IFC invests over $20 billion globally in FY2011-12; India received $884 million

BANGALORE: India continues to be a major recipient of funds from the International Finance Corporation (IFC). The World Bank investment arm has so far invested $3.8 billion in the country, making India IFC’s largest portfolio accounting for 9% of its total funding, according to the organisation’s annual report.

IFC has committed over 40 projects in India in FY2011-12 for total financing of $884 million. Of this IFC contributed $712 million, while $172 million was mobilized from other investors. The organisation, which has a strong focus on low-income states in the country, has committed $200 million for 13 projects in low-income states like Bihar and Uttar Pradesh. It has also committed $160 million for 12 climate-friendly projects.

On the advisory side, IFC approved 38 new projects in FY2011-12 in the country with a portfolio value of $24 million. Of these the organisation claims 37% are climate-friendly and 65% are in low income states.

The investments this year include a $20 million fund infusement into Pragati, a fund dedicated to small businesses in low-income states like Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal, where private investment is difficult to come by. IFC has stated that renewable energy, finance for the poor, affordable housing, agribusiness, healthcare and education will continue to be priority sectors in India for the investment organisation.

The financial year saw the highest value of investments by IFC globally, with the organisation investing $20.4 billion in 103 developing countries doubling its annual commitments over the last five years. This includes around $5 billion mobilised from other investors, the report stated.

Among regions, Latin America and the Caribbean received the highest amount of investments at $3.7 billion, while South Asia received $1.3 billion.