dfc.gov │ 1

Table of Contents

Our First Year......................................................................................................2

Confronting a Global Pandemic......................................................................6

Maximizing Our Development Impact..........................................................8

Tracking Our Progress: Our First-Year Impact.......................................9

Advancing American Foreign Policy........................................................... 14

Data and Transparency.................................................................................. 16

2020 Investment Activities .......................................................................... 30

2020 Portfolio Company Investments ................................................. 38

Financial Statements...................................................................................... 40


4 │ 2020 Annual Report

Technical Support

DFC’s new authority to provide grants for feasibility 

studies and technical assistance enabled it to support the 

development of potential DFC projects and increase the 

impact of existing DFC investments.

Expanding access to sanitation in Kenya. Two billion 

people worldwide lack adequate sanitation, which is a 

major cause of disease. In Kenya, Sanergy introduced 

a series of modern toilets in the slums of Nairobi that 

process waste to eliminate pathogens. Sanergy then uses 

the waste as feedstock for fly larvae, which are sold as 

animal feed, with the remaining waste composted to create 

fertilizer. 

Sanergy has introduced more than 3,000 toilets in and 

around Nairobi, serving more than 120,000 people daily. 

DFC’s technical assistance and feasibility study support will 

help the business produce and sell more feed and fertilizer, 

develop additional products, and analyze the possible 

expansion of the company’s operations to other parts of 

Kenya and other countries in Africa.

Major Infrastructure Projects to Support 

Growing Development Needs

With $60 billion in investing capacity and authority, DFC 

supported several major infrastructure projects that will be 

transformational to the host country. 

Developing Mozambique’s natural gas resources. In 

Mozambique, one of many low-income countries that 

lacks investment to develop its resources, DFC approved 

up to $1.5 billion of political risk insurance to support the 

commercialization of natural gas reserves. The project 

has the potential to transform Mozambique into a major 

energy exporter, increasing its GDP by an average of $15 

billion per year.

A Commitment to Early-Stage 

Social Enterprises 

Some of the most innovative and promising solutions to 

persistent development challenges come from early-stage 

enterprises that are especially challenged to access the 

capital they need to introduce a new product or service. 

In 2020, DFC launched the Portfolio for Impact and 

Innovation (PI2) to expand support for these early-stage 

enterprises. PI2 will invest up to $10 million per project in 

early-stage ventures that support development in many of 

the world’s most underserved communities by improving 

access to services such as clean water, healthcare, 

education, financial services, and technology.

Improving food value chains in Africa. Twiga, a six-yearold small business supported with DFC financing through 

the PI2 program, is working to build a modern and more 

efficient food distribution system in Kenya and other 

African countries. Twiga purchases fresh produce from 

rural farms and transports it to urban vendors, improving 

access to healthy food, reducing food waste, and increasing 

earnings for both the farmers who grow it and the vendors 

who sell it. The project also advances DFC’s 2X Women’s 

Initiative by connecting female farmers, who make up 

nearly half of the agricultural labor force in many African 

countries, with formal markets. The project also helps a 

network of mostly female produce vendors increase 

sales and profits.

A new team of regional advisors in

Africa will work to drive investment 

on the continent.

Partnering with USAID to Expand 

Access to Credit

DFC’s Mission Transaction Unit works with a network of 

USAID liaisons to identify credit challenges in developing 

countries and underwrite guaranties with local banks. 

These projects encourage banks to lend to projects likely 

to have a strong positive impact by sharing risk.

Expanding credit to small businesses in the Sahel. Africa’s 

Sahel region south of the Sahara Desert is home to many 

of the world’s least developed countries. In one of the first 

projects approved through the new Mission Transaction 

Unit, a DFC guaranty together with a grant from USAID, 

is helping the nonprofit Cordaid Foundation lend to 

small and medium enterprises (SMEs) in Burkina Faso, 

Guinea, Mali, and Sierra Leone. The project is expected to 

support at least $37 million in loans to 50 SMEs and eight 

microfinance institutions by 2025, supporting 2,100 new 

jobs and 8,000 microentrepreneurs. 








dfc.gov │ 13

A Bold Commitment to Food Security

Hunger and malnutrition in many parts of the developing 

world results not only from insufficient food production 

but also weak value chains. DFC’s new Food Security 

Transaction Unit will focus on investing in agriculture; 

infrastructure such as food storage and processing; and 

essential inputs such as equipment, seeds and fertilizer. 

Protecting farmers from natural disasters. A DFC loan will 

help the InsuResilience Investment Fund provide insurance 

to support some of the millions of people in developing 

countries who are pushed into poverty each year 

because of natural disasters. Managed by BlueOrchard, 

InsuReslience will help financial institutions develop 

insurance products for micro, and small and medium 

enterprises; smallholder farmers; and other climatevulnerable and poor populations in developing countries. 

This will help millions mitigate losses caused by extreme 

weather and other natural disasters.

Distributing seeds. Political risk insurance is supporting the 

expansion of Zambia Seed Company, which produces and 

distributes seeds to farmers in Zambia and across subSaharan Africa.

Investing in dairy farmers. In India, financing and technical 

assistance is helping Milk Mantra expand its business 

sourcing milk from more than 60,000 smallholder 

farmers and selling milk, cheese and other dairy products 

throughout eastern India. Milk Mantra will also provide 

training to farmers, health services to cattle, and digital 

financial services to small rural farmers, with a strong focus 

on reaching female farmers.

DFC’s new Food Security unit is 

investing to combat hunger 

and malnutrition.

Partnering to increase global food supply. The Global 

Nutrition Alliance is a collaborative new initiative aiming 

to mobilize $100 million in private-sector investment to 

reduce malnutrition in developing countries, with a strong 

focus on reaching women and children. Under the alliance, 

DFC and the Eleanor Crook Foundation will mobilize their 

collective resources to improve global food supply.

*

*Information has temporarily been redacted, including to protect the safety of implementing partners.
16 │ 2020 Annual Report

Data and Transparency

Outreach to Minority-Owned and 

Women-Owned Businesses

Ownership Type Amount of Insurance & Financing to DFC 

Projects Supported 

U.S. Minority-Owned Businesses2 $53.1 million

U.S. Women-Owned Businesses3 $250 million

Vendor Procurement DFC FY2020 Actual U.S. Government FY2020 Goals4

U.S. Small Business5 62% 23%

U.S. Disadvantaged Business6 12% 5%

Women-Owned Businesses 15% 5%

22 U.S.C. § 9621(i)(2) 

“(A)(i) the amount of insurance and financing provided by the Corporation to [minority-owned and women-owned] businesses 

in connection with projects supported1 by the Corporation;”

22 U.S.C. § 9621(i)(2)

“(A)(ii) the involvement of [minority-owned and women-owned] businesses in procurement activities conducted or supported 

by the Corporation.”

1 “Projects supported” for the purposes of 22 U.S.C. § 9621(i)(2) is defined as finance commitments and insurance contracts executed in fiscal year 2020.

2 “Minority-owned businesses” are businesses owned or controlled by someone from the following group: African Americans, Hispanic Americans, Native Americans, Alaska Native 

Corporations, Indian Tribes, Native Hawaiian Organizations and Community Development Corporations, Asian Pacific Americans, and Subcontinent Asian Americans; individuals 

who are not members of one or more of these groups can be considered minority, but they must provide substantial evidence and documentation that demonstrates that they 

have been subjected to bias or discrimination and are economically disadvantaged.

3 “Women-owned businesses” are a business that is at least 51% controlled by one or more women, who are U.S. citizens.

4 See https://www.sba.gov/sites/default/files/2020-05/FY20_Small_Business_Goaling_Guidelines_Draft_2020.pdf

5 “U.S. small business” is defined by the Small Business Administration as: 1) an enterprise with revenues of less or equal to $500 million or less or equal to 500 employees or 2) an 

individual with net worth less than $100 million; the value reported above includes U.S.-based fund managers.

6 “U.S. Disadvantaged businesses” are at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals including African Americans, 

Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans and Native Americans; other individuals can qualify if they show by a preponderance of the evidence 

that they are disadvantaged. All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence.
dfc.gov │ 17

Economic and Social Development Impact

Complementary and Coordinated 

Development Activities

22 U.S.C. § 9653(a)(1) “the economic and social development impact, ... of projects supported by the Corporation.”

DFC supported projects7 are evaluated by the DFC using its new performance measurement tool, the Impact Quotient (IQ). 

The IQ tool measures prospective and actual impact throughout the life of the project by analyzing project-specific metrics 

spanning economic growth, innovation, and inclusion. Using the IQ tool, DFC assesses developmental impact of the project 

as either highly developmental, developmental, or indeterminant.8 In FY2020, DFC assessed 61 projects9 totaling over $6.5 

billion10, 43 of which were categorized as Highly Developmental and 18 of which were categorized as Developmental. During 

this reporting period, no projects were assessed as Indeterminant.

For more detail See table under Developmental Outcomes reporting for 22 U.S.C. § 9653(b)(1)(A).

22 U.S.C. § 9653(a)(2) the extent to which the operations of the Corporation complement or are compatible with the 

development assistance programs of the United States and qualifying sovereign entities;

To facilitate a holistic approach to development finance, DFC has made progress towards ensuring that its operations 

complement the development assistance programs of other U.S. Government (USG) departments and agencies, in addition 

to development finance institutions (DFIs), international financial institutions (IFIs), and other sovereign entities. Yet there 

is more progress to be made. DFC is an active participant in USG initiatives such as Prosper Africa and Power Africa, and 

the Corporation has strengthened strategic relationships with other DFIs and IFIs. Examples of how the operations of DFC 

complements USG development programs, as well as other sovereign entities, to ensure a coordinated approach include the 

following: 

ORIGINATING DEALS IN THE FIELD

DFC coordinates directly with USAID missions and their designated DFC liaisons worldwide through DFC’s Mission Transaction 

Unit—composed of staff from USAID’s former Development Credit Authority—to originate and operationalize deals in the 

field. DFC is active, alongside, the Departments of State and Commerce in supporting each U.S. embassy’s “Deal Team.” In 

addition, DFC is a member in the State-Commerce-led DC Central Deal Team, which aims to identify potential investment 

opportunities for coordinated U.S. Government support in developing countries. 

ORCHESTRATING RESPONSE TO COVID-19 PANDEMIC

In response to COVID-19, DFC proactively coordinates with USG agencies and regional development banks, as well as DFIs 

of other countries—grouped under the DFI Alliance11 of which DFC is a member—to bring liquidity to the market, support 

companies impacted by the virus, and promote new investment in global health, safety, and economic sustainability. For 

example, DFC, in partnership with the Dutch development finance institution FMO, established the DFC-MASSIF COVID-19 

Response Co-Financing Facility. This first of its kind facility will provide loans for micro, small, and medium-sized enterprises 

in some of the toughest markets facing COVID-19.

7 “Projects” for the purposes of 22 U.S.C Ş9653(a)(1) and (3) is defined as finance commitments and contracts executed in fiscal year 2020, excluding sub-projects of frameworks, 

facilities and investment funds, and projects originated under OPIC that received additional support or workouts. This is to avoid the double-counting of impacts that have 

already been assessed and reported at the framework, facility, and investment fund level or in a prior fiscal year. The impacts from projects that receive more than one form of 

DFC support in the same fiscal year are reported once. 

8 Impact Quotient’s score range is 0-150: Projects that receive a score of 112.5 or higher are categorized as Highly Developmental, projects that score 37.5 or higher are 

categorized as Developmental and projects below 37.5 are categorized as indeterminant. 

9 See footnote 7

10 The $6.5 billion figure includes one project where an estimated $2.4 billion of insurance coverage is expected over the life of the master insurance contract.

11 DFI Alliance: DFC, FinDev Canada, and the Association of European Development Finance Institutions (EDFI*), currently counting 15 “bilateral” member institutions within the 

field of development finance for the private sector in emerging and frontier markets, formed the “DFI Alliance” in 2019 as a framework for their active cooperative engagement. 

These DFIs all hold high standards for corporate governance, sustainability and impact management, and seek to act as role models for other investors.
18 │ 2020 Annual Report

INCREASING COMPATIBILITY WITH DFIS

DFC’s authorities and initiatives enhance compatibilities with other entities. Notably, the equity authority enables DFC to 

participate in DFI- and IFI-backed equity funds. As a result, DFC consulted with other DFIs regarding their use of equity to 

advance future opportunities. In addition, DFC’s 2X Women’s Initiative has inspired DFIs around the globe to collaborate 

through the 2X Challenge, together catalyzing more than $4.5 billion of investment in the world’s women to date. 

HARMONIZING APPROACH TO MEASURING IMPACT

DFC’s metrics are aligned with the Harmonized Indicators for Private Sector Operations (HIPSO) and/or IRIS+ measuring 

system managed by the Global Impact Investing Network (GIIN) and DFC follows the International Finance Corporation’s 

performance standards. The Department of State, through U.S. Embassies and Consulates, assists DFC with project-vetting, 

diplomatic engagement, and ad-hoc reporting on project outcomes. And DFC will continue to coordinate with USAID to 

leverage its global presence and technical expertise to assist in monitoring DFC-funded transactions, which enables DFC to 

provide a deeper level of monitoring of its development impact.

Linkages with U.S. Government

22 U.S.C. § 9653(a)(3) the Corporation’s institutional linkages with other relevant United States Government 

department [1] and agencies, including efforts to strengthen such linkages;

Over the course of DFC’s first year, the Corporation established formal relationships, routine high-level interagency 

briefings, blended finance mechanisms, and training modules on DFC’s products for the interagency to strengthen 

institutional linkages and to ensure greater cross-fertilization on development. Furthermore, in June 2020, DFC launched 

the Development Finance Coordination Group (DFCG) to bring working-level officials from the interagency together on a 

monthly basis to identify ways to strengthen and operationalize better interagency collaboration.12 Examples of ways DFC 

has strengthened its institutional linkages with the interagency include the following: 

ADVANCING USG DEVELOPMENT INITIATIVES

DFC is a critical partner of the Prosper Africa, Power Africa, Asia EDGE, and America Crece initiatives, with DFC’s CEO serving 

as the Executive Chairman of Prosper Africa. USAID is funding Power Africa, Prosper Africa and Food Security deals teams 

at DFC that will advance the agencies’ mutual trade and development goals. For example, DFC’s Prosper Africa Deal unit will 

underwrite and execute transactions that will advance Prosper Africa, an all-of-government initiative to increase investment 

between the U.S. and Africa. The deal teams will complement DFC’s new team of regional investment advisors in Africa, 

funded by the Department of State. 

