IFC - International Finance Corporation

11/14/2025 | Press release | Distributed by Public on 11/14/2025 15:55

Development Bank Quarterly Report (Form QRTLYRPT)










Management's Discussion and Analysis
and
Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)



INTERNATIONAL FINANCE CORPORATION
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Management's Discussion and Analysis
September 30, 2025
Contents

SECTION I: INTRODUCTION
5
SECTION II: EXECUTIVE SUMMARY
9
SECTION III: CLIENT SERVICES
11
SECTION IV: LIQUID ASSETS
18
SECTION V: FUNDING RESOURCES
19
SECTION VI: RISK MANAGEMENT
21
SECTION VII: RESULTS OF OPERATIONS
26
SECTION VIII: GOVERNANCE AND CONTROL
33
SECTION IX: APPENDIX
34





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Management's Discussion and Analysis
September 30, 2025
List of Tables

Table 1: Financial Data Summary
7
Table 2: Key Financial Ratios
8
Table 3: IFC Commitments
11
Table 4: Disbursements of IFC's Investment Portfolio
12
Table 5: Disbursed Investment Portfolio
12
Table 6: Committed Investment Portfolio
12
Table 7: The Carrying Value of IFC's Investment Portfolio
12
Table 8: AMC Funds
16
Table 9: Liquid Asset Portfolio Net Asset Value
18
Table 10: Borrowings Outstanding
19
Table 11: IFC's Capital
20
Table 12: IFC's Retained Earnings Composition
20
Table 13: IFC's Debt Portfolio Credit Risk Indicators
22
Table 14: Main Elements of Net Income and Other Comprehensive Income
26
Table 15: Summary of Financial Results
27
Table 16: Portfolio and Individual Provision (Release of Provision)
28
Table 17: Reserve Against Losses on Loans Disbursed and Loans Committed but not Disbursed and Reserve Coverage Ratio
29
Table 18: Income from Equity Investments, Including Realized and Unrealized Gains and Losses on Equity and Associated Derivatives
30
Table 19: Income from Liquid Assets Trading Activities
30
Table 20 : Other Income
31
Table 21 : Administrative and Other Expenses
31
Table 22 : Foreign Currency Transaction Gains and Losses on Non-Trading Activities
31
Table 23: Net Unrealized Gains on Loans, Debt Securities, Borrowings and Related Derivatives
32
Table 24: Other Comprehensive Income - Unrealized Gains and Losses on Debt Securities and Borrowings
32



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Management's Discussion and Analysis
September 30, 2025
List of Figures
Figure 1: Sources and Uses of Income
6
Figure 2: Income Measures
9
Figure 3: Carrying Value of Loan Portfolio
13
Figure 4: Carrying Value of Equity Investment Portfolio
13
Figure 5: Carrying Value of Debt Security Portfolio
14
Figure 6: Borrowings Outstanding
19
Figure 7: NPLs as Percentage of Disbursed Debt Portfolio
22
Figure 8:
Change in Net Income in FY26Q1 vs FY25Q1
27
Figure 9: Non-performing Loans
28
Figure 10: Reserve against Losses for Disbursed and Undisbursed Loans
29




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Management's Discussion and Analysis

SECTION I: INTRODUCTION
This Management's Discussion and Analysis (MD&A) discusses the financial results of the International Finance Corporation (IFC or the Corporation) for the three months ended September 30, 2025 (FY26 Q1). This document should be read in conjunction with IFC's Consolidated Financial Statements and MD&A issued for the year ended June 30, 2025 (FY25). IFC undertakes no obligation to update any forward-looking statements.
IFC is the largest global development institution focused on the private sector in emerging markets. Established in 1956, IFC is owned by 186 member countries, a group that collectively determines its policies. IFC is a member of the World Bank Group (WBG)1 and is a legal entity separate and distinct from the other WBG institutions, with its own Articles of Agreement, share capital, financial structure, management, and staff. Membership in IFC is open only to member countries of IBRD. IFC is not liable for the obligations of the other WBG institutions.
IFC's mission - as one of the WBG entities - is to end extreme poverty and boost shared prosperity on a livable planet. Central to this mission is job creation recognized as a key driver of sustainable development. The WBG's approach to job creation is anchored in three pillars in five high-impact sectors. The three pillars are: establishing critical infrastructure as a foundation for employment, fostering an enabling environment for private sector growth through effective policies and regulations, and mobilizing private capital to supplement public finance and catalyze investment at scale. The five sectors are: infrastructure and energy, agribusiness, healthcare, tourism, and value-added manufacturing. IFC plays a pivotal role in the third pillar by mobilizing private sector investment, scaling equity financing, deepening local capital markets, and expanding support to Micro, Small, and Medium Enterprises. To achieve these ambitions, IFC is adapting its ways of working by deepening collaboration across the WBG, leveraging data and knowledge solutions to maximize impact, tailoring approaches to country-specific contexts, strengthening investor engagement, upskilling in key areas, and enhancing its capacity to manage both financial and non-financial risks.
Recent initiatives underscore IFC's strategic focus on private capital mobilization and job creation. In September 2025, IFC launched the Emerging Markets Securitization Program (EMSP), a new originate-to-distribute model to attract institutional private capital to emerging markets, by repackaging IFC loans into rated securities issued by a special purpose vehicle. The initial $510 million issuance is expected to scale in upcoming years. In FY25, IFC also launched the Concessional Capital Window (CCW), committing its own capital to mobilize investors into low-income and fragile contexts. These efforts complement broader WBG initiatives focused on job-creating sectors, such as Mission 300 and AgriConnect.
Aligned with the 2018 capital increase, IFC has continued to grow its footprint in the poorest member countries and fragile areas. IFC remains committed to delivering impact at scale by proactively adapting to evolving global landscape while leveraging its unique strengths within the WBG to create opportunities and improve living standards for millions worldwide.

1 The other institutions of the WBG are the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), collectively the World Bank, the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).



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Management's Discussion and Analysis
FINANCIAL BUSINESS MODEL
IFC helps developing countries achieve sustainable growth by financing private sector investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. IFC's principal investment products are loans, equity investments, debt securities and guarantees. IFC also mobilizes private capital for development by attracting private capital to invest in projects through a diverse set of products and initiatives. Unlike most other development institutions, IFC does not accept host government guarantees of repayment. IFC raises virtually all of the funds for its lending activities through the issuance of debt obligations in the international capital markets, while maintaining a small borrowing window with IBRD. Equity investments are funded from capital (net worth). Proceeds of borrowings from market sources or net worth not immediately disbursed for investments are managed internally by IFC in its liquid asset portfolio.
IFC's capital base and its assets and liabilities, other than its equity investments, are primarily denominated in U.S. dollars ($ or US$) or swapped into U.S. dollars. Overall, IFC seeks to minimize foreign exchange and interest rate risks arising from its loans, debt securities and liquid assets by closely matching the currency and rate basis of its assets in various currencies with liabilities having the same characteristics. IFC generally manages non-equity investment related and certain lending related residual currency and interest rate risks by utilizing currency and interest rate swaps and other derivative instruments.
Financial Performance
IFC's primary sources of income are from its loans, debt securities, equity investments and liquid assets. The income generated covers administrative expenses and provisions for losses. For loans, debt securities and liquid assets, income is largely in the form of interest income net of charges on borrowings (figure below), as well as capital gains. IFC's equity investments generate income through capital gains, as well as dividends.
Figure 1: Sources and Uses of Income



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Management's Discussion and Analysis
BASIS OF PREPARATION OF IFC'S CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
IFC's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), and are independently audited on an annual basis. IFC's accounting policies are discussed in more detail in Note A to the June 30, 2025 audited consolidated financial statements and IFC's condensed consolidated financial statements as of and for the three months ended September 30, 2025 (FY26 Q1 condensed consolidated financial statements). Certain reclassifications of prior year's information have been made to conform with the current year's presentation.
IFC uses allocable income, a non-U.S. GAAP measure as the basis for making net income allocation decisions. IFC defines allocable income as net income after certain adjustments. These adjustments primarily relate to unrealized gains and losses on IFC's loans, debt securities, equity investments and borrowings, as well as income from the Post-retirement Contribution Reserve Fund (PCRF). See more details in Section V: Funding Resources - Capital and Retained Earnings.
The tables below outline a comparative breakdown of IFC's Investment Highlights and Statements of Operations, including a reconciliation of IFC's net income to allocable income for the respective periods ended on September 30, 2025 and September 30, 2024 along with key Balance Sheet components as of September 30, 2025 and June 30, 2025:
Table 1: Financial Data Summary
For the three months ended
(US$ in millions) September 30, 2025 September 30, 2024
Investments Highlights (Section III)
Own Account (OA) Commitments (Long-Term Finance (LTF) and Short-Term Finance (STF) Commitments) $ 8,161 $ 7,762
Private Capital Mobilization (PCM)a
12,495 9,426
Disbursements 6,424 5,427
Statements of Operations
Net income (Section VII) $ 734 $ 882
Adjustments to reconcile Net Income to Allocable Income
Unrealized (gains) losses on loans and debt securitiesb
(80) 159
Unrealized gains on equity investmentsb
(257) (216)
Unrealized gains on borrowingsb
(3) (143)
PCRF income (7) (14)
Allocable Income $ 387 $ 668
_________
a IFC's investment commitments (a non-GAAP performance measure) comprise OA and PCM commitments. PCM commitments reflect the amount of private financial resources contributed alongside IFC commitments and are generally not recorded as IFC's financial transactions.
b Unrealized gains and losses on loans, debt securities, equity investments and borrowings presented in Table 1 include unrealized gains and losses from associated derivatives.
(US$ in millions) September 30, 2025 June 30, 2025
Balance Sheets
Total assets $ 132,261 $ 129,740
Liquid assets c (Section IV)
42,016 44,784
Investments (Section III)
70,239 67,520
Loans 44,320 42,229
Equity Investments 12,279 11,777
Debt Securities 13,640 13,514
Borrowings outstanding, including fair value adjustments (Section V) 70,334 71,450
Total capital (Section V)
41,676 40,928
_________
c Net of securities sold under repurchase agreements, payable for cash collateral received and associated derivatives.





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Management's Discussion and Analysis
Table 2: Key Financial Ratios
(US$ in billions, except ratios) September 30, 2025 June 30, 2025
Overall liquidity ratio a
64.4% 71.6%
Debt to equity ratio b
1.9 2.0
Total reserve against losses on loans to total committed portfolio c
2.9% 2.8%
Capital measures:
Capital Available d
$ 39.5 $ 39.0
Capital Required e
24.4 24.0
Capital Utilization Ratio (CUR) f
61.9% 61.6%
_________
a IFC's overall liquidity ratio is calculated as IFC's liquidity, plus undrawn borrowing commitments from IBRD, divided by the next three years' estimated net cash requirements. The ratio stood at 64.4% as of September 30, 2025, above the minimum Board approved requirement of 45%.
b Debt to equity (leverage) ratio is defined as outstanding borrowings plus committed guarantees divided by total capital (comprised of paid-in capital, retained earnings and Accumulated other comprehensive income). IFC's debt to equity ratio as of September 30, 2025 was well within the maximum of 4 required by the policy approved by IFC's Board of Directors.
c Total reserve against losses on loans to total committed portfolio is defined as reserve against losses on loans as a percentage of the total committed loans at amortized cost.
d Capital Available: Resources available to absorb potential losses, calculated as: The sum of IFC's paid-in capital, general reserve, unallocated net income and AOCI, minus the pension surplus of each pension plan, and PCRF assets.
e Capital Required: Aggregate minimum Economic Capital required to maintain IFC's AAA rating.
f Capital Utilization Ratio is defined as Capital Required divided by Capital Available.
IFC's Capital Adequacy, as measured by the Capital Utilization Ratio (CUR), was 61.9% at the September 30, 2025, up from 61.6% as of June 30, 2025. The change is attributable to increases in both Capital Available and Capital Required. Capital Available is primarily driven by the growth in retained earnings and paid-in capital. The increase in Capital Required is mainly driven by the need for additional capital to support the Loan and Equity portfolio.




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Management's Discussion and Analysis
SECTION II: EXECUTIVE SUMMARY
FINANCIAL PERFORMANCE SUMMARY
IFC's financial performance has been influenced by its results from operations, changes in interest rates, foreign exchange rate movements, and the volatility of emerging equity markets in FY26 Q1.
Net Income and Allocable Income
IFC's net income was $734 million in FY26 Q1, as compared to net income of $882 million in the three months ended September 30, 2024 (FY25 Q1). Allocable Income totaled $387 million in FY26 Q1, as compared to $668 million in FY25 Q1. The decrease in net income was primarily attributable to lower treasury income, partially offset by higher equity income, and higher income from loans and debt securities.
Figure 2: Income Measures (US$ in millions)
On September 30, 2025, the Board of Directors approved the allocation of $178 million to the Creating Markets Advisory Window (CMAW) reserve and $70 million to the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) reserve, from IFC's FY25 net income. This approval was noted by the Board of Governors on October 17, 2025. Additionally, the Board of Governors approved the allocation of $100 million from IFC's FY25 net income to the Surplus account and delegated to the Board of Directors the authority to approve the transfer of the $100 million from the Surplus account to the Frontier Opportunities Fund. See more details in Section V: Funding Resources - Capital and Retained Earnings.
Investment Operations
Beginning in FY26, IFC's investment commitments (a non-GAAP performance measure) comprise own account and private capital mobilization (PCM) commitments. Previously, reported investment commitments comprised own account and core mobilization. Own account commitments represent investments made by IFC using its own borrowings or capital. PCM commitments reflect the amount of private financial resources committed alongside IFC commitments, whether financing, guarantees or technical assistance, and are measured as the sum of private direct and private indirect mobilization. Core mobilization, by contrast, is measured as the sum of the private direct and public direct mobilization. Mobilization are generally not recorded as IFC's financial transactions. Refer to Section IX: Appendix - Glossary of Terms for details.
In FY26 Q1, IFC's commitments comprised $8.2 billion from its own account (OA) ($7.8 billion in FY25 Q1) and $12.5 billion from PCM ($9.4billion in FY25 Q1). IFC disbursed $6.4 billion in FY26 Q1 ($5.4 billion in FY25 Q1) excluding guarantees. See more details in Section III: Client Services.
Investment Portfolio
The carrying value of IFC's outstanding investment portfolio was $70.2 billion as of September 30, 2025, an increase of $2.7 billion compared to June 30, 2025. The portfolio's growth primarily resulted from the $2.4 billion of net disbursements (disbursements net of repayments, prepayments, and divestments). Refer to Section III: Client Services Disbursed Investment portfolio section for the definition of carrying value.
Liquid Assets
The Net Asset Value (NAV) of the liquid asset portfolio decreased by $2.8 billion to $42.0 billion as of September 30, 2025 from June 30, 2025. This reflected a decline of $3.0 billion in the Market Funded portfolio since net loan disbursements exceeded net inflows from borrowings. The Net Worth Funded portfolio grew in line with the increase in retained earnings.



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Management's Discussion and Analysis
Borrowings
Borrowings outstanding (including fair value adjustments) decreased by $1.2 billion from $71.5 billion as of June 30, 2025 to $70.3 billion as of September 30, 2025, mainly driven by net repayments of $1.4 billion, partially offset by an increase of $233 million in short-term borrowings.
New borrowings in FY26 Q1 were $6.2 billion as compared to $7.8 billion in FY25 Q1, including $3.9 billion under the medium and long-term borrowing program, $345 million from securitized borrowings issued through securitization special purpose vehicles, and $2.0 billion under the short-term discount note program.



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Management's Discussion and Analysis
SECTION III: CLIENT SERVICES
BUSINESS OVERVIEW
For all new investments, IFC articulates the expected impact on sustainable development and, as projects mature, assesses the quality of the development benefits realized. IFC's strategic focus areas are aligned to advance the WBG's global priorities.
INVESTMENT SERVICES
IFC's investments are normally made in its developing member countries. IFC's Articles of Agreement mandate that IFC shall invest in productive private enterprises. The requirement for private ownership does not disqualify enterprises that are partly owned by the public sector if such enterprises are organized under local commercial and corporate law, operate free of host government control in a market context and according to profitability criteria, and/or are in the process of being completely or partially privatized.
IFC's investment products and services are designed to meet the needs of clients in different industries - principally infrastructure, manufacturing, agribusiness, disruptive technologies and funds, services, and financial markets. Investment services product lines include: loans, equity investments, debt securities, trade and commodity finance, guarantees and partial credit guarantees, securitizations, client risk management services, blended finance, and mobilization products.
INVESTMENT PROGRAM
Commitments
IFC's Own account investments supported 98 LTF projects in FY26 Q1 (67 - FY25 Q1). The table below outlines a comparative breakdown of IFC's commitments in FY26 Q1 and FY25 Q1:
Table 3: IFC Commitments
For the three months ended
(US$ in millions) September 30, 2025 September 30, 2024 Variance
Long-Term Finance Own Account Commitments a
Loans $ 3,973 $ 4,543 $ (570)
Equity Investments 910 347 563
Guarantees 494 141 353
Client Risk Management - 1 (1)
Total Long-Term Finance Own Account Commitments $ 5,377 $ 5,032 $ 345
Short-Term Finance Own Account 2,784 2,730 54
Total Own Account Commitments $ 8,161 $ 7,762 $ 399
Private Capital Mobilization b
Private Direct Mobilization $ 9,457 $ 7,473 $ 1,984
Private Indirect Mobilization 3,038 1,953 1,085
Total Private Capital Mobilization $ 12,495 $ 9,426 $ 3,069
_________
a Debt security commitments are included in loans or equity investments based on their predominant characteristics.
b PCM excludes public direct mobilization of $832 million in FY26 Q1 ($854 million - FY25 Q1).



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Management's Discussion and Analysis
INVESTMENT DISBURSEMENTS
During FY26 Q1, IFC disbursed $6.4 billion for its own account ($5.4 billion - FY25 Q1) as presented in the table below:
Table 4: Disbursements of IFC's Investment Portfolio
For the three months ended
(US$ in millions) September 30, 2025 September 30, 2024 Variance
Loans $ 4,873 $ 4,123 $ 750
Equity Investments 532 361 171
Debt Securities 1,019 943 76
Total Investment Disbursements $ 6,424 $ 5,427 $ 997
INVESTMENT PORTFOLIO
IFC's total disbursed investment portfolio (a non-U.S. GAAP performance measure) was $71.0 billion as of September 30, 2025 ($68.5 billion - June 30, 2025), as presented in the table below:
Table 5: Disbursed Investment Portfolio
September 30, 2025 June 30, 2025
(US$ in millions) Disbursed Investment As a % of Total Disbursed Investment As a % of Total
Loans $ 45,808 65 % $ 43,694 64 %
Equity Investments 11,657 16 11,441 17
Debt Securities 13,548 19 13,414 19
Total Disbursed Investment Portfolio $ 71,013 100 % $ 68,549 100 %
The breakdown of committed investment portfolio (sum of (i) committed but undisbursed balance; and (ii) disbursed and outstanding balance) as of September 30, 2025 and June 30, 2025 is presented in the table below:
Table 6: Committed Investment Portfolio
(US$ in millions) September 30, 2025 June 30, 2025 Variance
Loans and loan-like debt securities a
$ 67,859 $ 65,473 $ 2,386
Equity and equity-like debt securities a
16,090 15,624 466
Guarantees and Client Risk Management 10,111 9,103 1,008
Total Committed Investment Portfolio
$ 94,060 $ 90,200 $ 3,860
_______
a Loan-like and equity-like instruments are reported as debt securities on IFC's condensed consolidated financial statements.
The carrying value of IFC's investment portfolio comprises: (i) the disbursed investment portfolio; (ii) less reserve against losses on loans and debt securities; (iii) unamortized deferred loan origination fees; (iv) less disbursed amounts allocated to equity related options reported separately in derivative assets; (v) unrealized gains and losses on equity investments held by consolidated variable interest entities; and (vi) unrealized gains and losses on investments. The breakdown of IFC's investment portfolio as of September 30, 2025 and June 30, 2025 is presented in the table below:
Table 7: The Carrying Value of IFC's Investment Portfolio
(US$ in millions) September 30, 2025 June 30, 2025 Variance
Loans $ 44,320 $ 42,229 $ 2,091
Equity Investments 12,279 11,777 502
Debt Securities 13,640 13,514 126
Total Investments $ 70,239 $ 67,520 $ 2,719





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Management's Discussion and Analysis
Loans
The carrying value of IFC's loan portfolio increased by $2.1 billion (5.0%) to $44.3 billion as of September 30, 2025. The increase was primarily driven by disbursements partially offset by repayments and prepayments. See breakdown of the movement in the figure below:
Figure 3: Carrying Value of Loan Portfolio (US$ in millions)
_______
* Mainly represents capitalized interest, unamortized deferred fees and transfers to debt securities.
The weighted average contractual interest rate on loans was 6.7% as of September 30, 2025 and June 30, 2025.
Equity Investments
The carrying value of IFC's equity investment portfolio increased by $502 million (4.3%) to $12.3 billion as of September 30, 2025. The increase was mainly due to net purchases (purchases net of sales) and changes in fair value. See breakdown of the movement in the figure below:
Figure 4: Carrying Value of Equity Investment Portfolio (US$ in millions)
_______
* Mainly represents liquidations, conversions and transfers from loans and debt securities to equity investments.




