Partners
IFAD works with many partners, including rural people, to increase our impact.
IFAD Finance - IFAD
Finance
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A unique mandate to eradicate poverty and hunger
IFAD is a specialised agency of the United Nations and an international financial institution (IFI), established to mobilise resources for agriculture and rural development in developing countries.
We are the only IFI with the specific mandate to eradicate poverty and hunger by investing in poor rural people. We do this by providing financial and technical assistance to agricultural and rural development projects.
Our operations are financed by Member State contributions, loan repayments, investment income, special contributions from non-Member States, sovereign borrowing, concessional loans and borrowing in international capital markets.
We have a solid business profile based on transparent governance and management expertise, an important mandate, strong relationships with stakeholders and preferred creditor treatment.
Corporate finance
IFAD's corporate finance function ensures integrity, transparency and accounting of IFAD's financial resources to secure our stakeholders’ confidence.
Each year, IFAD delivers four sets of statutory financial statements which are prepared in accordance with leading-practice International Financial Reporting Standards and are audited by an independent external auditor.
Investment management
IFAD’s liquidity portfolio is composed of Member State contributions, loan repayments and funds raised through borrowing. IFAD borrows funds by entering into loan agreements and by issuing private placement bonds. Borrowed funds are governed by IFAD’s Integrated Borrowing Framework. IFAD bonds provide investors with a high-quality asset while contributing to the 2030 Agenda. We have an AA+ credit rating from both S&P and Fitch.
IFAD’s liquidity portfolio is invested according to our Investment Policy Statement and Internal Control Framework. To ensure security, liquidity and return, IFAD has a conservative investment policy. The portfolio is predominately above investment grade, fixed income securities. Risk and return measures are reported in IFAD’s Investment Portfolio Report.
Each year, IFAD determines the Resources Available for Commitment, which is the maximum amount that IFAD can safely commit to new loans and grants while preserving its financial soundness.
Financial management
Proper oversight and management of financial resources are key to achieving IFAD’s objectives by improving delivery and increasing disbursements. They also demonstrate to stakeholders that adequate governance is in place, including compliance and performance of value-added inputs.
IFAD is committed to enhancing its business model and operational development through financial management best practices, modernized operational policies and knowledge management.
Financial products and financing terms
IFAD provides loans and grants to programmes that boost economic growth, reduce inequalities and improve poor rural people’s lives. Lending terms are primarily based on a country's GNI and a creditworthiness assessment. Our Debt Sustainability Mechanism helps low-income countries restore or maintain their external debt sustainability. Countries’ risk ratings are determined by debt sustainability analyses based on the IMF-World Bank Debt Sustainability Framework for low-income countries.
