U.S. International Development Finance Corporation (DFC)

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.