Investment period for $3b IFC Fund extended to support banks in developing countries

The International Finance Corporation (IFC) and Japan Bank for International Cooperation (JBIC) have agreed to extend the investment period of the $3 billion IFC Capitalization Fund by one year, based on its successful track record and continuing investment opportunities.

The investment period has being extended from February 2013 to February 2014.

The fund, managed by the IFC Asset Management Company, was designed in the wake of the global financial crisis to invest in Tier One and Tier Two capital in emerging market commercial banks that are systemically important for their local economies.

Since its inception in 2009, the fund has made approximately $1.6 billion in investment commitments in 13 banks across all regions of the world.

Jin-Yong Cai, IFC Executive Vice President said, “It was the first fund under the IFC Asset Management Company, and a critical initial step in creating a new platform for managing and investing capital in emerging markets. It’s a testament to the fund’s investment success and the strength of our partnership that we are extending the fund’s investment period.”

Hiroshi Watanabe, CEO, Executive Managing Director of JBIC, said, “We are pleased with the expanding partnership with IFC and with seeing the investments made through the IFC Capitalization Fund bear fruit in addressing the impact of the global financial disruption. The extension of the investment period will enable the fund to further meet the demands in the emerging market banking sector.”

The IFC Capitalization Fund consists of a $1.275 billion equity fund and a $1.725 billion subordinated debt fund.

It is jointly supported by a $2 billion investment from JBIC and a $1 billion investment from IFC.

By Ekow Quandzie

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