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Management's Discussion and Analysis
Debt Securities
The carrying value of IFC's debt security portfolio increased by $126 million (0.9%) to $13.6 billion at September 30, 2025. The increase was primarily driven by net purchases (purchases net of redemptions, repayments and cost of sales). See breakdown of this movement in the figure below:
Figure 5: Carrying Value of Debt Security Portfolio (US$ in millions)
_________
* Mainly represents conversions and transfers from debt securities to equity investments and loans to debt securities.
Guarantees and Partial Credit Guarantees
IFC's guarantees are available for loans and debt securities, including portfolio risk sharing facilities, and trade obligations of clients and covers commercial as well as non-commercial risks. Guarantees of $7.7 billion were outstanding (i.e., not called) as of September 30, 2025 ($6.6 billion - June 30, 2025).
Managed Co-Lending Portfolio Program (MCPP)
MCPP creates diversified portfolios of emerging market private sector loans. MCPP builds a loan portfolio for an investor that mirrors the portfolio IFC is creating for its own account. Investors pledge capital upfront and then as IFC identifies eligible projects, investor exposure is allocated alongside IFC's own investment in accordance with the terms of the managed co-lending agreement.
As of September 30, 2025, and June 30, 2025, eighteen global investors have pledged $19.2 billion to the MCPP, with certain programs investing across all sectors and others focused on real sector or financial institutions exclusively. Investors have also approved funding for 381 projects worth $15.5 billion across 72 countries as of September 30, 2025, up from 371 projects worth $14.4 billion across 72 countries as of June 30, 2025. Out of these, $11.8 billion ($11.6 billion - June 30, 2025) has been committed. IFC will continue to deploy the remaining funds raised as IFC identifies projects that meet investors' investment criteria.
IDA-PSW
The IDA Private Sector Window (PSW) was created under IDA's Eighteenth Replenishment of Resources (IDA18) to mobilize private sector investment in IDA-only member countries and IDA-eligible Fragile and Conflict-affected Situations (FCS). Under IDA21, $3.2 billion has been allocated to the PSW, including $500 million of economic capital that IFC has set aside.








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Management's Discussion and Analysis
IFC-managed funds
IFC Equity Mobilization Department (AMC) invests third-party capital and IFC capital, enabling outside investors to invest alongside IFC in developing markets. Investors in funds managed by IFC Equity Mobilization Department have included sovereign wealth funds, national pension funds, multilateral and bilateral development institutions, national development agencies and international financial institutions (IFIs).
As of September 30, 2025, IFC Equity Mobilization Department managed multiple funds (collectively referred to as the AMC Funds), in its capacity as General Partner (GP)/Manager of these funds. However, none of these funds require consolidation by IFC, because the third party limited partners of these funds have a substantive ability to remove IFC as GP/Manager. All IFC Equity Mobilization Department Funds are investment companies and are required to report their investment assets at fair value through net income. IFC's commitment ownership interests in these IFC Equity Mobilization Department Funds are shown in the following table:
AMC Funds IFC's commitment ownership interest
IFC Capitalization (Equity) Fund, L.P. a
61%
IFC African, Latin American and Caribbean Fund, LP 20%
IFC Catalyst Funds b
18%
IFC Global Infrastructure Fund, LP 17%
IFC Financial Institutions Growth Fund, LP 30%
IFC Global Emerging Markets Fund of Funds c
19%
IFC Middle East and North Africa Fund, LP 37%
IFC Emerging Asia Fund, LP 22%
IFC GEMFOF 2 SMA, LP -%
IFC Emerging Markets Sustainability Fund of Funds, LP -%
TfL IFC Growth and Sustainability, LP -%
_________
a By virtue of certain rights granted to non-IFC limited partner interests, IFC does not control or consolidate this fund.
b The commitment ownership interest of 18% reflects IFC's ownership interest taking into consideration the overall commitments for the IFC Catalyst Funds, which comprises IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund (Japan), LP (collectively, IFC Catalyst Funds). IFC does not have a commitment ownership interest in either the IFC Catalyst Fund (UK), LP or the IFC Catalyst Fund (Japan), LP.
c The commitment ownership interest of 19% reflects IFC's ownership interest taking into consideration the current committed amounts for the IFC Global Emerging Markets Fund of Funds, which comprises IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging Markets Fund of Funds (Japan Parallel) LP. IFC does not have a commitment ownership interest in the IFC Global Emerging Markets Fund of Funds (Japan Parallel), LP.


















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Management's Discussion and Analysis
In FY26 Q1, the IFC Capitalization (Subordinated Debt) Fund, L.P was liquidated. AMC Funds and their activities as of and for the three months ended September 30, 2025 and September 30, 2024 are summarized as follows:
Table 8: AMC Funds
Through September 30, 2025 For the three months ended
Total funds raised since inception
Cumulative investment commitments a
September 30, 2025 September 30, 2024
(US$ in millions) Total From IFC From other investors
Committed Amount b
Disbursed Amount
Committed Amount b
Disbursed Amount
Current Funds
IFC Capitalization (Equity) Fund, L.P. $ 1,275 $ 775 $ 500 $ 1,214 $ - $ - $ - $ -
IFC African, Latin American and Caribbean Fund, LP 1,000 200 800 863 - - - -
IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund (Japan), LP (collectively, Catalyst Funds) 418 75 343 361 - 1 - 2
IFC Global Infrastructure Fund, LP c
1,430 200 1,230 902 - - - -
IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging Markets Fund of Funds (Japan Parallel), LP (collectively, GEM Funds) 800 150 650 757 - 9 - 6
IFC Middle East and North Africa Fund, LP 162 60 102 86 - - - -
IFC Financial Institutions Growth Fund, LP 505 150 355 356 - - 2 2
IFC Emerging Asia Fund, LP 693 150 543 592 - - 2 2
IFC GEMFOF 2 SMA, LP d
100 - 100 41 - 1 - -
IFC Emerging Markets Sustainability Fund of Funds, LP d
139 - 139 56 30 6 - -
TfL IFC Growth and Sustainability, LP d
125 - 125 14 - 1 - -
Current Funds Total $ 6,647 $ 1,760 $ 4,887 $ 5,242 $ 30 $ 18 $ 4 $ 12
Former Funds
Africa Capitalization Fund, Ltd. $ 182 $ - $ 182 $ 130 $ - $ - $ - $ -
China-Mexico Fund, LP e
1,200 - 1,200 362 - - - -
IFC Russian Bank Capitalization Fund, LP 550 250 300 82 - - - -
Women Entrepreneurs Debt Fund, LP 115 30 85 110 - - - -
IFC Capitalization (Subordinated Debt) Fund, L.P. 1,725 225 1,500 1,614 - - - -
Former Funds Total $ 3,772 $ 505 $ 3,267 $ 2,298 $ - $ - $ - $ -
Grand Total $ 10,419 $ 2,265 $ 8,154 $ 7,540 $ 30 $ 18 $ 4 $ 12
_________
a Net of commitment cancellations.
b Committed amount made by AMC Funds. Excludes commitment cancellations from prior periods.
c Includes co-investment fund managed by AMC on behalf of Fund LPs.
d Fund is in investment period.
e AMC ceased to be the manager of the China-Mexico Fund, LP on September 15, 2023.






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Management's Discussion and Analysis
UPSTREAM AND ADVISORY SERVICES
In the continuum of development solutions offered by IFC, Advisory plays a crucial early-stage role by laying the groundwork for investment or as a follow-on to enhance its impact. Advisory services may include working in collaboration with IBRD to advise governments to improve the enabling environment, assisting industry bodies to promote global standards, and supporting private companies to foster sustainable and responsible private sector investments - contributing to costs and efforts to assess investment feasibility and at times using IFC resources to fund project development. This is especially vital in low-income and fragile contexts, where market creation is necessary before private sector investments can thrive.
At the core of this continuum is Upstream, which encompasses proactive activities designed to stimulate specific opportunities that facilitate the flow of private capital, both domestic and foreign. Upstream activities have a much shorter and clearer line of sight to investment. Together, these functions are essential to advancing IFC's development ambitions: an Upstream & Advisory-enabled Corporation seeks to expand market size by unlocking, developing, and enabling incremental investment opportunities while generating a long-term pipeline of bankable transactions, focusing on continued scale-up of business development efforts in strategic areas such as climate, inclusive growth, and IDA-FCS development. These efforts aim to enable essential private sector investments at scale to address the world's most pressing development priorities.
In FY26 Q1, IFC spent $52 million2 ($50 million - FY25 Q1) in support of hundreds of Upstream and Advisory engagements across all regions and industries. Of the 600 currently active engagements, 31 were newly recorded in FY26 Q1 (35 - FY25 Q1). As of September 30, 2025, Upstream-enabled LTF commitments in FY26 Q1 totaled over $2.6 billion ($3.5 billion - FY25 Q1).
2 The program expenditure presented herein is based on the Operational reporting methodology, which includes all project expenditures associated with an Advisory project. This does not include program expenditure associated with IFC's Upstream project development activities.



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Management's Discussion and Analysis
SECTION IV: LIQUID ASSETS
All liquid assets are managed in accordance with an investment authority approved by the Board and the Funding and Liquid Asset Management Directive approved by IFC's Corporate Risk Committee, a subcommittee of IFC's Management Team.
These liquid assets are funded from two sources: borrowings from the market and capital (net worth), and are managed in several sub-portfolios related to these sources. Proceeds of borrowings from market sources not immediately disbursed for loans and loan-like debt securities are managed internally by IFC against money market benchmarks within the Market Funded portfolio. The portion of IFC's net worth not invested in equity and equity-like investments is managed internally by IFC against a U.S. Treasury benchmark within the Net Worth Funded portfolio. Refer to Section V: Funding Resources for additional details on borrowings.
IFC generally invests its liquid assets in highly rated fixed and floating rate instruments issued by, or unconditionally guaranteed by, governments, government agencies and instrumentalities, multilateral organizations, and high-quality corporate issuers. These include asset-backed securities (ABS), mortgage-backed securities (MBS), time deposits, and other unconditional obligations of banks and financial institutions. Diversification across multiple dimensions ensures a favorable risk return profile. IFC manages the individual liquid asset portfolios on an aggregate portfolio basis against each portfolio's benchmark within specified risk parameters. In implementing these portfolio management strategies, IFC utilizes derivative instruments, principally currency and interest rate swaps, foreign exchange forward contracts, and futures and options, and it takes positions in various industry sectors and countries.
IFC's liquid assets are accounted for as trading portfolios. The Net Asset Value of IFC's liquid asset portfolio as of September 30, 2025 and June 30, 2025 is presented in the table below:
Table 9: Liquid Asset Portfolio Net Asset Value
(US$ in millions) September 30, 2025 June 30, 2025 Variance
Market Funded portfolio
$ 23,457 $ 26,502 $ (3,045)
Net Worth Funded portfolio
18,559 18,282 277
Total Liquid Asset portfolio
$ 42,016 $ 44,784 $ (2,768)
The liquid asset portfolio decreased as net loan disbursements in FY26 Q1 exceeded net inflows from borrowings. Net Worth Funded portfolio grew alongside the increase in retained earnings.



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Management's Discussion and Analysis
SECTION V: FUNDING RESOURCES
BORROWINGS
The major source of IFC's borrowings is the international capital markets. Under IFC's Articles of Agreement, IFC may borrow in the public markets of a member country only with approvals from that member, together with the member in whose currency the borrowing is denominated. IFC also employs structured funding transactions, such as securitizations through special purpose vehicles, to diversify its funding sources and transfer portions of the economic risk associated with certain loan portfolios to third-party investors.
Substantially all borrowings are carried at fair value under the Fair Value Option. The outstanding borrowings (including fair value adjustments) on IFC's condensed consolidated balance sheets as of September 30, 2025 and June 30, 2025 are presented in the table below:
Table 10: Borrowings Outstanding
(US$ in millions) September 30, 2025 June 30, 2025 Variance
Short-term borrowings under the discount note program
$ 2,570 $ 2,337 $ 233
Medium and long-term borrowings
67,422 69,113 (1,691)
Securitized borrowings 342 - 342
Total outstanding borrowings $ 70,334 $ 71,450 $ (1,116)
The decrease in outstanding borrowings was mainly due to net repayments (maturities and repayments net of new issuances) partially offset by the increase in short term borrowings as shown in the figure below:
Figure 6: Borrowings Outstanding (US$ in millions)
______
* Includes medium and long-term borrowing program and securitized borrowings
Market borrowings are generally swapped into floating-rate obligations denominated in U.S. dollars. On occasion, IFC uses its borrowings as a tool to promote capital markets development or to directly support clients in emerging and frontier markets and this can result in raising local currency funds that are not swapped. As of September 30, 2025, non-U.S. dollar denominated market borrowings without interest rate or currency hedges accounted for 1% of the total borrowings from market sources (1% - June 30, 2025), with outstanding balances amounting to $689 million ($614 million - June 30, 2025). These borrowings were denominated in various currencies, mainly in new Romanian lei, Kenyan shilling, and Chinese renminbi.
IFC maintains short-term discount note programs in U.S. dollars and Chinese renminbi as a tool to provide additional funding and liquidity management. These programs support IFC's trade finance and supply chain initiatives and expand the availability of short-term local currency finance. The discount note programs offer issuances with maturities ranging from overnight to one year.
During FY26 Q1, IFC raised $6.2 billion in borrowings ($7.8 billion - FY25 Q1), including $3.9 billion under the medium and long-term borrowing program ($6.3 billion - FY25 Q1), $345 million ($0 - FY25 Q1) from securitized borrowings issued through special purpose vehicles, and $2.0 billion under the short-term discount note program ($1.5 billion - FY25 Q1).



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Management's Discussion and Analysis
CAPITAL AND RETAINED EARNINGS
As of September 30, 2025 and June 30, 2025, IFC's capital comprised the following:
Table 11: IFC's Capital
(US$ in millions) September 30, 2025 June 30, 2025
Authorized capital $ 25,080 $ 25,080
Subscribed capital 24,511 24,511
Less: unpaid portion of subscriptions (424) (502)
Paid-in capital 24,087 24,009
Accumulated other comprehensive income 1,553 1,617
Retained earnings 16,036 15,302
Total Capital $ 41,676 $ 40,928
Following the Spring Meetings in April 2018, the Board of Governors endorsed a financing package. This package comprised: (i) a three-step capital raising process which involved the conversion of $17.0 billion of retained earnings into paid-in capital, alongside a General Capital Increase and Selective Capital Increase to raise up to $5.5 billion in additional paid-in capital; (ii) the suspension of grants to IDA after the IDA 18 replenishment; and (iii) internal measures for increased efficiency. As of September 30, 2025, the authorized capital stock remained at 25,079,991 shares, each with $1,000 par value (unchanged from June 30, 2025).
The General Capital Increase (GCI) and Selective Capital Increase (SCI) Resolutions were formally adopted on April 16, 2020 with the capital subscription process commencing on April 22, 2020. The SCI subscription and payment period, and the GCI subscription period ended on April 16, 2025. The GCI payment period was extended to April 16, 2026. By the close of the subscription window on April 16, 2025, a total of $4.9 billion (GCI - $4.1 billion and SCI - $761 million net of unpaid shares) was subscribed by 156 member countries. As of September 30, 2025, payments of $4.5 billion (GCI - $3.7 billion and SCI - $761 million) were received from 132 member countries.
As of September 30, 2025 and June 30, 2025, retained earnings comprised the following:
Table 12: IFC's Retained Earnings Composition
(US$ in millions) September 30, 2025 June 30, 2025
General Reserve $ 14,275 $ 12,913
Other Reserves
Creating Markets Advisory Window (CMAW) Reserve 267 101
Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) Reserve 201 140
Small and Medium Enterprise (SME) Ventures Reserve 9 9
Frontier Opportunities Fund (FOF) Reserve 100 100
Total Other Reserves $ 577 $ 350
Cumulative fair value and other adjustmentsa
505 158
Unallocated Net Income 679 1,881
Total Retained Earnings $ 16,036 $ 15,302
_________
a Other adjustments include income associated with PCRF.
Net Income Allocations
Management recommends allocations of net income to the Board at the end of each fiscal year, to support IFC's operations as well as other developmental activities. These recommendations are based on IFC's Allocable Income. Amounts available to support other developmental activities are determined based on a Board approved income-based (sliding scale) formula and on a principles-based Board-approved financial distribution policy, and are approved by the Board. The approach approved by IFC's Board establishes a threshold whereby no allocations for other developmental activities can take place if IFC's CUR is above 88%, and establishes a framework for prioritizing future net income allocations to the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) based on IFC's CUR and a cushion for FMTAAS. IFC also established the Creating Markets Advisory Window (CMAW) in fiscal year 2018 to focus on market creation in IDA-eligible member countries and FCS.
FY25 Net Income Allocations
On September 30, 2025, the Board of Directors approved the allocation of $178 million to the CMAW reserve and $70 million to the FMTAAS reserve, from IFC's FY25 net income. This approval was noted by the Board of Governors on October 17, 2025. Additionally, the Board of Governors approved the allocation of $100 million from IFC's FY25 net income to the Surplus account and delegated to the Board of Directors the authority to approve the transfer of $100 million from the Surplus account to the Frontier Opportunities Fund.



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Management's Discussion and Analysis
SECTION VI: RISK MANAGEMENT
ENTERPRISE RISK MANAGEMENT
IFC's enterprise risk management (ERM) framework is designed to enable the prudent management of potential financial, non-financial and reputational impacts that originate from the Corporation's business activities.
IFC has defined three explicit Risk Management Objective Statements at the corporate level which are derived from IFC's purpose, business scope, strategic objectives, and the risks that it faces.
Key Risk Management Objectives
▪Development Impact - IFC will maximize developmental impact by focusing on the World Bank Group's mission to end extreme poverty and boost shared prosperity on a livable planet, while maintaining financial sustainability and safeguarding its brand.
▪Financial Sustainability - IFC will generate and maintain sufficient financial resources, conduct its business and manage risk consistent with standards implied by a triple-A rating.
▪Safeguarding Reputation - In determining what engagements and activities to pursue, IFC will assess whether any potential adverse impact to its reputation is in balance with the potential development impact.
IFC's Enterprise Risk Management follows the shared-responsibility principle, and IFC's risk governance structure is built on the "three lines model" as defined below:
▪1st Line - All staff engaged in the business origination, revenue generating and client facing areas of IFC and all associated support functions including Investment, Advisory and Treasury staff which are not risk, control or compliance monitoring functions.
▪2nd Line - Staff in risk, controllers, legal, compliance and communication functions independent of the first line provide oversight and challenge over financial and operational risk activities.
▪3rd Line - Internal Audit provides independent oversight.
IFC has established an enterprise level risk taxonomy to categorize and define various types of risks it faces, to aid in systematic risk identification, assessment, and management across the organization. A summary of IFC's risk mitigations for each major category of risk is presented below.
CREDIT RISK
IFC defines credit risk as the risk of loss of principal or loss of an expected financial return due to credit events such as a default or downgrade in credit ratings or any other failure to meet a contractual obligation that results in financial loss. IFC is exposed to credit risk in its Debt portfolio3 and to investment and counterparty credit risk in its liquid asset portfolio.
Investment Operations
Credit risk in investment projects is actively managed throughout the project life cycle. Investment teams are responsible for gathering the necessary information from the client and other relevant stakeholders to verify the financial viability of each project, and for assigning a credit rating at defined stages in the project approval process. The credit rating, investment size, product type and other project-related risks determine the authority level required for the approval of each transaction. Projects are subject to independent credit review either at specific project level or at portfolio level under a small project delegation. A credit officer within the independent Risk and Finance Vice Presidency participates in the specific project level approval process. Projects are approved with reference to a number of operational and prudential limits approved by the Corporate Risk Committee, including limits related to single project or client exposure, single country exposure, and sector concentration.
The credit risk of loans is quantified in terms of the probability of default, loss given default and exposure at risk. These risk parameters are used in the processes such as determining risk-based returns, project-based capital allocation, exposure limits and for establishing the reserve against losses on loans under the Current Expected Credit Losses accounting standard.