EMPOWERING ENTREPRENEURS IN AFRICA WITH USADF

DFC and the U.S. African Development Foundation (USADF) announced a program to promote investments in technology, 

innovation, and entrepreneurial solutions in African countries. USADF and DFC are currently designing the program, which 

combines DFC’s financing tools (loans between $50,000 and $500,000) with USADF’s grants ($10,000 to $100,000) and on 

the ground presence to help build a pipeline of transactions among entrepreneurs focused on technology and innovation in 

low-income countries.

CATALYZING INVESTMENTS WITH MCC

The Millennium Challenge Corporation (MCC) and DFC announced a formal blended finance mechanism called the American 

Catalyst Facility for Development. DFC and MCC are working to operationalize the new mechanism which is designed enable 

coordinated catalytic investments aimed at crowding-in the private sector and maximizing the overall impact of the USG 

development efforts, thereby furthering American strategic interests abroad. MCC has committed to a portion of its compact 

and threshold funding to directly support DFC transactions. 

12 DFCG members: Export-Import Bank of the United States; Millennium Challenge Corporation; U.S. Agency for International Development; U.S. African Development 

Foundation; U.S. Department of Agriculture; U.S. Department of Commerce; U.S. Department of Defense; U.S. Department of Energy; U.S. Department of Labor; U.S. 

Department of State; U.S. Department of Treasury; U.S. Environmental Protection Agency; U.S. International Development Finance Corporation; U.S. Office of Management and 

Budget; U.S. Trade and Development Agency; and U.S. Trade Representative
dfc.gov │ 19

SUPPORTING USG FOREIGN SERVICE OFFICERS

DFC developed a Foreign Service Development Finance Fellows program, in coordination with USAID and the Department of 

State. The one to three-year fellowship will enable USAID and State Foreign Service Officers develop deal origination skills; 

once complete, fellows will assume positions as Deal Team leaders in posts around the world. 

Environmental and Social Compliance of 

Supported Projects 

22 U.S.C. § 9653(a)(4) “the compliance of projects supported13 by the Corporation under subchapter II of this chapter with 

human rights, environmental, labor, and social policies, or other such related policies that govern the Corporation’s support 

for projects, promulgated or otherwise administered by the Corporation.”

DFC identified one project supported by the corporation out of compliance with human rights, environmental, labor, and 

social policies, or other such related policies.

A corrective action was required, and the project engaged with a third-party auditor to review the identified issues. The action 

was completed, and the project is now in compliance.

Developmental Outcomes

22 U.S.C. § 9653 (b)(1)(A) “the desired development outcomes for projects and whether or not the Corporation is meeting 

the associated metrics, goals, and development objectives, including, to the extent practicable, in the years after conclusion 

of projects;”

22 U.S.C. § 9653 (b)(3)projections of—(A)development outcomes, and whether or not support for projects are meeting 

the associated performance measures, both during the start-up phase and over the duration of the support, and to the 

extent practicable, measures of such development outcomes should be on a gender-disaggregated basis, such as changes 

in employment, access to financial services, enterprise development and growth, and composition of executive boards and 

senior leadership of enterprises receiving support under subchapter II of this chapter;

The Table below provides the projected economic and social development impact of the projects14 the DFC committed to 

support in FY 2020, the projected economic and social development impact of DFC’s active projects15, and Actual Impacts as 

the data becomes available in future years. 

13 “Projects supported” for the purposes of 22 U.S.C. § 9653(a)(4) is defined as finance commitments and insurance contracts executed in fiscal year 2020.

14 There is no data yet available for actual impacts of DFC supported projects, as projects do not become eligible for development impact data collection until one year after first 

disbursement or one year after contract execution.

Indicator Definition Impact Projections of 

FY20 COMMITTED 

DFC Supported 

Projects (by year 5) 

(Fiscal Year Aggregate)

Impact Projections 

of ACTIVE DFC 

Supported 

Projects (Portfolio 

Aggregate)

Actual Impact of 

DFC Supported 

Projects14 

(Portfolio 

Aggregate)

ECONOMIC GROWTH PILLAR

Factors of 

Production

Increase or improvements in 

physical infrastructure and critical 

inputs to economic growth, such 

as energy, roads, ports, ICT, oil 

and gas, critical minerals

» 6,671 Gwh of energy 

to be produced per 

year

» 1,187 Gwh 

of energy to be 

produced per year

NA

» 15,200 km of fiber 

optic cable to be 

installed

NA
20 │ 2020 Annual Report

Indicator Definition Impact Projections of 

FY20 COMMITTED 

DFC Supported 

Projects (by year 5) 

(Fiscal Year Aggregate)

Impact Projections 

of ACTIVE DFC 

Supported 

Projects (Portfolio 

Aggregate)

Actual Impact of 

DFC Supported 

Projects14 

(Portfolio 

Aggregate)

ECONOMIC GROWTH PILLAR

Human Capacity 

Development

Number of beneficiaries receiving 

products and services involving 

basic human needs, such as 

healthcare, education, food 

security, housing

» 5,000 education 

loan beneficiaries

» 780 education 

loan beneficiaries

NA

» 190,000 WASH loan 

beneficiaries

NA

» 1,200 housing loan 

beneficiaries 

NA

» 18,000 housing units 

to be constructed

NA

» 50 healthcare patient 

consultations per year

» 50 healthcare 

patient 

consultations per 

year

NA

Local Income Increase in income through 

payments to the host government 

and domestic purchases of goods/

services15 

» $833 million in local 

procurement and 

payments to local 

governments (5-year 

total)

» $1.3 million in 

local procurement 

and payments to 

local governments 

(5-year total)

NA

Jobs Increase in the number of full-time 

equivalent employees16

» 14,000 host country 

jobs supported

» 97 host country 

jobs supported

NA

Financial 

Intermediaries

Increase in funding to financial 

intermediaries for the purpose 

of investing in local companies 

through debt or equity

 » $4.1 billion in 

access to credit to 

local companies made 

through financial 

intermediaries

» $405 million 

in access to 

credit to local 

companies made 

through financial 

intermediaries

NA

Balance of Trade Increase in export earnings » $151 million in 

export earnings per 

year

NA

Workforce policies that support human capacity 

building and families, including initiatives to advance 

women in the workplace

» 31% of DFC 

supported projects 

reported exemplary 

human capacity 

building programs 

and/or familyfriendly benefits that 

exceed local legal 

requirements

» 44% of DFC 

executed projects 

reported exemplary 

human capacity 

building and benefit 

programs

NA

15 DFC will collect local income and salaries to add to this metric when its new data collection tools are implemented. Payments to the host government include corporate income 

or profit taxes, sales taxes, net VAT, royalties, dividends and related taxes, management and/or concession fees, license fees, tax on payment of interest, and other material 

payments net of any direct subsidies received.

16 The estimate includes directly hired individuals and individuals to be hired through third party agencies as long as those individuals will provide on-site services related to the 

operations of the client company. The estimate also includes seasonal, contractual and part-time jobs that were converted to full-time equivalent jobs on a pro rata basis.
dfc.gov │ 21

Indicator Definition Impact Projections of 

FY20 COMMITTED 

DFC Supported 

Projects (by year 5) 

(Fiscal Year Aggregate)

Impact Projections 

of ACTIVE DFC 

Supported 

Projects (Portfolio 

Aggregate)

Actual Impact of 

DFC Supported 

Projects14 

(Portfolio 

Aggregate)

INCLUSION PILLAR

Inclusive Customer 

Base

Number of underrepresented 

customers to be served17

» 1.8 million lowincome18/microfinance 

customers to be 

served

» 126,000 

low-income/

microfinance 

customers to be 

served

NA

» 1.7 million women 

or women-owned19/

led enterprises to be 

served

» 76,400 women or 

women-owned/led 

enterprises to be 

served

NA

» 989,000 smallholder 

farmers20 to be served

» 50,200 

smallholder farmers 

to be served

NA

» 80,300 SMEs21 to be 

served

» 5,170 SMEs to be 

served

NA

Inclusive 

Employment

Increase in full-time equivalent 

jobs held by underrepresented 

populations

» 8,000 jobs for 

female workers to be 

supported/maintained

NA

» 380 jobs for 

young adults22 to be 

supported/maintained

NA

 » 90 jobs for lowincome workers to be 

supported/maintained

NA

Inclusive Supply 

Chains

Increase in suppliers from 

underrepresented populations

 » 73,500 smallholder 

farmer suppliers to 

benefit

NA

Inclusive governance (including women owned and or 

led enterprises) and/or inclusive CSR programs

 » 33% of the DFC 

supported projects 

reported inclusive 

governance structures 

» 44% of the DFC 

executed projects 

reported inclusive 

governance 

structures and/

or inclusive CSR 

programs

NA

17 Underrepresented populations may include low-income, poor, smallholder farmers, young adults, women and women-owned enterprises, people with disabilities, indigenous 

peoples, refugees, and ethnic and religious minorities.

“Smallholder Farmers” are those that work on farms with less than 2 hectares of unirrigated land that produce a variety of staple crops and livestock primarily for household 

consumption. 

“SMEs” are entities that, together with its majority-owned or controlled subsidiaries, (a) meet the requirements set forth in any applicable law defining a small and medium 

enterprise in the host country, and (b) for the most recent fiscal year, satisfy at least two of the following three criteria: (i) $15 million or less in annual revenues; (ii) $15 million 

or less in assets; or (iii) 300 or fewer employees.

18 “Low-Income” is an individual or household living above the poverty line but below the national median household or individual income, as well as poor individuals or households 

that live below $3.2 per day (USD PPP 2011). 

19 “Women Owned Business” is an enterprise in which a) 51% or more of its shares are owned by women OR b) female founders represent the majority of the total founders. 

“Women-Led Business” is an in which a) the percent of senior management who are female meet or exceed the sector specific threshold (Infrastructure, Power, Telecoms: 20%; 

Financial Services, Manufacturing, Agribusiness and Food, Professional Services, Consumer Services: 25%; Healthcare, Education: 30%); OR b) the share of women on the Board 

exceed 30% or the national legal minimum for the organization’s domicile country, whichever is higher; OR c) for investment funds, the share of women on the Investment 

Committee meets or exceeds 30%

20 “Smallholder Farmers” are those that work on farms with less than 2 hectares of unirrigated land that produce a variety of staple crops and livestock primarily for household 

consumption.

21 “SMEs” are entities that, together with its majority-owned or controlled subsidiaries, (a) meet the requirements set forth in any applicable law defining a small and medium 

enterprise in the host country, and (b) for the most recent fiscal year, satisfy at least two of the following three criteria: (i) $15 million or less in annual revenues; (ii) $15 million 

or less in assets; or (iii) 300 or fewer employees.

22 “Young Adults” are those workers between 15 and 24 years old.
22 │ 2020 Annual Report

Indicator Definition Impact Projections of 

FY20 COMMITTED 

DFC Supported 

Projects (by year 5) 

(Fiscal Year Aggregate)

Impact Projections 

of ACTIVE DFC 

Supported 

Projects (Portfolio 

Aggregate)

Actual Impact of 

DFC Supported 

Projects14 

(Portfolio 

Aggregate)

INNOVATION PILLAR

Market and Energy 

Diversification

Projects that introduce new or 

uncommon products/services 

(including renewable energy) 

to the market or introduces 

new or uncommon operational 

techniques that will result in 

improved costs or product/service 

quality for end-beneficiaries

» 2 million short tons 

of CO2 emissions 

avoided through 

renewable energy 

projects

» 636,000 short 

tons of CO2 

emissions avoided 

through renewable 

energy projects

NA

» 20% of DFC 

supported projects 

involve the 

introduction of new 

or improved products 

and services

» 33% of DFC 

executed projects 

involve market 

diversification

NA

Knowledge and 

Technology 

Transfer

Number of beneficiaries of 

technical assistance programs for. 

This includes the value-add that 

equity fund managers provide to 

their investees

» 1.2 million 

beneficiaries of 

knowledge and 

technology transfer 

» 128,900 

beneficiaries of 

technical assistance 

programs and 

fund manager 

engagement

NA

Demonstration 

Effects

Projects projected to have sectorwide demonstration effects and/

or employ an innovative financial 

structure and/or business models 

that mobilize private sector 

participation and capital

 » 28% of the DFC 

supported projects 

have projected 

demonstration effects

» 33% of the DFC 

executed projects 

have the potential 

for demonstration 

effects

NA

Voluntary environmental sustainability measures to 

reduce environmental footprint

 » 13% of the DFC 

supported projects 

reported voluntary 

environmental 

sustainability 

measures 

» 11% of the DFC 

executed projects 

reported voluntary 

sustainability 

measures

NA
dfc.gov │ 23

Private Capital Mobilization

22 U.S.C. § 9653 (b)(1)(B) “the effect of the Corporation’s support23 on access to capital and ways in which the Corporation 

is addressing identifiable market gaps or inefficiencies and what impact, if any, such support has on access to credit for a 

specific project, country, or sector;”

 FY2020 DFC projects are expected to mobilize over $6.8 billion around the world.

Cooperation with Qualifying Sovereign Entities

22 U.S.C. § 9653(b)(2) “cooperation with a qualifying sovereign entity in support25 of each project;”

22 U.S.C. § 9653(b)(3)(B) "the value of private sector assets brought to bear relative to the amount of support provided by 

the Corporation and the value of any other public sector support;”

Region Private Capital Mobilization

Africa $499,625,000

Asia $681,719,038

Latin America and the Caribbean $218,292,308

Middle East $32,514,000

Europe and Eurasia $46,820,000

Worldwide $5,338,700,000

Total $6,817,670,34624 

Number of Projects Funding from DFC Funding from 

International 

Institutions26 

Funding from 

Private Sector

9 $587 Million $1.2 Billion $482 Million

23 "Support” for the purposes of 22 U.S.C. § 9653 (b)(1)(B) is defined as finance commitments and contracts executed in fiscal year 2020, excluding sub-projects of frameworks, 

facilities and investment funds, and projects originated under OPIC that received additional support or workouts. This is to avoid the double-counting of impacts that have 

already been assessed and reported at the framework, facility, and investment fund level or in a prior fiscal year. The impacts from projects that receive more than one form of 

DFC support in the same fiscal year are reported once. 

24 The $6.8 billion figure includes one project where an estimated $4.8 billion of insurance coverage is expected from the private sector over the life of the master insurance 

contract.

25 “Support” for the purposes of 22 U.S.C. § 9653(b)(2) and 22 U.S.C. § 9653(b)(3)(B) is defined as finance commitments and contracts executed in fiscal year 2020, excluding subprojects of frameworks, facilities and investment funds, and projects originated under OPIC that received additional support or workouts. This is to avoid the double-counting of 

impacts that have already been assessed and reported at the framework, facility, and investment fund level or in a prior fiscal year. The impacts from projects that receive more 

than one form of DFC support in the same fiscal year are reported once. 

