The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has launched the Cleantech Innovation Facility, a USD 60 million equity financing mechanism that will provide capital and technical assistance to small, start-up companies that have products or services that mitigate carbon emissions. On average, investments will range between USD 3 million and USD 4 million, with a maximum of USD 10 million in any one company.
Mohsen Khalil, global head of IFC’s Climate Business Group, said “This initiative is a practical way to address a market gap within climate finance. It will support clean-tech companies originating from or moving to developing countries—companies that have the potential to be scaled up and make a real impact, but cannot access commercial risk capital.” He added that private investors could be invited to invest in the fund once the model is validated.
By Kristha Abores, Research Associate
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.
Sources and Additional Resources:
[1] IFC Press Release: “IFC Expands Climate-Financing Tools to Boost Clean Tech in Emerging Markets,” http://www.ifc.org/ifcext/climatebusiness.nsf/Content/CTIF+Press+Release
MicroCapital.org article, November 17, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Mobilizes $40m to Support Peruvian Microfinance Institution Mibanco,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-mobilizes-40m-to-support-peruvian-microfinance-institution-mibanco/
MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
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