Washington, D.C., October 13, 2014—IFC,
a member of the World Bank Group, and the Finnish Fund for Industrial Cooperation
(Finnfund) will streamline their collaboration to provide much-needed financing
to private companies in emerging markets and help boost growth and jobs.
Finnfund is the 23rd development finance institution to sign
IFC's Master Cooperation Agreement (MCA), which standardizes steps that
lenders take when co-financing projects with IFC. This streamlined approach
saves time and money for lenders and borrowers. Since the MCA was established
in 2009, signatories have co-invested more than $3 billion in loans with
IFC to support private sector development.
"We foresee more collaboration with IFC and other development financiers
in areas such as renewable energy. Simplified steps for this collaboration
save costs and bring benefits to our clients,” said Jaakko Kangasniemi,
CEO of Finnfund.
Dimitris Tsitsiragos, IFC Vice President, said: “IFC and Finnfund play
a catalytic role in private sector development by providing long-term risk
capital in challenging markets. Through the MCA we will be able to more
swiftly respond to private sector financing needs when commercial financing
is hard to obtain, supporting private sector development and job creation
where it is needed most.”
IFC works closely with Finland to provide financing and advice to promote
private sector development in emerging markets. Most recently, IFC and
Finnfund co-invested in three solar projects to support renewable energy
development in the Middle East. IFC and Finnfund also jointly invested
in power companies in Bangladesh and Kenya to increase access to electricity
in these countries.
IFC created the MCA in response to calls by the Group of 20 for official
finance institutions to collaborate more closely to help meet shortfalls
in private sector financing during the global financial crisis. For a list
of MCA signatories, visit http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/ifc+syndications/overview_benefits_structure/syndications/parallel+loans.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org.
Finnfund is a Finnish development financier that provides long-term risk
capital for private projects in developing countries. We fight poverty
through environmentally sound investments, focusing mostly on renewable
energy, forestry and energy efficiency. We often work with other development
financiers and with Finnish companies. Since 1980 Finnfund has made nearly
400 investments in more than 50 countries. Today we have approximately
470 million euros invested in or committed to 146 projects in 32 countries.
For more information, visit www.finnfund.fi