IFC's Record $12.2 Billion Investment in Asia Pacific Drives Impact on Climate, Gender Equality, and Economic Growth

IFC projects create jobs, enhance services, and support financial inclusion, with a focus on climate solutions and gender empowerment.

The International Finance Corporation (IFC) has delivered a record-breaking $12.2 billion in investments across 123 projects in Asia Pacific during the fiscal year ending June 30, addressing key development challenges such as climate change, gender inequality, food insecurity, and financial inclusion. The investments mark an 11% increase year-on-year, with IFC’s commitment playing a pivotal role in fostering sustainable growth, creating jobs, and improving services throughout the region.

As the largest global development institution focused on the private sector in emerging markets and a member of the World Bank Group, IFC’s financing strategy continues to emphasize private sector solutions to some of the region’s most pressing issues. The $12.2 billion investment includes $6.2 billion in long-term financing, $3.3 billion in mobilization, and $2.7 billion in short-term trade and supply-chain finance aimed at facilitating regional trade.

A major focus of IFC’s efforts was climate action, with 36% of its long-term financing directed towards projects tackling climate change and marine plastic waste. Key projects included investments in Vietnam’s first blue bond and first local currency sustainability-linked bonds, as well as pioneering distributed generation financing through corporate power purchase agreements in India. Additional initiatives supported green buildings, industrial decarbonization, a green data centre in Malaysia, and Southeast Asia’s first clean-energy fund combining public, private, and philanthropic capital.

IFC also dedicated significant resources to fostering financial inclusion, particularly for micro, small, and medium-sized enterprises (MSMEs). Through financing and advisory services to financial institutions, IFC’s efforts are expected to provide more than two million loans to MSMEs. Notable achievements include the launch of Mongolia’s first social bond, India’s first offshore asset-backed securitization, and Nepal’s first gender and climate financing initiatives aimed at MSME lending.

Gender equality remains a core focus of IFC’s investment strategy, with 52% of long-term financing projects prioritizing women’s empowerment. Key projects included an equity investment in a Thai bank’s IPO to support women-led businesses and the extension of microloans to women borrowers through India’s largest private-sector bank.

The IFC’s work also extended to fragile and conflict-affected countries, with 26% of long-term financing projects focused on improving access to essential services in low-income countries. Investments included Bangladesh’s first-ever housing bond to improve affordable housing for women, as well as a program in Papua New Guinea to increase female participation in sectors where they have been historically underrepresented.

A key outcome of IFC’s work in the region was the creation of significant economic opportunities. With an estimated 570,000 direct and indirect jobs expected to be generated by its projects, IFC continues to play a vital role in fostering sustainable economic development. “Amid persistent global challenges, IFC remains committed to delivering innovative solutions and fostering a sustainable private sector that addresses urgent development needs,” said Riccardo Puliti, IFC’s Regional Vice President for Asia Pacific.

The year also saw IFC set a precedent in financial innovation with investments in diverse sectors. In Indonesia, IFC’s mezzanine equity investment in a ride-hailing, e-commerce, and financial services company is expected to extend the benefits of the digital economy to more people. Additionally, flexible U.S. dollar-denominated working capital funding was provided to Bangladesh’s pharmaceutical and food processing sectors to address a critical foreign exchange shortage.

In the healthcare sector, IFC made significant investments in Bangladesh and Sri Lanka to improve access to healthcare and strengthen pharmaceutical manufacturing capacity. These investments aim to create resilient supply chains, further supporting the region’s recovery and long-term development.

Overall, IFC’s investments in Asia Pacific continue to demonstrate the power of the private sector in addressing development challenges at scale, improving livelihoods, and driving long-term economic growth across the region.