DFC had an unprecedented year in FY23. Learn more here: DFC at Work
WASHINGTON, D.C. – The U.S. International Development Finance Corporation (DFC) today announced its portfolio has reached $41 billion spanning 112 countries, as it continues to deliver on its mandate to advance international development and U.S. foreign policy priorities.
In Fiscal Year 2023, DFC committed to $9.3 billion in total financing across 132 transactions, of which 73 percent were in low-income or lower-middle-income countries. This nearly doubles the organization’s total FY20 commitments. In the four years since its establishment, DFC has accelerated efforts to partner with the private sector in financing solutions to the world’s most critical challenges, from investing in global infrastructure projects to mitigating the devastating effects of climate change, strengthening food security, and fostering global health.
“DFC had a landmark year in pursuit of our mission to drive development and strategic impact globally,” DFC Chief Executive Officer Scott Nathan said. “With our largest portfolio to date, we are addressing critical development challenges, advancing U.S. strategic interests, and mobilizing private capital to advance stability and prosperity around the world.”
DFC at Work:
$8.1 billion to meet the challenge put forward by G7 Partnership for Global Infrastructure and Investment (PGI)
The majority of DFC’s FY23 investment commitments advance PGI, a cross-cutting initiative that finances energy, physical, digital, health, and climate-resilient infrastructure in countries around the world. These investments can take many forms, such as DFC’s recent agreement to provide $553 million in support of a deepwater shipping terminal in Sri Lanka, creating local jobs and fostering regional economic growth.
$7.2 billion total exposure in political risk insurance
DFC is one of the few organizations that provides political risk insurance (PRI), an important tool for building investor confidence in markets where it’s needed most. In FY23, DFC announced its largest debt-for-nature conservation deal yet, committing PRI for a $656 million Galápagos marine conservation-linked bond. This deal promotes resilience from economic coercion. Ecuador will realize more than $1.1 billion in lifetime savings through reduced debt service costs, and the deal is estimated to generate $323 million for marine conservation in the Galápagos Islands.
$1.1 billion total exposure in support of Ukraine’s resilience and recovery
Ukraine’s economic growth and recovery depends, in part, on its ability to harness the power of the private sector and mobilize private investment. DFC is using all its tools – including political and war risk insurance, equity investment, and debt financing – to help sustain Ukraine’s economic recovery and position the country for reconstruction. Recent commitments include a $25 million equity investment to support tech-enabled small businesses and $250 million as part of a financing package to strengthen food security.
$1 billion reached in food security investments
With millions of people on the brink of famine, DFC remains committed to expanding access to food today and helping to protect against future food crises. This includes $19.8 million to finance cold chain storage facilities in Morocco and Senegal and a $20 million loan to provide about 400,000 farmers across Sub-Saharan Africa with fertilizer and other agricultural inputs. DFC is on track to invest an additional $1 billion in the next couple of years.
$3.7 billion committed in FY23 for climate financing
DFC is helping communities around the world capture the once-in-a-generation economic opportunity that the clean energy transition represents. Over the past three years, DFC’s climate finance commitments have grown from less than $500 million to $3.7 billion. DFC’s FY23 commitments include a $425 million loan to TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited, to finance the construction of a solar manufacturing facility in India. This investment will support India’s ambitious program to increase renewable energy generation while diversifying solar supply chains.
$2.5 billion committed in FY23 to support women’s economic empowerment
The world’s largest emerging market isn’t a country or region; it’s the world’s women. DFC has prioritized supporting women’s employment and advancement in the workforce and on-lending to women-led and women-owned businesses.
47 percent of DFC’s FY23 commitments support small businesses and entrepreneurs in underserved communities
Nearly half of DFC’s FY23 commitments are smaller-sized transactions valued at $10 million or less, which supports small businesses and entrepreneurs in underserved communities. DFC’s FY23 investment commitments are expected to provide services and financing to more than 500,000 micro, small, and medium-sized businesses, many of which focus on communities that are underserved.
DFC had an unprecedented year in FY23. Learn more here: DFC at Work
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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.