up to $1 billion
U.S. International Development Finance Corporation (DFC) is a modern, consolidated agency that brings together the capabilities of OPIC and USAID’s Development Credit Authority, while introducing new and innovative financial products to better bring private capital to the developing world. The U.S. will have more flexibility to support investments in developing countries to drive economic growth, create stability, and improve livelihoods.
DFC makes America a stronger and more competitive leader on the global development stage, with greater ability to partner with allies on transformative projects and provide financially sound alternatives to state-directed initiatives that can leave developing countries worse off.
DFC's investments focus on impactful global development, advancing U.S. foreign policy, and generating returns for American taxpayers.
Debt Financing Direct loans and guaranties of up to $1 billion for tenors as long as 25 years, with specific programs targeting small and medium U.S. businesses
Equity Investments DFC direct equity investments can provide critical support to companies committed to creating developmental impact
Feasibility Studies Support for the analysis of a potential DFC project
Investment Funds Support for emerging market private equity funds to help address the shortfall of investment capital
Political Risk Insurance Coverage of up to $1 billion against losses due to currency inconvertibility, government interference, and political violence including terrorism. DFC also offers reinsurance to increase underwriting capacity
Technical Assistance Support to increase the developmental impact or commercial sustainability of existing DFC projects or develop potential DFC projects
The U.S. Government
DFC is committed to ensuring the projects it supports deliver a positive development impact to the host country. Pre-approval DFC evaluates every potential project before it is approved to identify and mitigate possible, environmental, social, and developmental risks and to assess the project’s potential to achieve positive developmental impacts. Due diligence During the due diligence process, prospective clients complete a Developmental Impact Questionnaire demonstrating compliance with DFCs environmental and social policies and procedures. DFC economists and environmental and social analysts use this information to ascertain the project’s potential for positive developmental impacts and identify any gaps in policies and procedures that need to be addressed to comply with DFC standards. Impact Quotient DFC’s impact measurement and management tool, the Impact Quotient(IQ), is used to establish the project’s core developmental objectives and the associated metrics that will be used to measure the development impacts over its lifecycle. Active projects DFC monitors all active projects for environmental and social policy compliance and development impact results. Based on a project’s environmental and/or social risk profile, certain projects are prioritized for more in-depth monitoring, which may include one or more site visits. All active projects are monitored for development impact twice a year starting six months after a project becomes active. DFC collects comprehensive impact data electronically through the Development Outcomes Survey. This annual data collection is supplemented by a more specialized data collection that focuses on three to eight targeted IQ metrics selected during the due diligence stage to measure the development performance of the project over its life. Impact data are used to track actual impact against original expectations.
DFC conducts a detailed assessment of the potential client’s business plan, financial model, historical financial statements, expected project impact, legal compliance, and character risk. The project is reviewed by DFC management, credit and investment committees for final approval. Loans and investment guarantees above $50 million as well as all equity transactions require approval from DFC’s Board of Directors.
Latin America, Africa, Eurasia, Middle East, Indo-Pacific, except those Places Where DFC Cannot Provide Support.
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 supports investment in more than 100 countries around the world and prioritizes investment in low- and lower-middle-income countries, as defined by the World Bank. DFC may consider projects in certain upper-middle-income countries that address key agency priorities or serve underserved communities.