DFC puts strong focus on developmental impact at latest Board meeting
DFC drives toward a positive developmental impact, while also strengthening national security and furthering U.S. foreign policy goals.
The U.S. International Development Finance Corporation (DFC) Board of Directors recently approved $245 million in investments that address the climate crisis and support gender equity in countries where the agency can provide the greatest impact. In fact, nearly $298 million of DFC capital approved this quarter will benefit low-income countries (LICs) and lower-middle income countries (LMICs).
DFC is driving innovation by supporting climate-smart urban infrastructure, and elevating businesses with loans and professional business management practices. In addition to these projects, DFC approved several other investments at the Corporation level, bringing total approved projects to nearly $364 million for the quarter.
This emphasis on strategic investing will provide highly developmental outcomes through private sector-led growth in the countries where DFC works, providing a sustainable and values-based alternative to competing investment models. The work further advances the Biden-Harris Administration’s Build Back Better World (B3W) Initiative, and DFC initiatives such as the 2X Women’s Initiative, Global Health and Prosperity Initiative, and Portfolio for Impact and Innovation (PI²).
These projects include:
Improving business management practices while helping companies grow in Africa: A $40 million equity investment in Adenia Capital (V) LP will make growth-control investments that enable mid-stage companies across Africa to build out their management teams, expand their geographic footprint, and improve their environmental, social, and governance standards while promoting women’s economic empowerment.
Promoting sustainable land management practices and increasing women’s economic empowerment through smallholder inclusion in Indonesia*: A $100 million partial credit guaranty to ADM Capital Asia Climate-Smart Landscape Fund LP will enable $200 million in loans to local enterprises striving for climate-smart land management and emissions reduction. Additionally, the transaction will advance women’s participation in the sector, increasing their income and improving their livelihoods.
Advancing the digitalization of Southeast Asia*: A $25 million equity investment in Monk’s Hill Ventures Fund III, a venture capital fund that will use technology to facilitate environmental protection and increased access to healthcare, education, and economic opportunities in hard-to-serve communities.
Expanding climate-resilient infrastructure in Africa and the Middle East*: An up to $80 million direct loan to The Urban Resilience Fund, a blended finance investment fund managed by Meridiam Group, will enable municipalities to identify, develop, and invest in essential infrastructure projects that respond to the critical needs of urban population growth in Africa and the Middle East.
“Success for DFC is about sourcing developmental and bankable deals that improve people’s lives around the world while also supporting U.S. policy priorities,” CEO Nathan noted. “I plan to look at outcomes, what transactions and partners have we supported that have helped end the pandemic, address the climate crisis, close the digital divide, empower women and young entrepreneurs, or simply mobilize more investment to be a stabilizing force.”
*Investments pending Congressional Notification.