26 International Institutions is defined as other Development Finance Institutions or government support.
24 │ 2020 Annual Report

Monitoring and Evaluation (M&E)

22 U.S.C. § 9653(b)(4) “an assessment of the extent to which lessons learned from the monitoring and evaluation activities 

of the Corporation, and from annual reports from previous years compiled by the Corporation, have been applied to 

projects.”27

DFC’s first year in operation was an opportunity to design and begin to implement a new monitoring and evaluation strategy 

and program and explore new capabilities that, once implemented, will aim to enable better business decisions and results 

throughout the DFC ecosystem. DFC’s Integrated M&E Program encompasses all of DFC’s monitoring and evaluation 

activities across the Agency, including financial monitoring and credit management, environmental, social, developmental 

impact and other programmatic monitoring. With a more holistic, inter-divisional approach to M&E under the new Integrated 

Program, DFC will collect and leverage project data regularly to ensure accountability on existing projects, inform future 

project practices and decisions, and inform messaging about DFC’s mission and performance. With several decades of 

experience and a vast portfolio supported under OPIC, DFC was able to capitalize on the OPIC experience and incorporate 

lessons learned from OPIC’s legacy portfolio into DFC’s new integrated M&E strategy. 

With the benefits of the lessons learned from OPIC, DFC is developing new tools and technology to improve the collection 

and validation of project data, as well as developing a technological platform that will enable DFC to more easily compare 

projected development impacts to actual development outcomes. In addition, focusing on the insurance portfolio specifically, 

DFC has developed a macro risk tool as a mechanism for Insurance monitoring to identify countries with high macro (country) 

risk that should be more closely monitored. Using the data output from these new tools and technologies, DFC will be able 

to better identify and learn from the outcomes of existing projects to improve future projects and inform internal decision 

making. 

In addition to enhanced technological tools and systems, DFC has instituted several practices to increase inter-divisional 

coordination, another important lesson learned from the OPIC experience. For example, DFC’s Structured Finance and 

Insurance Department established a claims roundtable to communicate important information regarding Agency claims 

settlements. In addition, DFC established an informal working group for regular discussions about monitoring and evaluation 

activities that different departments are performing to increase Agency-wide collaboration and alignment of activities around 

this important issue. 

In addition to revisiting DFC’s internal practices and procedures, Fiscal Year 2020 provided an opportunity for DFC to 

explore new monitoring capabilities. The COVID-19 Global Pandemic halted all DFC monitoring and evaluation travel, and 

as a result DFC’s Environmental and Social Risk Assessment analysts were challenged to think and approach their work 

differently, depending instead on desk reviews and virtual monitoring of OPIC legacy Projects. The organization of the virtual 

visits included a balance of presentations on project progress, environmental and social performance and virtual meetings, 

interviews, or online surveys with key stakeholders. In some instances, virtual monitoring included drone video (both recorded 

and in real-time) to assess conditions on the ground at the Project site. While DFC will continue to explore technology 

solutions for monitoring and evaluation as an interim measure in the absence of the ability to travel, virtual monitoring is not 

yet able to replicate the full functionality of in-person site visits, with particular limitations identified with respect to reaching 

some of the more vulnerable people that are or may be impacted by a Project’s activities.

With 2020 being the first year of DFC operations, the monitoring and evaluation activities of the DFC portfolio were limited 

in this fiscal year. Below is a chart of the monitoring and evaluation activities that the Corporation performed in fiscal year 

2020 for DFC supported projects.

27 “Projects supported” for the purposes of 22 U.S.C. § 9653(b)(4) is defined as finance commitments and insurance contracts executed in fiscal year 2020.
dfc.gov │ 25

Monitoring & Evaluation Type Number of Monitoring & Evaluation Actions28

Credit Action29 10

Risk Rating Evaluation30 NA31

Credit Management Project Site Visit32 NA

Development Outcome Survey (DOS)33 NA

Environmental & Social Compliance Desk Review34 92

Development Impact Monitoring Review35 NA

Development Impact Project Evaluation36 NA

Environmental & Social Compliance Project Evaluation37 NA

Programmatic Reviews & Site Visits38 5

28 A monitoring and evaluation action is defined the number of activities performed in a given year based on definitions of each monitoring and evaluation type.

29 Credit Action is defined the number of activities performed by Financial monitoring of DFC Finance Program-originated loans and guaranties. Each DFC project is subject to 

various credit actions initiated by DFC employees and these actions include, but are not limited to: cancellation, change in ownership, claim payment request, disbursement 

clearance, workout action plan, write-off, etc.

30 Risk Rating Evaluations is defined as the number of identified written project reviews DFC employees must regularly assess, but at least annually, whether the risk profile has 

changed and complete a Risk Rating Scorecard with and Annual Loan Review.

31 Due to FY2020 being DFC’s first year in operation, the monitoring and evaluation activities of the DFC portfolio were limited in this fiscal year.

32 Credit Management Project Site Visit is defined as a Financial monitoring officer visiting a Project to reinforce relationships with key counterparty managers, offer in-person 

guidance and support for improvement of counterparty performance and personally verify operational/implementation information that has been provided in reports and phone 

calls.

33 Development Outcomes Survey is defined as the number of annual survey’s submitted by Projects. A Project is eligible for the DOS one year after first disbursement or contract 

execution.

34 Environmental and Social Compliance Desk Review is defined as the number of deliverables submitted by Projects in a given fiscal year and/or the number of projects rescored 

on IQ for E&S compliance.

35 Development Impact Monitoring Review is defined as the number of Project’s rescored on IQ in a given fiscal year and/or the number of projects where data is validated by a 

DFC or USG employee.

36 Development Impact Project Evaluation is defined as the number of Projects a DFC employee visits in a fiscal year to examine realized development impact.

37 Environmental & Social Compliance Project Evaluation is defined as the number of Projects a DFC employee visited in a fiscal year to ensure compliance with project loan 

covenants.

38 Programmatic Review & Site Visit is defined as a monitoring activity or site visit by DFC’s Technical Development Program, Insurance Monitoring Team, a Mission Transaction 

Unit Officer or an Officer from the Office of Investment Funds.
26 │ 2020 Annual Report

U.S. Employment and Associated Effects of 

DFC-Supported Projects

“Statutory reporting requirements Any statutory reporting requirement that applied to an agency transferred to the 

Corporation under this subchapter immediately before October 5, 2018, shall continue to apply following that transfer if 

the statutory requirement refers to the agency by name”

Exhibit 1

FY 2020 (Projections)

Employment and associated effects are aggregated over the construction phase and the first five years of project operation.

Sector40

Number 

of

Projects Final Destination of Project Output

U.S.

Procurement

Effect 

on U.S.

Employment

Effect on U.S.

Trade Balance

Host Country U.S. 3rd Country

Projects with Positive Effect on Employment41

Multiple42 3 $15,785,785 $172,125,000 $505,293,450 $55,107,069 75 ($117,017,931)

Utilities 2 $242,281,720 $0 $0 $87,397,069 117 ($84,727,931)

Positive 

Subtotal 5 $258,067,505 $172,125,000 $505,293,450 $87,397,069 117 ($84,727,931)

Projects with Neutral Effect on Employment43

Finance 

and 

Insurance 43 $7,767,644,622 $40,000,000 $0 0 ($40,000,000)

Utilities 7 $1,418,315,965 $0 $0 $0 0 $0

Multiple44 6 $398,358,970 $0 $57,500,000 $0 0 $0

Neutral 

Subtotal 56 $9,584,319,557 $40,000,000 $57,500,000 $0 0 ($40,000,000)

Projects with Negative Effect on Employment45

Negative 

Subtotal 0 $0 $0 $0 $0 0 $0

Grand 

Total (All 

Projects) 61 $9,842,387,062 $212,125,000 $562,793,450 $87,397,069 117 ($124,727,931)

39

39 "Supported Projects” for the purposes 22 U.S.C. § 9686(f) is defined as finance commitments and contracts executed in fiscal year 2020, excluding sub-projects of frameworks, 

facilities and investment funds, and projects originated under OPIC that received additional support or workouts. This is to avoid the double-counting of impacts that have 

already been assessed and reported at the framework, facility, and investment fund level or in a prior fiscal year. The impacts from projects that receive more than one form of 

DFC support in the same fiscal year are reported once. 

40 DFC-supported projects were classified using the North American Industry Classification System (NAICS). The NAICS categories were distilled into the categories shown above.

41 "Positive" effect on U.S. employment includes projects with more than two jobs (greater than ten person-years of employment during the first five years of project operation).

42 To maintain confidentiality, projects in the following sectors were grouped: services, agriculture, mining, and utilities.

43 "Neutral" effect on U.S. employment includes projects with two or fewer jobs (ten person-years or fewer of employment during the first five years of project operation).

44 To maintain confidentiality, projects in the following sectors were grouped: services, agriculture, construction, health care and information.

45 No DFC-supported projects in FY2020 expect loss of U.S. employment.
dfc.gov │ 27

46 "Third party" refers to countries that are neither the U.S. nor the host country.

47 "Positive" effect on U.S. employment includes projects with more than two jobs (greater than ten person-years of employment during the first five years of project operation).

48 "Neutral" effect on U.S. employment includes projects with two or fewer jobs (ten person-years or fewer of employment during the first five years of project operation).

49 No DFC-supported projects in FY2020 expect loss of U.S. employment.

Exhibit 2: Destination of Sales to Third-Party Markets

FY2020 (Projections)*

Third party annual sales aggregated during the construction phase and over the first five years of project operation

Sector Country Third-Party Sales46

Projects with Positive Effect on Employment47

Services

Manufacturing

Positive Subtotal

Projects with Neutral Effect on Employment

Services & Trade

Neutral Subtotal48

 

 

Projects with Negative Effect on Employment49

Negative Subtotal

 

Grand Total (All Projects)

Worldwide

Australia

Japan

Singapore

Worldwide

Worldwide

$105,000,000

$24,685,000

$37,685,000

$12,340,000

$153,458,450

$333,168,450

$57,500,000

$57,500,000

$0 

$390,668,450
28 │ 2020 Annual Report

Exhibit 3: U.S. Employment Effects and Project Location

In FY2020, DFC supported 61 new projects in 21 countries and 4 regions, across the globe.

Of the 61 projects supported, 5 expect to have positive impact on U.S. jobs:

• All five are in multiple sectors in Brazil, Ethiopia, India, Mexico and Vietnam

Of the 61 new projects supported, 56 expect to have neutral impact on U.S. jobs:

• 6 in multiple sectors in Ukraine, India, Jordan, Ecuador, Singapore, India

• 8 in utilities in India, Cote d’Ivoire, Mozambique

• 43 in finance and insurance in Bosnia and Herzegovina, Brazil, Cambodia, Colombia, Costa Rica, Ecuador, El Salvador, 

Georgia, Guatemala, Honduras, India, Kenya, Mexico, Nigeria, Africa regional, Asia regional, Latin America regional 

and multiple countries and regions

Of the 61 new projects supported, zero expect to have a negative impact on U.S. jobs. 

The new projects were in the following geographic regions:

• Ten in Africa 

• Nineteen in Asia

• Twenty in Latin America and the Caribbean

• Three in Europe and Eurasia

• One in the Middle East

• Eight in multiple regions

Exhibit 4: Methodology for Calculating U.S. Employment Effects

Each project seeking DFC support is individually reviewed to estimate the potential impact on employment in the United 

States. DFC uses procurement estimates provided by the investor to calculate expected initial and operational procurement 

from the United States (by value and specific type of good or service). The U.S. employment figure is generated by estimating 

a project’s initial procurement, as well as its five-year operational procurement of goods and services. DFC considers both 

the direct and indirect employment necessary to produce those goods and services. Therefore, the employment effects 

incorporate the direct employment necessary to produce the procured goods and services, as well as the indirect employment 

required to produce the associated intermediate inputs. 

DFC details each type of U.S. good or service expected to be procured for each project and, using industry-specific data from 

the U.S. Bureau of Labor Statistics (BLS), calculates the employment effect in that industrial sector as well as, in the sectors 

that supply necessary components or inputs. By using this standard employment effect methodology, DFC is able to ascertain 

employment generation with greater precision than if it used an average for all U.S. exports. By including indirect effects, 

DFC’s employment figures present a more accurate picture of the benefits accruing to U.S. workers from the anticipated 

procurement of goods and services by DFC-supported projects. Finally, to confirm employment effect estimates, DFC 

monitors actual economic effects after project start up and throughout the life of DFC’s involvement with the project. DFC’s 

monitoring and evaluation strategy is described in further detail in this report. 

50 In FY2020, 61 new DFC-supported projects were classified using the North American Industry Classification System (NAICS). The NAICS categories were distilled into the 

categories shown above.

51 "Positive" effect on U.S. employment includes projects with more than two jobs (greater than 10 person-years of employment during the first five years of project operation).

52 "Neutral" effect on U.S. employment includes projects with two or fewer jobs (10 person-years or fewer of employment during the first five years of project operation).

53 No DFC-supported projects in FY2020 expect loss of U.S. employment.
 
30 │ 2020 Annual Report

2020 Investment Activities

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

AFRICA AND THE MIDDLE EAST

AFRICA REGIONAL 

Lungo Capital B.V. Steven Lee Financing to support lending to SMEs in 

East Africa 

4,000,000 Finance

AfricInvest Fund IV 

LLC

AfricInvest Financing to a pan-African fund to 

support investments in mid-market 

businesses in healthcare and financial 

services 

30,000,000 Investment 

Fund

Africa Finance 

Corporation (Tier II)

Africa Finance 

Corporation

Tier II capital facility to strengthen 

AFC's capital position to enable ongoing 

loans and investments for African 

borrowers during the COVID-19 

pandemic

250,000,000 Finance

Citibank NA Citibank, N.A. Expansion of banking operations to 

support economic growth and promote 

best practices in financial management

50,000,000 Insurance

SCALE-MSMEGradian Health 

Systems, Inc.

Citibank, N.A. Support for the distribution, installation 

and servicing of medical devices 

designed for low-resource health clinics

1,350,000 Finance

CapPlus Impact CapitalPlus 

Exchange

Facility for direct loans to banks for 

on-lending to SMEs and schools with a 

focus on women

10,000,000 Finance

SPE AIF I, LP SPE Capital 

Partners Ltd.