3 Debt portfolio herein the section refers to loans and loan-like debt securities.



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Management's Discussion and Analysis
Selected indicators of credit risk exposure in IFC's Debt Portfolio, together with the five-year trend of non-performing loans (NPLs), are provided below:
Table 13: IFC's Debt Portfolio Credit Risk Indicators
(US$ in millions, except for %)
INDICATOR September 30, 2025 June 30, 2025 Variance %
NPLs as % of the debt portfolio 1.5 % 1.5 % - %
Principal amount outstanding on NPLs $ 898 $ 871 $ 27
Total reserve against losses on loans as % of NPLs 165.1 % 161.8 % 3.3 %
Figure 7: NPLs as Percentage of Disbursed Debt Portfolio (US$ in millions, except for %)
Additional details are provided in Section VII: Results of Operations (Provision for Losses on Loans, Off-balance-sheet Credit Exposures and Other Receivables).
Treasury Operations
IFC manages its exposures to investments and counterparties in its Treasury operations to mitigate potential losses from the failure by a counterparty to fulfill its contractual obligations. Counterparty eligibility criteria are set by Authorizations from the Board of Directors and by Directives approved by IFC's Corporate Risk Committee. Eligible investments and counterparties are predominantly sovereign governments, government agencies, structured finance instruments, banks, and financial institutions with high-quality credit ratings issued by leading international credit rating agencies.
Treasury operations counterparties remain well diversified by sector and geography. In accordance with its agreements with counterparties, as of September 30, 2025, IFC held $278 million in cash as collateral for changes in mark-to-market exposures on open trades ($346 million in cash - June 30, 2025). In terms of Treasury's credit profile, IFC invests its U.S. dollar liquid assets in deposits with highly-rated banks and in securities for which the ratings are generally AA- or higher, reflecting the primary objective of principal protection.
MARKET RISK
Market risk is the risk of losses due to movement in market factors such as interest rates, credit spreads, equity, foreign exchange or commodity prices. IFC's exposure to market risk is mitigated by its matched funding policy, whereby it uses derivative instruments to convert loans funded from market borrowings, and the market borrowings themselves, into floating rate U.S. dollar assets and liabilities with similar duration. Similarly, market risk resulting from derivative transactions with clients, to facilitate clients' risk management, is typically mitigated by entering into offsetting positions with highly rated market counterparties. IFC's exposure to unhedged market risk arises primarily from its listed and unlisted equity investments in emerging markets, its quasi-equity loans, and its net worth funded Treasury liquid asset portfolio.



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Management's Discussion and Analysis
Equity Investments
The risk of loss in value of IFC's emerging markets equity investments is mitigated primarily by applying the same limits framework, decision-making process and portfolio management methods as described above for its lending operations. IFC has a multi-year horizon for its equity investments and accepts short-term price volatility of these investments, which can be significant.
During FY26 Q1, equity markets continued their upward trend reaching new highs. The S&P 500, representing US markets, rose 8% to an all-time high, while Europe's largest stocks, as measured by Euro Stoxx 50, rose 4%. Emerging markets also increased, with the Morgan Stanley Capital International (MSCI) Emerging Market total return index up by 11%. The U.S. dollar was stable against a basket of emerging market currencies (JPMorgan EM currency index). IFC remains focused on growing its equity book and rigorous analysis of macroeconomic trends continues to be crucial in guiding business generation as well as informing decision-making throughout the project life cycle.
Liquid Asset Portfolio
Market risk in IFC's liquid asset portfolio is managed according to the risk appetite chosen by IFC Management using derivatives and other financial instruments such as over-the-counter foreign exchange forward agreements, interest rate and currency swaps, and exchange-traded interest rate futures. Overall market risk exposure is also subject to daily monitoring, based on Directives approved by the Corporate Risk Committee, which limit interest rate, credit spread, and foreign exchange risk.
Interest rate volatility remained the largest driver of market risk in IFC's Liquid Asset portfolio due to the unhedged investments in U.S. Treasury securities funded from IFC's net worth. To manage risks associated with interest rate, foreign exchange, and credit spread risks, a system of limits has been employed and closely monitored on a daily basis to ensure ongoing compliance throughout the fiscal year.
LIQUIDITY, FUNDING AND ASSET LIABILITY MANAGEMENT (ALM) RISK
IFC defines liquidity and funding risk as the risk that, over a specific horizon, IFC will be unable to meet the demand for additional funds required to support its operations due to either funding or liquidity issues or both. IFC faces liquidity risk in its core development finance activities because its investments (loans, equity investments and debt securities) are predominantly illiquid in nature due to the lack of capital flows, the infrequency of transactions, and the lack of price transparency in many emerging markets. To offset this risk, IFC maintains appropriate liquid assets funded from its net worth and market borrowings. IFC manages the risk of mismatches in foreign exchange rates, interest rates, and maturity dates between balance sheet assets and liabilities.
Liquid Asset Portfolio
Liquidity risk in the liquid asset portfolio is addressed by liquidity coverage ratios and strict investment eligibility criteria defined in Directives approved by the Corporate Risk Committee. Liquidity coverage ratios include time horizons between 30 days and 3 years, and consider both normal and stressed cash flow requirements. Examples of eligibility criteria include minimum issuance sizes required for bond investments, limits on single bond issue concentration, limitations on concentration of exposure to bank counterparts for deposits and limits on the percentage of total bond issuance held by IFC. Consequently, a significant portion of the liquid asset portfolio is invested in highly liquid securities such as high-quality sovereign, sovereign-guaranteed, and supranational fixed income instruments. IFC expects to continue to be able to realize these assets as needed to meet its cash requirements, even in a liquidity crisis.
Funding
IFC's funding operations ensure that IFC has the funds required for its lending operations, and that it has sufficient liquidity to safeguard its triple-A rating and fulfill its counter-cyclical role. IFC can access a variety of funding markets, including the U.S. dollar market, British pound market and the Australian dollar market as well as private placement and retail markets. IFC's discount note program complements its traditional funding sources by providing swift access to short-term funded liquidity. IFC's triple-A rating is critical to the Corporation's ability to maintain its low cost of funds. Regular issuance in a variety of markets serves to sustain investor confidence and maintain a diversified investor base.
Asset-Liability Management
While IFC's matched-funding policy helps mitigate currency and interest rate risk, IFC is still exposed to residual market risks in the market borrowings-funded portion of the balance sheet. Residual currency risk arises from factors such as changes in the level of reserve for losses on non-U.S. dollar loans. The aggregate position in each lending currency is monitored and the risk is managed within the limits established for each currency and the total exposure for all currencies. Residual interest rate risk may arise from differing interest rate reset dates on assets and liabilities or from assets that may become mismatched with hedges over time due to write-downs, prepayments, or rescheduling. The residual interest rate risk is managed by measuring the sensitivity of the present value of assets and liabilities in each currency to a one basis point change in interest rates and managing exposures to within the established limits for each currency and the total exposure for all currencies.



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Management's Discussion and Analysis
OTHER FINANCIAL RISKS
IFC also faces Capital Risk and Pension risk. Capital risk is the risk to IFC's triple-A rating resulting from a low capital adequacy position, in which available capital falls below the level of capital required to support IFC's activities. Pension Risk is the risk that IFC's defined-benefit pension plan is underfunded, leading to the need for additional financial support by IFC.
OPERATIONAL RISK MANAGEMENT
Consistent with the Basel Framework, IFC defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events, and holds economic capital against such risks. Given IFC's business model, both financial and non-financial potential impacts are considered of operational risk.
IFC's Operational Risk Management (ORM) program conforms to a Directive approved by the Corporate Risk Committee (CRC), which defines the management of, and roles and responsibilities for, operational risk management in the Corporation.
IFC's Operational Risk Management team, acts as the second line for operational risk management, in line with the "Three Lines" industry standard model. As the second line, the ORM develops and implements policies, procedures, guidelines, and tools to identify, assess, mitigate, monitor, and report on operational risks for the Corporation. The team is responsible for reporting to IFC's Corporate Risk Committee, and to the Audit Committee of the Board, on a quarterly basis. The team also provides advice and guidance to business stakeholders on operational risk matters and best practices.
STRATEGIC AND BUSINESS RISK
These are risks that are specific to IFC given its mission and strategy and include Strategic Risk, Environment & Social Risk, Climate Risk, Corporate Governance Risk, Integrity Risk, Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) Risk and External Financing Risk.
Strategic Risk
IFC defines strategic risk as the risk associated with initial strategy selection, execution, or modification over time, resulting in a lack of achievement of overall objectives.
Environment and Social (E&S) Risk
Environment and Social (E&S) risk is the risk that IFC cannot effectively engage with and influence clients to fulfill the requirements of IFC's E&S Performance Standards, within a reasonable period of time, potentially causing significant or material adverse impacts to people or the environment.
In addition to promoting E&S standards and disclosure across emerging markets, IFC builds internal and external capacity to identify, assess and mitigate E&S risks. IFC continuously strengthens its E&S risk management approach by improving its internal E&S systems, procedures and practices, including contextual risk assessment in due diligence and supervision; building capacity through internal and external training and advisory or enhanced client supervision; fostering project-level grievance mechanisms; clarifying the application of IFC's E&S requirements for clients, including cross-cutting topics such as climate change, gender, human rights and water, which are addressed across multiple Performance Standards. At the project level, IFC manages E&S risks in accordance with its Sustainability Policy and E&S Review Procedures. IFC provides capacity building, guidance, and support to its clients in identifying, assessing and mitigating E&S risks through standards, guidelines, guidance notes, good practice notes, tip sheets, handbooks, tools, training and other knowledge products. In April 2025, IFC together with MIGA launched a multi-year process to update and merge their respective E&S and disclosure policies and standards and to align these with IBRD/IDA's existing public-sector E&S requirements. The refreshed WBG private sector requirements and existing WBG public sector requirements will become part of a unified WBG E&S Framework under a joint WBG Vision for Sustainable Development.
Corporate Governance Risk
Corporate governance risk is the risk that IFC's investment clients have inadequate corporate governance which could lead to negative financial impact or reputational harm to IFC.
IFC promotes better standards of corporate governance and disclosures across emerging markets and builds internal and external capacity to identify, assess and mitigate these risks. IFC has integrated its corporate governance offering both in its investment and advisory services, providing internal support for assessing corporate governance risks at the project level; building capacity through internal and external training, practice notes, tip sheets, handbooks, tools, training and other knowledge products; and providing advice to clients and market intermediaries. Cross-cutting themes are integrated into the offering, including governance of E&S, climate governance, women on boards and in business leadership, and sustainability reporting. At the project level, IFC manages corporate governance risks in accordance with its Corporate Governance Directive and Procedures.



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Management's Discussion and Analysis
Climate Risk
Climate Risk, as defined by IFC, encompasses the actual or potential negative effects of climate-related conditions and events on IFC's investments, corporate operations, reputation or consolidated financial statements. There are two primary climate-related risk categories: (1) physical risks and (2) transition risks.
"Physical risks" include both "acute" and "chronic" physical risks to business operations. Acute physical risks are event-driven, stemming from short-term extreme weather events like hurricanes, floods, tornadoes, wildfires, storms, drought or heatwaves. Chronic physical risks emerge from longer-term shifts in climate patterns, such as progressive changes in precipitation and temperature which could lead to rising sea levels, alteration of ecosystems, desertification, water scarcity, soil degradation, and deterioration of marine ecology.
"Transition risks" are attributable to the global shift towards a lower-carbon economy. These risks are multifaceted and arise from changes in law or regulation, public policies, technological breakthroughs, shifts in investor and public sentiment, and disruptive innovations in business models aimed at addressing climate change.
These risks could carry financial and non-financial implications for IFC.
Integrity, Money Laundering and Terrorist Financing, and Tax Risks
These are interrelated risks that IFC's Clients may have ineffective governance structures and/or controls to manage exposure to integrity risk, money laundering and terrorist financing (ML/TF) risk and tax risk. Integrity risks are the risks of engaging with external institutions or persons whose background or activities, may have adverse reputational and, often, financial impact on IFC.
IFC works with a wide range of clients and partners in Investment Operations, Upstream and Advisory Services activities, from multinational to small companies, and from government institutions to non-governmental organizations. Thus, each transaction or service opportunity presents unique integrity risks, affected by different factors, including the type of engagement, financial instrument, structure, geography and duration of the engagement. IFC conducts integrity due diligence on clients and partners to manage these risks and to mitigate them where it reasonably can, both before engagement and on an ongoing basis during the engagement.
ML/TF risk is the risk that IFC's financial intermediary clients may have ineffective controls to manage exposure to money laundering and terrorist financing risk, subjecting IFC to potential integrity, reputational, or financial risk. IFC conducts anti-money laundering (AML) / combating the financing of terrorism (CFT) due diligence on financial institution clients and funds in addition to its integrity due diligence to determine whether:
1.the client's AML/CFT procedures and controls are structured to comply with relevant AML/CFT standards;
2.the AML/CFT procedures and controls are appropriate for the client's business and operating environments;
IFC has been strengthening its AML capacity, through in-house training of its business teams and roll out of technical capacity building programs (e.g., to promote the countering of trade-based money laundering for financial institutions in developing markets).
Tax risk is the risk that IFC's clients or projects may be structured to evade taxes or facilitate abusive tax planning. To address this, a systematic approach to tax due diligence (TDD) is applied through the World Bank Group's Intermediate Jurisdictions policy and IFC's Tax Due Diligence Procedures. TDD seeks to verify: (i) compliance of intermediate jurisdictions with globally accepted tax standards with primary focus on tax transparency; (ii) the rationale for the use of intermediate jurisdictions; (iii) arm's length pricing of cross-border inter-group transactions, along with other key tax risk flags that examine the tax guidance of the underlying project company. These established processes apply to all investment projects and ultimately aim to mitigate the risks of abusive tax structuring by IFC's clients that risk eroding the tax base of project countries. IFC is raising awareness of TDD through targeted trainings for regional and industry teams. In addition, IFC promotes responsible tax practices among its current and prospective clients as well as contributes to global tax policy discussions on topics relevant to its TDD processes.
External Financing Risk
As well as using its own resources to invest in and provide advice to clients, IFC raises additional funds from public and private sector institutional investors, lenders and donors through several different mechanisms. External financing risk is the risk that when entrusted with oversight of such funds, IFC does not meet its contractual obligations to the third parties involved.



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Management's Discussion and Analysis
SECTION VII: RESULTS OF OPERATIONS
OVERVIEW
The overall market environment has a significant influence on IFC's financial performance. The main elements of IFC's net income and other comprehensive income, and influences on the level and variability of net income and other comprehensive income from period to period are shown below:
Table 14: Main Elements of Net Income and Other Comprehensive Income
ELEMENTS
SIGNIFICANT INFLUENCES
Net income:
Yield on interest earning assets (principally loans)
Market conditions including spread levels and degree of competition. Nonaccruals and recoveries of interest on loans formerly in nonaccrual status, and income from participation notes on individual loans are also included in income from loans.
Liquid asset income
Realized and unrealized gains and losses on the liquid asset portfolio, in particular the portion of the liquid asset portfolio funded by net worth, which are driven by external factors such as the interest rate environment and liquidity of certain asset classes within the liquid asset portfolio.
Income from the equity investment portfolio
Global climate for emerging markets equities, fluctuations in currency markets and company-specific performance for equity investments. Overall performance of the equity portfolio.
Provision for losses on loans, guarantees, and available-for-sale debt securities
Risk assessment of borrowers, probability of default, loss given default, and expected balance at default considering prepayment and disbursement assumptions used to estimate expected utilization rates.
Other income and expenses
Level of advisory services provided by IFC to its clients, the level of expenses from the staff retirement and other benefits plans, the approved and actual administrative expenses, and other budget resources.
Gains and losses on loans, debt securities, borrowings and related derivatives
Principally, differences between changes in fair values of borrowings, excluding issuer's credit spread, and associated derivative instruments; and unrealized gains or losses associated with the investment portfolio including puts, warrants, and stock options, which in part are dependent on the global climate for emerging markets. These securities may be valued using internally developed models or methodologies, utilizing inputs that may be observable or non-observable.
Other comprehensive income:
Unrealized gains and losses on debt securities accounted for as available-for-sale
Global climate for emerging markets, fluctuations in currency and commodity markets and company-specific performance, and consideration of the extent to which unrealized losses are considered a credit loss. Debt securities may be valued using internally developed models or methodologies, utilizing inputs that may be observable or non-observable.
Unrealized gains and losses attributable to instrument-specific credit risk on borrowings at fair value under the Fair Value Option
Fluctuations in IFC's own credit spread measured against reference rate, resulting from changes over time in market pricing of credit risk. As credit spreads widen, unrealized gains are recorded, and when credit spreads narrow, unrealized losses are recorded.
Unrecognized net actuarial gains and losses and unrecognized prior service costs on benefit plans
Returns on pension plan assets and the key assumptions underlying projected benefit obligations, including financial market interest rates, staff expenses, past experience, and management's best estimate of future benefit cost changes and economic conditions.



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Management's Discussion and Analysis
IFC's net income for FY26 Q1 and FY25 Q1 is presented below:
Table 15: Summary of Financial Results
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Condensed consolidated statements of operations highlights
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives $ 858 $ 862 $ (4)
Provision for losses on loans, off-balance-sheet credit exposures and other receivables (73) (3) (70)
Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives 388 198 190
Income from debt securities, including realized gains and losses on debt securities and associated derivatives 202 216 (14)
Release of provision for losses on available-for-sale debt securities 3 2 1
Income from liquid asset trading activities 605 832 (227)
Charges on borrowings (953) (961) 8
Other income 133 153 (20)
Administrative and other expenses (474) (421) (53)
Foreign currency transaction (losses) gains on non-trading activities (38) 20 (58)
Income before net unrealized gains and losses on loans, debt securities, borrowings and related derivatives 651 898 (247)
Net unrealized gains (losses) on loans, debt securities, borrowings and related derivatives 83 (16) 99
Net income $ 734 $ 882 $ (148)
The following paragraphs detail significant variances between FY26 Q1 and FY25 Q1 covering the periods included in IFC FY26 Q1 condensed consolidated financial statements. The $148 million decrease in net income was primarily a result of the following:
Figure 8: Change in Net Income FY26 Q1 vs FY25 Q1 (US$ in millions)
_________
* Total income from loans and debt securities and treasury income are net of allocated charges on borrowings
** Unrealized gains (losses)
*** Others mainly represents foreign exchange gains/losses, service fees, and net advisory service expenses



INTERNATIONAL FINANCE CORPORATION
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Management's Discussion and Analysis
A more detailed analysis of the components of IFC's net income is as follows:
Income from Loans and Guarantees, including Realized Gains and Losses on Loans and Associated Derivatives
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives for FY26 Q1 totaled $858 million compared to $862 million in FY25 Q1. The slight decrease was primarily due to lower interest rates, which were largely offset by growth in the loan portfolio.
Non-performing Loans (NPLs)
NPLs increased by $27 million to $898 million4 of the disbursed loan portfolio as of September 30, 2025. The increase was largely due to additions and capitalization of Interest that was mostly offset by positive developments. Of the new NPLs recognized in FY26 Q1, the two largest loans accounted for a total of $123 million.
Figure 9: Non-performing Loans (US$ in millions)
_________
* Mainly represents balance changes due to deferrals, restructuring, disbursements, interest capitalization, conversions and foreign exchange gains/losses.
Provision for Losses on Loans, Available-for-sale Debt Securities, Off-Balance-Sheet Credit Exposures, and Other Receivables
IFC recorded a net provision for losses on loans, available-for-sale debt securities, off-balance-sheet credit exposures and other receivables of $70 million in FY26 Q1 ($1 million - FY25 Q1), analyzed as below:
Table 16: Portfolio and Individual Provision (Release of Provision)
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Portfolio provision (release)
Disbursed loans $ 38 $ 9 $ 29
Undisbursed loans 17 8 9
Off-balance-sheet credit exposures and Other Receivables 18 6 12
Individual provision (release)
Disbursed loans 1 (20) 21
Undisbursed loans - - -
Off-balance-sheet credit exposures and Other Receivables (1) - (1)
Available-for-sale debt securities (3) (2) (1)
Total $ 70 $ 1 $ 69
Total portfolio provision increased in FY26 Q1 mainly due to net new commitments and disbursements. Individual provision releases were mainly due to project-specific improvements.
4 Includes $106 million reported as debt securities and $91 million reported as loans under Fair Value Option on the Balance Sheets as of September 30, 2025 ($142 million Debt securities and $97 million FVO loans - June 30, 2025).



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Management's Discussion and Analysis
Total reserve against losses on loans disbursed and loans committed but not disbursed increased by $74 million to $1.5 billion as of September 30, 2025 analyzed as follows:
Figure 10: Reserve Against Losses for Disbursed and Undisbursed Loans (US$ in millions)
_________
* Mainly represents balance changes due to deferrals, restructuring, disbursements, interest capitalization, conversions and foreign exchange gains/losses. Graph presents the reserve against losses on disbursed and undisbursed debt portfolio only (without Guarantees).
The breakdown of total reserve against losses on loans disbursed and loans committed but not disbursed and the reserve coverage ratio as of September 30, 2025 and June 30, 2025 are presented in the table below:
Table 17: Reserve Against Losses on Loans Disbursed and Loans Committed but not Disbursed and Reserve Coverage Ratio
September 30, 2025 June 30, 2025 Variance
(US$ in millions, unless otherwise noted) Reserve
Reserve coverage ratio a
Reserve
Reserve coverage ratio a
Reserve
Reserve coverage ratio a
Reserve against losses on disbursed loans
Portfolio reserve $ 992 2.3 % $ 953 2.4 % $ 39 (0.1) %
Individual reserve 337 22.4 320 21.8 17 0.6
1,329 3.0 1,273 3.1 56 (0.1)
Reserve against losses on loans committed but not disbursed
Portfolio reserve 152 1.9 134 1.7 18 0.2
Individual reserve 2 5.7 2 5.7 - -
154 2.0 136 1.7 18 0.3
Total reserve
$ 1,483 2.9 % $ 1,409 2.8 % $ 74 0.1 %
_________
a Reserve coverage ratio is calculated as the reserve over related disbursed loans balances or reserve over related loans committed but not disbursed balances.
In FY26 Q1, the top ten largest individual provisions and top ten largest individual releases of provision comprised 97% and 87% of the total individual provisions and total individual releases of provision, respectively, for losses on loans.
Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives
IFC divests equity investments where (i) its developmental role has been fulfilled, (ii) pre-determined sales trigger levels have been met, and (iii) where applicable, lock-ups have expired. Gains and losses on equity investments and associated derivatives include both realized and unrealized gains or losses.



