IFC
Financial Institutions Group (FIG)

EquityIndustry Context

IFC Strategy and Portfolio

Companies need risk capital to succeed andIFC invests directly in companies’ and financial institutions’grow, but equity remains scarce in mostequity and also through private equity funds. IFC encourages

emerging markets. Over the last few years, thecompanies it invests in to broaden share ownership through public

macroeconomic environment for equity investing

listings, thereby deepening local capital markets. FIG’s equity

has shifted substantially, with higher-for-longer

strategy supports climate change, digital transformation, andinterest rates and inflation figures, as well as

financial inclusion, and plays a key role in mobilizing equity from

intensified geopolitical risks and increased volatility

other investors. FIG’s equity investments encompass all regions

spurring trade and investment restrictions. Byand include commercial banks, non-banking financial institutions,providing equity to its investees, IFC is providing

microfinance institutions, and insurance companies. FIG equity

long-term capital that is not only catalyzing theirinvestments in financial institutions have largely been in transition

growth and the development of the sector, it iseconomies with bank privatizations and transformations, crisis

also entering into a partnership that allows IFC toresponse investments, and with a focus on financial inclusion. IFC isinfluence and advance ESG principles and higher

increasingly prioritizing equity investments as central to the WBG’sstandards.

broader efforts to meet the Sustainable Development Goals.

FIG’s Equity Investments(as of end-June 2024)

Current Equity Portfolio: $2.9 billion(Total own-account commitments: $12.8 billion since 1999)

World(Global)$561m
Europe$113m
Middle East, Central
Asia & Türkiye$108m

Latin America& Caribbean$387m

East Asia & Paciﬁc$383m

South Asia
$1bAfrica$256m

Project Examples
FEDERAL BANK (INDIA)

THAI CREDIT BANK (THAILAND)

India’s micro, small, and medium enterprises (MSMEs) are

The financing gap for MSMEs in Thailand is estimated at

critical drivers of growth, production, and job creation,

approximately $40 billion, or 10% GDP and around $25

making them essential to the country’s sustainable socio-billion for WMSMEs. Thai Credit Bank is the only Thai bankeconomic development and inclusive growth. Federal Bank

that focuses on underserved segments in Thailand. IFC

Limited (FBL) is the seventh-largest private sector bankmade an equity investment of $30 million as a cornerstone

in India by assets and has a pan-India branch network ofinvestor in an Initial Public Offering (IPO) of TCB. TCB will

1,355 branches, with 65 percent of branches in semi-urban

continue leveraging its extensive local networks to growand rural India. IFC invested primary equity in FBL forits outstanding loans to MSMEs. The project will be aapproximately $100 million equivalent. The primary equity

continuation of IFC’s systematic efforts to promote financial

will strengthen the Bank’s Tier 1 capital adequacy ratio,inclusion in Thailand and signal confidence in TCB’s inclusive

which will allow it to accelerate its lending. The investment

business model. IFC’s cornerstone participation mobilized

will support the Bank’s commitment to financial inclusion$184 million in third party private funding and crowded

and operationalize its strong commitment to sustainability

in other investors to further support the Bank’s strategy

and climate finance. The project will complement IFC’s

focusing on MSMEs, digitalization and sustainable finance.

ongoing digital advisory engagement with FBL to continue
to focus on building its digital capabilities.
VASTU AFFORDABLE HOUSING (INDIA)PVI (VIETNAM)

India faces a significant massive shortage of affordable
housing units as well as affordable housing finance. IFC

Given the low penetration and modest density, Vietnam’s

invested $40 million in Vastu Housing Finance Corporation

non-life insurance gap remains large in comparison with

Limited (Vastu), a non-banking financial company – housing

other emerging market economies. PVI Holdings (PVI) isfinance company, which provides affordable housing financethe largest non-life insurance company in Vietnam and 35

to lower and middle-income segments and loans against

percent owned by PetroVietnam, the largest state company

properties (LAP) to MSMEs in India. IFC’s investment willwholly owned by the Vietnamese government. IFC’s equity

aid Vastu in further capitalizing the pick-up in credit growthinvestment furthers IFC’s programmatic approach toin the affordable housing segment. IFC’s investment will

strengthening corporate governance practices in Vietnam

also help Vatsu offer green affordable housing loans toand contributes to the government’s effort to reform

its customers, enhance their micro-housing and gender

the SOE sector. IFC will introduce corporate governanceofferings, and improve their environmental and social (E&S)

initiatives that will lead to improvements and strengthening

and climate risk governance. IFC’s support to Vastu as aof the overall decision-making process, risk management,

stable long-term equity investor sends a strong positive

and operation at PVI.

signal to the market and demonstrates confidence in thecompany.

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