Support for investments in businesses 

across North and Sub-Saharan Africa, 

focused on healthcare, education, 

supply chains, and logistics

20,000,000 Investment 

Fund

BURUNDI 

Liberty Managing 

Agency Limited

Evolution II Fund Construction and operation of a 

7.5 MW solar photovoltaic plant in 

Mubuga, Gitega Province

11,312,231 Insurance
dfc.gov │ 31

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

CENTRAL AFRICAN 

REPUBLIC 

Solar Energy 

Transformation Fund 

LLC

Solar Energy 

Transformation 

Fund LLC

Support for the rollout of off-gird solar 

energy solutions, such as lighting, home 

systems, mini-grids and commercial 

projects 

6,000,000 Insurance

COTE D’IVOIRE 

Chubb European 

Group SE

Meridiam 

Infrastructure 

Africa Fund

Development, construction and 

operation of a 46 MW biomass power 

plant

9,072,000 Insurance

ETHIOPIA

Sunshine Business 

Plc

Samuel Tafese Construction and operation of a 

Marriott hotel in Addis Ababa

50,000,000 Finance

Tulu Moye 

Geothermal Power 

Plant

TM Geothermal 

Operations PLC

Technical assistance to support 

development of 50 MW geothermal 

power plant

 1,550,000 Technical 

Assistance

JORDAN

The Moon Land Basel Saeed Construction and operation of a 

community retail center in Zarqa

41,000,000 Finance

KENYA

SCALE-MSMEFourth Generation 

Capital Limited

Citibank, N.A. Expansion of borrower's microfinance 

lending portfolio to SMEs in Kenya

2,999,700 Finance

The Nature 

Conservancy

NatureVest - 

The Nature 

Conservancy

Support for a "blue bonds" transaction 

to safeguard and enhance marine and 

coastal ecosystems, food security and 

local livelihoods dependent on marine 

and coastal areas

250,000,000 Insurance

One Acre Fund Citibank, N.A. Credit for inputs such as seeds and 

fertilizer as well as agricultural training 

for small-scale farmers, a majority of 

whom are women

7,000,000 Finance

Sanergy Sanergy, Inc. Feasibility study on expansion of 

sanitation company's operations into 

new markets, and technical assistance 

to help increase the impact of 

DFC's loan

 1,146,864 Technical 

Assistance
32 │ 2020 Annual Report

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

MOZAMBIQUE 

Central Termica de 

Temane

eleQtra Limited Construction of a 400 MW gas-fired 

power project and transmission line in 

Inhambane Province

200,000,000 Finance

NAMIBIA

Silverlands II HoldCo 

S.à r.l.

Silverlands II 

HoldCo S.à r.l.

Expansion and modernization of a table 

grape and date palm farm 

36,000,000 Insurance

NIGERIA 

WBC - Sterling Bank 

Plc.

WorldBusiness 

Capital Inc.

Expansion of borrower's on-lending to 

SMEs 

14,625,000 Finance

ZAMBIA 

Silverlands II HoldCo 

S.à r.l.

Silverlands II 

HoldCo S.à r.l.

Expansion and modernization of a seed 

production company

32,000,000 Insurance

ALL DFC COUNTRIES

Prodigy Finance 

Limited 2020

Prodigy Finance Securitization of loans to students in 

the developing world for postgraduate 

programs at global universities

200,000,000 Finance

Root Capital Root Capital Support for agriculture cooperatives 

and SMEs supporting COVID-19 

response with a strong focus on lowincome and lower-middle-income 

countries

35,000,000 Finance

InsuResilience 

Investment Fund

BlueOrchard 

Finance SA

Support to help financial 

institutions develop insurance products 

to protect small businesses and 

smallholder farmers against the impact 

of extreme weather

37,500,000 Finance

SEAF COVID-19 

Global Gender Lens 

Emergency Loan 

Finance Facility

SEAF COVID-19 

Global Gender 

Lens Emergency 

Loan Finance LLC

Emergency COVID-19 response loan 

for SME lending 

20,000,000 Finance

Water Equity - Global 

Access Fund

WaterCredit LLC Support for a global microfinance fund 

for water and sanitation that will deliver 

strong benefits to women

100,000,000 Finance

Global Partnerships 

Social Investment 

Fund 6.0

Global 

Partnerships

Lending and support for microentrepreneurs, rural livelihoods, health 

and green technology

15,000,000 Finance

Kiva Refugee 

Investment Fund

Kiva Microfunds Lending facility supporting refugee 

communities

20,000,000 Finance
dfc.gov │ 33

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

ASIA AND THE PACIFIC

ASIA REGIONAL 

Asia Partners I LP Asia Partners Ltd Support for fund investing 

in technology and technology-enabled 

growth companies

25,000,000 Investment 

Fund

CAMBODIA

i-Finance Leasing Plc. Athena I Feeder 

(US), LLC

Support for leasing company providing 

financial services to underbanked 

populations

5,000,000 Finance

INDIA

WBC - Avanse 

Financial Services 

Limited

Warburg Pincus Support for non-bank financial 

institution providing loans to Indian 

students for college education

14,625,000 Finance

Freshtohome Pte. 

Ltd.

Freshtohome Pte 

Ltd

Online marketplace strengthening food 

supply chains by connecting farmers 

and fishermen to delivery networks 

15,000,000 Direct 

Equity

South Asia Growth 

Fund II, L.P.

GEF Capital 

Partners LLC

Investment in fund supporting energy, 

food resources and water efficiency

30,000,000 Investment 

Fund

Caspian Impact 

Investments II

Grassroots Capital 

Management PBC

Support for lending to microfinance 

institutions, SME lenders and other 

high-impact businesses

20,000,000 Finance

SCALE-MSMEStellapps 

Technologies Private 

Limited

Citibank, N.A. Support to technology company 

providing innovative solutions to the 

dairy value chain

2,699,730 Finance

Sitara Solar Energy 

Private Limited

UPC Solar & Wind 

Investments, LLC

Construction and operation of a 100 

MW solar PV plant in Rajasthan

50,000,000 Finance

Paryapt Solar Energy 

Private Limited

UPC Solar & Wind 

Investments, LLC

Construction and operation of a 50 

MW solar PV plant in Gujarat

27,300,000 Finance

RENEW2 - ReNew 

Sun Bright Private 

Limited

GS Wyvern 

Holdings Limited

Construction of a 300 MW solar PV 

plant in Rajasthan

142,000,000 Finance

RENEW1 - ReNew 

Sun Waves Private 

Limited

GS Wyvern 

Holdings Limited

Construction of a 300 MW solar PV 

project in Rajasthan

140,000,000 Finance
34 │ 2020 Annual Report

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

Milk Mantra Dairy 

Private Limited

Eight Roads 

Investments 

Mauritius II

Expansion of a dairy company sourcing 

from smallholder farmers in northeast 

India

10,000,000 Finance

Milk Mantra Dairy Milk Mantra Dairy 

Private Limited

Technical assistance to support 

agricultural extension services and 

digital financial services for dairy 

farmers

 370,615 Technical 

Assistance 

RENEW2 - ReNew 

Sun Energy Pvt Ltd 

(RSEPL)

ReNew Power 

Private Limited

Construction of a 105 MW solar PV 

plant in Gujarat

53,500,000 Finance

WBC - Asirvad 

Microfinance Limited

WorldBusiness 

Capital Inc.

Expansion of microfinance portfolio 

serving low-income women in 

predominantly rural areas across India

14,625,000 Finance

HCT Sun LLC Hct Sun Installation, maintenance and sale of 

power from rooftop solar assets to 

commercial clients

10,000,000 Insurance

ReNew Solar Power 

Private Limited

ReNew Power 

Private Limited

Liquidity support to mitigate the 

economic impact of COVID-19

75,000,000 Finance

Northern Arc Capital 

Limited

ACCION 

International

Expansion of a non-bank financial 

institution to support loans for women 

owned businesses, food security and 

water, sanitation and hygiene

50,000,000 Finance

OneBreath OneBreath India, 

Pvt. Ltd.

Technical assistance to 

support development of a ventilator

suited for critical care use in rural 

settings

 1,390,000 Technical 

Assistance

Samunnati Financial 

Intermediation & 

Services Private 

Limited

Teachers Insurance 

and Annuity 

Association of 

America

Financing and advisory services to 

expand lending to low-income farmers 

20,000,000 Finance

Samunnati Samunnati Agro 

Solutions Private 

Limited

Financing and technical assistance to 

low-income farmers and agriculture 

businesses to support increased 

productivity 

 349,617 Technical 

Assistance

INDONESIA

Big Tree Farms Inc. Ben Ripple Expansion of agribusiness advancing 

sustainable, organic coconut farming in 

Indonesia

1,830,000 Finance
*

*Information has temporarily been redacted, including to protect the safety of implementing partners.
36 │ 2020 Annual Report

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

LATIN AMERICA AND THE CARIBBEAN

LATIN AMERICA 

REGIONAL

Bayport Colombia 

S.A. and Financiera 

Fortaleza, S.A. De 

C.V., SOFOM, E.N.R.

Helios Investors 

ll, L.P.

Lending to non-bank financial 

institutions to support loans to civil 

servants and pensioners

200,000,000 Finance

Peninsula 

Investments Group 

IV, L.P.

Peninsula 

Investments Group

Investment fund supporting middleincome residential developments across 

Latin American markets 

75,000,000 Investment 

Fund

Locfund Next L.P. Loans to microfinance institutions in 

Latin America

20,000,000 Finance

BRAZIL

Techmet TECHMET 

LIMITED

Expansion of production capacity 

of cobalt and nickel mining in an 

underdeveloped region 

25,000,000 Finance

Itaú Unibanco S.A. Itaú Unibanco S.A. Support for expanded lending to SMEs 

with a focus on those owned by women 

and those located in underserved 

regions

400,000,000 Finance

COLOMBIA

WBC-Finsocial, 

S.A.S.

Kandeo 

Investment 

Advisors LLC

Expansion of a digital lending platform 

that provides loans to teachers and 

pensioners in low-income and rural 

areas

9,750,000 Finance

Banco Davivienda Banco Davivienda 

S.A.

Expansion of lending to SMEs and lowincome housing mortgages, with a focus 

on women and women-owned SMEs

250,000,000 Finance

COSTA RICA 

BAC San Jose Support for lending to women 

borrowers and SMEs

150,000,000 Finance

ECUADOR

Gamma Knife Center 

Ecuador

GK Financing, LLC Acquisition and expansion of a private 

medical clinic that features the Gamma 

Knife radiosurgery machine for the noninvasive treatment of cancer

3,175,000 Finance

Banco Guayaquil S.A. Citi Bank N.A. Financing to support expanded lending 

to SMEs

92,000,000 Finance
dfc.gov │ 37

PROJECT NAME SPONSOR/

INSURED 

INVESTOR

PROJECT DESCRIPTION AMOUNT CATEGORY

Banco Pichincha DPR Banco Pichincha 

C.A.

Financing to support lending to 

women-owned or led SMEs and 

microenterprises

150,000,000 Finance

WBC-Cooperativa 

de Ahorro y Credito 

Jardin Azuayo

WorldBusiness 

Capital Inc.

Expansion of micro and SME lending 9,750,000 Finance

EL SALVADOR 

WBC - Sociedad de 

Ahorro y Credito 

Apoyo Integral

WorldBusiness 

Capital Inc.

Expansion of micro and SME lending 9,750,000 Finance

GUATEMALA 

Industrial DPR 

Funding Ltd. 

Bicapital 

Corporation

Financing for lending to women-owned 

and managed enterprises and SMEs

200,000,000 Finance

HONDURAS 

Banco del Pais S.A. Citibank N.A. Expanded lending to SME 

entrepreneurs and the refinance of debt

92,300,000 Finance

MEXICO

Credito Real, S.A.B. 

de C.V., SOFOM, 

E.N.R.

Technical assistance for women-owned 

and women-led SMEs and women bank 

managers

100,000,000 Finance

Credito Real Credito Real, S.A.B. 

de C.V., SOFOM, 

E.N.R.

Technical assistance for women owners 

and operators of SMEs and women 

bank managers

 150,052 Technical 

Assistance

WBC - ION 

Financiera

WorldBusiness 

Capital Inc.

Expanded lending for home mortgages 

and SMEs

14,625,000 Finance

Mexarrend S.A.P.I. 

de C.V.

Colony Capital Expanded lease financing for productive 

assets and equipment by SMEs 

45,000,000 Finance

Infraestructura 

Energetica Nova SAB 

de CV (IEnova)

Sempra Energy Support for development of solar power 

projects 

241,000,000 Finance

GIFF-MFI-Banco 

Compartamos S.A.

Citibank, N.A. Expanded lending to microfinance 

borrowers

15,554,000 Finance

SAINT LUCIA 

The Nature 

Conservancy

NatureVest - 

The Nature 

Conservancy

Support for a "blue bonds" transaction 

to safeguard and enhance marine and 

coastal ecosystems, food security and 

local livelihoods dependent on marine 

and coastal areas

100,000,000 Insurance

Total # Projects: 79 Total Commitments: 4,671,229,809
38 │ 2020 Annual Report

2020 Portfolio Company Investments

FUND NAME PORTFOLIO COMPANY DESCRIPTION COUNTRY/

REGION

57 Stars Global 

Opportunity Fund 4

Oria Fund III, L.P. Portfolio of investments in technology including 

fintech, healthtech and Internet of Things

Brazil

Zenvia Mobile Servicos 

Digitais S.A.

Developer of mobile software solutions Brazil

Levered Alsis 

Mexico Housing 

Opportunities, L.P.

Bosques del Seminario 

- Consulte

Single-family residential real estate investment 

located in Juarez

Mexico

Coto del Cielo - In House Residential real estate investment Mexico

Alsis Mexico 

Opportunities Fund

Bosques del Seminario 

- Consulte

Single-family residential real estate investment 

located in Juarez

Mexico

Levered Alsis Mexico 

Opportunities Fd 

Offshore, LP

Escenika Norte Multi-family real estate investment located in 

Cuautitlan Izcalli

Mexico

ECP Africa Fund IV TogoCom Provider of telecommunication services Togo

Mbaraki Holdings, Ltd. Operates import and storage facilities for 

refined oil products

Kenya

Gazelle Fund LP Construction Company Provider of construction services and producer 

of construction materials

Armenia

Wine Producer Producer of wine Georgia

Manufacturing Company Manufacturer of transitional fittings and joints 

for pipes

Armenia

Packaging Company Producer of packaging products and disposable 

tableware from paper and biodegradable 

materials

Georgia

Technology Company Provider of wireless and fiber-optic internet 

services

Georgia

HVAC Company Provider of retail, wholesale and engineering, 

and installation services in HVAC business

Georgia

Hospitality Company Provider of hospitality and tourism services Armenia

Printing Service Company Provider of printing services and medical liquids Armenia

Manufacturing Company Manufacturer and distributor of multipurpose 

lighters

Armenia
dfc.gov │ 39

FUND NAME PORTFOLIO COMPANY DESCRIPTION COUNTRY/

REGION

Iron Pillar Fund I Ltd. Testbook Edu Solutions 

Pvt. Ltd.

