Luxembourg, December 20, 2011
—IFC, a member of the World Bank Group, and the European Investment Bank today agreed to improve collaboration between the two institutions when financing private sector development projects in emerging markets. Increased cooperation will improve the effectiveness of funding by reducing the administrative burden on borrower companies and allowing quicker completion of financial documentation.
Greater cooperation will directly benefit public-private partnerships and project finance operations. It will also enable joint funding for small and medium enterprises and projects that contribute to the fight against climate change. The agreement will particularly benefit projects that support private sector development in Africa, the Caribbean, the Pacific, the Republic of South Africa, and in Mediterranean countries where the European Investment Bank operates under the Facility for Euro-Mediterranean Investment and Partnership.
Under the agreement, signed in Luxembourg by the European Investment Bank President and IFC’s Executive Vice President and CEO, projects supported by both IFC and the European Investment Bank will be able to obtain funds from both institutions with limited additional administrative requirements. The agreement defines guiding principles covering the application process and allocation of responsibilities between the two institutions to allow the timely completion of investments. Areas of cooperation and coordination include execution of mandate agreements, the appraisal and due diligence process, monitoring visits, and the handling of client requests.
“In a time of economic uncertainty, it is more important than ever for international finance institutions to collaborate to support private sector companies investing in emerging markets,” said Lars Thunell, IFC’s Executive Vice President and CEO. “This agreement deepens the partnership between IFC and EIB, and it will benefit our client governments while allowing us to respond quickly to the most urgent development challenges.”
Philippe Maystadt, President of the European Investment Bank, said: “This agreement provides a welcome opportunity to reduce duplication of administrative procedures and improve the effectiveness of lending operations in emerging markets. Closer cooperation between the European Investment Bank and the IFC when acting as joint-lenders will allow a stronger contribution to private sector growth.”
IFC and the European Investment Bank have a longstanding partnership, which intensified during the financial crisis. To maintain support for small and medium enterprises and the private sector in emerging markets impacted by the crisis, IFC and the European Investment Bank, together with other partners, launched Joint IFI Action Plans for Eastern and Central Europe, Africa, and the Caribbean.
Working with other partners, the IFC and the European Investment Bank also launched the Microfinance Enhancement Facility to support sound microfinance institutions impacted by the crisis, and jointly capitalized systemically important banks throughout Africa through the Africa Capitalization Fund. Through the Infrastructure Crisis Facility, they also provided financing for important ongoing infrastructure projects that had come to a halt because of the crisis. IFC and EIB have co-financed projects worth more than $3 billion in private sector projects globally.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
About EIB
The European Investment Bank (EIB) is the European Union's financing institution. Its shareholders are the 27 Member States of the Union, which have jointly subscribed its capital. The EIB's Board of Governors is composed of the Finance Ministers of these States. The EIB's role is to provide long-term finance in support of investment projects. For more information, visit
www.eib.org
Stay Connected
