IFC Drives Record Impact for Asia Pacific, Advancing Innovation and Inclusion

The International Finance Corporation (IFC), part of the World Bank Group, achieved a record-breaking $12.2 billion in investments across Asia Pacific in the fiscal year ending June 2024, marking an 11% increase over the previous year. With 123 projects in place, the IFC made strides in tackling climate change, promoting gender equality, and enhancing financial inclusion, all while creating jobs and advancing services across the region’s emerging markets.

A significant portion of IFC’s investment went toward sustainability and climate resilience, with 36% of its long-term financing focused on projects to address climate and environmental issues. This included groundbreaking initiatives like Vietnam’s first blue bond and India’s first distributed generation financing through corporate power purchase agreements, both targeting cleaner energy solutions. In Malaysia, a green data center investment and a sustainability-linked fund in Southeast Asia marked milestones for environmental impact.

IFC also made substantial progress in financial inclusion by supporting financial institutions to improve access to capital for micro, small, and medium-sized enterprises (MSMEs), facilitating over two million loans across the region. Notable projects included Mongolia’s first social bond and a pioneering gender and climate financing initiative in Nepal, enabling more accessible and impactful MSME lending.

Improving gender equality was a key focus, with 52% of IFC’s long-term financing directed toward empowering women in the business sphere. In Thailand, IFC’s investment in a local bank’s IPO aims to support new products tailored for women-led businesses, while in India, they partnered with the country’s largest private bank to provide microloans exclusively for women borrowers. Additionally, IFC’s support for Bangladesh’s first-ever housing bond is expected to expand affordable housing options for women, underscoring its commitment to gender-focused financial innovation.

IFC’s focus on fragile and low-income regions has led to crucial progress. Investments included flexible U.S. dollar-denominated funding to bolster Bangladesh’s pharmaceutical and food processing sectors, addressing foreign exchange constraints. In Papua New Guinea, IFC spearheaded programs to empower women in underrepresented industries, while in Bangladesh and Sri Lanka, pharmaceutical sector investments have expanded healthcare access, strengthened manufacturing capacity, and improved supply chain resilience.

IFC’s efforts in Asia Pacific have not only set a high standard for inclusive development but are also projected to create up to 570,000 jobs across the region, fostering economic growth and stability.