DevFiNews

News and Intelligence for the Development Finance Industry

Tag: IFC

  • IFC weighs $40m anchor investment in Peru MSME receivables fund

    IFC weighs $40m anchor investment in Peru MSME receivables fund

    The International Finance Corporation (IFC) is considering an investment of up to $40 million in a Peru-focused trade receivables fund, as the World Bank Group member seeks to expand non-bank financing channels for micro, small, and medium enterprises in the country.

    The proposed commitment, equivalent in Peruvian soles, would account for up to 20% of total commitments in Compass Fondo de Inversion Adelanto de Efectivo, or Compass FAE, an unlisted, closed-ended fund with a tenor of up to eight years, according to documents seen by DevFiNews.

    The fund will provide financing through factoring and reverse factoring, structures that allow businesses to convert receivables into immediate liquidity and improve access to working capital.

    IFC’s anchor participation is expected to mobilise at least one dollar of additional private capital for every dollar it invests.

    The investment comes as Peru’s credit market remains shallow, with credit to GDP at about 45%. The formal financing gap for MSMEs is estimated at $10 billion, or 4.7% of GDP.

    Smaller businesses remain heavily reliant on supplier credit and short-term bank lines, while women-led MSMEs face a wider credit constraint than male-led firms despite lower past-due loan ratios.

    MSMEs account for about 31% of Peru’s GDP and nearly 60% of employment, making working-capital access critical for business growth, competitiveness and job preservation.

    Development finance institutions have increasingly promoted factoring and supply-chain finance in emerging markets as a way to expand liquidity access for smaller firms without relying solely on traditional bank lending.

    The project builds on broader World Bank Group efforts to develop factoring and reverse factoring as alternative financial intermediation channels in Peru.

    Compass FAE is managed by Vinci Compass Sociedad Administradora de Fondos, the Peruvian subsidiary of Vinci Compass Investments, which was formed through the December 2024 merger of Vinci Partners Investments and Compass Group Asset Management.

    The combined platform manages more than $54 billion in assets.

    Vinci Compass SAF Peru, founded in 2002, has closed three funds totaling $400 million.

    It pioneered reverse factoring in Peru and previously managed the country’s largest factoring fund, which reached $170 million in assets before closing in 2019.

    IFC said the project would also support Peru’s private debt market by broadening financing options in a concentrated lending market dominated by banks and municipal savings institutions.

  • Zafiri targets $300m to scale distributed energy in Africa with IFC backing

    Zafiri targets $300m to scale distributed energy in Africa with IFC backing

    Proposed distributed renewable energy investment vehicle Zafiri is targeting an initial capitalization of $300 million to scale off-grid and decentralized energy solutions across Sub-Saharan Africa, according to documents seen by DevFiNews.

    The move higlights a shift toward blended and permanent capital structures in development finance.

    International Finance Corporation (IFC), a member of the World Bank Group, plans to invest up to $120 million in the vehicle, spanning both senior and junior equity tranches, alongside up to $70 million in concessional capital from its IDA21-backed blended finance window to help crowd in additional investors.

    In a disclosure, IFC said the vehicle, which will be domiciled in Mauritius, is structured as a permanent capital platform, allowing it to deploy patient equity into distributed renewable energy (DRE) companies without the constraints of traditional fund lifecycles.

    Zafiri’s initial $300 million raise will be split evenly between senior and junior equity, with backing expected primarily from development finance institutions, multilateral lenders, and philanthropic investors, per the disclosure.

    The platform may later raise additional capital from commercial investors, with a long-term ambition to scale toward $1 billion in net asset value.

    The vehicle will invest in a range of DRE solutions including mini-grids, solar home systems, commercial and industrial solar, battery storage, and clean cooking technologies, targeting markets with significant energy access gaps such as Nigeria, the Democratic Republic of Congo, and Ethiopia.

    Over its lifecycle, Zafiri aims to provide electricity and clean cooking access to at least 30 million people, while reducing reliance on diesel and other carbon-intensive energy sources.

    The structure underscores a broader trend among development finance institutions toward using blended finance and flexible capital vehicles to address structural funding gaps in early-stage and fragmented sectors such as distributed energy.

    IFC said its participation is expected to play a catalytic role in mobilizing additional capital, while also supporting environmental and social standards, including risk management systems and gender practices across investee companies.

  • IFC backs Metito Utilities with $40m structured equity to scale emerging markets water platform

    IFC backs Metito Utilities with $40m structured equity to scale emerging markets water platform

    World Bank Group’s International Finance Corporation (IFC) is proposing an investment of up to $40 million in structured equity to support the expansion of Metito Utilities Limited, according to a disclosure seen by DevFiNews.

    The move underscores a broader shift toward platform-level financing in emerging markets infrastructure.

