Anil Bhandari

IFC equity financing
IFC Equity and Quasi-equity
Description:
Equity
• long-term investments (8-15 years) in private sector companies, financial
institutions & portfolio/investment funds in developing countries
• exclusively in for-profit projects
• usually “passive” investor, never largest shareholder (subscription generally to
5%-15% of project’s s equity)
• IPO in local stock markets preferred exit option
• shareholdings treated as domestic capital/local shares to meet national
ownership requirements
Quasi-equity (C-loans)
• blend of equity & senior loans (i.e. subordinated debt, preferred ed stock,
convertible loans) to bridge gap in project’s s financing plan