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Management's Discussion and Analysis
Income from equity investments and associated derivatives (consisting of dividends and net capital gains), increased by $190 million, as analyzed below:
Table 18: Income from Equity Investments, Including Realized and Unrealized Gains and Losses on Equity and Associated Derivatives
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Net realized gains (losses) $ 87 $ (61) $ 148
Net unrealized gains 257 216 41
Dividend income, custody, fees and other 44 43 1
Total income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives $ 388 $ 198 $ 190
In FY26 Q1, the top five investments with net capital gains generated gains of $153 million, while the top five investments with net capital losses incurred losses of $75 million. In comparison, in FY25 Q1 the top five investments with net capital gains had gains of $161 million and the top five investments with net capital losses recorded losses of $90 million.
Income from Debt Securities and Realized Gains and Losses on Debt Securities, and Associated Derivatives
Income from debt securities and associated derivatives decreased by $14 million from $216 million in FY25 Q1 to $202 million in FY26 Q1.
Income from Liquid Asset Trading Activities
Income from liquid asset trading activities gross of funding costs and net of funding costs are analyzed in the table below:
Table 19: Income from Liquid Assets Trading Activities
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Liquid asset income, gross of funding costs
Market Funded portfolio $ 349 $ 319 $ 30
Net Worth Funded portfolio 256 513 (257)
Total $ 605 $ 832 $ (227)
Liquid asset income, net of funding costs
Market Funded portfolio $ 38 $ (6) $ 44
Net Worth Funded portfolio 209 495 (286)
Total $ 247 $ 489 $ (242)
The decrease of $242 million (net of funding costs) was mainly attributable to lower mark-to-market gains on the Net Worth Funded portfolio driven by lower decline in U. S. Treasury yields in FY26 Q1 compared with FY25 Q1. Net income was higher on the Market Funded portfolio in FY26 Q1, reflecting favorable credit spreads and cross-currency basis movements in FY26 Q1 compared to FY25 Q1.
Charges on Borrowings
IFC's charges on borrowings of $953 million in FY26 Q1 was relatively flat compared to $961 million in FY25 Q1.



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Management's Discussion and Analysis
Other Income
Other income decreased by $20 million with its components analyzed in the table below:
Table 20 : Other Income
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Upstream and Advisory Services Income $ 48 $ 54 $ (6)
Service Fees 27 29 (2)
Investment gains on PEBP assets 33 28 5
PCRF Income 7 14 (7)
Client Risk Management (CRM) Income 5 5 -
Other Miscellaneous Income 13 23 (10)
Total $ 133 $ 153 $ (20)
Administrative and Other Expenses
Administrative and other expenses increased by $53 million mainly due to the increase in administrative expenses from higher staff costs. The components are analyzed in the table below:
Table 21 : Administrative and Other Expenses
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Administrative expenses $ 415 $ 359 $ 56
Upstream and Advisory services expenses 68 65 3
Income from pension and other postretirement benefit plans (20) (6) (14)
Other Expenses 11 3 8
Total $ 474 $ 421 $ 53
Foreign Currency Transaction Gains and Losses on Non-Trading Activities
Foreign currency transaction gains and losses are recognized in both net income and other comprehensive income. For debt securities classified as available-for-sale, the gains or losses from foreign currency transactions are reported in other comprehensive income, while the impact from the associated derivatives are reported in net income. The net foreign exchange related gains / (losses) are analyzed in the table below:
Table 22 : Foreign Currency Transaction Gains and Losses on Non-Trading Activities
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Reported in Net Income $ (38) $ 20 $ (58)
Reported in Other Comprehensive Income, net of reclassifications to net income upon sale or repayment 18 15 3
Total $ (20) $ 35 $ (55)



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Management's Discussion and Analysis
Net Unrealized Gains and Losses on Loans, Debt Securities, Borrowings and Related Derivatives
IFC accounts for certain financial instruments at fair value with unrealized gains and losses on such financial instruments being reported in net income, namely: (i) market borrowings with associated currency or interest rate swaps; (ii) certain loans, debt securities and associated derivatives; and (iii) borrowings from IDA.
Table 23: Net Unrealized Gains on Loans, Debt Securities, Borrowings and Related Derivatives
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Unrealized gains on the loan and debt securities portfolio carried at fair value $ 26 $ 98 $ (72)
Unrealized gains (losses) on associated derivatives 54 (257) 311
Unrealized gains (losses) on loans, debt securities and associated derivatives 80 (159) 239
Unrealized gains (losses) on borrowings from market and IDA 202 (1,200) 1,402
Unrealized (losses) gains on associated derivatives (199) 1,343 (1,542)
Unrealized gains on borrowings from market, IDA and associated derivatives 3 143 (140)
Unrealized gains (losses) on loans, debt securities, borrowings and related derivatives $ 83 $ (16) $ 99
IFC reported $80 million of unrealized gains on loans, debt securities, net of associated derivatives in FY26 Q1. The variance of unrealized gains (losses) on derivatives was primarily driven by the swap rate movements in the respective periods. Changes in the fair value of derivatives are recognized in the condensed consolidated statements of operations, while certain offsetting changes in the fair value of hedged loans are not, as those loans are measured at amortized cost.
IFC reported $3 million of unrealized gains on borrowings from market sources and IDA, net of associated derivatives in FY26 Q1.
OTHER COMPREHENSIVE INCOME
Unrealized Gains and Losses on Debt Securities and Borrowings
Table 24: Other Comprehensive Income - Unrealized Gains and Losses on Debt Securities and Borrowings
For the three months ended
(US$ in millions)
September 30, 2025 September 30, 2024 Variance
Net unrealized gains and losses on debt securities arising during the period:
Net unrealized gains $ 30 $ 18 $ 12
Reclassification adjustment for credit related portion of impairments which were recognized in net income (3) (2) (1)
Net unrealized gains on debt securities 27 16 11
Unrealized gains and losses on borrowings
Net unrealized (losses) gains attributable to instrument-specific credit risk on borrowings at fair value under the Fair Value Option (79) 86 (165)
Reclassification adjustment for realized gains included in net income upon derecognition of borrowings 3 1 2
Net unrealized (losses) gains on borrowings (76) 87 (163)
Total unrealized (losses) gains on debt securities and borrowings $ (49) $ 103 $ (152)
Net unrealized gains on debt securities included foreign currency gains of $18 million on debt securities accounted for as available-for-sale, primarily representing reversals of unrealized losses upon sales.
Net unrealized losses on borrowings of $76 million was recognized through other comprehensive income in FY26 Q1 (net unrealized gains of $87 million - FY25 Q1), primarily attributable to the narrowing of IFC credit spreads in FY26 Q1 compared to the widening in FY25 Q1.



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Management's Discussion and Analysis
SECTION VIII: GOVERNANCE AND CONTROL
SENIOR MANAGEMENT
The following is a list of the principal officers of IFC as of September 30, 2025:
President
Ajay Banga
Managing Director
Makhtar Diop
Regional Vice President, Africa
Ethiopis Tafara
Regional Vice President, Europe, Latin America and the Caribbean
Alfonso García Mora
Regional Vice President, Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan
Riccardo Pulitia
Regional Vice President, Asia and the Pacific
Allen Nanglefack Agandie Forlemua
Vice President, Strategy and Operations Supportb
Elena Bourganskaia
Vice President, Economics and Private Sector Development
John Gandolfoc
Vice President and General Counsel, Legal, Institutional Risk and Governance
Ramit Nagpal
Vice President, Industries
Mohamed Gouled
Vice President, Risk and Finance
Federico Galizia
Vice President, Treasury & Mobilization
John Gandolfo
_________
a Riccardo Puliti became the Regional Vice President for Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan, effective on September 8, 2025. Sarvesh Suri was announced as IFC Regional Vice President, Asia and the Pacific effective January 5, 2026. Allen Nanglefack Agandie Forlemu was the acting Regional Vice President for Asia and the Pacific in the interim.
b The Corporate Support VPU was changed to Strategy and Operations Support VPU, effective July 1, 2025.
c Susan M. Lund retired from IFC and John Gandolfo assumed the role as the acting Vice President for Economics & Private Sector Development effective July 15, 2025.
As part of ongoing efforts to scale impact, boost efficiency, and deliver greater value to our clients across the World Bank Group (WBG), IFC is implementing organizational changes to integrate certain functions within WBG Vice Presidencies. IFC will continue to operate as a separate legal entity, with its external obligations unchanged.
Effective October 1, 2025, IFC's Controllership function was integrated into the WBG Controllership Vice Presidency, with Zinga Venner appointed as WBG Vice President and Controller.
Effective January 1, 2026, IFC's Treasury function will be integrated into the WBG Treasury Vice Presidency, with Jorge Familiar Calderon appointed as WBG Vice President and Treasurer, to improve internal efficiencies. Notably, IFC's market-facing activities-including market funding and investment approaches-will continue to operate separately from other WBG entities. In conjunction with this integration, John Gandolfo was appointed as IFC Chief Financial Officer and Vice President, Capital Mobilization, effective the same date.
IFC also announced the creation of the Global Products & Clients Vice Presidency, replacing the Industries Vice Presidency effective January 1, 2026.
These changes are designed to strengthen synergies, streamline operations, and support delivery of the WBG's strategic priorities while maintaining IFC's AAA/Aaa credit rating.



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Management's Discussion and Analysis
SECTION IX: APPENDIX
GLOSSARY OF TERMS
Allocable Income: IFC uses Allocable Income (a non-U.S. GAAP measure) as the basis for making net income allocations. IFC defines allocable income as net income after certain adjustments. These adjustments primarily relate to unrealized gains and losses on IFC's loans, debt securities, equity investments and borrowings, as well as income from the Post-retirement Contribution Reserve Fund.
Board: The Board of Directors as established by IFC's Articles of Agreement.
Capital Adequacy: A measure of IFC's ability to withstand unexpected shocks as IFC is required to maintain a minimum level of capital available-calculated as Balance Sheet Capital less Designated Retained Earnings, minus Pension surplus of each pension plan, and minus PCRF assets-equal to total potential losses for all on- and off-balance-sheet exposures estimated at levels consistent with maintaining IFC's AAA rating.
Capital Available: Under IFC's economic capital framework, resources available to absorb potential losses, calculated as: Sum of IFC's Paid in Capital, General reserve, unallocated net income and AOCI, minus Pension surplus of each pension plan and PCRF assets.
Capital Required: Aggregate minimum Economic Capital required to maintain IFC's AAA rating.
Core Mobilization: Non-IFC financing or risk sharing arranged on commercial terms due to the active and direct involvement of IFC for the benefit of a Client. A Client is a legal entity to which IFC provides Advisory Services or Investment Services.
Capital Utilization Ratio (CUR): A ratio to measure IFC's capital adequacy expressed as Capital Required divided by Capital Available.
Credit spread: A credit spread is the difference in yield between two bonds of similar maturity but different credit quality.
Economic Capital (EC): Minimum USD amount of capital required to meet expected and unexpected losses. For Financial Product(s), calculated as Exposure at Risk multiplied by Economic Capital Ratio for relevant product/sub-product.
IDA18: IDA's Eighteenth Replenishment of Resources.
IDA21: IDA's Twenty First Replenishment of Resources.
IDA-eligible countries: Countries eligible to borrow from IDA on concessional terms.
IFC's Equity Mobilization Department: IFC's Equity Mobilization Department (AMC), a division of IFC effective January 31, 2020, invests third-party capital and IFC capital, enabling outside investors to invest alongside IFC in developing markets. Investors in funds managed by AMC have included sovereign wealth funds, national pension funds, multilateral and bilateral development institutions, national development agencies and international financial institutions. These funds collectively are referred to as the AMC Funds.
Private Capital Mobilization (PCM): Amount of private financial resources contributed alongside IFC commitments, whether financing, guarantees or technical assistance, measured as the sum of private direct and private indirect mobilization. Private Direct Mobilization (PDM) is financing from a private entity on commercial terms due to IFC's active and direct involvement. Private Indirect Mobilization (PIM) is financing from private entities provided in connection with a specific activity for which IFC is providing financing but doesn't play a direct role that leads to the commitment of the private entity's finance. PCM is included in WBG's scorecard and IFC estimates both PDM and PIM at the time of commitment based on the project financing plan.
Spring Meetings: The Spring Meetings of the International Monetary Fund and the Boards of Governors of the World Bank Group is a gathering that features the Development Committee and International Monetary and Financial Committee plenary session to discuss work of the institutions.
Upstream: Upstream activities aim to unlock and/or create new, additional investment opportunities for which IFC is both willing and likely to be a financial partner. Upstream activities comprise IFC engagements which aim to (i) Support the creation and realization of specific projects, for which IFC is a likely finance partner (Transaction Upstream); and/or have a wider market or sectoral impact to facilitate private sector investment, for which in turn IFC could be a potential financing partner (Creating Markets Upstream).
U.S. GAAP: Accounting principles generally accepted in the United States of America.
World Bank: The World Bank consists of IBRD and IDA.
World Bank Group (WBG): The World Bank Group consists of IBRD, IDA, IFC, MIGA, and ICSID.



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Management's Discussion and Analysis
ABBREVIATIONS AND ACRONYMS
ABS : Asset-Backed Securities
ALM : Asset Liability Management
AMC : Asset Management Company
AML/CFT : Anti-Money Laundering/ Combating the Financing of Terrorism
CCW : Concessional Capital Window
CMAW : Creating Markets Advisory Window
CRC : Corporate Risk Committee
CRM : Client Risk Management
CUR : Capital Utilization Ratio
E&S : Environmental and Social
ERM : Enterprise Risk Management Framework
EMSP
: Emerging Markets Securitization Program
FCS : Fragile and Conflict-Affected Situations
FMTAAS : Funding Mechanism for Technical Assistance and Advisory Services
FOF : Frontier Opportunities Fund
GCI : General Capital Increase
GP : General Partner
IBRD : International Bank for Reconstruction and Development
ICSID : International Centre for Settlement of Investment Disputes
IDA : International Development Association
IDA-PSW : IDA Private Sector Window
IFC or the Corporation : International Finance Corporation
IFIs :
International Financial Institutions
ISDA : International Swaps and Derivatives Association
LTF : Long-Term Finance
MBS : Mortgage-Backed Securities
MCPP : Managed Co-Lending Portfolio Program
MD&A : Management's Discussion and Analysis
MIGA : Multilateral Investment Guarantee Agency
ML/TF : Money Laundering And Terrorist Financing
NAV : Net Asset Value
NPLs : Non-performing Loans
ORM : Operational Risk Management
PCM :
Private Capital Mobilization
PSW : Private Sector Window
PCRF : Post-retirement Contributions Reserve Fund
SCI : Selective Capital Increase
SME : Small and Medium Enterprise
STF : Short-Term Finance
TDD : Tax Due Diligence


INTERNATIONAL FINANCE CORPORATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 2025

Contents Page
Independent Auditor's Review Report 37
Condensed Consolidated Balance Sheets
38
Condensed Consolidated Statements of Operations
39
Condensed Consolidated Statements of Comprehensive Income
40
Condensed Consolidated Statements of Changes in Capital
41
Condensed Consolidated Statements of Cash Flows
42
Notes to Condensed Consolidated Financial Statements
44




Page 37

INDEPENDENT AUDITOR'S REVIEW REPORT
President and Board of Directors
International Finance Corporation:
Results of Review of Interim Financial Information
We have reviewed the accompanying condensed consolidated balance sheet of the International Finance Corporation ("IFC") as of September 30, 2025, and the related condensed consolidated statements of operations, comprehensive income, changes in capital, and cash flows for the three-month periods ended September 30, 2025 and 2024, and the related notes (collectively referred to as the "interim financial information").
Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in accordance with accounting principles generally accepted in the United States of America.
Basis for Review Results
We conducted our reviews in accordance with auditing standards generally accepted in the United States of America (GAAS) applicable to reviews of interim financial information. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. A review of interim financial information is substantially less in scope than an audit conducted in accordance with GAAS, the objective of which is an expression of an opinion regarding the financial information as a whole, and accordingly, we do not express such an opinion. We are required to be independent of IFC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our review. We believe that the results of the review procedures provide a reasonable basis for our conclusion.
Responsibilities of Management for the Interim Financial Information
Management is responsible for the preparation and fair presentation of the interim financial information in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of interim financial information that is free from material misstatement, whether due to fraud or error.
Report on Condensed Consolidated Balance Sheet as of June 30, 2025
We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheet of IFC as of June 30, 2025, and the related consolidated statements of operations, comprehensive income, changes in capital, and cash flows for the year then ended (not presented herein); and we expressed an unmodified audit opinion on those audited consolidated financial statements in our report dated August 7, 2025. In our opinion, the accompanying condensed consolidated balance sheet of IFC as of June 30, 2025, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.


November 14, 2025

INTERNATIONAL FINANCE CORPORATION
Page 38
CONDENSED CONSOLIDATED BALANCE SHEETS
as of September 30, 2025 (unaudited) and June 30, 2025 (unaudited)
(US$ in millions) September 30, 2025 June 30, 2025
Assets
Cash and due from banks - Note C
$ 842 $ 1,232
Investments - Trading - Notes C and L 44,358 47,974
(includes $7,253 and $6,676 securities pledged to creditors under repurchase and collateral agreements as of September 30, 2025 and June 30, 2025, respectively)
Securities purchased under resale agreements and receivable for cash collateral pledged - Notes C, L and Q 3,936 2,213
Investments - Notes B, D, E, F, G, L and N
Loans - Notes D, E, L and N 44,320 42,229
(includes $1,978 and $1,947 loans held at fair value as of September 30, 2025 and June 30, 2025, respectively; net of reserve against losses of $1,329 and $1,273 at September 30, 2025 and June 30, 2025, respectively)
Equity investments - Notes B, D, G, L and N 12,279 11,777
Debt securities - Notes D, F, L and N 13,640 13,514
(includes available-for-sale securities of $526 and $560, with associated amortized cost of $547 and $609, and reserve against credit losses of $14 and $16 as of September 30, 2025 and June 30, 2025, respectively)
Total investments
70,239 67,520
Derivative assets - Notes B, C, J, L and Q
2,732 3,005
Receivables and other assets - Notes B, C, N and O
10,154 7,796
Total assets
$ 132,261 $ 129,740
Liabilities and capital
Liabilities
Securities sold under repurchase agreements and payable for cash collateral received - Notes C and Q $ 5,515 $ 4,893
Borrowings - Notes B, K and L
Borrowings, at amortized cost 3,272 2,657
Borrowings, at fair value 67,062 68,793
Total borrowings
70,334 71,450
Derivative liabilities - Notes B, C, J, L and Q
6,281 6,620
Payables and other liabilities - Notes B, C, E, N, O and P 8,455 5,849
Total liabilities
90,585 88,812
Capital
Authorized capital, shares of $1,000 par value each
(25,079,991 shares as of September 30, 2025 and June 30, 2025)
Subscribed capital 24,511 24,511
Less: unpaid portion of subscriptions (424) (502)
Paid-in capital 24,087 24,009
Accumulated other comprehensive income - Note H 1,553 1,617
Retained earnings - Note H
16,036 15,302
Total capital
41,676 40,928
Total liabilities and capital
$ 132,261 $ 129,740
INTERNATIONAL FINANCE CORPORATION
Page 39
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended September 30, 2025 (unaudited) and September 30, 2024 (unaudited)
For the three months ended September 30,
(US$ in millions) 2025 2024
Income from investments
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives - Note E $ 858 $ 862
Provision for losses on loans, off-balance-sheet credit exposures and other receivables - Note E (73) (3)
Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives - Note G 388 198
Income from debt securities, including realized gains and losses on debt securities and associated derivatives - Note F 202 216
Release of provision for losses on available-for-sale debt securities - Note F 3 2
Total income from investments 1,378 1,275
Income from liquid asset trading activities - Note C 605 832
Charges on borrowings (953) (961)
Income from investments and liquid asset trading activities, after charges on borrowings 1,030 1,146
Other income
Upstream and Advisory services income - Note O
48 54
Service fees 27 29
Other 58 70
Total other income 133 153
Other expenses
Administrative expenses - Notes B and P (415) (359)
Upstream and Advisory services expenses - Note O
(68) (65)
Other, net - Note P 9 3
Total administrative and other expenses (474) (421)
Foreign currency transaction (losses) gains on non-trading activities (38) 20
Income before net unrealized gains and losses on loans, debt securities, borrowings and related derivatives 651 898
Net unrealized gains (losses) on loans, debt securities, borrowings and related derivatives - Note I 83 (16)
Net income - Note M $ 734 $ 882

