Profiling 17 development finance institutions

There are 17 bilateral development finance institutions, each with unique mandates, structures, and investment priorities, so determining who does what and where, can be a challenge. After analyzing the data, annual reports, and other information, Devex has created profiles of these institutions to shed some light on how DFIs work. More DFI profile and investment details are provided in our new tableau interactive. Belgian Investment Company for Developing Countries (BIO) Founded: 2001 Leader: Luuk Zonneveld, CEO Investment types: • Equity: Equity or quasi-equity stakes for new companies or companies wishing to expand activities or their financial base. • Capacity building: Grants are provided to support feasibility studies and technical assistance programs. • Guarantees: BIO facilitates the mobilization of resources from private sector actors by guaranteeing obligations on their behalf. • Loans: Medium and long-term loans between 3-10 years are provided at fixed and variable rates. Ownership: Wholly owned by the Belgian government. 2017 amount invested: $193.4 million 2017 largest project: $18 million for Montecristi Solar FV SAS to support construction and operation of a 58-megawatt photovoltaic solar plant in the Dominican Republic. 2017 total portfolio: $856.3 million Summary: BIO’s mission supports private sector development in emerging markets within the framework of the 17 Sustainable Development Goals, with a specific focus on poverty; gender equality; energy; sustainable economic growth and employment; resilient infrastructure; sustainable industrialization; and innovation. Priority sectors for BIO are financial institutions, investment companies and funds, enterprises, and infrastructure projects with a focus on least developed countries, low-income countries, and lower-middle income countries. Belgian Corporation for International Investment (BMI-SBI) Founded: 1971 Leader: Gert Van Melkebeke, CEO Investment types: • Equity: Direct equity or quasi-equity stakes for 5-10 years. • Loans: Long-term loans between 5-10 years provided at fixed and variable rates. Ownership: BMI-SBI is a limited company, with 66 percent of its capital held by the Belgian government through the Belgian Federal Holding and Investment Company and the National Bank of Belgium, and 34 percent held by banking institutions and other private companies. 2017 amount invested: $9.6 million 2017 largest project: $6 million for Manuchar Group, a Belgian-based commodities trading and logistics company, to enhance the storage facilities of two of its agri-food subsidiaries in Brazil and Vietnam. 2017 total portfolio: $44.4 million Summary: BMI-SBI provides medium and long term co-financing to business ventures made by Belgian private companies abroad, supporting projects of general economic interest to Belgium and the host country, while respecting the principles of sustainable development and social corporate responsibility. BMI-SBI does not invest in startups, and instead focuses its investments in agriculture; biotechnology; chemicals and materials; communication; electronics; energy; environment; food; industrial automation; products and services; manufacturing; medical; nanotechnology; space; and transportation. CDC Group Founded: 1948 Leader: Nick O'Donohoe, CEO Investment types: • Debt: Provided to businesses and projects as project finance, corporate lending, trade finance, or lending to financial institutions. • Direct equity: Investments between $10-150 million in businesses in priority sectors. • Intermediated equity: Investments between $5-150 million in investment funds in priority sectors and countries. • Guarantees. Ownership: Wholly owned by the U.K. government, its sole shareholder is the Department for International Development. 2017 amount invested: $1.4 billion 2017 largest project/s: $200 million to Credit Facility for Access to Medicines, or CFAM Limited. An innovative social finance company committed to expanding and accelerating access to life-saving medicines, vaccines, and diagnostics in Africa and South Asia. Total portfolio (2017): $5.3 billion Summary: CDC supports the building of businesses throughout Africa and South Asia. CDC focuses on investing in countries where the private sector is weak, jobs are scarce, and the investment climate is difficult. Priority sectors are financial services; infrastructure; health; manufacturing; food and agriculture; construction and real estate; and education. Compañía Española de Financiación del Desarrollo (Spanish Development Finance Institution, COFIDES) Founded: 1988 Leader: José Luis Curbelo, chairman and CEO Investment types: • Equity: Direct or indirect investments in the form of capital-interest, capital-limited, capital at-open-price to individual companies. • Loans: Loans granted either to a project company abroad or to a Spanish investor. The terms are related to the expected return period for the project, normally between 3-10 years with a grace period during the first years of the project. COFIDES provides senior and junior loans. Ownership: COFIDES is a limited liability company with 53 percent owned by the Spanish government and 47 percent by the four largest Spanish commercial banking groups. 