.6%

9,103,309,935

100%

Other
Grand Total

72 IFC ANNUAL REPORT 2022

Financial Performance Summary
The overall market environment has a significant influence on IFC’s financial performance. The main elements of IFC’s net income and othercomprehensive income, and influences on the level and variability of net income and other comprehensive income from year to year are:
ELEMENTSSIGNIFICANT INFLUENCES

Net income:Yield on interest earning assets (principally loans)Market conditions including spread levels and degree of competition. Nonaccruals and recoveries of interest on loans formerly innonaccrual status, and income from participation notes on individual loans are also included in income from loans.

Liquid asset income

Realized and unrealized gains and losses on the liquid asset portfolios, in particular the portion of the liquid asset portfolio fundedby net worth, which are driven by external factors such as the interest rate environment and liquidity of certain asset classes
within the liquid asset portfolio.

Income from the equity investment portfolio

Global climate for emerging markets equities, fluctuations in currency markets and company-specific performance for equity
investments. Overall performance of the equity portfolio.

Provision for losses on loans, guarantees, and availablefor-sale debt securities

Risk assessment of borrowers, probability of default, loss given default, and expected balance at default considering prepayment
and disbursement assumption estimates as well as expected utilization rates.

Other income and expenses

Level of advisory services provided by IFC to its clients, the level of expense from the staff retirement and other benefits plans, theapproved and actual administrative expenses, and other budget resources.

Gains and losses on other non-trading financial
instruments accounted for at fair value

Principally, differences between changes in fair values of borrowings, excluding IFC’s credit spread and associated derivative
instruments and unrealized gains or losses associated with the investment portfolio including puts, warrants, and stock options,which in part are dependent on the global climate for emerging markets. These securities may be valued using internallydeveloped models or methodologies, utilizing inputs that may be observable or non-observable.

Other comprehensive income:Unrealized gains and losses on debt securities accounted
for as available-for-sale

Global climate for emerging markets, fluctuations in currency and commodity markets and company-specific performance, andconsideration of the extent to which unrealized losses are considered a credit loss. Debt securities may be valued using internallydeveloped models or methodologies, utilizing inputs that may be observable or non-observable.

Unrealized gains and losses attributable to instrumentspecific credit risk on borrowings at fair value under the
Fair Value Option

Fluctuations in IFC’s own credit spread measured against reference rate, resulting from changes over time in market pricingof credit risk. As credit spreads widen, unrealized gains are recorded, and when credit spreads narrow, unrealized losses
are recorded.

Unrecognized net actuarial gains and losses andunrecognized prior service costs on benefit plans

Returns on pension plan assets and the key assumptions that underlay projected benefit obligations, including financial
market interest rates, staff expenses, past experience, and management’s best estimate of future benefit cost changes andeconomic conditions.

IFC ANNUAL REPORT 2022

73

IFC reported a net loss of $464 million in FY22,
primarily driven by lower treasury income as aresult of sharply rising yields for U.S. Treasuries
since January 2022. In comparison, IFC’s net
income of $4.2 billion in FY21 had a substantial
component of unrealized gains on investments
of $3.3 billion, when the markets reboundedpost the immediate effect of COVID-19. The$4.7 billion decrease in FY22 when compared to
FY21 was principally a result of the following:

Change in Net Income in FY22 vs FY21 (US$ MILLIONS)
1,000

174
0

(1,000)(2,000)143(3,000)(3,167)(338)(4,000)(858)(5,000)

46

72

(745)

(4,673)(6,000)EquityIncomeUnrealized
Total
Gains onIncomeEquityfrom Loans
Investments and Debt
Securities*

Provisionfor Losses
on Loans
and Debt
Securities

Unrealized
Gains onLoans and
Debt
Securities

Net
Administrative Others**
Treasury Expenses &Income*Pensions

Change in
Net Income* Total income from loans and debt securities and net treasury income are net of allocated charges on borrowings.
** Others mainly represents foreign exchange gains/losses, unrealized gains/losses on borrowings (net of swaps), service fees, and net advisory
service expenses.