Provider of online examination preparation 

services

India

LeapFrog Emerging 

Consumer Fund III, L.P.

Milvik AB Provider of micro-life insurance products and 

digital health services to end users of mobile 

operators in Asia and Africa

Global

PT PasarPolis Indonesia Insurtech company that operates as a digital 

insurance broker and enables users to compare 

and purchase insurance

Indonesia

AIICO Insurance Plc Provider of life insurance and other insurance 

services

Nigeria

MedGenome, Inc. Provider of molecular genetic diagnostic tests 

and genetic research

South Asia 

SoftLogic Life Insurance 

PLC

Provider of life insurance products Sri Lanka

Navis Asia Fund VIII, 

L.P.

Hernan Corporation Sdn 

Bhd

Supplier of Durian fruit and food products Malaysia

Thanh Thanh Cong 

Education JSC

K-12 and higher education Vietnam

Srithai Daily Foods Co., Ltd. Manufacturer of salts, condiments and food and 

beverage products

Thailand

WRB Serra Partners 

Fund I

Luz Verde Costa Rica LLC Installs, maintains, and finances distributed 

solar and energy efficiency assets

Costa Rica

MexSolar 1 LLC Finances and manages solar installations for 

commercial and industrial customers

Mexico
40 │ 2020 Annual Report

Financial Statements

Balance Sheet

(dollars in thousands) 

As of September 30, 2020 2020

Assets

Intragovernmental:

Fund Balance with Treasury (Note 2)

Investments (Note 3)

Total Intragovernmental

With the Public:

Accounts Receivable, Net (Note 4)

Credit Program Receivable, Net (Note 5)

Property and Equipment, Net (Note 6)

Other Assets

Total Assets

Liabilities

Intragovernmental:

Borrowings from Treasury (Note 8)

Liability for Reestimates and Capital Transfers to Treasury (Note 9)

Other Liabilities (Note 12)

Total Intragovernmental 

With the Public:

Loan Guaranty Liability (Note 5)

Unearned Revenue (Note 10)

Insurance Program Liabilities (Note 11)

Other Liabilities (Note 12)

Total Liabilities

Net Position

Unexpended Appropriations

Cumulative Results of Operations

Total Net Position

Total Liabilities and Net Position

 $ 1,616,126 

 6,195,838 

 7,811,964 

 10,055 

 4,201,086 

 482 

 642

 $ 12,024,229 

 $ 4,677,759 

 999,425 

 1,466 

 5,678,650 

 13,052 

 133,843 

 16,537 

 9,869 

 $ 5,851,951 

 105,992 

 6,066,286 

 6,172,278 

 $ 12,024,229 

The accompanying notes are an integral part of these statements. 
dfc.gov │ 41

Statement of Net Cost

(in thousands)

For the Period Ended September 30, 2020 2020

Insurance Program

Gross Costs

Operating Costs

Total Gross Costs

Less: Earned Revenue

Net Insurance Program Costs

Financing Program

Gross Costs

Operating Costs

Subsidy Costs/(Reduction)

Reestimates

Total Gross Costs

Less: Earned Revenue

Net Financing Program Costs

Equity Program

Gross Costs

Operating Costs

Total Gross Costs

Net Equity Program Costs

Net Cost of Operations

 $ 15,131 

 15,131 

 (141,557)

 (126,426)

 134,753 

 (212,938)

 119,516 

 41,331 

 (156,229)

 (114,898)

 8,935 

 8,935 

 8,935 

 $ (232,389)

The accompanying notes are an integral part of these statements.
42 │ 2020 Annual Report

Statement of Changes in Net Position

(in thousands) 

For the Period Ended September 30, 2020 2020

Unexpended Appropriations

Beginning Unexpended Appropriations

Appropriations Received

Appropriations Transferred-In

Other Adjustments

Appropriations Used

Total Unexpended Appropriations

Cumulative Results of Operations

Beginning Balance

Budgetary Financing Sources

Appropriations Used

Transfers In/Out Without Reimbursement

Other Financing Sources (Non-exchange)

Transfers In/Out Without Reimbursement

Imputed Financing

Offset to Non-entity Collections

Total Financing Sources

Net Cost of Operations

Net Change

Cumulative Results of Operations

Net Position

$ - 

 286,391 

 122,382 

 (7,927)

 (294,854)

 105,992 

 - 

 294,854 

 (2,585,265)

 8,528,166 

 2,192 

 (406,050)

 5,833,897 

 232,389 

 6,066,286 

 6,066,286 

 $ 6,172,278 

The accompanying notes are an integral part of these statements. 
dfc.gov │ 43

Combined Statement of Budgetary Resources

(in thousands)

For the Period Ended September 30, 2020 Budgetary Non-Budgetary Credit 

Reform Financing 

Accounts 

Budgetary Resources

Unobligated Balance from Prior Year Budget Authority, Net

Appropriations

Borrowing Authority

Spending Authority from Offsetting Collections

Total Budgetary Resources

Status of Budgetary Resources

New obligations and upward adjustments (total)

Unobligated Balance, End of Year

Apportioned, unexpired accounts

Unapportioned, unexpired accounts

Unexpired unobligated balance, end of year

Expired unobligated balance, end of year

Unobligated Balance, end of year (total)

Total Budgetary Resources

Outlays (Net) and Disbursements (Net)

Outlays, net

Distributed Offsetting Receipts

Agency Outlays, Net

Disbursements, Net

$ 6,072,305 

 286,391 

 - 

 695,603 

 $ 7,054,299 

 $ 558,128 

 90,071 

 6,362,427 

 6,452,498 

 43,673 

 6,496,171 

 $ 7,054,299 

 $ (91,921)

 (357,761)

 $ (449,682)

$ 553,597 

 - 

 4,107,290 

 482,066 

 $ 5,142,953 

 $ 4,524,224 

 243,870 

 374,859 

 618,729 

 - 

 618,729 

 $ 5,142,953 

 $ 641,793 

The accompanying notes are an integral part of these statements.
44 │ 2020 Annual Report

Note 1: Summary of Significant Accounting Policies

A. Reporting Entity

The DFC is a U.S. Government corporation created under the BUILD Act. DFC facilitates U.S. private investment in developing 

countries and emerging market economies, primarily by providing direct loans, loan guaranties, equity investments, technical 

assistance, and political risk insurance. On October 5, 2018, the President of the United States signed the BUILD Act (Public 

Law 115-254) establishing DFC. The BUILD Act specified a transition period during which the assets, liabilities, and functions 

of OPIC and certain functions of the USAID were to be transferred to DFC. The transition period occurred during FY 2020, 

which coincides with DFC’s first year of operation. The creation of DFC extends the authority for OPIC and USAID legacy 

programs through 2025.

B. Basis of Accounting and Presentation

The format of the financial statements and footnotes are presented in accordance with the form and content guidance provided 

in OMB Circular No. A-136, Financial Reporting Requirements (A-136). DFC’s financial statements are presented on the 

accrual and budgetary basis of accounting in accordance with U.S. GAAP promulgated by the Financial Accounting Standards 

Advisory Board (FASAB). Under the accrual basis, revenues are recognized when earned, and expenses are recognized when 

a liability is incurred, without regard to receipt or payment of cash. Budgetary accounting recognizes the legal commitment 

or obligation of funds in advance of the proprietary accruals and facilitates compliance with legal constraints and controls 

over the use of Federal funds. The accompanying Balance Sheet, Statement of Net Cost, and Statement of Changes in Net 

Position have been prepared on an accrual basis. The Statement of Budgetary Resources has been prepared in accordance 

with budgetary accounting rules.

Significant intra-agency transactions and balances have been eliminated from the principal statements for presentation on a 

consolidated basis, except for the Statement of Budgetary Resources, which is presented on a combined basis in accordance 

with A-136. As such, intra-agency transactions have not been eliminated from the Statement of Budgetary Resources. 

DFC began activities after receipt of the current year appropriation to fund the agency, in December 2019. As a result, the 

activities presented in these statements and notes do not reflect a full twelve months of operations. Additionally, only one 

year of the financial statements and notes is presented for FY 2020, DFC’s first partial fiscal year of operation.

C. Fund Balance with Treasury

FBWT is the aggregate amount of funds in DFC’s accounts with the U.S. Department of Treasury (Treasury). Treasury processes 

cash receipts and disbursements on DFC’s behalf to pay liabilities and finance authorized purchases. DFC’s accounting records 

are reconciled with Treasury’s records on a regular basis. DFC’s FBWT includes all of its general, revolving, and deposit funds. 

The general fund is used for subsidy and reestimates, revolving funds are used for operating expenses and DFC’s finance and 

insurance programs, and deposit funds are for taxes withheld on payments to contractors.

D. Investments

DFC has investments in Treasury securities and is authorized to make direct equity investments in specific projects and 

emerging market investment funds. As of September 30, 2020, DFC only has investments in Treasury securities, with pending 

direct equity investments for FY 2021. Investments in Treasury securities are carried at face value, net of unamortized discount 

or premium, and are held to maturity. DFC has the ability and intent to hold its investments until maturity or until the carrying 

cost can be otherwise recovered. 

E. Property and Equipment, Net 

DFC’s property and equipment consists of general-purpose equipment used by the agency. The majority of DFC 

property and equipment was transferred from OPIC, including equipment and internal use software. DFC capitalizes 

property and equipment at historical cost for acquisitions that have an estimated useful life of two years or more. 

DFC has a capitalization threshold of $50,000 for equipment, furniture, vehicles, and leasehold improvements, 

and $250,000 for internal use software. DFC expenses property and equipment acquisition that do not meet the
dfc.gov │ 45

capitalization criteria when purchased, as well as normal repairs and maintenance. The cost of property and equipment 

acquired under a capital lease is the amount recognized as a liability for the capital lease at its inception. Depreciation and 

amortization of property and equipment are computed using the straight-line method over the estimated useful life of the 

asset or lease term, whichever is shorter, with periods ranging from 5 to 10 years.

F. Federal Employee Benefits

LEAVE

Employee annual leave is accrued as it is earned and reduced as leave is taken. Each year the balance of accrued annual leave 

is adjusted to reflect current pay rates as well as forfeited “use or lose” leave. Amounts are reported as unfunded to the extent 

current or prior year appropriations are not available to fund annual leave earned but not taken. Sick leave and other types of 

non-vested leave are expensed as taken. 

EMPLOYEE HEALTH AND LIFE INSURANCE BENEFITS 

DFC employees may choose to participate in the contributory Federal Employees Health Benefit and the Federal Employees 

Group Life Insurance programs. DFC matches a portion of the employee contributions to each program. Such matching 

contributions are recognized as current operating expenses. 

EMPLOYEE PENSION BENEFITS 

DFC employees participate in either the Civil Service Retirement System or the Federal Employees Retirement System (FERS) 

and Social Security. These systems provide benefits upon retirement and in the event of death, disability, or other termination of 

employment, and may also provide pre-retirement benefits. They may also include benefits to survivors and their dependents, 

and they may contain early retirement or other special features. DFC’s contributions to both retirement plans, as well as to 

the government-wide Federal Insurance Contribution Act, administered by the Social Security Administration, are recognized 

as current operating expenses. Federal employee benefits also include the Thrift Savings Plan. For FERS employees, DFC 

matches employee contributions to the plan, subject to limitations. The matching contributions are recognized as current 

operating expenses. 

IMPUTED FINANCING COSTS

DFC recognizes the full cost of providing all employee benefits and future retirement benefits, including life and health 

insurance, at the time employee services are rendered. Eligible retired DFC employees, and retired OPIC employees, can 

continue to participate in health and life insurance plans. The cost of these benefits is funded through DFC contributions, 

employee compensation to the extent withheld from employee and retiree pay, from matching of employee withholding 

for Thrift Savings Plan and Federal Insurance Contributions Act (FICA), and by the Office of Personnel Management (OPM) 

which administers the retirement programs for DFC employees. OPM calculates imputed costs as the actuarial present value 

of future benefits attributed to services rendered by covered employees and eligible retired DFC employees during the 

accounting period, net of the amounts contributed by employees, retirees, and DFC. DFC recognizes these imputed costs in 

the Statement of Net Cost and imputed financing in the Statement of Changes in Net Position.

FEDERAL EMPLOYEES’ COMPENSATION ACT 

The Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to covered Federal civilian 

employees injured on the job and to beneficiaries of employees whose deaths are attributable to job-related injury or disease. 

The FECA program is administered by the Department of Labor (DOL). DOL pays valid claims as they occur, which are billed 

to DFC annually and funded and paid approximately 15 months later. DOL also calculates an estimated actuarial liability for 

future benefits based upon historical experience and other economic variables.
46 │ 2020 Annual Report

G. Insurance Program 

In accordance with Statement of Federal Financial Accounting Standards (SFFAS) No. 51, Insurance Programs, the Insurance 

Program liability represents the liability for unearned premiums and fees, claims incurred but not reported, claims submitted 

but not yet paid, and estimated losses on remaining coverage. The losses on remaining coverage includes the estimated 

amounts to be paid to settle claims, including claim adjustment expenses for the remaining open arrangement period, net of 

unearned premiums as of the end of the fiscal year, and net of future premiums due after the end of the fiscal year that relate 

to the remaining open arrangement period.

H. Commitments and Contingencies

DFC is currently involved in certain legal claims and has received notifications of potential claims in the normal course of 

business. There are substantial factual and legal issues that might bar any recovery in these matters. It is not possible to 

evaluate the likelihood of any unfavorable outcome, nor is it possible to estimate the amount of compensation, if any, that 

may be determined to be owed in the context of a settlement. Management believes that the resolution of these claims will 

not have a material adverse impact on DFC. 

I. Classified Activities

Accounting standards require all reporting entities to disclose that accounting standards allow certain presentations and 

disclosures to be modified, if needed, to prevent the disclosure of classified information.