2017 amount invested: $260.4 million 2017 largest project: $20.4 million to Ramondin, a wine and spirits-related manufacturing company, to strengthen its position in Chile. 2017 total portfolio: $1.1 billion Summary: COFIDES’ mission is to contribute to the internationalization of companies and the Spanish economy and promote the economic and social development of low- and middle-income countries. Focal sectors are agri-food, energy, environment, infrastructure, financial sector, telecommunications, transport, pharmaceuticals, and services. Explore the series. Deutsche Investitions- und Entwicklungsgesellschaft (DEG) Founded: 1962 Leaders: Christiane Laibach, Monika Beck, and Philipp Kreutz (DEG management board) Investment types: • Equity: Equity and quasi-equity investments. • Loans: Long-term loans with a term between 4-18 years. Interest rates can be fixed or variable. Ownership: Wholly owned subsidiary of KfW. 2017 amount invested: $1.9 billion Largest project (2017): $48 million to support Ituverava in constructing and operating a 254 megawatt solar PV plant in Brazil. 2017 total portfolio: $9.9 billion Summary: DEG provides long-term financing to private-sector companies operating in LMICs. DEG supports companies focused on industry; agriculture and services; energy, transport, utilities, and telecommunications sectors; and financial institutions and funds supporting SMEs. DEG only provides financing in emerging markets and LMICs. FinDev Canada Founded: 2017 Leader: Paul Lamontagne, managing director Investment types: • Loans: To support a company’s operations or expansion plans. • Guarantees: Guarantees to a company’s bank for a loan to support the company’s operations or expansion plans. • Structured and project financing: Provided to develop projects that demonstrate social and economic benefits for the host country. • Equity: Flexible long-term private equity growth capital to high-potential companies. Ownership: Wholly-owned subsidiary of Export Development Canada. 2017 amount invested, largest project, total portfolio: N/A — the new agency made its first investments in 2018. Summary: FinDev Canada aims to create jobs, promote women’s economic empowerment, and mitigate climate change by supporting businesses in developing markets; by supporting local private sector activity it hopes to contribute to sustainable development. FinDev’s geographic focus is Latin America and the Caribbean, and sub-Saharan Africa. FMO Entrepreneurial Development Bank (the Netherlands Development Finance Company) Founded: 1970 Leader: Peter van Mierlo, CEO Investment types: • Loans and syndications: Direct medium and long-term loans at both fixed and variable interest rates, with a repayment grace period where needed. • Private equity: Equity directly or indirectly through funds, or co-investment with partners. • Guarantees: To support companies in accessing international markets and participating in global trading. • Capacity development: Facilitating the transfer of knowledge and skills through a capacity development program. Ownership: Public-private partnership: 51 percent of shares held by the Dutch government, 42 percent by commercial Dutch banks, and 7 percent by trade unions, companies, and individuals. 2017 amount invested: $ 2.3 billion 2017 largest project: $50 million to support Ecobank Transnational Incorporated to provide funding to subsidiaries across its network of 36 African countries. At least 75 percent of the loan facility will be directed to SMEs across various sectors of the economy. 2017 total portfolio: $11 billion Summary: FMO finances Dutch businesses that develop projects or initiate business activities in emerging markets. Its mission is to empower entrepreneurs to build a better world. FMO invests in businesses, projects, and financial institutions by providing capital, knowledge, and networks to support sustainable growth. FMO focuses on financial institutions, energy and agribusiness, and food and water. Investment Fund for Developing Countries (IFU) Founded: 1967 Leader: Torben Huss, CEO Investment types: • Equity: Long-term equity investments for terms of 5-7 years. • Guarantees. • Mezzanine financing and subordinated loans: Loans with a long-term duration of 5-7 years, subordinated to other loan financing. • Senior loans: Long-term loans over 5-7 years secured by mortgage or other indemnity. Interest rates are market-oriented. Ownership: Wholly-owned by the Danish government. 2017 amount invested: $176.6 million 2017 largest project: $19.2 million to support Nordic Power Partners in developing a solar photovoltaic park in Brazil. 2017 total portfolio: $1.5 billion Summary: IFU offers risk capital and advice to companies wishing to set up business in LMICs and emerging markets. Investments are made on commercial terms in the form of equity, loans, and guarantees. Its purpose is to promote economic and social development in the investment countries, with a focus on viable and sustainable companies with an ongoing positive development impact. The geographic focus is on developing countries and emerging markets in Africa, Asia, Latin America, and parts of Europe. Finnfund Founded: 1980 Leader: Jaakko Kangasniemi, CEO Investment types: • Equity and quasi-equity. • Loans: Long-term investment loans. Ownership: Finnish government owns 94.1 percent, Finnvera 5.8 percent, and the Confederation of Finnish Industries 0.1 percent. 