74 IFC ANNUAL REPORT 2022

Equity investment portfolio returned $208 million in
FY22 compared to $3.2 billion in FY21. The FY22 return
comprised dividends ($183 million), realized gains onsales ($642 million) and unrealized losses ($617 million).
Net unrealized losses were $617 million in FY22 mainly
due to reclassifying gains from unrealized to realized
upon sales and to a lesser extent driven by valuation
changes, as compared to unrealized gains of $2.6 billion
in FY21 when the markets rebounded post theimmediate effect of COVID-19.
Net income from loans, debt securities and associatedderivatives was $1.1 billion in FY22 as compared
to $2.2 billion in FY21. IFC recorded a provision of$140 million in FY22 compared to a release of provisionof $198 million in FY21. The provision in FY22 comprised:(1) a qualitative overlay of $135 million for estimatedprovisions due to the impact of the war in Ukraine
and other compounding global crises which have notyet been reflected in the model calculated reservesand cannot be directly attributed to any individual
borrowers; (2) a release of the previous qualitative
overlay of $40 million related to COVID-19; and (3)a provision for individual and portfolio losses of$45 million. Net unrealized losses on loan and debt
securities were $123 million, as compared to unrealized
gains of $735 million in FY21, reflecting a reversal of
unrealized gains on debt securities of $197 million
when it was reclassified from debt security to equity
investment upon its IPO in FY22 Q1 and widening of theCredit Default Swap (CDS) spreads in FY22.
IFC reported a loss of $521 million on liquid assets
in FY22, net of allocated charges on borrowings,
compared to an income of $224 million in FY21. The
FY22 net loss was mainly driven by sharply rising yields
for U.S. Treasuries since January 2022. FY21 income
benefited from the significant tightening of credit
spreads which was not repeated in FY22.
Administrative and pension expenses decreased by$46 million from $1.41 billion in FY21 to $1.36 billion
in FY22 mainly due to decrease in pension expenses
of $93 million, primarily driven by the higher asset
return in FY21, which resulted in lower amortization of
unrecognized actuarial losses during FY22. The lower

pension expenses were partially offset by a $47 million increase in administrative expenses primarily from higher
travel costs and support fees.
IFC’s net (loss) income for each of the past three fiscal years is presented below:

IFC’s Net (Loss) Income FY20–FY22
Fiscal year ended June 30 (US$ millions)
2020
2021
2022

(1,672)
4,209
(464)

IFC uses Income Available for Designations (a non-U.S. GAAP measure) as a basis for designations of retained
earnings. Income Available for Designations generally comprises net income excluding unrealized gains and losses
on investments and borrowings1 and grants to IDA.

Reconciliation of reported Net (Loss) Income to Income
Available for Designations(US$ MILLIONS)Net (loss) income

$

FY22

FY21

FY20

(464)

$ 4,209$ (1,672)

Adjustments to reconcile Net (loss) income to Income Available
for Designations
Unrealized losses (gains) on investments
Unrealized losses (gains) on borrowings
Grants to IDA
Income available for designations

740(3,285) 		2,026

106(71) 		218

		– 		213 		–$382$ 1,066$572

1. Unrealized gains and losses on investments and borrowings presented in the table above includes unrealized gains and losses fromassociated derivatives.

IFC ANNUAL REPORT 2022

75

Summary of Financial Results(US$ MILLIONS)AS OF AND FOR THE FISCAL YEARS ENDED JUNE 30

2022

2021

2020

1,116

$ 1,510

Consolidated income highlights:
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives

$

1,156

$

(Provision) release of provision for losses on loans, off-balance sheet credit exposures and other receivables

		 (126) 		 201 		(638)Income (loss) from equity investments and associated derivatives

		 208 		3,201 		(1,067)

Income from debt securities, including realized gains and losses on debt securities and associated derivatives

		 414 		 340 		231

Provision for losses on available-for-sale debt securities

		(Loss) income from liquid asset trading activities

		 (413) 		 327 		1,039(14) 		

(3) 		 –

Charges on borrowings

		 (302) 		 (326) 		(1,181)

Other income		 419 		 595 		559

Other expenses

		(1,653) 		(1,687) 		(1,628)

Foreign currency transaction gains (losses) on non-trading activities		76 		 (148) 		144

(Loss) income before net unrealized gains on non-trading financial instruments accounted for at fair value
and grants to IDA

		 (235) 		3,616 		(1,031)

Net unrealized (losses) gains on non-trading financial instruments accounted for at fair value		 (229) 		 806 		(641)(Loss) income before grants to IDA

		 (464) 		4,422 		(1,672)

Grants to IDA		

Net (loss) income$– 		 (213) 		 –
(464)

$

4,209

$ (1,672)

Consolidated balance sheet highlights:
Total assets$ 99,010$ 105,264

Liquid assets portfolioa

		41,717 		41,696

Investments

		44,093 		44,991

Borrowings outstanding, including fair value adjustments
Total capital		48,269 		55,699$ 32,805$ 31,244$ 10,840$ 11,395

of which
Undesignated retained earnings
Designated retained earnings

		 298 		 207

Accumulated other comprehensive (loss) income (AOCI)		

Paid-in capital		21,749 		20,760

a. Net of securities sold under repurchase agreements, payable for cash collateral received and associated derivatives.

