RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Subnational Finance
Link to Product Website
Provider Name IFC (International Finance Corporation)
Product Definition For subnational financing, IFC gives creditworthy local and state entities the opportunity to invest in infrastructure projects without taking sovereign guarantees.

This is a novel approach to development infrastructure, as traditionally the World Bank has invested in municipalities through government guarantees as required by its charter. The International Finance Corporation, however, has invested in a wide range of subsovereign infrastructure projects but always through private sector sponsorship.

By bringing together the World Bank public policy experience and IFC's credit culture and market expertise, the Subnational Finance Department intends to fill a gap in a potentially large market where the opportunities for impact are immense.

The subnational finance initiative builds on and seeks to scale up similar efforts undertaken by the Municipal Fund.

Product Type Sub-sovereign Finance
Defined Risks Covered n.a.
Eligible Form of Investments n.a.
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions n.a.
More on Eligible Countries
Eligible Applicants PUBLIC: Subsovereign Entities
PUBLIC: 100% public-owned enterprise
MIXED (PUBLIC-PRIVATE): Public Joint Ventures (51% or more state-owned)
MIXED (PUBLIC-PRIVATE): Mixed Joint Ventures (50:50 private:public)
Eligible Sector No Specific Sector
Maximum Tenor Over 20+ years
Max. Absolute Amount (USD) 0 to 50 MM
Max. % of Project Costs Covered 25+% to 50%
Max. % of Export Content Covered Over 85+%
Fees Market-based

Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: Yes
Environmental standards: Yes
Social standards (incl. Human Rights Standards; Labor Rights Standards): Yes
Source(s) n.a.
For more information, contact n.a.
Attachments n.a.
Additional Links n.a.
Deals Africa: SA Joburg Bond, Asia: The Philippines PNOC Energy Development Corporation, ECA: Hungary OTP Schools Energy Efficiency, LAC: Mexico Tlalenpatla Water Conservation, MENA: Morocco El Jadida Province Utilities

Provider Name IFC (International Finance Corporation)
Institution Type PUBLIC: Multilateral Development Bank
Ownership 179 member countries
Head Office 2121 Pennsylvania Avenue, NW, Washington, DC, 20433
Provider Home Country United States
Rating n.a.
Main Risk Mitigation Products IFC Partial Credit Guarantee
IFC Single Asset Risk-Share
IFC Portfolio Risk Sharing Facility
IFC Guarantee Offshore Liquidity Facility
Attachments n.a.
Additional Links www1.ifc.org/wps/wcm/connect/CORP_EXT ... C_External_Corporate_Site/What+We+Do/
www1.ifc.org/wps/wcm/connect/corp_ext ... /ifc_external_corporate_site/ifc+news
www1.ifc.org/wps/wcm/connect/publicat ... xternal_publication_site/publications
www1.ifc.org/wps/wcm/connect/industry ... fc_external_corporate_site/industries
Entered On: 06/29/2007 at 01:06 PM
Updated On: 05/08/2013 at 09:47 AM