    The investment, structured as convertible redeemable preferred shares, is expected to catalyze up to $60 million in additional capital, with further mobilization anticipated over time, IFC said in a disclosure.

    Unlike traditional project finance tied to a single asset, proceeds will be deployed at the corporate level to fund Metito’s portfolio of committed projects, assets under construction, and medium-term pipeline across multiple geographies.

    Key assets include wastewater treatment plants in Namangan, Uzbekistan and Zrenjanin, Serbia, alongside water supply projects in Dalian, China and Nabisar, Pakistan, as well as expansion across concession-based water and wastewater platforms in emerging markets.

    The transaction highlights a growing preference among development finance institutions for flexible capital structures that enable infrastructure operators to scale across markets, rather than rely on fragmented, project-by-project funding.

    Metito operates under public-private partnership and build-own-operate-transfer (BOOT) models, positioning it to benefit from long-term concession revenues while addressing infrastructure gaps in water and sanitation.

    IFC’s early involvement in structuring the transaction is aimed at crowding in private capital, reflecting its broader mandate to de-risk investments and mobilize institutional funding into essential infrastructure.

    Environmental and social due diligence classified the project as Category B, indicating limited and site-specific risks.

    Key considerations include labor management, occupational health and safety, and land acquisition tied to new developments, particularly across markets with varying regulatory environments.

    Metito, a repeat IFC client, has previously received satisfactory ratings for environmental, health, and safety performance, supported by established management systems aligned with IFC Performance Standards.

    The investment adds to a growing pipeline of platform-focused deals in development finance, as investors seek scalable exposure to infrastructure assets while maintaining risk-adjusted returns through structured instruments.

  • Acumen targets $80m for Pakistan climate agribusiness fund

    Acumen targets $80m for Pakistan climate agribusiness fund

    Acumen is targeting $80 million for a Pakistan-focused climate and agribusiness private equity fund that deploys a blended capital structure to back early- and growth-stage companies, according to project disclosures seen by DevFiNews.

    The vehicle, Acumen Climate Action Pakistan Cooperatief U.A. (ACAP), is designed with around 66.25% senior equity and at least 33.75% junior equity, a structure aimed at absorbing risk, and mobilising commercial capital into a frontier market where private investment remains limited.

    The International Finance Corporation (IFC), a member of the World Bank Group, is proposing a senior equity commitment of up to $10 million.

    The proposed investment positions itself as an anchor investor to support the fund’s targeted first close of $40 million and catalyse additional participation.

    ACAP will invest in 12 to 15 companies across three priority verticals: farmer platforms and financial solutions, smart farming technologies, and post-harvest systems.

    These segments are seen as critical to improving productivity, reducing losses, and strengthening climate resilience across Pakistan’s agriculture value chain.

    The fund will write equity and equity-linked tickets ranging from $1 million to $7.5 million, focusing on businesses with strong competitive positioning and potential for market leadership.

    A central feature of the vehicle is a grant-funded technical assistance facility of up to $10 million, which will be used to support portfolio companies through operational improvements, ecosystem development, and sector knowledge sharing.

    Such facilities are commonly deployed in development finance structures to enhance impact outcomes while de-risking early-stage investments.

    IFC will also provide advisory support to the fund manager, with a mandate to strengthen institutional capacity and execution capabilities.

    The scope is expected to include investment structuring, pipeline development, portfolio monitoring and valuation, exit strategies, investor relations, and team development.

    The support is intended to mitigate risks associated with a first-time fund manager and improve the likelihood of achieving both financial and development targets.

    ACAP is sponsored by Acumen, a nonprofit impact investor focused on expanding access to essential goods and services in emerging markets.

    Through its investment arm, Acumen Capital Partners, the firm has launched four climate-focused funds with aggregate commitments of approximately $350 million, primarily across energy and agriculture sectors.

    The fund will invest entirely in Pakistan, where agriculture accounts for about 23% of gross domestic product and 37% of employment but remains highly exposed to climate risks, including flooding, extreme heat, and water scarcity.

    The country ranks among the most climate-vulnerable globally, with a significant portion of the population exposed to high climate-related risks.

    Pakistan’s private equity ecosystem also remains nascent, with only a handful of funds and limited recent fundraising activity.

    ACAP is expected to play a catalytic role by attracting a mix of institutional and commercial investors, while demonstrating the commercial viability of equity investments in climate-focused agribusinesses.

    Beyond capital deployment, IFC’s involvement is expected to bring additionality through both financial support and non-financial contributions.

    These include strengthening environmental and social management systems in line with global standards, as well as promoting gender inclusion by supporting women’s participation in portfolio companies and skills development initiatives in the agriculture sector.

    By combining concessional elements, technical assistance, and commercial capital, ACAP aims to bridge a persistent financing gap in Pakistan’s agriculture sector, while building a pipeline of scalable, climate-resilient businesses capable of delivering long-term development impact.

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