INTERNATIONAL FINANCE CORPORATION
Page 40
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
for the three months ended September 30, 2025 (unaudited) and September 30, 2024 (unaudited)
For the three months ended September 30,
(US$ in millions) 2025 2024
Net income - Note M $ 734 $ 882
Other comprehensive income
Unrealized gains and losses on debt securities
Net unrealized gains on available-for-sale debt securities arising during the year 30 18
Reclassification adjustment for impairments related to credit loss included in net income (3) (2)
Net unrealized gains on debt securities 27 16
Unrealized gains and losses on borrowings
Net unrealized (losses) gains arising during the period attributable to instrument-specific credit risk on borrowings at fair value under the fair value option (79) 86
Reclassification adjustment for realized gains included in net income upon derecognition of borrowings 3 1
Net unrealized (losses) gains on borrowings
(76) 87
Net unrecognized actuarial gains and unrecognized prior service cost on benefit plans - Note P (15) (3)
Total other comprehensive (loss) income (64) 100
Total comprehensive income $ 670 $ 982

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CONDENSED CONSOLIDATED STATEMENTS OF
CHANGES IN CAPITAL
for three months ended September 30, 2025 (unaudited) and September 30, 2024 (unaudited)
(US$ in millions) Retained earnings - Note H Accumulated other comprehensive income (loss) - Note H Paid-in capital Total capital
As of June 30, 2024 $ 13,295 $ 957 $ 23,220 $ 37,472
Three months ended September 30, 2024
Net income 882 - - 882
Other comprehensive income - 100 - 100
Payments received for subscribed capital - - 91 91
As of September 30, 2024 $ 14,177 $ 1,057 $ 23,311 $ 38,545
As of June 30, 2025 $ 15,302 $ 1,617 $ 24,009 $ 40,928
Three months ended September 30, 2025
Net income 734 - - 734
Other comprehensive loss - (64) - (64)
Payments received for subscribed capital - - 78 78
As of September 30, 2025 $ 16,036 $ 0 $ 1,553 $ 0 $ 24,087 $ 41,676



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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for three months ended September 30, 2025 (unaudited) and September 30, 2024 (unaudited)
For the three months ended September 30,
(US$ in millions) 2025 2024
Cash flows from investing activities
Loan disbursements $ (4,875) $ (3,611)
Investments in equity securities (517) (309)
Investments in debt securities (1,019) (943)
Loan repayments 2,859 2,356
Debt securities repayments 752 243
Proceeds from sales of loans - 10
Proceeds from sales of equity investments and redemptions 411 221
Proceeds from sales of debt securities 134 -
Loan origination fees received 33 26
Investment in fixed assets, net (21) (30)
Net cash used in investing activities (2,243) (2,037)
Cash flows from financing activities
Long-term debt
Issuance 4,672 7,211
Retirement (6,575) (3,856)
Change in derivatives associated with borrowings, net 113 (33)
Short-term borrowings, net 770 165
Capital subscriptions 78 91
Net cash (used in) provided by financing activities (942) 3,578
Cash flows from operating activities
Net income 734 882
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Realized (gains) losses on loans, debt securities and associated derivatives, net (6) 5
Gains on equity investments and related derivatives, net (344) (155)
Provision 70 1
Depreciation expenses, amortization of net discounts, premiums and loan origination fees 19 21
Foreign currency transaction losses (gains) on non-trading activities 38 (20)
Net unrealized (gains) losses on loans, debt securities, borrowings and related derivatives (83) 16
Net discounts paid and realized gains on retirement of borrowings (23) (26)
Change in accrued income on loans and debt securities (after swaps), net (225) (236)
Change in accrued expenses on borrowings (after swaps), net 119 148
Change in liquid asset trading portfolio 2,749 (2,147)
Change in derivatives associated with loans and client risk management, net (25) 40
Change in payables and other liabilities 2 (15)
Change in receivables and other assets (230) (140)
Net cash provided by (used in) operating activities 2,795 (1,626)
Change in cash and due from banks (390) (85)
Effect of exchange rate changes on cash and due from banks - 16
Net change in cash and due from banks (390) (69)
Beginning cash and due from banks 1,232 781
Ending cash and due from banks $ 842 $ 712
INTERNATIONAL FINANCE CORPORATION
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for three months ended September 30, 2025 (unaudited) and September 30, 2024 (unaudited)

For the three months ended September 30,
(US$ in millions) 2025 2024
Supplemental disclosure
Change in ending balances resulting from currency exchange rate fluctuations:
Loans outstanding $ 131 $ 477
Debt securities (51) 151
Loan and debt security-related currency swaps (95) (593)
Borrowings 29 (1,126)
Borrowing-related currency swaps (26) 1,117
Charges on borrowings paid, net $ 856 $ 840
Non-cash items:
Loan and debt security conversion to equity, net $ 15 $ 30


INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
PURPOSE
The International Finance Corporation (IFC), an international organization, was established in 1956 to further economic development in its member countries by encouraging the growth of private enterprise. IFC is a member of the World Bank Group (WBG), which also comprises the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). Each member is legally and financially independent. Transactions with other World Bank Group members are disclosed in the notes that follow. IFC's activities are closely coordinated with and complement the overall development objectives of the other World Bank Group institutions. IFC, together with private investors, assists in financing the establishment, improvement and expansion of private sector enterprises by making loans, equity investments and investments in debt securities where sufficient private capital is not otherwise available on reasonable terms. IFC's share capital is provided by its member countries. It raises most of the funds for its investment activities through the issuance of notes, bonds and other debt securities in the international capital markets. IFC also plays a catalytic role in mobilizing additional funding from other investors and lenders through parallel loans, loan participations, partial credit guarantees, securitizations, loan sales, risk sharing facilities, fund investments and other IFC crisis initiatives. In addition to project finance and mobilization, IFC offers an array of financial and technical advisory services to private businesses in the developing world to increase their chances of success. It also advises governments on how to create an environment hospitable to the growth of private enterprise and foreign investment.
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These unaudited condensed financial statements and notes should be read in conjunction with the June 30, 2025 audited financial statements and notes included therein. The condensed comparative information that has been derived from the June 30, 2025 audited financial statements, has not been audited. The accounting and reporting policies of IFC conform with accounting principles generally accepted in the United States of America (U.S. GAAP). In the opinion of management, the condensed consolidated financial statements reflect all adjustments necessary for the fair presentation of IFC's financial position and results of operations.
Certain amounts in prior years have been changed to conform to the current year's presentation.
The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expense during the reporting periods. Actual results could differ from these estimates. A significant degree of judgment has been used in the determination of: the estimated fair values of financial instruments accounted for at fair value (including equity investments, debt securities, loans, trading securities, borrowings and derivative instruments); reserve against losses on loans and off-balance-sheet credit exposures; impairment of debt securities; projected pension benefit obligations, fair value of pension and other postretirement benefit plan assets, and net periodic pension income or expense. There are inherent risks and uncertainties related to IFC's operations. The possibility exists that changing economic conditions could have an adverse effect on the financial position of IFC.
IFC uses internal models to determine the fair values of derivative and other financial instruments and the aggregate level of the reserve against credit losses on loans, off-balance-sheet credit exposures, and available-for-sale debt securities. IFC undertakes continuous review and analysis of these models with the objective of refining its estimates, consistent with evolving best practices appropriate to its operations. Changes in estimates resulting from refinements in the assumptions and methodologies incorporated in the models are reflected in net income in the period in which the enhanced models are first applied.
Effective July 1, 2025, IFC updated its policy to treat all time deposits as trading investments instead of classifying qualifying time deposits as cash equivalents. Accordingly, time deposits are now presented together with trading securities under "Investments - Trading" on the condensed consolidated balance sheets. IFC believes this change is preferable as it allows more efficient and systematic management of the liquid assets portfolio and enhances accounting alignment and financial statements comparability across the World Bank Group entities. The change has no impact on the condensed consolidated statements of operations, comprehensive income or changes in capital. All periods presented herein reflect this change.








INTERNATIONAL FINANCE CORPORATION
Page 45
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
To reflect the change in accounting principle, the condensed consolidated balance sheet as of June 30, 2025 and the condensed consolidated statement of cash flows for the three months ended September 30, 2024 were adjusted as follows:
Table A1: Impact to Condensed Consolidated Balance Sheet
June 30, 2025
(US$ in millions) As previously reported Adjustment for change in accounting principle As adjusted
Assets
Time Deposits $ 14,263 $ (14,263) $ -
Trading Securities 33,711 (33,711) -
Investments - Trading - 47,974 47,974
Table A2: Impact to Condensed Consolidated Statement of Cash Flows
For three months ended September 30, 2024
(US$ in millions) As previously reported Adjustment for change in accounting principle As adjusted
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Change in liquid asset trading portfolio $ (2,052) $ (95) $ (2,147)
Net cash (used in) provided by operating activities (1,531) (95) (1,626)
Change in cash and cash equivalents 10 (95) (85)
Effect of exchange rate changes on cash and cash equivalents 318 (302) 16
Net change in cash and cash equivalents 328 (397) (69)
Beginning cash and due from banks 9,782 (9,001) 781
Ending cash and due from banks 10,110 (9,398) 712
Accounting standards under evaluation
In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). ASU refines the scope of ASC 815 Derivatives by adding a scope exception for certain contracts that are not exchange traded and have underlyings based on operations or activities specific to one of the parties to the contract. For IFC, the ASU will be effective beginning July 1, 2027 (fiscal year 2028). Early adoption is permitted. IFC is currently evaluating the impact of the ASU on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU modernizes the accounting for costs related to internal-use software by removing consideration of project development stages and clarifying the threshold for capitalization of software costs. For IFC, the ASU will be effective beginning July 1, 2028 (fiscal year 2029). Early adoption is permitted. IFC is currently evaluating the impact of the ASU on its consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. The ASU requires disaggregated disclosures about specific types of expenses included in the expense captions on the income statement as well as disclosures about selling expenses. For IFC, the ASU will be effective for the annual period ending June 30, 2028 (annual statements of fiscal year 2028) and for interim periods thereafter. IFC is currently evaluating the impact of the ASU on its consolidated financial statements.
In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative. The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. If by June 30, 2027, the SEC has not removed the related SEC requirement, the related ASU amendment will not become effective. The impact of this ASU is not expected to be material for IFC.


INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE B - RELATED PARTY TRANSACTIONS
IFC transacts with related parties including by receiving loans, participating in shared service arrangements, as well as through cost sharing of IBRD's sponsored pension and other post-retirement plans.
IFC's receivables from (payables to) its related parties are presented in the following table:
Table B1: IFC's receivables from (payables to) related parties
September 30, 2025 June 30, 2025
(US$ in millions)
IBRD IDA MIGA Total IBRD IDA MIGA Total
Services and Support (Payables) Receivables $ (2) $ - $ 2 $ - $ 64 $ - $ 1 $ 65
IDA PSW - Local Currency Facility - 63 - 63 - 70 - 70
IDA PSW - Blended Finance Facility - (140) - (140) - (128) - (128)
Borrowings - (88) - (88) - (114) - (114)
Pension and Other Post-retirement Benefits 892 - - 892 859 - - 859
Post-retirement Contribution Reserve Fund (PCRF) 544 - - 544 502 - - 502
$ 1,434 $ (165) $ 2 $ 1,271 $ 1,425 $ (172) $ 1 $ 1,254
Services and Support Payments
IFC obtains certain administrative and overhead services from IBRD in those areas where common services can be efficiently provided by IBRD. This includes shared costs of the Boards of Governors and Directors, corporate and security services, and other services such as IT support services, and human resource shared services. IFC makes payments for these services to IBRD based on negotiated fees and chargebacks, and allocated charges. Expenses allocated to IFC for the three months ended September 30, 2025, were $53 million ($48 million - three months ended September 30, 2024). Other chargebacks include $1 million for the three months ended September 30, 2025 ($1 million - three months ended September 30, 2024). These expenses are included in Administrative expenses on the condensed consolidated statements of operations. The associated net receivables or payables are included in the Receivables and other assets or Payables and other liabilities respectively on the condensed consolidated balance sheets.
Fee Income from MIGA
Transactions with MIGA include marketing fees received for referral and due diligence services on jointly-developed guarantee projects. Fee income received from MIGA for the three months ended September 30, 2025, was $1 million ($1 million - three months ended September 30, 2024) and is included in Other Income on the condensed consolidated statements of operations. The associated receivables are included in Receivables and other assets on the condensed consolidated balance sheets.
IDA Private Sector Window (IDA-PSW)
The IDA-PSW was created under IDA's Eighteenth Replenishment of Resources (IDA18) to mobilize private sector investment in IDA-only member countries and IDA-eligible Fragile and Conflict-affected Situations (FCS). Under IDA21, $3.2 billion has been allocated to the PSW, including $500 million of economic capital that IFC has set aside.
The PSW is deployed through facilities designed to target critical challenges faced by the private sector, leveraging IFC's business platform and instruments. Under the fee arrangement for the IDA-PSW, IDA receives fee income for transactions executed under this window and reimburses IFC for the related costs incurred in administering these transactions. Under the Blended Finance Facility, IDA offers synthetic equity investments, reported in Payables and other liabilities on IFC's condensed consolidated balance sheets, and guarantees to help mitigate risks associated with IFC's Guarantee Programs in IDA-PSW eligible member countries, reported as Other assets on IFC's condensed consolidated balance sheets. As of September 30, 2025 and June 30, 2025, IFC committed $1.3 billion guarantees. Under the Local Currency Facility, IDA offers currency swaps, reported in derivative assets and liabilities, and payables and other liabilities on IFC's condensed consolidated balance sheets, to support IFC's local currency denominated loans.
Borrowings
In September 2014, IFC issued an amortizing, non-interest bearing promissory note, maturing September 15, 2039, to IDA (the Note) in exchange for $1.2 billion with an effective interest rate of 1.84%. IFC has elected the Fair Value Option for the Note, which is included in the Borrowings at fair value on the condensed consolidated balance sheets. IFC recognized interest expense of $1 million for the three months ended September 30, 2025 ($1 million - three months ended September 30, 2024).
IFC has a Local Currency Loan Facility Agreement with IBRD, which is capped at $300 million. As of September 30, 2025 and June 30, 2025, IFC had no borrowings outstanding under this facility.
Pension and Other Post-retirement Benefits
IFC's net share of prepaid costs for pension and other post-retirement benefit plans and PEBP assets is included in Receivables and other assets on the condensed consolidated balance sheets. These will be realized over the lives of the plan participants.
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE B - RELATED PARTY TRANSACTIONS (continued)
Post-Retirement Contribution Reserve Fund (PCRF)
The PCRF was established to stabilize contributions made to the pension plans. IFC's share of investments associated with the PCRF is reported in the Receivables and other assets on the condensed consolidated balance sheets. IFC recognized income of $7 million for the three months ended September 30, 2025 ($14 million - three months ended September 30, 2024). IFC contributed $35 million to the PCRF during the three months ended September 30, 2025 ($30 million - three months ended September 30, 2024).
IFC-managed AMC Funds
IFC Equity Mobilization Department (AMC), invests third-party capital and IFC capital, enabling outside investors to invest alongside IFC in developing markets. As of September 30, 2025, AMC managed multiple funds (collectively referred to as the AMC Funds), in its capacity as General Partner (GP) / Manager of these funds, none of which require consolidation by IFC. A management fee is charged for the management services provided to the AMC funds. IFC's commitment ownership interests in these AMC Funds are shown in the following table:
Table B2: IFC's commitment ownership interests in AMC Funds
AMC Funds IFC's commitment ownership interest %
IFC Capitalization (Equity) Fund, L.P. a
61%
IFC African, Latin American and Caribbean Fund, LP 20%
IFC Catalyst Funds b
18%
IFC Global Infrastructure Fund, LP 17%
IFC Financial Institutions Growth Fund, LP 30%
IFC Global Emerging Markets Fund of Funds c
19%
IFC Middle East and North Africa Fund, LP 37%
IFC Emerging Asia Fund, LP 22%
IFC GEMFOF 2 SMA, LP -%
IFC Emerging Markets Sustainability Fund of Funds, LP -%
TfL IFC Growth and Sustainability, LP -%
_________
a By virtue of certain rights granted to non-IFC limited partner interests, IFC does not control or consolidate this fund.
b The commitment ownership interest of 18% reflects IFC's ownership interest taking into consideration the overall commitments for the IFC Catalyst Funds, which comprises IFC Catalyst Fund, LP, IFC Catalyst Fund (UK), LP and IFC Catalyst Fund (Japan), LP (collectively, IFC Catalyst Funds). IFC does not have a commitment ownership interest in either the IFC Catalyst Fund (UK), LP or the IFC Catalyst Fund (Japan), LP.
c The commitment ownership interest of 19% reflects IFC's ownership interest taking into consideration the current committed amounts for the IFC Global Emerging Markets Fund of Funds, which comprises IFC Global Emerging Markets Fund of Funds, LP and IFC Global Emerging Markets Fund of Funds (Japan Parallel), LP. IFC does not have a commitment ownership interest in the IFC Global Emerging Markets Fund of Funds (Japan Parallel), LP.
As of September 30, 2025, IFC's investments as a limited partner in funds managed by AMC was $452 million ($434 million - June 30, 2025). These investments are included in Equity investments on the condensed consolidated balance sheets. $8 million of management fee income was recognized for the three months ended September 30, 2025 ($7 million - three months ended September 30, 2024) which is included in Other Income on the condensed consolidated statements of operations.
The IFC Emerging Markets Sustainability Fund of Funds, LP (EMSF FoF) participates in IFC's investment in private equity funds, secondaries, and co-investments in emerging markets. As of September 30, 2025, EMSF FoF's participation in IFC's investment was fair valued at $21 million ($15 million - June 30, 2025). The related liability to EMSF FoF for its share of investment was reported in IFC's Payables and other liabilities and the related receivable from EMSF FoF was reported in Receivables and other assets on IFC's condensed consolidated balance sheets.
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE C - LIQUID ASSET PORTFOLIO
Composition of Liquid Asset Portfolio
The composition of IFC's net liquid asset portfolio included in the condensed consolidated balance sheets is as follows:
Table C1: Composition of net liquid asset portfolio
(US$ in millions) September 30, 2025 June 30, 2025
Assets
Cash and due from banks a
$ 20 $ 42
Investments - Trading 44,358 47,974
Securities purchased under resale agreements and receivable for cash collateral pledged 3,936 2,213
Derivative assets 129 89
Receivables and other assets
Receivables from unsettled security trades 2,424 711
Accrued interest income on time deposits and securities 317 301
Accrued income on derivative instruments 215 234
Total assets 51,399 51,564
Liabilities
Securities sold under repurchase agreements and payable for cash collateral received b
5,515 4,893
Derivative liabilities 637 885
Payables and other liabilities
Payables for purchase of securities 3,032 780
Accrued charges on derivative instruments 199 222
Total liabilities 9,383 6,780
Total net liquid asset portfolio $ 42,016 $ 44,784
_________
a Represents cash and due from banks from the liquid asset portfolio and does not include cash and due from banks from other cash accounts of $822 million and $1,190 million as of September 30, 2025 and June 30, 2025 respectively.
b The weighted average interest rate on IFC's securities sold under repurchase agreements was 4.1% and 4.8% as of September 30, 2025 and June 30, 2025, respectively.
The liquid asset portfolio is primarily denominated in U.S. dollars; investments in other currencies, net of the effect of associated derivative instruments that convert non-U.S. dollar securities into U.S. dollar securities, represent 1.3% of the portfolio as of September 30, 2025 (0.9% - June 30, 2025).
Income from liquid asset trading activities
Income from liquid asset trading activities, before allocated borrowing costs, for the three months ended September 30, 2025 and September 30, 2024 comprises:
Table C2: Income from liquid asset trading activities
For the three months ended September 30,
(US$ in millions)
2025 2024
Interest income $ 422 $ 437
Net gains on asset-backed and mortgage-backed securities 8 19
Net gains on other trading securities 175 376
Net gains from trading activities (realized and unrealized) 183 395
Total income from liquid asset trading activities $ 605 $ 832

INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE D - INVESTMENTS
The carrying value of investments as of September 30, 2025 and June 30, 2025 comprises:
Table D1: Carrying value of investments
(US$ in millions) September 30, 2025 June 30, 2025
Loans
Loans at amortized cost $ 43,671 $ 41,555
Less: Reserve against losses on loans (1,329) (1,273)
Loans at amortized cost less reserve against lossesa
42,342 40,282
Loans accounted for at fair value under the Fair Value Optionb
(amortized cost $1,971 as of September 30, 2025, $1,985 as of June 30, 2025) 1,978 1,947
Total loans 44,320 42,229
Equity investments
Equity investments accounted for at fair valuec
(cost $11,635 as of September 30, 2025, $11,419 as of June 30, 2025) 12,279 11,777
Total equity investments 12,279 11,777
Debt securities
Debt securities accounted for at fair value as available-for-sale
(amortized cost $547 as of September 30, 2025, $609 as of June 30, 2025) 526 560
Less: Reserve against losses on available-for sale debt securities
(14) (16)
Debt securities, available-for-sale less reserve against losses 512 544
Debt securities accounted for at fair value under the Fair Value Option
(amortized cost $13,032 as of September 30, 2025, $12,856 as of June 30, 2025) 13,128 12,970
Total debt securities 13,640 13,514
Total carrying value of investments $ 70,239 $ 67,520
_________
a Includes $473 million as of September 30, 2025 of loans at amortized cost, net of reserve for losses, that were transferred to a consolidated securitization VIE.
b Includes $11 million as of September 30, 2025 of loans accounted at Fair Value Option that were transferred to a consolidated securitization VIE.
c Includes $5 million and $5 million, respectively, as of September 30, 2025 and June 30, 2025 of equity investments primarily accounted for under the cost recovery method. As the recovery of invested capital is uncertain, the fair value measurement is not applicable to these investments.
The distribution of the investment portfolio by geographical region and by industry sector and a reconciliation of total disbursed portfolio to carrying value of investments is as follows:
Table D2: Reconciliation of total disbursed portfolio to carrying value
(US$ in millions)
September 30, 2025 June 30, 2025
Sector/Region Loans Equity investments Debt securities Total Loans Equity investments Debt securities Total
Total disbursed investment portfolio $ 45,808 $ 11,657 $ 13,548 $ 71,013 $ 43,694 $ 11,441 $ 13,414 $ 68,549
Reserve against losses on loans and debt securities (1,329) - (14) (1,343) (1,273) - (16) (1,289)
Unamortized deferred loan origination fees, net and other (166) - - (166) (155) - - (155)
Disbursed amounts allocated to equity related options reported separately in derivative assets - (18) - (18) - (18) - (18)
Unrealized (losses) on equity investments held by consolidated VIEs - (4) - (4) - (4) - (4)
Unrealized gains on investments accounted for at fair value as available-for-sale - - 10 10 - - 1 1
Unrealized (losses) gains on investments accounted for under the Fair Value Option 7 644 96 747 (37) 358 115 436
Carrying value of investments $ 44,320 $ 12,279 $ 13,640 $ 70,239 $ 42,229 0 $ 11,777 0 $ 13,514 0 $ 67,520
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees

Loans
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives for the three months ended September 30, 2025 and September 30, 2024 comprise the following:
Table E1: Income from loans and guarantees
For the three months ended September 30,
(US$ in millions)
2025 2024
Interest income $ 786 $ 812
Commitment fees 15 13
Guarantee fees 27 37
Recovery asset income, net 16 -
Other financial fees 12 1
Realized gains (losses) on loans, guarantees and associated derivatives 2 (1)
Income from loans and guarantees, including realized gains (losses) on loans and associated derivatives $ 858 $ 862
Reserve against losses on loans and provision for losses on loans
Changes in the reserve against losses on loans disbursed and loans committed but not disbursed for the three months ended September 30, 2025 and September 30, 2024 as well as the related loans at amortized cost evaluated for impairment individually and on a pool basis (portfolio reserve) respectively are summarized below:
Table E2: Changes in the reserve against losses on loans disbursed and loans committed but not disbursed
Three months ended September 30, 2025
Loans Disbursed Loans Committed but not Disbursed
(US$ in millions)
Individual reserve Portfolio reserve Total reserve Individual reserve Portfolio reserve Total reserve
Beginning balance $ 320 $ 953 $ 1,273 $ 2 $ 134 $ 136
Provision for losses 1 38 39 - 17 17
Recoveries of previously written-off loans 3 - 3 - - -
Foreign currency transaction adjustments 1 1 2 - - -
Other adjustments a
12 - 12 - 1 1
Ending balance $ 337 $ 992 $ 1,329 $ 2 $ 152 $ 154
Total disbursed loans as of September 30, 2025 $ 1,504 $ 42,333 $ 43,837
Loans committed but not disbursed as of September 30, 2025 $ 35 $ 7,798 $ 7,833
Unamortized deferred loan origination fees, net and other (166)
Loans at amortized cost $ 43,671
_________
a Other adjustments include items such as a reserve against interest capitalized
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Table E2.1:
For the three months ended September 30, 2024
Loans Disbursed Loans Committed but not Disbursed
(US$ in millions)
Individual reserve Portfolio reserve Total reserve Individual reserve Portfolio reserve Total reserve
Beginning balance $ 280 $ 801 $ 1,081 $ - $ 188 $ 188
(Release of provision) provision for losses (20) 9 (11) - 8 8
Write-offs (23) - (23) - - -
Foreign currency transaction adjustments 3 9 12 - 2 2
Other adjustments a
16 61 77 - 29 29
Ending balance $ 256 $ 880 $ 1,136 $ - $ 227 $ 227
Total disbursed loans as of September 30, 2024 $ 1,117 $ 36,397 $ 37,514
Loans committed but not disbursed as of September 30, 2024 $ 8 $ 9,505 $ 9,513
Unamortized deferred loan origination fees, net and other (150)
Loans at amortized cost $ 37,364
_________
a Other adjustments include items such as a reserve against interest capitalized and a one-time cumulative adjustment due to separate accounting of freestanding credit enhancements as recovery assets, which includes adjustments to individual and portfolio reserves for loans disbursed amounting to $1 million and $62 million, respectively, and $29 million to portfolio reserve for loans committed but not disbursed.
Reserve for losses and provision for losses on off-balance-sheet guarantees exposures and other receivables
Changes in the reserve against losses (liability) on off-balance-sheet guarantee exposures for the three months ended September 30, 2025 and September 30, 2024 are summarized below:
Table E3: Changes in the reserve against losses on off-balance-sheet guarantee exposures and other receivables
For the three months ended September 30, 2025 For the three months ended September 30, 2024
(US$ in millions)
Outstanding Guarantees a
Issued Guarantees a
Outstanding Guarantees a, b
Issued Guarantees a, b
Beginning balance $ 35 $ 62 $ 19 $ 17
Provision (release of provision) for losses on off-balance-sheet credit exposure 11 5 9 (3)
Guarantee claims paid (1) - - -
Foreign currency transaction adjustments - - 1 -
Other adjustments b
- 1 7 6
Ending balance $ 45 $ 68 $ 36 $ 20
_________
a Guarantees are considered issued when IFC commits to the guarantee obligation. Guarantees are considered outstanding when the underlying financial obligation of the client is incurred.
b Other adjustments for the three months ended September 30, 2024 include a one time cumulative adjustment due to the initial separate accounting of freestanding credit enhancements as recovery assets of $6 million for outstanding guarantees and $5 million for issued guarantees.
Reserve against losses on other receivables was $2 million as on September 30, 2025 and was $1 million as on June 30, 2025. The outstanding balance of other receivables was $18 million at September 30, 2025, compared to $14 million at June 30, 2025.
Accrued Interest
The accrued interest balances were $985 million and $686 million, as of September 30, 2025 and June 30, 2025, respectively, and are reported within receivables and other assets on the condensed consolidated balance sheets. Accrued interest receivable is excluded from the amortized cost basis for disclosure purposes.
Accrued interest is written-off by reversing interest income during the quarter when the financial asset is moved from an accrual to a nonaccrual status. The amount of accrued interest receivables written-off is $6 million and $3 million for the September 30, 2025 and September 30, 2024, respectively.
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Nonaccruing loans
Loans on which the accrual of interest has been discontinued amounted to $792 million as of September 30, 2025 ($729 million as of June 30, 2025). The interest income on such loans for the three months ended September 30, 2025 and September 30, 2024 is summarized as follows:
Table E4: Interest income on Nonaccruing loans
For the three months ended September 30,
(US$ in millions)
2025 2024
Interest income not recognized on nonaccruing loans $ 53 $ 29
Interest income recognized on loans in nonaccrual status related to current and prior years, on cash basis 23 6
There were no loans in nonaccrual status without an individual reserve against losses as of September 30, 2025 and June 30, 2025.
The amortized cost of nonaccruing loans as of September 30, 2025 and June 30, 2025 is summarized by geographic region and industry sector as follows:
Table E5: Nonaccruing loans
September 30, 2025
(US$ in millions)
Manufacturing, agribusiness and services Financial markets Infrastructure and natural resources Disruptive technologies and funds
Total non-accruing loans a
Africa $ 171 $ 1 $ 249 $ 15 $ 436
Asia and the Pacific 51 51 73 1 176
Europe, Latin America and the Caribbean 153 41 45 6 245
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan 12 - 29 - 41
Total non-accruing loans b
$ 387 $ 93 $ 396 $ 22 $ 898
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.
b Includes $106 million reported as debt securities and $91 million reported as loans under Fair Value Option on the Balance Sheets as of September 30, 2025 .
Table E5.1:
June 30, 2025
(US$ in millions)
Manufacturing, agribusiness and services Financial markets Infrastructure and natural resources Disruptive technologies and funds
Total non-accruing loans a
Africa $ 158 $ 1 $ 197 $ 14 $ 370
Asia and the Pacific 51 4 75 1 131
Europe, Latin America and the Caribbean 152 41 44 6 243
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan 90 8 29 - 127
Total non-accruing loans b
$ 451 $ 54 $ 345 $ 21 $ 871
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.
b Includes $142 million reported as debt securities and $97 million reported as loans under Fair Value Option on the Balance Sheets as of June 30, 2025.
INTERNATIONAL FINANCE CORPORATION
Page 53
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Past due loans
IFC considers a loan past due when payments have not been made according to its contractual terms. An aging analysis, based on contractual terms, of IFC's loans at amortized cost by geographic region and industry sector follows:
Table E6: Aging analysis
September 30, 2025
(US$ in millions)
Current 1-30 Days past due 31-60 days past due 61-90 days past due Greater than 90 days past due Total loans
Africa
Manufacturing, agribusiness and services $ 3,309 $ 8 $ - $ 2 $ 83 3,402
Financial markets 3,469 - 4 - - 3,473
Infrastructure and natural resources 2,471 361 - - 89 2,921
Disruptive technologies and funds - - - - 4 4
Total Africa 9,249 369 4 2 176 9,800
Asia and the Pacific
Manufacturing, agribusiness and services 3,633 18 4 26 27 3,708
Financial markets 6,178 48 - - - 6,226
Infrastructure and natural resources 1,336 49 - - 30 1,415
Total Asia and the Pacific 11,147 115 4 26 57 11,349
Europe, Latin America and the Caribbean
Manufacturing, agribusiness and services 5,879 20 - 3 115 6,017
Financial markets 5,429 34 - - 2 5,465
Infrastructure and natural resources 3,365 - - - 18 3,383
Disruptive technologies and funds 17 - - - - 17
Total Europe, Latin America and the Caribbean 14,690 54 - 3 135 14,882
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan
Manufacturing, agribusiness and services 2,394 - - - 12 2,406
Financial markets 1,597 3 - - - 1,600
Infrastructure and natural resources 1,230 - - - 28 1,258
Total Middle East, Central Asia, Türkiye, Afghanistan and Pakistan 5,221 3 - - 40 5,264
Other
Manufacturing, agribusiness and services 545 4 - - - 549
Financial markets 1,445 - - - - 1,445
Infrastructure and natural resources 548 - - - - 548
Total Other 2,538 4 - - - 2,542
Total disbursed loans $ 42,845 $ 545 $ 8 $ 31 $ 408 $ 43,837
Unamortized deferred loan origination fees, net and other (166)
Loans at amortized cost $ 43,671



INTERNATIONAL FINANCE CORPORATION
Page 54
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Table E6.1:
June 30, 2025
(US$ in millions)
Current 1-30 Days past due 31-60 days past due 61-90 days past due Greater than 90 days past due Total loans
Africa
Manufacturing, agribusiness and services $ 3,329 $ 127 $ 1 $ 1 $ 106 3,564
Financial markets 3,254 184 - - - 3,438
Infrastructure and natural resources 2,030 147 75 - 92 2,344
Disruptive technologies and funds - - - - 4 4
Total Africa 8,613 458 76 1 202 9,350
Asia and the Pacific
Manufacturing, agribusiness and services 3,712 23 - - 23 3,758
Financial markets 6,458 15 - - - 6,473
Infrastructure and natural resources 1,456 - 30 - - 1,486
Disruptive technologies and funds 1 - - - - 1
Total Asia and the Pacific 11,627 38 30 - 23 11718
Europe, Latin America and the Caribbean
Manufacturing, agribusiness and services 5,337 25 47 10 129 5,548
Financial markets 4,932 129 - - 2 5,063
Infrastructure and natural resources 2,760 - - - 19 2,779
Disruptive technologies and funds 17 - - - - 17
Total Europe, Latin America and the Caribbean 13,046 154 47 10 150 13,407
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan
Manufacturing, agribusiness and services 1,887 115 - - 12 2,014
Financial markets 1,344 67 - - 2 1,413
Infrastructure and natural resources 1,213 50 - - 30 1,293
Total Middle East, Central Asia, Türkiye, Afghanistan and Pakistan 4,444 232 - - 44 4,720
Other
Manufacturing, agribusiness and services 571 - - - - 571
Financial markets 1,395 - - - - 1,395
Infrastructure and natural resources 549 - - - - 549
Total Other 2,515 - - - - 2,515
Total disbursed loans $ 40,245 $ 882 $ 153 $ 11 $ 419 $ 41,710
Unamortized deferred loan origination fees, net and other (155)
Loans at amortized cost $ 41,555
As of September 30, 2025 and June 30, 2025 there were no loans that are 90 days or more past due and continue to accrue interest.

INTERNATIONAL FINANCE CORPORATION
Page 55
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Loan Credit Quality Indicators
IFC utilizes a rating system to classify loans according to credit worthiness and risk. A description of each credit rating and categorization in terms of the attributes of the borrower, the business environment in which the borrower operates or the loan itself under the rating system follows:
Table E7: Credit Quality Indicators
Credit Risk Rating Indicative External Rating Category Description
CR-1 AAA, AA+, AA, AA- Very Strong An obligor rated CR-1 is the highest rating assigned by IFC. The obligor's ability to meet its financial obligations is very strong.
CR-2 A+, A, A- Strong An obligor rated CR-2 is slightly more susceptible to the negative effects of changes in circumstances and economic conditions than obligors rated CR-1. The obligor's ability to meet its financial obligations remains strong.
CR-3 BBB+ Adequate An obligor rated CR-3 exhibits an adequate financial profile, even though at a weaker level than "CR-1" and "CR-2".
CR-4 BBB An obligor rated CR-4 exhibits an adequate financial profile. However, adverse economic conditions or changing circumstances are more likely to lead to a deterioration of the obligor's ability to meet its financial obligations.
CR-5 BBB- An obligor rated CR-5, as the lowest of the investment grade ratings, exhibits an adequate financial profile. However, adverse economic conditions and/or changing circumstances are more likely to lead to a weaker financial profile and a deterioration of the obligor's ability to meet its financial obligations.
CR-6 BB+ Moderate An obligor rated CR-6, as the first non-investment grade rating, is less vulnerable to default than other non-investment obligors.
CR-7 BB An obligor rated CR-7 can face major uncertainties. Exposure to negative business, financial, or economic conditions could lead to the obligor's insufficient financial profile and a deterioration of the obligor's ability to meet its financial obligations.
CR-8 BB- An obligor rated CR-8 faces major ongoing uncertainties. Exposure to negative business, financial, or economic conditions could lead to the obligor's insufficient financial profile and a deterioration of the obligor's ability to meet its financial obligations.
CR-9 B+ Weak An obligor rated CR-9 is less vulnerable to default than obligors rated 'CR-10' or 'CR-11'. Significantly negative business, financial, or economic conditions will likely weaken the obligor's financial profile and ability to meet its financial obligations.
CR-10 B An obligor rated CR-10 is more vulnerable to default than obligors rated 'CR-9' but the obligor still has the capacity to meet its financial obligations. Negative business, financial, or economic conditions will likely weaken the obligor's financial profile and ability to meet its financial obligations.
CR-11 B- An obligor rated CR-11 is more vulnerable to default than obligors rated 'CR-9' or 'CR-10'. The obligor still has the capacity to meet its obligations but slightly negative business, financial, or economic conditions are more likely to weaken the obligor's financial profile and ability to meet its financial obligations than a company rated CR-10.
CR-12 CCC+ Very Weak/ Special Attention An obligor rated CR-12 faces significant challenges. While such obligors will likely have some positive characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. The obligor is dependent upon favorable business, financial, and economic conditions to meet its financial obligations.
CR-13 CCC Very Weak/Substandard An obligor rated CR-13 is currently vulnerable to default, and is dependent upon significantly favorable business, financial, and economic conditions to meet its financial obligations. In the event of negative business, financial, or economic conditions, the obligor is not likely to meet its financial obligations and rescheduling and/or restructuring is likely to be required.
CR-14 CCC- Extremely Weak/Doubtful An obligor rated CR-14 is highly vulnerable to default. It is highly likely that a rescheduling and/or restructuring are required without which a default under IFC's accounting definition would ensue. In some cases, even though default has not occurred yet, cash flow may be insufficient to service debt in full.
CR-15 Worse than CCC- and D Imminent Default
/Default 		An obligor rated CR-15 is currently extremely vulnerable to nonpayment and there are indications that the next payment will not be made before meeting IFC's accounting definition of default.
D An obligor rated D is in payment default according to IFC's definition of default.
INTERNATIONAL FINANCE CORPORATION
Page 56
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
The following table presents the disbursed loans by credit quality indicator based on risk rating and origination year as of September 30, 2025 and June 30, 2025 and gross write-offs for the three months ended September 30, 2025 and year ended June 30, 2025. The origination year is based on the commitment date that represents the date that the decision was made to extend credit and IFC entered into a legally binding agreement with the borrower. All subsequent loan disbursements, as well as loan modifications, extensions, and renewals for an associated loan commitment are reported based on the original commitment date:
Table E8: Loans disbursed by credit quality indicator based on risk rating and origination year and gross write-offs
(US$ in millions)
September 30, 2025
Loans at Amortized cost basis by Risk class
Originated during the year ended June 30, Very Strong Strong Adequate Moderate Weak Very Weak/
Special Attention 		Very Weak/
Sub-standard 		Extremely Weak/
Doubtful 		Imminent Default/
Default 		Total Contracts
2026 $ - $ - $ 431 $ 569 $ 497 $ 15 $ - $ - $ - $ 1,512
2025 - 492 3,268 4,275 2,272 223 200 - - 10,730
2024 - 535 4,200 4,557 1,775 93 20 21 7 11,208
2023 - 26 2,031 2,775 2,123 125 209 131 8 7,428
2022 - - 989 1,198 767 45 38 126 214 3,377
Prior 83 180 1,646 2,821 1,833 431 260 194 289 7,737
Total 83 1,233 12,565 16,195 9,267 932 727 472 518 41,992
Revolving loans - - - 1,718 72 - - - 4 1,794
Revolving contracts converted to Term contracts - - 18 - - 33 - - - 51
Total disbursed loans $ 83 $ 1,233 $ 12,583 $ 17,913 $ 9,339 $ 965 $ 727 $ 472 $ 522 $ 43,837
Unamortized deferred loan origination fees, net and other (166)
Loans at amortized cost $ 43,671
Table E8.1:
June 30, 2025
(US$ in millions)
Loans at Amortized cost basis by Risk class Gross write-offs
Originated during the year ended June 30, Very Strong Strong Adequate Moderate Weak Very Weak/
Special Attention 		Very Weak/
Sub-standard 		Extremely Weak/
Doubtful 		Imminent Default/
Default 		Total Contracts
2025 $ - $ 391 $ 3,042 $ 3,721 $ 1,866 $ 221 $ 113 $ - $ - $ 9,354 $ -
2024 - 332 4,196 4,481 1,740 118 17 23 3 10,910 -
2023 - 26 2,040 2,773 2,207 126 207 128 9 7,516 -
2022 - 220 1,048 1,357 785 39 16 194 142 3,801 -
2021 - - 741 1,467 513 74 9 2 8 2,814 -
Prior 85 147 1,108 1,677 1,179 503 236 233 334 5,502 35
Total 85 1,116 12,175 15,476 8,290 1,081 598 580 496 39,897 35
Revolving Loans - - - 1,686 72 - - - 4 1,762 5
Revolving contracts converted to Term contracts - - 17 - 34 - - - - 51 -
Total disbursed loans $ 85 $ 1,116 $ 12,192 $ 17,162 $ 8,396 $ 1,081 $ 598 $ 580 $ 500 $ 41,710 $ 40
Unamortized deferred loan origination fees, net and other (155)
Loans at amortized cost $ 41,555


INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Following is a summary of IFC's loans at amortized cost by credit quality indicator, geographic region, and industry sector, as of September 30, 2025 and June 30, 2025:
Table E9: Loans at amortized cost by credit quality indicator by geographic region
September 30, 2025
(US$ in millions)
Very Strong Strong Adequate Moderate Weak Very Weak/
Special Attention 		Very Weak/
Sub-standard 		Extremely Weak/
Doubtful 		Imminent Default/
Default 		Total
Geographic Region
Africa $ - $ 161 $ 1,169 $ 3,596 $ 3,529 $ 609 $ 276 $ 191 $ 269 $ 9,800
Asia and the Pacific - 459 4,688 3,907 2,178 57 2 - 58 11,349
Europe, Latin America and the Caribbean - 459 5,016 6,558 1,863 237 406 189 154 14,882
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan - 17 570 2,676 1,763 62 43 92 41 5,264
Other 83 137 1,140 1,176 6 - - - - 2,542
Total disbursed loans $ 83 $ 1,233 $ 12,583 $ 17,913 $ 9,339 $ 965 $ 727 $ 472 $ 522 $ 43,837
Unamortized deferred loan origination fees, net and other (166)
Loans at amortized cost $ 43,671
Table E9.1 :
June 30, 2025
(US$ in millions) Very Strong Strong Adequate Moderate Weak Very Weak/
Special Attention 		Very Weak/
Sub-standard 		Extremely Weak/
Doubtful 		Imminent Default/
Default 		Total
Geographic Region
Africa $ - $ 162 $ 898 $ 3,542 $ 3,428 $ 675 $ 185 $ 279 $ 181 $ 9,350
Asia and the Pacific - 676 4,851 3,991 2,127 9 4 6 54 11,718
Europe, Latin America and the Caribbean - 156 4,956 6,024 1,383 175 367 202 144 13,407
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan - 18 331 2,436 1,457 222 42 93 121 4,720
Other 85 104 1,156 1,169 1 - - - - 2,515
Total disbursed loans $ 85 $ 1,116 $ 12,192 $ 17,162 $ 8,396 $ 1,081 $ 598 $ 580 $ 500 $ 41,710
Unamortized deferred loan origination fees, net and other (155)
Loans at amortized cost $ 41,555



INTERNATIONAL FINANCE CORPORATION
Page 58
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Table E10: Loans at amortized cost by credit quality indicator by Industry sector
September 30, 2025
(US$ in millions)
Very Strong Strong Adequate Moderate Weak Very Weak/
Special Attention 		Very Weak/
Substandard 		Extremely Weak/
Doubtful 		Imminent Default/
Default 		Total
Industry Sector
Manufacturing, agribusiness and services $ 83 $ 657 $ 5,036 $ 6,379 $ 2,819 $ 280 $ 417 $ 171 $ 240 $ 16,082
Financial markets - 533 4,953 8,193 4,293 179 24 28 6 18,209
Infrastructure and natural resources - 43 2,594 3,341 2,227 506 269 273 272 9,525
Disruptive technologies and funds - - - - - - 17 - 4 21
Total disbursed loans $ 83 $ 1,233 $ 12,583 $ 17,913 $ 9,339 $ 965 $ 727 $ 472 $ 522 $ 43,837
Unamortized deferred loan origination fees, net and other (166)
Loans at amortized cost $ 43,671
Table E10.1:
June 30, 2025
(US$ in millions)
Very Strong Strong Adequate Moderate Weak Very Weak/
Special Attention 		Very Weak/
Substandard 		Extremely Weak/
Doubtful 		Imminent Default/
Default 		Total
Industry Sector
Manufacturing, agribusiness and services $ 85 $ 622 $ 4,691 $ 6,427 $ 2,472 $ 315 $ 352 $ 186 $ 305 $ 15,455
Financial markets - 451 5,245 7,875 4,027 130 23 24 7 17,782
Infrastructure and natural resources - 43 2,256 2,860 1,896 636 206 370 184 8,451
Disruptive technologies and funds - - - - 1 - 17 - 4 22
Total disbursed loans $ 85 $ 1,116 $ 12,192 $ 17,162 $ 8,396 $ 1,081 $ 598 $ 580 $ 500 $ 41,710
Unamortized deferred loan origination fees, net and other (155)
Loans at amortized cost $ 41,555
Modifications to Borrowers Experiencing Financial Difficulties
Loans are modified through changes in interest rates, repayment schedules, and maturity dates, in addition to reductions of loan principal and waiver of accrued interest.
Disclosures relating to modifications to borrowers experiencing financial difficulties do not include loan modifications and the effects related to suspension and standstill agreements where principal and interest payments are temporarily suspended. There were no such modifications as of September 30, 2025 and amortized cost of these loans amounted to $7 million as of September 30, 2024.



INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
For loans at amortized cost, the following tables present information related to modifications for borrowers experiencing financial difficulties, per major modification types (including interest rate reduction, other-than-insignificant payment delay, principal forgiveness, and term extension or a combination of these modifications), by geographic region and industry sector during the three months ended ended September 30, 2025 and September 30, 2024.
Table E11: Modifications to borrowers experiencing financial difficulties
For the three months ended September 30, 2025
(US$ in millions)
Interest Rate Reduction, Term Extension and Payment Delay Principal Forgiveness Term Extension and Payment Delay
Total Loan Modifications a
%
of total loans 		Total loans by region and industry
Africa
Manufacturing, agribusiness and services $ - $ - $ 83 $ 83 2.4 % $ 3,402
Infrastructure and natural resources 91 - - 91 3.1 2,921
Total Africa 91 - 83 174 1.8 9,800
Asia and the Pacific
Manufacturing, agribusiness and services - 2 - 2 0.1 3,708
Total Asia and the Pacific - 2 - 2 0.1 11,349
Total $ 91 $ 2 $ 83 $ 176 0.4 % $ 43,837
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.

Table E11.1:
For the three months ended September 30, 2024
(US$ in millions)
Interest Rate Reduction, Term Extension and Payment Delay Principal Forgiveness
Total Loan Modifications a
%
of total loans 		Total loans by region and industry
Asia and the Pacific
Manufacturing, agribusiness and services $ - $ 4 $ 4 0.1 % $ 3,211
Total Asia and the Pacific - 4 4 - 10,517
Europe, Latin America and the Caribbean
Manufacturing, agribusiness and services 9 - 9 0.2 5,227
Total Europe, Latin America and the Caribbean 9 - 9 0.1 12,288
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan
Financial markets - 9 9 0.7 1,273
Total Middle East, Central Asia, Türkiye, Afghanistan and Pakistan - 9 9 0.2 4,433
Total $ 9 $ 13 $ 22 0.1 % $ 37,514
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.




INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
The following tables summarize the financial effect of loan modifications for borrowers experiencing financial difficulty by geographic region and industry sector for the three months ended September 30, 2025 and September 30, 2024.
Table E12: Financial effect of loan modifications for borrowers experiencing financial difficulties
For the three months ended September 30, 2025
Interest Rate Reduction Term Extension Principal Forgiveness Other than Insignificant Payment Delay
(US$ in millions)
Weighted Average Interest Rate Reduction % Weighted Average Months Extended Sum of Principal Forgiven Amount Delayed Weighted Average Months Delayed
Africa
Manufacturing, agribusiness and services - % 34 $ - $ 39 12
Infrastructure and natural resources 1.2 67 - 44 62
Asia and the Pacific
Manufacturing, agribusiness and services - - 17 - -
Middle East, Central Asia, Türkiye Afghanistan and Pakistan
Financial markets - - 10 - -
Table E12.1:
For the three months ended September 30, 2024
Interest Rate Reduction Term Extension Principal Forgiveness Other than Insignificant Payment Delay
(US$ in millions)
Weighted Average Interest Rate Reduction % Weighted Average Month Extended Sum of Principal Forgiven Amount Delayed Weighted Average Months Delayed
Asia and the Pacific
Manufacturing, agribusiness and services - % - $ 2 $ - $ -
Europe, Latin America and the Caribbean
Manufacturing, agribusiness and services 4.0 62 - 9 66
Middle East, Central Asia, Türkiye Afghanistan and Pakistan
Financial markets - - 39 - -
For loans at amortized cost, the following tables present an aging analysis of loan modifications made to borrowers experiencing financial difficulties during the twelve months preceding September 30, 2025 and September 30, 2024 presented by geographic region and industry sector.

INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Table E13: Aging analysis of loan modifications to borrowers experiencing financial difficulty
September 30, 2025
(US$ in millions)
Current
Total a
Africa
Manufacturing, agribusiness and services $ 111 $ 111
Infrastructure and natural resources 99 $ 99
Total Africa 210 210
Asia and the Pacific
Manufacturing, agribusiness and services 2 2
Total Asia and the Pacific 2 2
Europe, Latin America and the Caribbean
Manufacturing, agribusiness and services 28 $ 28
Infrastructure and natural resources 75 $ 75
Total Europe, Latin America and the Caribbean 103 103
Total $ 315 $ 315
Table E13.1:
September 30, 2024
(US$ in millions)
Current Up to 30 days past due Greater than 90 days past due
Total a
Africa
Manufacturing, agribusiness and services $ 6 $ 1 $ 6 $ 13
Infrastructure and natural resources 31 - - 31
Total Africa 37 1 6 44
Asia and the Pacific
Manufacturing, agribusiness and services 4 - 11 $ 15
Infrastructure and natural resources 6 - - 6
Total Asia and the Pacific 10 - 11 21
Europe, Latin America and the Caribbean
Manufacturing, agribusiness and services 82 - 15 $ 97
Financial markets - - 3 3
Infrastructure and natural resources 99 - - 99
Total Europe, Latin America and the Caribbean 181 - 18 199
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan
Financial markets 9 - - 9
Infrastructure and natural resources 61 - 25 86
Total Middle East, Central Asia, Türkiye, Afghanistan and Pakistan 70 - 25 95
Total $ 298 $ 1 $ 60 $ 359
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.
The following tables present loans that had a payment default during the three months ended September 30, 2024 after they had been modified, to borrowers experiencing financial difficulty within the twelve months preceding the payment default date. There were no such loans during the three months ended September 30, 2025. Payment default is defined as loans that are 60 or more days past due as of the respective balance sheet date.
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Table E14: Loan modifications to borrowers experiencing financial difficulty that had payment default
For the three months ended September 30, 2024
(US$ in millions)
Payment Delay Term Extension and Payment Delay
Total Loan Modifications a
Africa
Manufacturing, agribusiness and services $ - $ 3 $ 3
Total Africa - 3 3
Asia and the Pacific
Manufacturing, agribusiness and services 11 - 11
Total Asia and the Pacific 11 - 11
Europe, Latin America and the Caribbean
Financial markets - 4 4
Total Europe, Latin America and the Caribbean - 4 4
Total $ 11 $ 7 $ 18
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.
Collateral-Dependent Loans
A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following tables summarize the amortized cost of collateral dependent loans a by collateral type, geographic region and industry sector as of September 30, 2025 and June 30, 2025:
Table E15: Collateral dependent loansa by Geographic region
September 30, 2025 June 30, 2025
(US$ in millions)
Property, Land and Equipment Others Total Property, Land and Equipment Others Total
Geographic Region
Africa $ 3 $ - $ 3 $ 5 $ - $ 5
Middle East, Central Asia, Türkiye, Afghanistan and Pakistan 10 15 25 10 15 25
Europe, Latin America and the Caribbean 17 - 17 16 - 16
Total $ 30 $ 15 $ 45 $ 31 $ 15 $ 46
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.
Table E16: Collateral dependent loansa by Industry region
September 30, 2025 June 30, 2025
(US$ in millions)
Property, Land and Equipment Others Total Property, Land and Equipment Others Total
Industry Sector
Manufacturing, agribusiness and services $ 20 $ - $ 20 $ 21 $ - $ 21
Infrastructure and natural resources 10 15 25 10 15 25
Total $ 30 $ 15 $ 45 $ 31 $ 15 $ 46
_________
a Includes all components of amortized cost except unamortized fees which are considered insignificant.
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note E - Loans and Guarantees (Continued)
Guarantees
IFC extends financial guarantee facilities to its clients to provide full or partial credit enhancement for their debt securities and trade obligations. Under the terms of IFC's guarantees, IFC agrees to assume responsibility for the client's financial obligations in the event of default by the client, where default is defined as failure to pay when payment is due. Guarantees entered into by IFC generally have maturities consistent with those of the loan portfolio. Guarantees signed as of September 30, 2025 totaled $9.8 billion ($8.7 billion - June 30, 2025). Guarantees of $7.7 billion were outstanding (i.e., not called) as of September 30, 2025 ($6.6 billion - June 30, 2025). These amounts represent the maximum amount of undiscounted future payments that IFC could be required to make under these guarantees and are not included in IFC's condensed consolidated balance sheets.
NOTE F - DEBT SECURITIES
Income from debt securities, including net realized gains (losses) on debt securities and associated derivatives for the three months ended September 30, 2025 and September 30, 2024 comprises the following:
Table F1: Income from Debt Securities
For the three months ended September 30,
(US$ in millions)
2025 2024
Interest income $ 198 $ 216
Net realized gains on debt securities and associated derivatives a
4 -
Total income from debt securities, including realized gains on debt securities and associated derivatives $ 202 $ 216
_________
a Includes realized gains/(losses) on debt securities under the Fair Value Option ($3 million gains and $5 million losses for the three months ended September 30, 2025 and September 30, 2024 respectively).
Debt securities accounted for as available-for-sale as of September 30, 2025 and June 30, 2025 comprise:
Table F2: Debt securities - available-for-sale

September 30, 2025
(US$ in millions)
Amortized cost
Unrealized gains a
Unrealized
losses a
Reserve for credit losses Fair value
Corporate debt securities $ 488 $ 25 $ (43) $ (2) $ 468
Preferred shares 28 - (4) (12) 12
Asset-backed securities 31 1 - - 32
Total $ 547 $ 26 $ (47) $ (14) $ 512
_________
a Includes net foreign exchange losses of $31 million as of September 30, 2025..
Table F2.1:
June 30, 2025
(US$ in millions)
Amortized cost
Unrealized gains a
Unrealized
losses a
Reserve for credit losses Fair value
Corporate debt securities $ 545 $ 13 $ (60) $ (5) $ 493
Preferred shares 28 - (3) (11) 14
Asset-backed securities 36 1 - - 37
Total $ 609 $ 14 $ (63) $ (16) $ 544
_________
a Includes net foreign exchange losses of $49 million as of June 30, 2025.
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(UNAUDITED)
NOTE F - DEBT SECURITIES (continued)
The table below presents the amortized cost, unrealized losses, and fair value of available-for-sale debt securities that are in an unrealized loss position without credit losses aggregated by major security type as of September 30, 2025 and June 30, 2025. The reserve for credit losses is not included herein and is presented separately in the reserve for credit losses on debt securities roll-forward table.
Table F3: Available-for-sale debt securities - in an unrealized loss position without credit losses
September 30, 2025 June 30, 2025
(US$ in millions)
Amortized Costs
Unrealized Losses a
Fair value Amortized Costs
Unrealized Losses a
Fair value
Corporate debt securities $ 154 $ (38) $ 116 $ 203 $ (55) $ 148
Preferred shares 10 (4) 6 9 (3) 6
Asset-backed securities 1 - 1 1 - 1
Total $ 165 $ (42) $ 123 $ 213 $ (58) $ 155
___________
a Includes net foreign exchange losses of $45 million as of September 30, 2025 and $62 million as of June 30, 2025.
The following table shows the unrealized losses and fair value of available-for-sale debt securities as of September 30, 2025 and June 30, 2025 by length of time that individual securities had been in a continuous loss position where the fair value of securities declined below their cost basis:
Table F4: Unrealized losses and fair value of available-for-sale debt securities - by length of time
September 30, 2025
Less than 12 months 12 months or greater Total
(US$ in millions) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses
Corporate debt securities $ - $ - $ 116 $ (38) $ 116 $ (38)
Preferred shares - - 6 (4) 6 (4)
Asset-backed securities - - 1 - 1 -
Total $ - $ - $ 123 $ (42) $ 123 $ (42)
Table F4.1:
June 30, 2025
Less than 12 months 12 months or greater Total
(US$ in millions) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses
Corporate debt securities $ - $ - $ 148 $ (55) $ 148 $ (55)
Preferred shares - - 6 (3) 6 (3)
Asset-backed securities - - 1 - 1 -
Total $ - $ - $ 155 $ (58) $ 155 $ (58)
Corporate debt securities comprise investments in bonds and notes. Fair value associated with corporate debt securities is primarily attributable to movements in the credit default swap spread curve applicable to the issuer, and also impacted by movements in the risk-free rates and foreign exchange rates. Based upon IFC's assessment of expected credit losses, a reserve for credit losses is made for securities where the issuer is not expected to make all contractual principal and interest payments.
Preferred shares comprise investments in preferred equity investments that are redeemable at the option of IFC or mandatorily redeemable by the issuer. Unrealized losses associated with preferred shares are primarily driven by changes in discount rates associated with changes in credit spreads or interest rates, minor changes in exchange rates and comparable market valuations in the applicable sector. Based upon IFC's assessment of expected credit losses, a reserve for credit losses is made for securities where IFC does not expect to recover the cost basis of these securities.
Asset-backed securities comprise investments in bonds and notes that are collateralized by self-liquidating financial assets that allow IFC to receive payments that depend primarily on cash flow from those assets.
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(UNAUDITED)
NOTE F - DEBT SECURITIES (continued)
The tables below present a roll-forward by major security type for the three months ended September 30, 2025 and September 30, 2024 of the reserve for credit losses on debt securities accounted for as available-for-sale held at the period end:
Table F5: Roll-forward of the reserve for credit losses - by security type
For the three months ended September 30,
2025 2024
(US$ in millions)
Corporate Debt Securities Preferred shares Total Corporate Debt Securities Preferred shares Total
Beginning balance $ 5 $ 11 $ 16 $ 24 $ 10 $ 34
(Release of provision) Provision for losses (4) 1 (3) (2) - (2)
Recoveries of previously written-off debt securities 1 - 1 - - -
Ending balance $ 2 $ 12 $ - $ 14 $ - $ 22 $ - $ 10 $ - $ 32
Nonaccruing debt securities
The disbursed and outstanding balances of debt securities on which the accrual of interest has been discontinued amounted to $106 million at September 30, 2025 ($142 million - June 30, 2025).
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE G - EQUITY INVESTMENTS AND ASSOCIATED DERIVATIVES
Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives for the three months ended September 30, 2025 and September 30, 2024 comprises the following:
Table G1: Income from equity investments and associated derivatives
For the three months ended September 30,
(US$ in millions)
2025 2024
Unrealized gains on equity investments and associated derivatives a
$ 257 $ 216
Realized gains (losses) on equity investments and associated derivatives, net 87 (61)
Gains on equity investments and associated derivatives, net 344 155
Dividends 40 40
Custody, fees and other 4 3
Total income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives $ 388 $ 198
_________
a Includes unrealized gains related to equity securities still held as of September 30, 2025 - net gains of $374 million for the three months ended September 30, 2025 (net gains of $211 million - the three months ended September 30, 2024)
The fair value of equity investments as of September 30, 2025 and June 30, 2025 comprises:
Table G2: Fair value of equity investments
(US$ in millions)
September 30, 2025 June 30, 2025
Investments in common or preferred shares $ 5,851 $ 5,641
Equity interests in private equity funds 6,434 6,140
Equity-related options and other financial instruments (6) (4)
Total $ 12,279 $ 11,777
Equity investments include several private equity funds that invest primarily in emerging markets across a range of sectors and that are accounted for at fair value under the Fair Value Option. The fair values of these funds have been determined using the net asset value of IFC's ownership interest in partners' capital as a practical expedient as presented in the table above. These investments cannot be redeemed. Distributions will be received from these funds as the underlying assets are liquidated or distributed, the timing of which is uncertain. As of September 30, 2025, the maximum unfunded commitments subject to capital calls for these funds were $2.3 billion ($2.4 billion - June 30, 2025). As of September 30, 2025, IFC's investments as a limited partner in funds managed by AMC was $452 million ($434 million - June 30, 2025). Amounts previously distributed by AMC may be callable through the life of the respective fund. The sale of IFC's limited partner interests in these funds needs prior consent from the other limited partners.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE H - RETAINED EARNINGS, NET INCOME ALLOCATIONS, AND ACCUMULATED OTHER COMPREHENSIVE INCOME
Retained Earnings consist of Allocated Amounts and Unallocated Net Income (Loss).
Allocated Amounts:
Management recommends allocations of net income to the Board at the end of each fiscal year, to support IFC's operations as well as other developmental activities. These recommendations are based on IFC's Allocable income. Amounts available to support other developmental activities are determined based on a Board-approved income-based (sliding scale) formula and on a principles-based Board approved financial distribution policy and are approved by the Board.
IFC allocates its net income to support the following programs:
Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) supports the delivery of Upstream and Advisory related activities, primarily in non-IDA/Fragile and FCS member countries.
Creating Markets Advisory Window (CMAW) supports the delivery of Upstream and Advisory related activities in IDA-eligible member countries and FCS with the aim of addressing the complex challenge of building a pipeline of bankable private sector projects in these markets.
Small and Medium Enterprise (SME) Ventures covers program, administrative, legal, and consulting expenses in connection with IFC's private equity program for financing of SMEs.
Frontier Opportunities Fund (FOF): This is a fund of concessional finance to spur equity investment mostly targeted to middle-income member countries.
On September 30, 2025, the Board of Directors approved the allocation of $178 million to the CMAW reserve and $70 million to the FMTAAS reserve, from IFC's FY25 net income.This approval was noted by the Board of Governors on October 17, 2025. On the same day, the Board of Governors also approved the allocation of $100 million from IFC's FY25 net income to the Surplus account and delegated to the Board of Directors the authority to approve the transfer of $100 million from the Surplus account to the Frontier Opportunities Fund. The components of retained earnings and related expenditures are summarized below:
Table H1: Components of retained earnings and related expenditures
(US$ in millions)
FMTAAS Reserve CMAW Reserve SME Ventures Reserve Surplus Frontier Opportunities Fund Reserve
Cumulative Fair value and other adjustmentsa
General Reserve
Unallocated Net Income Total Retained Earnings
As of June 30, 2024 $ 58 $ 93 $ 11 $ - $ - $ (139) $ 11,595 $ 1,677 $ 13,295
Three months ended September 30, 2024
Net income - - - - - - - 882 882
Net income allocations - - - - - - - - -
Expenditures against reserves (7) (8) - - - - - 15 -
Fair value and other adjustments - - - - - 214 - (214) -
As of September 30, 2024 $ 51 $ 85 $ 11 $ - $ - $ 75 $ 11,595 $ 2,360 $ 14,177
As of June 30, 2025 $ 140 $ 101 $ 9 $ - $ 100 $ 158 $ 12,913 $ 1,881 $ 15,302
Three months ended September 30, 2025
Net income - - - - - - - 734 734
Net income allocations b
70 178 - - - - 1,362 (1,610) -
Expenditures against reserves (9) (12) - - - - - 21 -
Fair value and other adjustments - - - - - 347 - (347) -
As of September 30, 2025 $ 201 $ 267 $ 9 $ - $ 100 $ 505 $ 14,275 $ 679 $ 16,036
_________
a Other adjustments include income associated with PCRF.
b Not including the transfer of $100 million from IFC's FY25 net income to Surplus approved by the Board of Governors in October 2025.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE H - RETAINED EARNINGS, NET INCOME ALLOCATIONS, AND ACCUMULATED OTHER COMPREHENSIVE INCOME (continued)