76 IFC ANNUAL REPORT 2022(82) 		(1,118) 		

Key Financial Ratios

COMMITMENTS(US$ IN BILLIONS, EXCEPT RATIOS)

2022

2021

a

111%

114%

Debt-to-equity ratiob

1.6

2.1

4.4%

4.9%

Capital availabled

32.5

30.7

Capital requirede

20.1

20.5

62.0%

66.6%

Overall liquidity ratio

Total reserve against losses on loans to total disbursed portfoliocCapital measures:

Capital Utilization Ratiofa. Overall Liquidity Policy states that IFC would at all times maintain a minimum level of liquidity, plus
undrawn borrowing commitments from the IBRD, such that it would cover at least 45 percent of thenext three years’ estimated net cash requirements.

Long-Term Finance Commitments comprise Own
Account and Core Mobilization and totaled $23.2 billion
in FY22, a decrease of $140 million or 1 percent from
FY21. IFC’s FY22 Long-Term Finance Own AccountCommitments were $12.6 billion ($12.5 billion in FY21)
and Core Mobilization was $10.6 billion ($10.8 billion
in FY21). Short-Term Finance Commitments were
$9.7 billion in FY22, as compared to $8.2 billion at FY21.
Total program delivery (LTF and STF) was $32.8 billion
in FY22 as compared to $31.5 billion in FY21.

b. Debt-to-equity (leverage) ratio is defined as outstanding borrowings plus committed guarantees divided
by total capital (comprised of paid-in capital, retained earnings and Accumulated other comprehensiveloss). The definition of debt-to-equity ratio (leverage ratio) was updated effective FY22 Q1 (the threemonth period ended September 30, 2021) in line with the updates to IFC’s capital adequacy framework.
As a result, the debt-to-equity ratio as of June 30, 2022 is not directly comparable to prior years. The
debt-to-equity ratio under the updated definition as of June 30, 2021 would have been 1.9. For additional
information regarding IFC’s new Economic Capital (EC) Framework, see Section I Executive Summary.

In direct response to the COVID-19 pandemic, IFC
committed $5.3 billion in FY22 including $1.6 billion
under its Fast Track COVID-19 Facility in supportof IFC’s existing clients. Outside of the facility, IFC
committed $3.7 billion in financing to support clientsin response to COVID-19. In FY21, IFC committed$2.3 billion under the Fast Track COVID-19 Facility andadditional $8.5 billion outside of the facility.

c. Total reserve against losses on loans to total disbursed loan portfolio is defined as reserve against losses
on loans as a percentage of the total disbursed loan portfolio.

CORE MOBILIZATION

d. Capital available: Under IFC’s economic capital framework, resources available to absorb potential
losses, calculated as: Balance Sheet Capital less Designated Retained Earnings.
e. Capital required: Aggregate minimum Economic Capital required to maintain IFC’s AAA rating.
f. Starting in the three months ended September 30, 2021 (FY22 Q1), IFC uses CUR, defined as (Capital
Required divided by Capital Available), as a measurement of capital adequacy under IFC’s updated
capital adequacy framework. The CUR replaces the previous Deployable Strategic Capital (DSC) ratio.
CUR and DSC ratio have a one-to-one mapping expressed as (CUR = 90% – DSC ratio). For additional
information regarding IFC’s new EC Framework, see Section I Executive Summary.

Core Mobilization is financing from entities other thanIFC that becomes available to clients due to IFC’s direct
involvement in raising resources.

Long-Term Finance Commitments (Own Accountand Core Mobilization) and Short-Term Finance(US$ MILLIONS)

FY22

FY21

Long-Term Finance Commitments (Own Account andCore Mobilization) and Short-Term Finance$ 32,824$ 31,500

Long-Term Finance Own Account Commitments

		12,569

		12,474

Core Mobilization

		10,596

		10,831

Short-Term Finance Commitments

		9,659

		8,195

IFC ANNUAL REPORT 2022

77

Asset Management Company (AMC)
Funds Managed by AMC
THROUGH JUNE 30, 2022
TOTAL FUNDS RAISEDSINCE INCEPTION(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30, 2022

TOTAL

FROM IFC

FROM
OTHER
INVESTORS

505

$ 150

$ 355

CUMULATIVEINVESTMENTCOMMITMENTSa

INVESTMENTCOMMITMENTS
MADE BY FUNDb

INVESTMENTDISBURSEMENTS
MADE BY FUND

Investment Period
IFC Financial Institutions Growth Fund, LP (FIG Fund)$IFC Emerging Asia Fund, LP (Asia Fund)
Investment Period Total

