meet national ownership requirements, IFC shareholdings can, in some
cases, be treated as domestic capital or “local” shares. IFC usually maintains
equity investments for a period of 8–15 years and is considered a long-term
investor. IFC’s preferred objective is to sell its shares through the domestic
stock market.
IFC’s equity investment has been the subject of some controversy, as IFC
may insist on purchasing equity at par—i.e., neither paying a premium to the
Sponsors to cover their initial risks (cf. §12.2.2) nor covering any develop-
ment costs itself.
Derivative products (hedging). Since 1990, IFC has been offering currency
and interest rate swaps, options, forward exchange contracts, and other
derivative products to its borrowers to allow them ...