2017 amount invested: $241.4 million 2017 largest project: $20 million investment in Wärtsilä Oyj and Methax to develop a power plant for Argentina. 2017 total portfolio: $472 million Summary: Finnfund invests in responsible businesses in LMICs, with a special emphasis on renewable energy, sustainable forestry, sustainable agriculture, and financial institutions. Finnfund offers businesses equity, long-term investment loans, mezzanine financing, and expertise on how to invest in developing markets and expects investees to operate in a profitable, environmentally, and socially responsible manner to deliver measurable development impact. Norfund Founded: 1997 Leader: Tellef Thorleifsson, CEO Investment types: • Equity and quasi-equity: $4 million and above, the fund takes maximum 35 percent ownership share. • Guarantees. • Loans: Norfund normally offers loans to companies in which it has already invested equity. Ownership: Wholly owned on behalf of the Norwegian government by the Ministry of Foreign Affairs. 2017 amount invested: $182.8 million 2017 largest project: $33.5 million to support Yoma Strategic Holdings Ltd to establish distributed generation micropower plants and mini grids in Myanmar. 2017 total portfolio: $2.5 billion Summary: Norfund invests in countries where it can have the greatest impact, including countries where the private sector is weak and access to capital is scarce, such as in sub-Saharan Africa and some countries in Southeast Asia and Central America. Priority sectors for investment are clean energy, financial institutions, and food and agribusiness. Oesterreichische Entwicklungsbank (Development Bank of Austria, OeEB) Founded: 2008 Leaders: Sabine Gaber and Michael Wancata, members of the executive board Investment types: • Business advisory services: Funding to support the preparation and analysis of an OeEb financed project and project implementation. • Equity: Investments in private equity funds or equity investments directly in companies. • Guarantees. • Loans: Long-term loans and risk subparticipations, and refinancing lines for financial institutions with a specific loan purpose, such as financing of small hydroelectric power plants. Ownership: Wholly-owned subsidiary of Oesterreichische Kontrollbank AG (OeKB), a financial and information service provider for the Austrian export sector and the domestic capital market. 2017 amount invested: $307.5 million 2017 largest projects: • In November 2017, OeEB signed a $30 million loan agreement with TBC Bank Group PLC for the financing of Georgian micro and SMEs. • In October 2017, OeEB signed a long-term credit line of $30 million to Yes Bank Limited for the financing of wind and solar power projects in India. 2017 total portfolio: $1.3 billion Summary: OeEB’s strategic priorities align with the Austrian Development Cooperation and take into account Austrian foreign policy and economic interests. Investments are assessed against development effectiveness and environmental, social, and economic sustainability with a focus on Austrian investment in least developed countries. Priority sectors for OeEB are private sector development, SME financing, creating jobs, renewable energy, and resource efficiency. Explore the series. Overseas Private Investment Corporation (OPIC) Founded: 1971 Leader: David Bohigian, acting president and CEO Investment types: • Financing: Direct loans and guarantees up to $350 million for tenors as long as 20 years to projects that are unable to raise sufficient commercial financing. • Investment funds: Support for emerging market private equity investment funds that invest in new and expanding emerging market companies. • Political risk insurance: Coverage of up to $350 million against losses resulting from currency inconvertibility, expropriation, regulatory risk, political violence, and breach of contract, when private political risk insurance is not available. Ownership: Wholly-owned by the U.S. government. 2017 amount invested: $3.8 billion 2017 largest projects: • $250 million to support Noble Energy Inc. with the development of Leviathan gas field offshore in Israel. • $250 million to support Noble Energy Inc. with the supply of natural gas sales to Jordan from the Leviathan gas field offshore in Israel. 2017 total portfolio: $23.2 billion Summary: OPIC’s mission is to mobilize private capital to help address critical development challenges and advance U.S. foreign policy and national security priorities. OPIC helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs, and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds when commercial funding cannot be obtained elsewhere. In 2018, legislation was passed to create the U.S. Development Finance Corporation, a new agency that will replace OPIC. It is expected to open on Oct. 1, 2019, and will have a number of new tools, including the ability to make equity investments. PROPARCO Founded: 1977 Leader: Grégory Clemente, CEO Investment types: • Equity and quasi-equity investments. • Guarantees: Guarantee of solvency or liquidity. • Loans: Proparco offers loans between $3.6-120 million to companies and financial institutions for up to 20 years. Ownership: Owned by the Agence Française de Développement and private shareholders from developed countries and developing nations. 