U.S. International Development Finance Corporation
Organizational profile: U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. They invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets.
Financing Instrument: Equity, Loans, Risk Insurance, Technical Assistance
Project scale: Direct loans and guaranties of up to US$1 billion for tenors as long as 25 years, with specific programs targeting small and medium U.S. businesses. Forest related investments have included a US$12,755,100 portable guarantee in the field of sustainable forestry.
Applicable geographical regions/country groups: Global
Eligibility Criteria: All projects DFC supports must be based in countries where DFC is authorized to do business, meet DFC investment standards, and have a strong track record in the industry. DFC prioritizes investments in low and lower-middle income countries and may consider investments in certain projects in upper-middle income countries that address key agency priorities.
DFC evaluates every project using its performance measurement tool, Impact Quotient (IQ) to measure, monitor, and evaluate its developmental impact around the world across three main areas:
1. Growth includes contribution to GDP through improved infrastructure and the generation of local income, fiscal benefits to the local economy, and support for direct and indirect job creation
2. Innovation includes the strengthening of markets, innovation in financial structures and business models that mobilize private capital, and knowledge or technology transfer
3. Inclusion includes benefits to marginalized populations such as women or people living in rural areas, small and medium enterprises, and underdeveloped geographies
Evaluation of prospective fund managers for equity investment considers the following criteria:
- Demonstration of how the proposed fund and its investments may have a positive developmental impact on the host country/countries in areas including, but not limited to: job creation, infrastructure improvements, social policies and corporate social responsibility initiatives, as well as technology and knowledge transfer
- Ability of the fund manager to comply with DFC’s policies related to environmental and social sustainability as well as respect for human and worker rights
- Relevant track record of the prospective management team making long-term risk investments in emerging markets, and the team's country or regional experience
- Experience, depth, credibility, and cohesiveness of the fund management team and its experience managing third party capital
- Viability and thoughtfulness of the proposal; consistency and clarity of the investment thesis, value creation strategy, and proposed exit strategies
- Ability of the fund manager to raise sufficient equity capital to close the proposed fund in a reasonable amount of time
Application guidelines: DFC strongly recommends that potential finance applicants contact a DFC finance or insurance officer to discuss the project proposal prior to beginning the application process. The finance officer will direct you to the appropriate application form and identify the supporting documentation that may be required. Officers can be contacted through email at email@example.com. Applications are generated and submitted through DFC’s forms dashboard.