$ 347

$ 90

$138

693

150

543

559

187

197

1,198

300

898

906

277

335

1,275

775

500

1,214

–

–

Post Investment Period
IFC Capitalization (Equity) Fund, LP (Equity Capitalization Fund)IFC Capitalization (Subordinated Debt) Fund, LP (Sub-Debt Capitalization Fund)

1,725

225

1,500

1,614

–

–

IFC African, Latin American and Caribbean Fund, LP (ALAC Fund)

1,000

200

800

864

–

–

418

75

343

363

–

7

929

–

–

IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund (Japan),LP (collectively, Catalyst Funds)
IFC Global Infrastructure Fund, LP (Global Infrastructure Fund)

1,430

200

1,230

IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging
Markets Fund of Funds (Japan Parallel), LP (collectively, GEM Funds)

800

150

650

757

–

117

Women Entrepreneurs Debt Fund, LP (WED Fund)

115

30

85

110

–

–

C

162

60

102

82

4

13

China-Mexico Fund, LP (China-Mexico Fund)IFC Middle East and North Africa Fund, LP (MENA Fund)

1,200

–

1,200

362

47

47

Post Investment Period Total

8,125

1,715

6,410

6,295

51

184

Africa Capitalization Fund, Ltd. (Africa Capitalization Fund)

182

–

182

130

–

–

IFC Russian Bank Capitalization Fund, LP (Russian Bank Cap Fund)

550

250

300

82

–

–

Liquidated Funds

Liquidated Funds Total
Grand Totala.		Net of commitment cancellations.
b. Excludes commitment cancellations from prior periods.
c. Includes co-investment fund managed by AMC on behalf of Fund LPs.

78 IFC ANNUAL REPORT 2022

732

250

482

212

–

–

$10,055$2,265$7,790$7,413$328$519

Asset Management Company (AMC)
Funds Managed by AMC
THROUGH JUNE 30, 2021
TOTAL FUNDS RAISEDSINCE INCEPTION(US$ MILLIONS)FOR THE YEAR ENDED JUNE 30, 2021

TOTAL

FROM IFC

FROM
OTHER
INVESTORS

505

$ 150

$ 355

CUMULATIVEINVESTMENTCOMMITMENTSa

INVESTMENTCOMMITMENTS
MADE BY FUNDb

INVESTMENTDISBURSEMENTS
MADE BY FUND

Investment Period
IFC Financial Institutions Growth Fund, LP (FIG Fund)

$

$ 259

$ 81

$ 45

IFC Middle East and North Africa Fund, LP (MENA Fund)

162

60

102

78

12

7

IFC Emerging Asia Fund, LP (Asia Fund)

693

150

543

374

203

127

1,360

360

1,000

711

296

179

Investment Period Total

Post Investment Period
IFC Capitalization (Equity) Fund, LP (Equity Capitalization Fund)

1,275

775

500

1,214

–

–

IFC Capitalization (Subordinated Debt) Fund, LP (Sub-Debt Capitalization Fund)

1,725

225

1,500

1,614

–

–

IFC African, Latin American and Caribbean Fund, LP (ALAC Fund)

1,000

200

800

876

–

2

IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund (Japan),LP (collectively, Catalyst Funds)
IFC Global Infrastructure Fund, LP (Global Infrastructure Fund) C
IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging
Markets Fund of Funds (Japan Parallel), LP (collectively, GEM Funds)
Women Entrepreneurs Debt Fund, LP (WED Fund)

418

75

343

363

–

24

1,430

200

1,230

929

–

–

800

150

650

757

–

112

115

30

85

110

–

–

China-Mexico Fund, LP (China-Mexico Fund)

1,200

–

1,200

350

30

17

Post Investment Period Total

7,963

1,655

6,308

6,213

30

155

Africa Capitalization Fund, Ltd. (Africa Capitalization Fund)

182

–

182

130

–

–

IFC Russian Bank Capitalization Fund, LP (Russian Bank Cap Fund)

550

250

300

82

–

–

Liquidated Funds

Liquidated Funds Total
Grand Total

732

250

482

212

–

–

$10,055$2,265$7,790$7,136$326$334

a.		Net of commitment cancellations.
b. Excludes commitment cancellations from prior periods.
c. Includes co-investment fund managed by AMC on behalf of Fund LPs.

IFC ANNUAL REPORT 2022

79

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