Note 2: Fund Balance with Treasury 

(dollars in thousands) 

As of September 30, 2020

Status of Fund Balance with Treasury

Unobligated Balance

Available

Unavailable

Obligated Balance not yet Disbursed

Total FBWT

$ 913,202

 43,673

 659,251

 $ 1,616,126

At September 30, 2020, there were no unreconciled differences between Treasury records and balances reported on DFC’s 

general ledger. DFC’S FBWT is classified as unobligated balance available, unobligated balance unavailable, and obligated 

balance not yet disbursed. Unobligated available balances represent amounts that are apportioned for obligation in the 

current fiscal year and unexpired appropriations available for incurring new obligations. Unobligated unavailable balances 

represent amounts that are in expired appropriations and not available for incurring new obligations. Obligated balances not 

yet disbursed include undelivered orders or delivered orders received but not yet paid.
dfc.gov │ 47

Note 4: Accounts Receivable, Net

(dollars in thousands) 

As of September 30, 2020

Public Accounts Receivable

 Accounts Receivable

 Insurance Settlement 

 Allowance for Uncollectible Amounts

Accounts Receivable, Net

$ 2,540 

 20,757 

 (13,242)

 $ 10,055 

By statute, DFC is authorized to invest funds derived from fees and other revenues related to its insurance programs in 

Treasury non-marketable, market-based Securities and make equity investments in non-Treasury projects and emerging market 

investment funds. Treasury market-based securities are carried at face value, net of unamortized discount or premium, and 

are held to maturity. Premiums or discounts are amortized using the effective yield method. Interest income is compounded 

semi-annually by Treasury and adjusted to include an accrual for interest earned to September 30. DFC has the ability and 

intent to hold its investments until maturity or until the carrying cost can be otherwise recovered.

Accounts receivable are amounts due to DFC from the public and other Federal agencies. Receivables from the public result 

from fees and premiums from insurance policies, and assets acquired in insurance claims settlements. Accounts receivable are 

reduced to net realizable value by an allowance for uncollectible amounts. Allowances are based on management’s periodic 

evaluations of the underlying assets. In its evaluation, management considers numerous factors, including, but not limited to, 

general economic conditions, asset composition, and prior loss experience.

Note 3: Investments

(dollars in thousands) 

As of September 30, 2020 Cost

Amortized 

(Premium)/ 

Discount

Interest 

Receivable

Investments, 

Net Market Value

Treasury Non-Marketable, Marketbased Securities

Notes

Bonds

Total Investments

$ 5,864,236 

 300,312 

 $ 6,164,548 

$ 1,149 

 (114)

 $ 1,035 

$ 27,734 

 2,521

 $ 30,255 

$ 5,893,119 

 302,719

 $ 6,195,838 

$ 6,264,417 

 355,467 

 $ 6,619,884 
48 │ 2020 Annual Report

Note 5: Direct Loans and Loan Guaranties, 

Non-Federal Borrowers

A. Direct Loan and Loan Guaranty Programs

DFC has the following direct loan and loan guaranty programs:

NAME OF PROGRAM DESCRIPTION

Direct Loan Program Direct loans by DFC, and loans transferred from OPIC and USAID’s DCA to DFC. Loans are 

for critical infrastructure, energy, and other projects requiring large investments.

Loan Guaranties Loan guaranties by DFC, and agreements transferred from OPIC and DCA to DFC. 

Loan guaranties are for critical infrastructure, energy, and other projects requiring large 

investments.

Legacy Loans DFC administers loans that were previously initiated by USAID under the Debt Reduction 

Loan program, initiated after FY 1991, and the Economic Assistance Loan program, which 

were initiated prior to FY 1992.

Legacy Loan Guaranties DFC administers loan guaranties that were previously administered by USAID under the 

Microenterprise and Small Enterprise Development Guarantied Loan program; the Urban 

and Environmental Credit Guarantied Loan programs, and the Housing and Other Credit 

Guaranty programs. These programs include loans that were initiated before FY 1992 and 

after FY 1991.

The Federal Credit Reform Act (FCRA) governs direct loans made after fiscal year 1991. FCRA loans are valued at the present 

value of expected future cash flows, discounted at the interest rate of Treasury Marketable Securities. The subsidy allowance 

represents the difference between the outstanding loans receivable balance and the net present value of the estimated cash 

flows of the loans over their remaining term. The subsidy allowance is subtracted from the outstanding loans receivable 

balance to obtain the net loans receivable balance. FCRA also governs loan guaranties made after fiscal year 1991. The 

liability is determined by calculating the net present value of expected future cash flows for outstanding guaranties in a 

manner similar to that used to determine the subsidy allowance for direct loans. Loan guaranty liability can be positive or 

negative, and if negative, is reported as an asset on the Balance Sheet. Guarantied loans acquired by DFC upon borrower 

default are established as loans receivable and are valued in a similar manner as direct loans under FCRA. 

BUDGETARY ACCOUNTING FOR LOAN PROGRAMS

DFC’s loan disbursements are financed by appropriation authority for long-term loan subsidy cost and borrowings from 

Treasury for the remaining non-subsidized portion of the loans. Congress may authorize one-year, multi-year, or no year 

appropriation authority to cover the estimated long-term costs of the loan programs. The non-subsidized portion of each 

loan disbursement, financed initially under permanent indefinite authority to borrow funds from Treasury, is repaid from 

collections of loan fees, loan repayments, and default recoveries. Permanent indefinite authority is available to fund any 

reestimate increase of subsidy costs that occurs after the year in which a loan is disbursed. Reestimate reductions of subsidy 

costs are returned to Treasury and are unavailable to DFC. As required by the FCRA, DFC uses budgetary “program accounts” 

to account for appropriation authority in its credit programs and non-budgetary “financing accounts” to account for credit 

program cash flow. Estimates and reestimates of credit program subsidy expenses are recorded in DFC’s program accounts.

NON-BUDGETARY CREDIT REFORM FINANCING ACCOUNTS

Actual cash flows for direct loan and loan guaranty programs are recorded in separate Credit Reform Financing 

Accounts within Treasury. These accounts borrow funds from Treasury; make direct loan disbursements; pay claims 

on guarantied loans; collect principal, interest, and fees from borrowers; earn interest from Treasury on any uninvested funds; pay interest expense on outstanding borrowings; and transfer negative subsidy to Treasury’s general 

fund receipt account. New subsidy funded from DFC’s non-credit spending authority and appropriated upward
dfc.gov │ 49

subsidy reestimate are received in program accounts and transferred to non-budgetary credit reform financing accounts. The 

budgetary resources and activities for these accounts are presented separately in the Statement of Budgetary Resources and 

the Budget of the United States and are excluded from the determination of the budget deficit or surplus. 

SUBSIDY FUNDING UNDER FEDERAL CREDIT REFORM

FCRA requires that the credit subsidy costs of direct loans and loan guaranties be expensed in the year loans are disbursed. 

The cost expressed as a percentage of loans disbursed is termed the subsidy rate. DFC receives an annual appropriation 

from Congress and transfers from USAID to fund its credit program subsidy. DFC records subsidy expenses when loans are 

disbursed. Subsidy for loans disbursed in foreign currencies is calculated in U.S. dollars and DFC does not change the subsidy 

amount for foreign currency fluctuations during the year. In accordance with FCRA, subsidy costs are reestimated annually.

INTEREST RECEIVABLE

Interest receivable is comprised of accrued interest on loans receivable (direct loans and defaulted loan guaranties). Initial 

unpaid interest on defaulted loan guaranties that DFC acquires with the loan is treated as part of the principal of the loan 

receivable. Interest income is accrued at the contractual rate on the outstanding principal. Purchased interest is carried at 

cost. 

VALUATION METHODOLOGY FOR DIRECT LOANS AND LOAN GUARANTIES

The value of direct loans and loan guaranties is based on the net present value of their expected future cash flows. DFC 

estimates future cash flows for direct loans and loan guaranties using economic and financial credit subsidy models. DFC’s 

models vary in the specific methodologies employed to forecast future program cash flows. In general, however, models for all 

major credit programs use historical data as the basis for assumptions about future program performance and then translate 

these assumptions into nominal cash flow estimates by applying rules about program structure. Nominal cash flow forecasts 

are discounted using OMB’s Credit Subsidy Calculator that has both forecasted and actual Treasury interest rates. Loans have 

been made in both U.S. dollars and foreign currencies. Loans extended in foreign currencies that were originated by USAID 

and transferred into DFC were made with or without “Maintenance of Value” (MOV). Foreign currency exchange gain or loss 

is recognized upon receipt of loan repayments on loans extended without MOV, and reflected in the net credit programs 

receivable balance. The net loans receivable or the value of assets related to direct loans is not the same as expected proceeds 

from selling the loans.

Historical data is used as the basis for program performance assumptions. The historical data undergoes quality review and 

analysis prior to its use in developing model assumptions. Key input to the subsidy models varies by program and includes 

items such as:

• Contractual terms of the loan or guaranty such as loan amount, interest rate, maturity and grace period

• Borrower characteristics

• Estimated changes in foreign currency valuations

• Loan performance assumptions, such as default and recovery rates

• Loan fee rates

DFC’s rating methodology for its Federal Credit Reform reestimates is based on industry best practices and the expert judgment 

of a core panel of officers from origination, monitoring, credit policy and risk management who worked in conjunction with 

Moody’s Analytics. The methodology rates the portfolio risk with a consistent and standardized approach. 
50 │ 2020 Annual Report

B. Direct Loans, Net

C. Total Amount of Direct Loans Disbursed

D. Subsidy Expense and Reestimates for Direct Loan Programs by Component

(dollars in thousands) 

As of September 30, 2020

Loans 

Receivable, 

Gross

Fees & Interest 

Receivable

Allowance for 

Loan Loss (or 

Present Value 

Allowance)

Allowance 

for Subsidy 

Cost (Present 

Value)

Value of 

Assets Related 

to Direct 

Loans, Net

Loans Obligated Prior to FY 1992

Legacy Loans

Loans Obligated After FY 1991

Direct Loans

Legacy Loans

Total Loans Receivable

$ 593,361 

 3,659,289 

 655,960 

 $ 4,908,610 

$ 389,345 

 97,775 

 21,206 

 $ 508,326 

 $ (535,868)

 -

 $ (535,868)

$ - 

 (238,276)

 (838,249)

 $ (1,076,525)

$ 446,838 

 3,518,788 

 (161,083)

 $ 3,804,543 

(dollars in thousands) 

As of September 30, 2020

Direct Loan Disbursements $ 919,700

(dollars in thousands) 

As of September 30, 2020 Direct Loans

Subsidy Expense for New Direct Loans Disbursed

Interest Differential

Defaults

Fees and Other Collections

Other

Total Subsidy Expense for New Direct Loans Disbursed

Modifications and Reestimates

Interest Rate Reestimates

Technical Reestimates

Total Reestimates

Total Direct Loan Subsidy Expense

 $ 1,883 

 (85,974)

 193,080 

 (18,456)

 90,533 

 14,751 

 59,234 

 73,985 

 $ 164,518 
dfc.gov │ 51

E. Schedule for Reconciling Direct Loan Subsidy Cost Allowance

F. Defaulted Loan Guaranties

G. Guarantied Loans Outstanding

GUARANTIED LOANS OUTSTANDING

(dollars in thousands) 

As of September 30, 2020

Outstanding Principal of 

Guarantied Loans, Face Value

Amount of Outstanding 

Principal Guarantied

Loan Guaranties

Legacy Loan Guaranties

Total

 $ 10,629,819

 186,560

$ 10,816,379

 $ 10,322,937 

 186,560 

 $ 10,509,497 

(dollars in thousands) 

As of September 30, 2020

Defaulted Loan 

Guaranties 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss (or 

Present Value 

Allowance)

Allowance for 

Subsidy Cost 

(Present Value)

Value of Assets 

Related to 

Defaulted Loan 

Guaranties 

Receivable, Net

Loans Obligated Prior to FY 1992

Legacy Loan Guaranties

Loans Obligated After FY 1991

Loan Guaranties

Legacy Loan Guaranties

Total

 $ 85,046 

 366,371 

 77,174 

$ 528,591

$ 11,671 

 18,103 

 53,839

 $ 83,613 

$ (40,609)

 - 

 $ (40,609)

 $ - 

 (263,354)

 -

 $ (263,354)

$ 56,108 

 121,120 

 131,013

 $ 308,241 

(dollars in thousands) 

As of September 30, 2020

Beginning balance of the subsidy cost allowance

Subsidy cost allowance transferred-in

Add: subsidy expense for direct loans disbursed during the year

Adjustments:

Fees accrued

Loans written off

Subsidy allowance amortization

Other

Total adjustments

Ending balance of the subsidy cost allowance before reestimates

Add or subtract subsidy reestimates

Ending balance of the subsidy cost allowance

$ - 

 (962,425)

 90,533 

 (508)

 3,196 

 (134,329)

 993 

 (130,648)

 (1,002,540)

 (73,985)

 $ (1,076,525)

DFC has fees receivable related to the Loan Guaranties in the amount of $88,302 as of September 30, 2020 that are 

reported as part of the Credit Program Receivables balance on the Balance Sheet.
52 │ 2020 Annual Report

(dollars in thousands) 

As of September 30, 2020

Principal of Guarantied Loans, 

Face Value Amount of Principal Guarantied

Loan Guaranties

Legacy Loan Guaranties

Total

 $ 1,331,896

 - 

 $ 1,331,896

 $ 1,246,620 

 - 

 $ 1,246,620 

NEW LOAN GUARANTIES DISBURSED

H. Liability for Loan Guaranties

I. Subsidy Expense for Loan Guaranties by Program and Component

(dollars in thousands) 

As of September 30, 2020

Liabilities for 

Losses on Pre1992 Guaranties, 

Present Value

Liabilities for 

Post-1991 

Guaranties, 

Present Value

Loan 

Guaranties 

Liabilities for 

Loan Guaranties

Loans Obligated Prior to FY 1992

Legacy Loan Guaranties

Loans Obligated After FY 1991

Loan Guaranties

Legacy Loan Guaranties

Total Liability for Loan Guaranties

$ (1,924) 

 - 

 -

 $ (1,924) 

$ - 

 (149,006) 

 163,982

 $ 14,976

 $ (1,924) 

 (149,006) 

 163,982

 $ 13,052

(dollars in thousands) 

As of September 30, 2020 Loan Guaranties

Legacy Loan 

Guaranties Total

Subsidy Expense for New Loan Guaranties Disbursed

Defaults

Fees and Other Collections

Other

Total Subsidy Expense for New Loan Guaranties Disbursed

Reestimates

Interest Rate Reestimates

Technical Reestimates

Total Reestimates

Total Loan Guaranty Subsidy Expense

 $ 110,386 

 (288,339)

 55,548 

 (122,405)

 (9,627)

 59,234 

 49,607 

 $ (72,798)

$ - 

 - 

 - 

 - 

 (3,317)

 (759)

 (4,076)

 $ (4,076)

$ 110,386 

 (288,339)

 55,548 

 (122,405)

 (12,944)

 58,475 

 45,531

 $ (76,874)
dfc.gov │ 53

J. Schedule for Reconciling the Loan Guaranty Liability

K. Subsidy Rates by Program and Component

(dollars in thousands) 

As of September 30, 2020

Beginning balance of the loan guaranty liability

Loan guaranty liability transferred-in

Add: total subsidy income/(expense) for guarantied loans disbursed during the year

Adjustments:

Fees accrued

Actual claims paid

Loans acquired

Subsidy allowance amortized

Other

Total adjustments

Ending balance of the loan guaranty liability before reestimates

Add or subtract total subsidy reestimates by component

Ending balance of the loan guaranty liability

 $ - 

 (51,531) 

 (122,405) 

 192,058

 (180,524) 

 107,966

 23,553

 328

 143,381

 (30,555) 

 45,531

 $ 14,976

As of September 30, 2020

Defaults, net of 

recoveries Interest Fees Other Total

Direct Loans

Direct Loans

Direct Loan Investment Funds

Direct Loans in Foreign Currencies

Hybrid Participation Notes

Loan Guaranties

USAID Mission-led Guaranties

Loan Guaranties

Guarantied Loan Investment Funds

Non-Honoring of Sovereign Guaranties

Limited Arbitral Award Coverage

10.25%

1.99%

17.49%

33.70%

4.33%

8.59%

17.97%

2.18%

3.57%

-

-1.87%

-

-0.68%

-

-

-

-

-

-24.24%

-11.30%

-4.17%

-8.02%

-1.05%

-18.10%

-16.56%

-8.34%

-5.96%

 -

-

-13.32%

-

-

-

-

-

-

-13.99%

-11.18%

-

25.00%

3.28%

-9.51%

 1.41%

-6.16%

-2.39%

The subsidy rates presented above are consistent with the estimated subsidy rates published in the Federal Credit Supplement 

to the Budget of the U.S. Government except for differences due to rounding. The published budget formulation subsidy 

rates are notional, for illustrative purposes only, as DFC estimates subsidy on a loan-by-loan basis at the time of obligation. 