2017 amount invested: $1.3 billion 2017 largest project: $156 million loan to support the Mobilise Your City program in India, a program that seeks to support 100 cities engaged in sustainable urban mobility planning to reduce greenhouse gas emissions worldwide. 2017 total portfolio: $5.5 billion Summary: PROPARCO’s operations contribute to building sustainable economic growth, job creation, the provision of essential goods and services, poverty reduction, and climate change. It focuses a number of on key development sectors to achieve this: infrastructure, especially renewable energy; agriculture and agro-industry; finance; health; and education. In addition to financing, PROPARCO assists its clients in managing the impacts of its activity for sustainable development. Swiss Investment Fund for Emerging Markets (SIFEM) Founded: 2005 Leader: Jörg Frieden, chairman of the board Investment types: • Loans: Available to local banks, leasing companies, microfinancing companies, and other financial institutions. Financing is generally granted on a long-term basis and based on market conditions. • Risk capital funds: SIFEM takes long-term equity capital positions in funds that acquire an interest in local SMEs and fast-growing businesses, support their growth, and then sell their shareholdings at a profit. Ownership: Private limited company wholly owned by the Swiss government. 2017 amount invested: $87.4 million 2017 largest projects: • $12 million invested to support Indosurya Inti Finance to provide financial solutions for SMEs and individuals in Indonesia. • $12 million to support Banco Improsa’s lending to MSME clients and contribute to broad-based and long-term private sector growth in Costa Rica. 2017 total portfolio: $757.1 million. Summary: SIFEM promotes long-term, sustainable, and broad-based growth in emerging markets and developing economies by providing financial support to commercially viable SMEs and other fast-growing enterprises to create secure and permanent jobs and reduce poverty. SIFEM's aims to generate sustainable, long-term development effects in local communities, as well as provide investors positive financial returns over time. SIMEST Founded: 1991 Leader: Alessandra Ricci, CEO Investment types: • Equity investments: Includes investment in nonEU companies and interest rate subsidies, investment by venture capital funds, and investment in EU companies. • EU funds: Co-investment that blends EU funds for development cooperation. • Export credit support: Support exports of capital goods. • Soft loans: Subsidized financing to widen the presence of Italian companies in foreign markets. Ownership: 76 percent controlled by the Cassa depositi e prestiti Group through SACE. Minority shareholders include Italian banks and industrial associations. 2017 amount invested: $180.2 million 2017 largest project: N/A 2017 total portfolio: $1.2 billion Summary: Together with SACE, SIMEST forms the export and internationalization hub of the CDP Group, which offers the entire range of financial instruments to support Italian companies interested in competing and expanding internationally. SIMEST supports companies in their growth over the entire international expansion lifecycle, from the initial assessment of new markets to the expansion through direct investments. Sociedade para o Financiamento do Desenvolvimento (Portuguese Development Finance Institution, SOFID) Founded: 2007 Leader: Marta Mariz, CEO Investment types: • Guarantees • Loans Ownership: Limited liability company owned by the Portuguese government (59.99 percent), four large Portuguese banks (each holding 10 percent) and the Portuguese Association for Economic Development and Cooperation (0.01 percent). 2017 amount invested: $2.4 million 2017 largest project: N/A 2017 total portfolio: $12 million Summary: SOFID focuses specifically on investments in Africa, Asia, and Latin America and the Caribbean. SOFID is mostly involved in the manufacturing, infrastructure, tourism, and financial sectors. Swedfund Founded: 1979 Leader: Maria Håkansson, CEO Investment types: • Equity • Funds • Loans Ownership: Limited liability company wholly owned by the Swedish government. 2017 amount invested: $98.6 million 2017 largest project: $15 million for Cambodia’s largest microfinance company, Prasac Microfinance Institution Ltd., to on-lend to the country’s microbusinesses and SMEs. 2017 total portfolio: $560.1 million Summary: Swedfund’s mission is to finance and develop sustainable businesses in the world’s underserved countries by encouraging private players to risk investment. It plays a vital role in Sweden’s contribution to development cooperation through a focus in the world’s most disadvantaged countries in sub-Saharan Africa and Asia. Sector focuses are finance, manufacturing, services, and energy.