IFC, the largest global development institution, funded a record US$11 billion for a total of 108 projects in Asia and the Pacific in fiscal year (FY) 2022-23, registering a 10 per cent year-on-year increase.
The amount comprised $4.7 billion in long-term financing from its own account, $3.4 billion in mobilization, and $2.9 billion in short-term trade and supply-chain finance to facilitate trade flows, said a press release issued on Wednesday.
In Bangladesh, IFC invested in projects to improve food security in the region, including an investment to promote a resilient rice market.
This is IFC's first investment from its new Global Food Security Platform, a $6 billion global facility set up to counter the food crisis. IFC projects in the last financial year are expected to improve the livelihoods of over 130,000 farmers in the region, with specific targets for women farmers.
Climate projects, micro, small, and medium-sized enterprises (MSMEs), women and farmers in Asia and the Pacific have benefited from record amounts of funding from IFC.
The funds will alleviate poverty and increase prosperity in the face of overlapping crises and challenges, including climate change, gender inequality, food and energy insecurity, and higher inflation, the press release said.
Thirty-nine per cent of long-term financing from IFC's own account was invested in projects that will help tackle climate change and marine plastic waste, critical issues in a region home to many countries that are most vulnerable to climate change and key contributors of plastic waste.
Projects ranged from investments in Mongolia's first green bond and blue finance in Thailand, to electric vehicles in India and sustainability-linked finance with pricing incentives tied to supporting the energy transition in South and Southeast Asia.
A record $4.7 billion was committed to financial institutions in the region, which are expected to improve access to finance for MSMEs through the provision of more than 1.6 million loans, with specific targets for women-owned businesses.
MSMEs are the backbone of the region's economy, accounting for more than 97 per cent of its businesses and employing over half its workforce. Improving their access to finance, particularly in a high interest-rate environment and as banks retreat from riskier lending, is critical to creating jobs, spurring economic growth, and fostering more inclusive societies.
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