These rates cannot be applied to the direct loans and loan guaranties disbursed during the current reporting year to yield 

the subsidy expense. The subsidy expense for new loans reported in the current year could result from the disbursements 

of loans obligated in the current and prior fiscal years. Subsidy expense reported in the current year also includes the cost of 

subsidy reestimates.

L. Administrative Expenses

DFC incurs administrative expenses to carry out its credit reform programs. The administrative expense for direct loan and 

loan guaranties is $64,119 thousand for the period ended September 30, 2020.
54 │ 2020 Annual Report

(dollars in thousands) 

As of September 30, 2020 Cost 

 Accumulated 

Depreciation Net Book Value 

Equipment

Internal-Use Software

Total Property and Equipment, Net

$ 3,925 

 9,584 

 $ 13,509 

 $ (3,443)

 (9,584)

 $ (13,027)

$ 482 

 -

 $ 482 

(dollars in thousands) Acquisition Cost 

 Accumulated 

Depreciation Net PP&E 

Balance as of October 1, 2019

Transfers In

Depreciation Expense

Balance as of September 30, 2020

 $ - 

 13,509 

 - 

 $ 13,509 

 $ - 

 (12,882)

 (145)

$ (13,027)

$ - 

 627 

 (145)

 $ 482 

Note 6: Property And Equipment, Net

Note 7: Liabilities Covered and Not Covered by 

Budgetary Resources

Liabilities of Federal agencies are classified as liabilities covered or not covered by budgetary resources. DFC’s liabilities not 

covered by budgetary resources primarily consist of accrued unfunded annual leave. DFC’s liabilities not requiring budgetary 

resources consists of rent incentives.

(dollars in thousands) 

As of September 30, 2020

Intragovernmental

Unfunded FECA Liability

Total Intragovernmental

With the Public

Unfunded Annual Leave

Actuarial FECA Liability

Total With the Public

Total Liabilities Not Covered by Budgetary Resources

Total Liabilities Covered by Budgetary Resources

Total Liabilities Not Requiring Budgetary Resources

Total Liabilities 

 $ 301 

 301 

 5,215 

 428 

 5,643 

 5,944 

 5,833,398 

 12,609 

 $ 5,851,951 

Liabilities not covered by budgetary resources require future congressional action whereas liabilities covered by budgetary 

resources reflect prior congressional action. Regardless of when the congressional action occurs, when the liabilities are 

liquidated, Treasury will finance the liquidation in the same way that it finances all other disbursements, which is to borrow 

from the public if the Government has a budget deficit, and to use current receipts if the Government has a budget surplus.

Liabilities covered by budgetary resources consist of liabilities incurred which are covered by realized budgetary resources as 

of the Balance Sheet date. Budgetary resources encompass not only new budget authority but also other resources available 

to cover liabilities for specified purposes in a given year. Liabilities are considered covered by budgetary resources if they 

are to be funded by permanent indefinite appropriations, which have been enacted and signed into law and are available for 

use as of the Balance Sheet date, provided that the resources may be apportioned by OMB without further action by the 

Congress and without a contingency having to be met first.
dfc.gov │ 55

Note 8: Borrowings from Treasury

DFC’s debt comes from direct borrowings from the U.S. Treasury to fund the portion of direct loans not covered by subsidy 

appropriations, disbursements of downward subsidy reestimates, and pay claims in excess of the amount of subsidy and 

collections maintained in the non-budgetary financing funds. During FY 2020 borrowings from Treasury were transferred in 

from OPIC and USAID to DFC. 

Note 10: Unearned Revenue

Note 9: Liability for Reestimates and Capital 

Transfers to Treasury

Federal credit programs are required to transfer to Treasury excess funding. Loans and loan guaranties made after FY 1991 

that are covered under FCRA are reestimated each year. The loans and loan guaranties where the reestimate indicates that 

the amount of subsidy needed will be less than the prior year, or where the present value of the cash flows is positive, is 

a downward reestimate, requiring funds to be transferred to Treasury. DFC cannot transfer these funds until they receive 

authority from OMB, which will occur in the succeeding fiscal year. Loan and loan guaranties made prior to FY 1992 are not 

covered under the Federal Credit Reform Act, however, excess funding is still required to be transferred to Treasury in the 

form of a capital transfer. 

The balance of the Liability for Reestimates and Capital Transfers to Treasury consists of the following: 

(dollars in thousands) 

As of September 30, 2020

Debt to the Treasury

Beginning Balance

Borrowings Transferred In

Net Borrowings

Ending Balance

 $ - 

 5,341,670

 (663,911) 

 $ 4,677,759

(dollars in thousands) 

As of September 30, 2020

Downward Reestimates

Capital Transfers to Treasury

Ending Balance

 $ 342,662 

 656,763 

 $ 999,425 

(dollars in thousands) 

As of September 30, 2020

Finance Retainer Fees and Deferred Facility Fees

Rent Incentives

Total Unearned Revenue:

 $ 121,234 

 12,609 

 $ 133,843 

DFC may charge a retainer and other working capital fees in conjunction with each project. Working capital fees are maintained 

in non-budgetary financing funds. Facility fees collected in excess of $50,000 are amortized over the life of the project.
56 │ 2020 Annual Report

Note 11: Insurance Program Liabilities and 

Claim Recoveries

DFC provides Political Risk Insurance for overseas investments against six different risks: (1) inconvertibility of currency; (2) 

expropriation; (3) bid, performance, advance payment, and other guaranty coverages; (4) political violence; (5) reinsurance; 

and (6) breach of contract for capital markets. On a case-by-case basis, DFC may rewrite and renew insurance coverage 

beyond the initial term of the original insurance contract issued. The initial term is typically 3 to 20 years. Policies are 

renewable yearly at the option of the insured. Insurance premiums received are amortized over the coverage period. 

1) Insurance coverage against inconvertibility protects the investor from increased restrictions on the investor’s ability to 

convert local currency into U.S. dollars. Inconvertibility insurance does not protect against devaluation of a country’s 

currency. 

2) Expropriation coverage provides compensation for losses due to confiscation, nationalization, or other governmental 

actions that deprive investors of their fundamental rights in the investment. 

3) Guaranties issued on behalf of a U.S. exporter of goods or services, or a U.S. contractor in favor of a foreign government 

buyer can be covered against the risk of a wrongful calling. The guaranties usually are in the form of irrevocable, ondemand, standby letters of credit. A wrongful calling is one that is not justified by the terms of the underlying contract, 

or the invitation for bids.

4) Insurance against political violence insures investors against losses caused by politically motivated acts of violence 

(war, revolution, insurrection, or civil strife, including terrorism and sabotage).

5) Reinsurance can increase underwriting capacity and support development in countries where investors have difficulty 

obtaining political risk insurance, DFC can reinsure licensed U.S. and international insurance companies.

6) DFC political risk insurance supports U.S. capital market financing structures that catalyze private capital in emerging 

markets.

In general, pricing is determined based on the individual coverage issues and the unique risk profile of the investment project. 

Under most DFC insurance contracts, investors may obtain all coverages, but claim payments may not exceed the single 

highest coverage amount. Claim payments are limited by the value of the investment and the amount of current coverage in 

force at the time of the loss and may be reduced by the insured’s recoveries from other sources. In certain instances, DFC’s 

requirement to pay up to the single highest coverage amount may be reduced by stop-loss and risk-sharing agreements. 

Finally, losses on insurance claims may be reduced by recoveries by DFC as subrogee of the insured’s claim against the host 

government. Payments made under insurance contracts that result in recoverable assets are included in Accounts Receivable 

net of an allowance for uncollectible amounts.

DFC’s liability for unearned insurance retainer fees and unearned insurance premiums as of September 30, 2020 was $16,537 

thousand. DFC did not have any claims incurred or paid, or claims recoveries received during FY 2020. 

The liability for losses on remaining coverage represents the estimated amounts to be paid to settle claims, including claim 

adjustment expenses, for the remaining open arrangement period in excess of the sum of both:

a) related unearned premiums as of the end of the reporting period, and

b) premiums due after the end of the reporting period that relate to the remaining open arrangement period.

The open arrangement period is the elected coverage period under the insurance policy, since it is the period the insurance is 

in-force and unexpired. DFC has no liability for losses on remaining coverage as of September 30, 2020.

In addition to requiring formal applications for claimed compensation, DFC’s contracts generally require investors to notify 

DFC promptly of host government action that the investor has reason to believe is or may become a claim. Compliance with 

this notice provision sometimes results in the filing of notices of events that do not mature into claims. DFC has no contingent 

liabilities related to insurance claims as of September 30, 2020.

DFC’s current exposure for all policies in force, or Current Exposure to Claims at September 30, 2020 was $2.7 billion. 

DFC’s broader measure of exposure is limited to “Maximum Contingent Liability” as defined in legislation as $3.6 billion 

at September 30, 2020. This amount is DFC’s estimate of maximum exposure to insurance claims, which includes standby 

coverage for which DFC is committed but not currently at risk.
dfc.gov │ 57

(dollars in thousands) 

As of September 30, 2020

Non-Current 

Liabilities Current Liabilities Total Liabilities

Intragovernmental

Employer Contributions & Payroll Taxes Payable

Unfunded FECA Liability

Total Intragovernmental

With the Public

Accounts Payable

Accrued Funded Payroll & Benefits

Accrued Unfunded Annual Leave

Liability for Deposit Funds

Actuarial FECA Liability

Total Liabilities With the Public

Total Other Liabilities

$ - 

 165 

 165 

 - 

 - 

 - 

 - 

 428 

 428

 $ 593 

$ 1,165 

 136 

 1,301 

 759 

 3,376 

 5,215 

 91 

 - 

 9,441

 $ 10,742 

$ 1,165 

 301 

 1,466 

 759 

 3,376 

 5,215 

 91 

 428 

 9,869 

 $ 11,335 

Note 12: Other Liabilities

Note 13: Leases

Operating Leases

DFC leases commercial facilities under a multi-year operating lease agreement, as amended, which expires in May 2029. 

Under the terms of the lease, DFC receives a tenant improvement allowance for space refurbishment as well as other 

incentives. The value of these incentives is deferred in the Balance Sheet and are amortized to recognize rent expense on a 

straight-line basis over the life of the lease. Rental expense was approximately $6.9 million for fiscal year 2020. The following 

table presents future rental payments.

(dollars in thousands) 

For the Years Ending: Non-Federal Lease 

Payments

2020

2021

2022

2023

2024

After 2024

Total Future Lease Payments

 $ 8,394 

 9,638 

 9,661 

 9,901 

 10,148 

 38,482 

 $ 86,224 
58 │ 2020 Annual Report

Note 14: Budgetary Resources

A. Permanent Indefinite Appropriations

The Federal Credit Reform Act of 1990 authorizes permanent, indefinite appropriations from Treasury, as appropriate, to carry 

out all obligations resulting from the financing program. Permanent indefinite authority is available to fund any reestimated 

increase of subsidy costs that occurs after the year in which a loan is disbursed. Reestimated reductions of subsidy costs are 

returned to Treasury and are unavailable to DFC. 

Section 235(c) of the Foreign Assistance Act of 1961 (FAA) established a fund which shall be available for discharge of 

liabilities under insurance or reinsurance or under similar predecessor authority. All valid claims arising from insurance issued 

by DFC constitute obligations on which the full faith and credit of the United States of America is pledged for full payment. 

DFC is authorized by statute to borrow from Treasury should funds in DFC’s reserves be insufficient to discharge obligations 

arising under its insurance program. 

B. Annual Appropriations

DFC receives an annual appropriation for operations and programs. Under current law (Public Law 116-94, 133 Stat. 2840), 

DFC’s offsetting collections are to be used to reduce DFC’s annual appropriation from the General Fund to zero. The offsetting 

collections to be used for this purpose include investment earnings, non-insurance fees, and negative subsidy.

C. Borrowing Authority

DFC is required to borrow from Treasury’s Bureau of the Fiscal Service to fund the unsubsidized portion of direct loan 

disbursements. DFC is authorized to borrow funds to disburse negative subsidy or pay claims in excess of the amount of 

subsidy and collections maintained in the financing funds. At the end of fiscal year 2020, DFC had $5,534 million in borrowing 

authority carried over to fund direct loans and pay future claims. 

D. Undelivered Orders at the End of the Period

Undelivered Orders include loan and related subsidy obligations that have been issued but not disbursed and obligations for 

goods and services ordered that have not been received. 

