WASHINGTON, D.C. – The U.S. International Development Finance Corporation (DFC) approved 17 new transactions in the first quarter of FY2024 at the board and sub-board levels, totaling more than $3.3 billion. The transactions, which span the globe, will advance key DFC priorities to promote health, food security, critical infrastructure, energy, support for small businesses, and more.
DFC’s board of directors approved nine projects this quarter:
- Expanding vaccine access worldwide: DFC will expand the use of its $1 billion loan facility with Gavi, the Vaccine Alliance, to focus not only on COVID-19 vaccines but other routine childhood vaccines and potential future outbreak vaccines to address critical health challenges globally.
- Supporting women’s economic empowerment and small businesses in the Dominican Republic: A $200 million loan to Banco Popular Dominicano, S.A. will provide capital for the bank to further on-lend to small businesses and women entrepreneurs in the Dominican Republic.
- Securing energy access in Eastern Europe: A loan guaranty for Citi’s €208 million loan to Bulgartransgaz EAD will strengthen regional energy security. DFC’s support will help countries diversify away from Russian gas supplies through the expansion of an underground gas storage capacity serving Bulgaria and southeastern Europe.
- Increasing access to financing for small businesses in East Africa: DFC and Citi will co-finance a $320 million loan to CRDB Bank to increase the bank’s capacity for on-lending to small businesses in Tanzania and Burundi, especially enterprises led and owned by women.
- Financing clean energy in Indonesia: A $126 million loan to PT Medco Cahaya Geothermal will finance the development of 31.4MW of geothermal power generation capacity in East Java, Indonesia, expanding Indonesia’s renewable energy production for one of the country’s largest power systems.
- Bolstering climate and energy investment across India and the Indo-Pacific: An equity commitment to Eversource Climate Investment Partners II will invest in and drive climate change adaptation and energy transition projects, including renewable energy, electric transportation, circular economy, and sustainable water, food, and agriculture projects in emerging markets across India and the Indo-Pacific.
- Improving global food security: A $250 million loan to Indorama Eleme Fertilizer and Chemicals Limited/SPV Line III will increase fertilizer production by financing the construction of the company’s third ammonia-urea fertilizer facility in Port Harcourt, Nigeria.
- Providing safe, reliable access to water in Angola: Up to $250 million in DFC support will allow the development of new water treatment and distribution infrastructure to provide reliable, safe drinking water to underserved communities in Southern Angola.
- Expanding access to high-quality education in emerging economies: A $250 million loan to a special purpose vehicle (SPV) established by Prodigy Finance Ltd. will support student loans to graduate students from developing nations, improving access to high-quality graduate education by providing students with the necessary financing to obtain graduate degrees at international universities.
Please find more information on the DFC Board of Directors web page.
Additionally, DFC approved the following investments at the sub-board level:
- Bolstering global critical mineral supply chains: A $50 million equity investment in TechMet will support the development of the Phalaborwa Rare Earths project, a rare earth element processing facility in South Africa that will develop a more diverse, resilient, and sustainable critical mineral supply chain, drive the clean energy transition, and create economic opportunity for local communities.
- Advancing women’s economic empowerment worldwide: A $30 million follow-on loan to the IIX Women’s Catalyst Fund, an affiliate of Impact Investment Exchange (IIX), will provide credit support for the issuance of the sixth IIX Women’s Livelihood Bond, the world’s first Orange Bond series designed to build a women-inclusive financial system and to empower 100 million women and girls worldwide by providing financing to women-owned and -led enterprises globally.
- Increasing access to higher education in Ukraine: A $10.7 million loan to Ukrainian Catholic University will finance the expansion of the university’s campus in Lviv to support the continued education of students amid the war.
- Strengthening food security in Zambia: A $10 million loan to Seba Foods Zambia Ltd. dba 260 Brands will support the expansion of the company’s storage and production capacity for maize-based, soya-based, and other nutritious and affordable consumer food products, strengthening the food value chain in Zambia.
- Lending to Ukrainian small businesses: A $28 million loan portfolio guaranty to ProCredit Bank Ukraine will support lending to Ukrainian small businesses and catalyze investment in Ukrainian businesses, especially those in the agricultural sector working to strengthen food security in Ukraine.
- Enhancing infrastructure in Zambia: An up to $17.1 million loan to African Eagle Hotels and Resorts will finance the construction and operation of an international hotel in Lusaka, Zambia, creating new jobs and growing the local economy.
- Two deals growing clean energy in Africa: Two $10 million loans to SIMA Commercial & Industrial Solar Green Bond B.V. will help catalyze investment in small and medium-sized renewable energy projects by providing shorter-term working capital loans to local SME developers, as well as engineering, procurement, and construction companies. The loan will also meet the longer-term project finance needs that provide commercial and industrial solar solutions to SMEs in the productive use sector, enabling greater access to consistent and reliable clean energy.
Many of these investments are subject to congressional notification.
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.