DFC
Who We Are
The U.S. International Development Finance Corporation (DFC) is America’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today.
DFC is the U.S. Government’s development finance institution, partnering with the private sector to address the most critical challenges in today’s developing world. DFC has been deeply involved in reforming banking systems, liberalizing prices, privatization (legalization and policy dialogue), and establishing appropriate legal frameworks for property rights, which are vital for driving change.
DFC strengthens America’s position as a stronger and more competitive leader on the global development stage. We excel in partnering with allies on transformative projects. Additionally, we offer financially sound alternatives to unsustainable and irresponsible state-driven initiatives in the developing world.
What We Do
We invest in sectors such as energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in emerging markets to create jobs. DFC investments adhere to high standards and respect the environment, human rights, and labor rights.
• Debt Financing: Direct loans and guarantees of up to $1 billion with tenors as long as 25 years, including specialized programs targeting small and medium-sized U.S. businesses.
• Equity Investments: DFC’s direct equity investments support companies committed to creating developmental impact.
• Investment Funds: Support for emerging market private equity funds to bridge the capital gap.
• Feasibility Studies: Support for analyzing a potential DFC project.
• Political Risk Insurance: Coverage of up to $1 billion against losses caused by inconvertibility of currency, government interference, and political violence, including terrorism. DFC also offers reinsurance to expand insurance capacity.
• Technical Assistance: Support to enhance the developmental impact or commercial sustainability of existing DFC projects or to develop potential projects.
Products We Offer
DFC provides debt financing across all priority sectors, including infrastructure and critical minerals, energy, food security and agriculture, healthcare, and small business support. Other services include:
• Direct Loans and Partial Credit Guarantees
All projects must fall under the proven competence of the proposed management, demonstrated by a recent track record of success in the same or a closely related business, supported by the latest two years of historical financial statements showing revenue generation and successful operations.
• Equity Investments
DFC direct equity investments support companies committed to creating developmental impact. DFC can make direct equity investments in companies or projects in developing countries that will have a developmental impact or advance U.S. foreign policy. These investments are particularly developmental as they can support early and growth-stage companies that would not otherwise qualify for debt, especially in low- and lower-middle-income countries.
• Investment Funds
To help close the capital gap, DFC supports emerging market private equity funds. DFC invests debt and equity into private equity funds in developing countries to help bridge the gap in private equity capital and enable these economies to access long-term growth capital, management expertise, and financial acumen. These funds play a crucial role in expanding economic development and creating new opportunities for people in low-income and developing countries.
• Technical Assistance and Feasibility Studies
Feasibility studies and technical assistance accelerate project identification and preparation to attract better private investment and support development. Grants for feasibility studies and technical assistance are often designed to enhance the developmental impact or improve the commercial sustainability of a project that has received or may receive DFC financing or insurance support. The program complements, rather than duplicates, studies financed by other institutions or funders.
DFC identifies the technical assistance, feasibility study, or training to be provided and selects a recipient organization with the relevant expertise and experience to carry out the work. Additionally, the program offers technical assistance for specific development credit activities requested by other institutions, using a competitively selected pool of contractors.
• Political Risk Insurance
Coverage of up to $1 billion against losses caused by inconvertibility of currency, government interference, and political violence, including terrorism. DFC also offers reinsurance to expand insurance capacity.
Where We Work
DFC partners with the private sector worldwide. While prioritizing investments in low- and lower-middle-income countries as classified by the World Bank, DFC also considers investments in certain upper-middle-income countries. Additionally, under the 2019 European Energy Security and Diversification Act, DFC is mandated to support specific energy and energy-related investments in eligible European and Eurasian countries, regardless of host country income classification.
DFC only supports investments linked to eligible projects in countries where the governments have authorized DFC’s investment support through agreements with the United States.
Regions We Work In
• Western Hemisphere (South and North America, Canada)
• Europe and Central Asia
• Indo-Pacific
• Sub-Saharan Africa
• Middle East and North Africa