(dollars in thousands) 

As of September 30, 2020 Federal Non-Federal Total

Unpaid

Paid

Total Obligations

 $ 1,042,158 

 - 

 $ 1,042,158 

 $ 4,694,430 

 642

 $ 4,695,072 

$ 5,736,588 

 642 

 $ 5,737,230 

E. Explanation of Differences Between the SBR and the Budget of the U.S. Government

Agencies are required to explain material differences between their Statement of Budgetary Resources (SBR) and the 

Budget of the U.S. Government. This disclosure reconciles the prior year’s Statement of Budgetary Resources to the actual 

balances per the upcoming year’s budget. For example, DFC’s FY 2020 SBR will be reconciled to the actual balances 

per the 2022 Budget of the U.S. Government which will be released in FY 2021. As a result, DFC will not have anything 

to report until FY 2021. The Budget with the actual amounts for this current year will be available at a later date at 

https://www.whitehouse.gov/omb/budget/.

Note 15: Reconciliation of Net Cost of Operations to 

Net Outlays

Budgetary accounting is used for planning and control purposes and relates to both the receipt and use of cash, as well as 

reporting the Federal deficit. Financial accounting is intended to provide a picture of the government’s financial operations 

and financial position, so it presents information on an accrual basis. The accrual basis includes information about costs arising 
dfc.gov │ 59

(dollars in thousands) 

As of September 30, 2020

Intra 

governmental With the public Total

Net Cost

Components of Net Cost That Are Not Part of Net Outlays:

Property and Equipment Depreciation

Year-end Credit Reform subsidy Re-estimates

Increase/(decrease) in assets:

Accounts Receivable

Credit Program Receivable

Investments 

(Increase)/decrease in liabilities:

Loan Guaranty Liability

Unearned Revenue

Subsidy Payable to the Financing Account

Liability for Reestimates and Capital Transfers to Treasury

Insurance Program Liabilities

Other Liabilities

Other Financing Sources:

Imputed Costs 

Transfers out (in) without reimbursement

Total Components of Net Cost That Are Not Part of Net 

Outlays

Components of Net Outlays That Are Not Part of Net Cost:

Distributed Offsetting Receipts

Total Components of Net Outlays That Are Not Part of Net 

Cost

Net Outlays (calculated)

Related Amounts on the Statement of Budgetary 

Resources

Outlays, Net 

Distributed Offsetting Receipts

Total Agency Outlays, Net

$ 47,009 

 

 - 

 (118,200)

 - 

 - 

 68,067 

 - 

 - 

 284,391 

(656,763)

 - 

 (1,894)

 (2,192)

 512,994

86,403 

 

(357,761)

 (357,761)

 

(224,349)

$ (25,288)

 (145)

 - 

 10,055 

(53,288)

 - 

 1,924 

 (132,614)

 - 

-

 (16,537)

 (9,440)

 - 

-

(200,045)

 -

 - 

 (225,333)

 $ 21,721

 (145)

 (118,200)

 

 10,055 

 (53,288)

 68,067 

 - 

 1,924 

 (132,614)

 284,391 

(656,763)

 (16,537)

 (11,334)

 - 

 (2,192)

512,994

(113,642)

 (357,761)

 (357,761)

 

(449,682)

 (91,921) 

 (357,761) 

 $ (449,682) 

from the consumption of assets and the incurrence of liabilities. The reconciliation of net outlays, presented on a budgetary 

basis, and the net cost, presented on an accrual basis, provides an explanation of the relationship between budgetary and 

financial accounting information. The reconciliation serves not only to identify costs paid for in the past and those that will be 

paid in the future, but also to assure integrity between budgetary and financial accounting. The analysis below illustrates this 

reconciliation by listing the key differences between net cost and net outlays.

Note 16: Reclassification of Balance Sheet, Statement 

of Net Costs, and Statement of Changes in Net 

Position for Financial Reporting Compilation Process

To prepare the Financial Report of the U.S. Government (FR), the Department of the Treasury requires agencies to submit an 

adjusted trial balance, which is a listing of amounts by U.S. General Ledger account that appear in the financial statements. 

Treasury uses the trial balance information reported in the Governmentwide Treasury Account Symbol Adjusted Trial Balance 
60 │ 2020 Annual Report

System (GTAS) to develop a Reclassified Balance Sheet, Reclassified Statement of Net Cost, and a Reclassified Statement of 

Changes in Net Position for each agency, which are accessed using GTAS. Treasury eliminates all intragovernmental balances 

from the reclassified statements and aggregates lines with the same title to develop the FR statements. This note shows 

DFC’s financial statements and DFC’s reclassified statements prior to elimination of intragovernmental balances and prior to 

aggregation of repeated FR line items. The GTAS balances on the Reclassified Balance Sheet and Statement of Changes in 

Net Position require additional manual adjustments in order to accurately reflect DFC’s activity. A copy of the 2019 FR can 

be found here: https://www.fiscal.treasury.gov/reports-statements/ and a copy of the 2020 FR will be posted to this site as 

soon as it is released.

The term “intragovernmental” is used in this note to refer to amounts that result from other components of the Federal 

Government. 

The term “non-Federal” is used in this note to refer to Federal Government amounts that result from transactions with nonFederal entities. These include transactions with individuals, businesses, non-profit entities, and State, local, and foreign 

governments.

FY 2020 DFC Balance Sheet Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands)

Plus: Manual 

Adjustment 

(in thousands)

Adjusted 

Amounts 

(in thousands)

Reclassified Financial 

Statement Line

ASSETS ASSETS

Intra-Governmental 

Assets

Intra-Governmental 

Assets

FBWT $ 1,616,126 $ 1,616,126 - $ 1,616,126 FBWT

Investments, Net 6,195,838 6,165,583 - 6,165,583 Federal Investments

 

30,255 

- 30,255 Interest Receivable 

- Investments

Total Investments, Net 6,195,838 6,195,838 - 6,195,838 Total Reclassified 

Investments, Net

Advances - 19 - 19 Advances to Others and 

Prepayments

 (19) - (19) Other Assets

Total Advances - - - - Total Advances to Other 

and Prepayments

Total Intra-governmental 

Assets

 $ 7,811,964 $ 7,811,964 $ - $ 7,811,964 Total Intra-governmental 

Assets

Accounts Receivable, 

Net

 10,055 10,055 - 10,055 Accounts Receivable, Net

Credit Program 

Receivable, Net

 4,201,086 4,099,890 - 4,099,890 Loans Receivable, Net

 101,196 - 101,196 Accounts Receivable, Net

Total Credit Program 

Receivable, Net

 4,201,086 4,201,086 - 4,201,086 Total Credit Program 

Receivable, Net

Property and Equipment, 

Net

 482 482 - 482 General Property, Plant 

and Equipment, Net

Other Assets 

642 

 642 - 642 Other Assets

Total Assets $ 12,024,229 $ 12,024,229 $ - $ 12,024,229 Total Assets
dfc.gov │ 61

FY 2020 DFC Balance Sheet Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands)

Plus: Manual 

Adjustment 

(in thousands)

Adjusted 

Amounts 

(in thousands)

Reclassified Financial 

Statement Line

LIABILITIES LIABILITIES

Intra-Governmental 

Liabilities

Intra-Governmental 

Liabilities

Borrowings from 

Treasury 

 $ 4,677,759 $ 4,677,759 - $ 4,677,759 Loans Payable

Liability for Reestimates 

and Capital Transfers to 

Treasury 

 999,425 999,425 - 999,425 Liability to General Fund 

for Custodial and Other 

Non-Entity Assets

Other Liabilities 1,466 632 - 632 Benefit Program 

Contributions Payable

 158 - 158 Other liabilities (without 

reciprocals)

 676 - 676 Federal employee and 

veteran benefits payable

Total Other Liabilities 1,466 1,466 - 1,466 Total Other Liabilities

Total IntraGovernmental Liabilities $ 5,678,650 $ 5,678,650 $ - $ 5,678,650 Total Intra-Governmental 

Liabilities

Loan Guaranty Liability $ 13,052 $ 13,052 - $ 13,052 Loan Guaranty Liability

Unearned Revenue 133,843 133,843 - 133,843 Other liabilities

Insurance Program 

Liabilities

 16,537 15,717 - 15,717 Insurance and guaranty 

program liabilities

 820 - 820 Other liabilities

Total Insurance Program 

Liabilities

 16,537 16,537 - 16,537 Total Insurance Program 

Liabilities

Other Liabilities 9,869 3,467 - 3,467 Other liabilities

 1,031 (272) 759 Accounts payable

 5,643 - 5,643 Federal employee and 

veteran benefits payable

Total Other Liabilities 9,869 10,141 (272) 9,869 Total Reclassified Other 

Liabilities

Total Liabilities $ 5,851,951 $ 5,852,223 $ (272) $ 5,851,951 Total Liabilities

NET POSITION NET POSITION

Unexpended 

Appropriations

 $ 105,992 $ 116,983 $ (10,991) $ 105,992 Unexpended 

appropriations - Funds 

other than those from 

Dedicated Collections

Cumulative Results of 

Operations 

 6,066,286 6,055,206 11,080 6,066,286 Cumulative results of 

operations - Funds other 

than those from 

Dedicated Collections

Total Net Position 6,172,278 6,172,189 89 6,172,278 Total Net Position - Funds 

other than those from 

Dedicated Collections 

Total Liabilities & Net 

Position

 $ 12,024,229 $ 12,024,412 $ (183) $ 12,024,229 Total Liabilities & Net 

Position
62 │ 2020 Annual Report

FY 2020 DFC Statement of Net Cost Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands) Reclassified Financial Statement Line

Gross Costs $ - $ (32,507) Non-Federal Gross Cost

Operating Costs 158,819 6,907 Benefit Program Costs

Subsidy costs (212,938) 2,192 Imputed Costs

Re-estimates 119,516 - 

 517 Buy/Sell Costs

 88,288 Borrowing and Other Interest Expense

Other Expenses (w/o Reciprocals)

Total Gross Costs 65,397 65,397 Total Reclassified Gross Costs

Earned Revenue (297,786) (107,854) Non-Federal Earned Revenue 

 (1,299) Buy/Sell Revenue

 (103,749) Federal Securities Interest Revenue Including 

Associated Gains/Losses (Exchange)

 (84,884) Borrowing and Other Interest Revenue

 (189,932) Total Federal Earned Revenue

Total Earned Revenue (297,786) (297,786) Total Reclassified Earned Revenue

Net Cost $ (232,389) $ (232,389) Net Cost

FY 2020 DFC Statement of Changes in 

Net Position

 Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands)

Plus: Manual 

Adjustment 

(in thousands)

Adjusted 

Amounts 

(in thousands)

Reclassified Financial 

Statement Line

Unexpended 

Appropriations

Unexpended Appropriations

Unexpended 

Appropriations, Beginning 

Balance

 $ - $ - $ - $ - Net Position, Beginning of 

Period

Appropriations received 286,391 286,391 - 286,391 Appropriations Received as 

Adjusted

Appropriations 

transferred in/out

 122,382 152,609 - 152,609 Non-Expenditure TransfersIn of Unexpended 

Appropriations and 

Financing Sources (Federal)

 (30,227) - (30,227) Non-Expenditure TransfersOut of Unexpended 

Appropriations and Financing 

Sources (Federal)

Total Non-Expenditure 

Transfers-In/Out of 

Unexpended 

Appropriations and 

Financing Sources (Federal)

 122,382 122,382 - 122,382 Total Reclassified NonExpenditure Transfers-In/Out 

of Unexpended Appropriations 

and Financing Sources (Federal)
dfc.gov │ 63

FY 2020 DFC Statement of Changes in 

Net Position

 Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands)

Plus: Manual 

Adjustment 

(in thousands)

Adjusted 

Amounts 

(in thousands)

Reclassified Financial 

Statement Line

Other Adjustments (7,927) (7,927) - (7,927) Appropriations received as 

adjusted 

Appropriations Used (294,854) (283,075) (11,779) (294,854) Appropriations Used 

(Federal) 

Total Unexpended 

Appropriations

 105,992 117,771 (11,779) 105,992 Total Unexpended 

Appropriations

Cumulative Results of 

Operations 

Cumulative Results of 

Operations 

Cumulative Results, 

Beginning Balance 

 - - - - Net Position, Beginning of 

Period

Appropriations Used 294,854 283,075 11,779 294,854 Appropriations Expended

Transfers In/Out 

without Reimbursement 

Budgetary

 (2,585,265) 1,799,492 - 1,799,492 Non-Expenditure Transfersin of Unexpended 

Appropriations and Financing 

Sources

 (4,384,757) - (4,384,757) Non-Expenditure TransfersOut of Unexpended 

Appropriations and Financing 

Sources

Total Transfers In/Out 

without Reimbursement 

- Budgetary

 (2,585,265) (2,585,265) - (2,585,265) Total Reclassified 

Transfers In/Out without 

Reimbursement - Budgetary

Other Financing Sources 

(Nonexchange)

Other Financing Sources 

(Nonexchange)

Transfers In/Out without 

Reimbursement Other

 8,528,166 9,103,262 - 9,103,262 Transfers-in without 

reimbursement

 (575,096) - (575,096) Transfers-out without 

reimbursement

Total Transfers In/Out 

without Reimbursement 

- Other

 8,528,166 8,528,166 - 8,528,166 Total Reclassified 

Transfers In/Out without 

Reimbursement – Other

Imputed Financing 2,192 2,192 - 2,192 Imputed Financing Sources 

(Federal)

Offset to Non-entity 

Collections

 (406,050) (357,761) - (357,761) Non-entity collections 

transferred to the General 

Fund of the U.S. Government 

 (48,289) - (48,289) Accrual for non-entity 

amounts to be collected and 

transferred to the General 

Fund of the U.S. Government 

Total Offset Non-entity 

Collections

 (406,050) (406,050) - (406,050) Total Reclassified Offset Nonentity Collections

Total Financing Sources 5,833,897 5,822,118 11,779 5,833,897 Total Financing Sources 
64 │ 2020 Annual Report

FY 2020 DFC Statement of Changes in 

Net Position

 Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands)

Plus: Manual 

Adjustment 

(in thousands)

Adjusted 

Amounts 

(in thousands)

Reclassified Financial 

Statement Line

Net (Cost)/Benefit of 

Operations

 232,389 232,389 - 232,389 Reclassified Net Cost of 

Operations

Ending Balance - 

Cumulative Results of 

Operations 

 6,066,286 6,054,507 11,779 6,066,286 Net Position - Ending 

Balance

Total Net Position $ 6,172,278 $ 6,172,278 - $ 6,172,278 Total Net Position
 
U.S. International Development Finance Corporation

Investing in Development

1100 New York Ave., NW

Washington, DC 20527

202.336.8400

dfc.gov