Accumulated other comprehensive income
The components of accumulated other comprehensive income as of September 30, 2025 and September 30, 2024 are summarized as follows:
Table H2 : Components of AOCI
(US$ in millions)
Net unrealized losses on available-for-sale debt securities Net unrealized gains on borrowings Net unrecognized actuarial gains and unrecognized prior service costs on benefit plans Total accumulated other comprehensive income
As of June 30, 2024 $ (117) $ 414 $ 660 $ 957
Three months ended September 30, 2024
Other comprehensive income (loss) 16 87 (3) 100
As of September 30, 2024 $ (101) $ 501 $ 657 $ 1,057
As of June 30, 2025 $ (49) 146 1,520 1,617
Three months ended September 30, 2025
Other comprehensive income (loss) 27 (76) (15) (64)
As of September 30, 2025 $ (22) $ 70 $ 1,505 $ 1,553

NOTE I - NET UNREALIZED GAINS AND LOSSES ON LOANS, DEBT SECURITIES, BORROWINGS AND RELATED DERIVATIVES
Net unrealized gains and losses on loans, debt securities, borrowings and related derivatives for the three months ended September 30, 2025 and September 30, 2024 comprise:
Table I1: Net unrealized gains on loans, debt securities, borrowings and related derivatives
For the three months ended September 30,
(US$ in millions)
2025 2024
Unrealized gains and losses on loans, debt securities and associated derivatives
Unrealized gains on loans under the Fair Value Option $ 44 $ 7
Unrealized gains (losses) on derivatives associated with loans 34 (183)
Unrealized losses (gains) on debt securities under the Fair Value Option (18) 91
Unrealized gains (losses) on derivatives associated with debt securities 20 (74)
Total net unrealized gains (losses) on loans, debt securities and associated derivatives 80 (159)
Unrealized gains and losses on borrowings and associated derivatives
Unrealized gains (losses) on borrowings accounted for at fair value 202 (1,200)
Unrealized (losses) gains on derivatives associated with borrowings (199) 1,343
Total net unrealized gains on borrowings and associated derivatives 3 143
Net unrealized gains (losses) on loans, debt securities, borrowings and related derivatives $ 83 $ (16)
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE J - DERIVATIVES
IFC enters into transactions in various derivative instruments for financial risk management purposes in connection with its principal business activities, including lending, investing in debt securities, equity investments, client risk management, borrowing, liquid asset management and asset and liability management. None of these derivative instruments are designated as accounting hedges under ASC Topic 815. The following table summarizes IFC's use of derivatives in its various financial portfolios:
Table J1: Risk Classification of derivative used across various financial portfolios
Portfolio Derivative instruments used Purpose / Risk being managed
Risk Management purposes
Liquid assets Currency swaps, currency forward contracts, interest rate swaps, options, and futures contracts Manage currency risk and interest rate risk of liquid assets
Loans and debt securities Currency swaps and interest rate swaps Manage currency risk and interest rate risk of loans and debt securities
Borrowings Currency swaps and interest rate swaps Manage currency risk and interest rate risk of borrowings
Other asset/liability management Currency swaps, interest rate swaps, put options, call options, and warrant agreements Manage currency risk and duration of IFC's equity
Other purposes
Client operations Currency swaps, currency forward contracts, and interest rate swaps Assist clients in managing their risks
The fair value of derivative instrument assets and liabilities by risk type as of September 30, 2025 and June 30, 2025 is summarized as follows:
Table J2: Derivative fair values and outstanding notional classified by risk type and hedge desk at fair value
September 30, 2025 June 30, 2025
(US$ in millions)
Outstanding Notional Assets Liabilities Outstanding Notional Assets Liabilities
Interest rate $ 87,477 $ 528 $ 1,642 $ 86,949 $ 548 $ 1,710
Foreign exchange 17,702 125 377 18,649 85 615
Interest rate and currency 69,148 1,941 4,225 66,950 2,200 4,266
Equity a
- 111 21 - 140 21
Credit and other a
- 27 16 - 32 8
Total $ 174,327 $ 2,732 $ 6,281 $ 172,548 $ 3,005 $ 6,620
Funding $ 70,373 $ 1,330 $ 4,195 $ 72,022 $ 1,557 $ 4,245
Investments 58,506 1,001 1,156 54,747 1,063 1,171
Client Risk Management 14,122 272 293 14,683 295 319
Liquid asset Management 31,326 129 637 31,096 90 885
Total $ 174,327 $ 2,732 $ 6,281 $ 172,548 $ 3,005 $ 6,620
_________
a As of September 30, 2025, there were 38 derivative instrument contracts related to IFC's equity investment portfolio and 87 other derivative contracts recognized as derivative assets or liabilities under ASC Topic 815 (101 equity related and 33 other derivative contracts - June 30, 2025).








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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE J - DERIVATIVES (Continued)
The effect of derivative instrument contracts on the condensed consolidated statements of operations for the three months ended September 30, 2025 and September 30, 2024 is summarized as follows:
Table J3: Impact of derivative instrument contracts on the condensed consolidated statements of operations
(US$ in millions)
For the three months ended September 30,
Derivative risk category
Condensed Consolidated Statements of Operations location
2025 2024
Interest rate Income from loans and guarantees, including realized gains and losses on loans and associated derivatives $ 16 $ 27
Income from debt securities, including realized gains and losses on debt securities and associated derivatives 5 9
Loss from liquid asset trading activities (23) (83)
Charges on borrowings (84) (177)
Other income 5 3
Net unrealized gains on loans, debt securities, borrowings and related derivatives 49 437
Foreign exchange Income (loss) from liquid asset trading activities 227 (713)
Foreign currency transaction losses on non-trading activities (1) (4)
Net unrealized gains (losses) on loans, debt securities, borrowings and related derivatives 3 (1)
Interest rate and currency (Loss) Income from loans and guarantees, including realized gains and losses on loans and associated derivatives (10) 12
Loss from debt securities, including realized gains and losses on debt securities and associated derivatives (24) (3)
Income (loss) from liquid asset trading activities 63 (97)
Charges on borrowings (120) (209)
Foreign currency transaction (losses) gains on non-trading activities (124) 521
Other income 1 2
Net unrealized (losses) gains on loans, debt securities, borrowings and related derivatives (185) 659
Equity related contracts (Losses) gains from equity investments and associated derivatives (29) 11
Credit and other Net unrealized losses on loans, debt securities, borrowings and related derivatives (12) (8)
Total $ (243) $ 386
The income related to each derivative risk category includes realized and unrealized gains and losses.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE K - BORROWINGS
The majority of IFC's borrowings are raised through issuances in the international capital markets. In accordance with IFC's asset-liability management policies, market borrowings are generally swapped into floating-rate U.S. dollar obligations. IFC also maintains short-term discount note programs as a tool to provide additional funding and liquidity management. Furthermore, IFC employs structured funding transactions, such as securitizations through special purpose vehicles, to diversify its funding sources and transfer portions of the economic risk associated with certain loan portfolios to third-party investors. Additionally, in September 2014, IFC issued a promissory note to IDA, see Note B for further details.
The interest rate composition of IFC's borrowings, before the effect of derivatives, is summarized below:
Table K1: Interest rate composition of borrowings (before derivatives)
September 30, 2025 June 30, 2025
(US$ in millions, except for %) Amount
WAC a (%)
Amount
WAC a (%)
Short-term borrowings - Fixed rate
$ 2,570 4.3 % $ 2,337 4.9 %
Medium and long term (MLT) borrowings
Fixed rate 64,413 3.8 67,096 3.7
Variable rate 8,431 5.2 7,415 5.0
Total MLT borrowings 72,844 74,511
Securitized borrowings 345 5.1 - -
IDA borrowings 97 1.8 124 1.8
Total Face Value 75,856 76,972
Fair value adjustments and unamortized discounts, net (5,522) (5,522)
Carrying amount of market borrowings $ 70,334 $ 71,450
___________
a WAC refers to weighted average borrowings cost for the reporting period.
As of September 30, 2025, Medium and long term (MLT) borrowings include $360 million carried at amortized cost ($320 million - June 30, 2025). The weighted average effective interest rate on MLT borrowings carried at amortized cost was 9.0% as of September 30, 2025 (8.8% - June 30, 2025).
IFC diversifies its borrowings by currency, country, source, and maturity to provide flexibility and cost-effectiveness. For the three months ended September 30, 2025, IFC borrowed in 16 currencies (9 currencies - three months ended September 30, 2024). The currency composition of borrowings based on face value, before derivatives, is summarized below:
Table K2: Currency composition of borrowings based on face value (before derivatives)
(%) September 30, 2025 June 30, 2025
U.S. dollar 42.8 % 45.2 %
Australian dollar 17.2 15.9
Pounds sterling 17.0 15.5
Others 22.9 23.4
Total 100 % 100 %
IFC uses derivatives, reported at fair value, to manage the currency risk and the interest rate risk on its borrowings. The following table summarizes IFC's borrowing portfolio after derivatives:
Table K3: Borrowings and borrowing-related derivatives
(US$ in millions)
September 30, 2025 June 30, 2025
Borrowings $ 70,334 $ 71,450
Currency swaps, net 1,750 1,508
Interest rate swaps, net 1,115 1,180
Total $ 73,199 $ 74,138
After the effect of interest rate and currency swaps, IFC's borrowings generally reprice within one year.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS
ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability (i.e., an exit price) in an orderly transaction between independent, knowledgeable and willing market participants at the measurement date assuming the transaction occurs in the entity's principal (or most advantageous) market. IFC categorizes its financial instruments into three levels based on the established fair value hierarchy. For more information regarding the fair value hierarchy and how IFC measures fair value, see Note A - Summary of Significant Accounting Policies in the June 30, 2025 audited financial statements. Readers are cautioned in using these data for purposes of evaluating the financial condition of IFC as the fair values of the individual financial instruments do not represent the fair value of IFC taken as a whole.
IFC utilized, where available, comparator, sector and country information, in addition to discounted cash flow models, in valuing its equity investment portfolio as of September 30, 2025. Debt securities and loans accounted for at fair value that do not have available market prices were primarily valued using discounted cash flow approaches and reflected spreads as of September 30, 2025.
For the following instruments, the significant unobservable inputs and their relationship to the fair valuation movement are listed below:
Table L1: Significant unobservable inputs and its relationship to the fair valuation movement
Instrument Significant Unobservable Input Increase in Unobservable Input Results In
IFC Local Currency Borrowings IFC Yield Curve Decrease in Fair Value
Interest Rate Swaps (hedging loans and liquid assets) Yield Curve Points Increase in Fair Value
Interest Rate Swaps (hedging borrowings) Yield Curve Points Decrease in Fair Value
Currency Swaps (hedging loans and liquid assets) Yield Curve and Exchange Rates Increase in Fair Value
Currency Swaps (hedging borrowings) Yield Curve and Exchange Rates Decrease in Fair Value
Debt Securities and Loans Discount Rates, Credit Default Spreads Decrease in Fair Value
Valuation Multiple, Recovery Rates Increase in Fair Value
Equity Securities and Equity Related Derivatives Cost of equity, discounts for lack of marketability, weighted average cost of capital Decrease in Fair Value
Growth rates, return on assets, perpetual growth rates, EV/EBITDA, price to book value and other valuation multiples and volatilities Increase in Fair Value
The methodologies used and key assumptions made to estimate fair values as of September 30, 2025 and June 30, 2025, are summarized below.
Liquid assets - The primary pricing source for the liquid assets is valuations obtained from external pricing services (vendor prices). The most liquid securities in the liquid asset portfolio are U.S. Treasuries. U.S. Treasuries and U.S. Government agency bonds are classified as Level 1. The remaining liquid assets valued using vendor prices are classified as Level 2 or Level 3 based on the results of IFC's evaluation of the vendor's pricing methodologies and individual security facts and circumstances. Most vendor prices use some form of matrix pricing methodology to derive the inputs for projecting cash flows or to derive prices. When vendor prices are not available, liquid assets are valued internally by IFC using executable or indicative dealer quotes from the market and these are classified as Level 2 or Level 3 depending on the degree that the inputs are observable in the market.
The critical factors in valuing liquid assets in both Level 2 and Level 3 are the estimation of cash flows and yield. Other significant inputs for valuing corporate securities, quasi-government securities and sovereign or sovereign-guaranteed securities include reported trades, broker/dealer quotes, benchmark securities, option adjusted spread curve, volatilities, and other reference data. In addition to these inputs, valuation models for securitized or collateralized securities use collateral performance inputs, such as weighted average coupon rate, weighted average maturity, conditional prepayment rate, constant default rate, vintage, and credit enhancements.
Liquid assets classified as Level 3 as of September 30, 2025 are detailed below. There were no Level 3 liquid assets as of June 30, 2025.
Table L2: Fair value for liquid assets classified as Level 3
September 30, 2025
(US$ in millions) Valuation technique Fair value
Government obligations Dealer indicative price $ 50
Total $ 50
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(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Loans and debt securities - Loans and debt securities in IFC's investment portfolio that do not have available market prices are primarily valued using discounted cash flow approaches. The majority of loans measured at fair value are classified as Level 3. Certain loans contain embedded conversion and/or income participation features. These features are considered in determining the loans' fair value based on the quoted market prices or other calculated values of the equity investments into which the loans are convertible and the discounted cash flows of the income participation features. The significant unobservable inputs used in the fair value measurement of loans and debt securities are discount rates, credit default swap spreads, and expected recovery rates. The valuation techniques and significant unobservable inputs for loans and debt securities classified as Level 3 as of September 30, 2025 and as of June 30, 2025 are presented below.
Table L3: Valuation techniques and significant unobservable inputs for loans and debt securities classified as Level 3
September 30, 2025
(US$ in millions)
Valuation technique Fair value Significant inputs Range (%) Weighted average (%)
Debt securities - preferred shares Discounted cash flows $ 48 Discount rate 11.5 - 17.8 15.4
Market comparables 76
Valuation multiples a
Recent transactions 47
Other techniques 15
Total preferred shares 186
Other loans and debt securities Discounted cash flows 9,656 Credit default swap spreads 0.0 - 5.8 2.1
Expected recovery rates 0.0 - 97.5 44.5
Recent transactions 620
Other techniques 394
Total other loans and debt securities 10,670
Total $ 10,856
________
a Includes valuation techniques with multiple significant inputs, therefore the range and weighted average are not provided.
Table L3.1:
June 30, 2025
(US$ in millions)
Valuation technique Fair value Significant inputs Range (%) Weighted average (%)
Debt securities - preferred shares Discounted cash flows $ 115 Discount rate 11.5 - 22.1 18.6
Market comparables 72
Valuation multiples a
Recent transactions 40
Other techniques 17
Total preferred shares 244
Other loans and debt securities Discounted cash flows 8,849 Credit default swap spreads 0.0 - 8.6 2.3
Expected recovery rates 0.0 - 97.5 45.3
Recent transactions 804
Other techniques 413
Total other loans and debt securities 10,066
Total $ 10,310
________
a Includes valuation techniques with multiple significant inputs, therefore the range and weighted average are not provided.
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(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Borrowings - Fair values derived by determining the present value of estimated future cash flows using appropriate discount rates and option specific models where appropriate are classified as Level 2. Fair values derived from market source pricing are also classified as Level 2. The significant inputs used in valuing borrowings classified as Level 2 are presented below:
Table L4: Significant inputs used in valuing borrowings classified as Level 2
Classes Significant Inputs
Structured bonds Foreign exchange rate and inter-bank yield curves, issuer's credit curve and swaption volatility matrix, foreign exchange rate volatility, equity spot price, volatility and dividend yield, and Collateralized Loan Obligations (CLO) performance informed by market research and analysis.
Unstructured bonds Inter-bank yield curve and issuer's credit curve.
As of September 30, 2025, IFC had bond issuances with a total fair value of $201 million classified as level 3 ($216 million - June 30, 2025) in Azerbaijanian manat, Bangladeshi taka, Jamaican dollar, Mongolian tugrik, U.S. dollar, and Uzbekistan sum where the significant unobservable inputs were yield curve data and discount rate consistent with market return expectations.
Derivative instruments - The various classes of derivative instruments include interest rate contracts, foreign exchange contracts, interest rate and currency contracts, equity contracts and other derivative contracts. Certain over the counter derivatives in the liquid asset portfolio priced in-house are classified as Level 2, while certain over the counter derivatives priced using external manager prices are classified as Level 3. Fair values for derivative instruments are derived by determining the present value of estimated future cash flows using appropriate discount rates and option specific models where appropriate.
The significant inputs used in valuing the various classes of derivative instruments classified as Level 2 and significant unobservable inputs for derivative instruments classified as Level 3 as of September 30, 2025 and June 30, 2025 are presented below:
Table L5: Significant inputs used in valuing the various classes of derivative instruments classified as Level 2
Level 2 derivatives Significant Inputs
Interest rate Inter-bank yield curves, foreign exchange basis curve and yield curves specified to index floating rates.
Foreign exchange Foreign exchange rate, inter-bank yield curves and foreign exchange basis curve.
Interest rate and currency Foreign exchange rate, inter-bank yield curves, foreign exchange basis curve and yield curves specified to index floating rates.
Table L6: Significant inputs used in valuing the various classes of derivative instruments classified as Level 3
(US$ in millions)
September 30, 2025
Level 3 derivatives Type Fair value Significant inputs Range (%) Weighted average (%)
Equity related derivatives Fixed strike price options $ 1 Volatilities * 13.8
Variable strike price options 89
Contractual strike price a
Interest rate and currency swap assets Vanilla swaps 90
Yield curve points, exchange rates a
Interest rate and currency swap liabilities Vanilla swaps (37)
Yield curve points, exchange rates a
Total $ 143
_________
* No range is provided as all of the projects that use this valuation technique are with the same institution.
a In case of valuation techniques with multiple significant inputs, the range and weighted average are not provided.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Table L6.1:
(US$ in millions)
June 30, 2025
Level 3 derivatives Type Fair value Significant inputs Range (%) Weighted average (%)
Equity related derivatives Fixed strike price options $ 1
Variable strike price options 118
Contractual strike price a
Interest rate swap assets Vanilla swaps 1
Yield curve points a
Currency swap assets Vanilla swaps 87
Yield curve points, exchange rates a
Interest rate and currency swap liabilities Vanilla swaps (30)
Yield curve points, exchange rates a
Total $ 177
_________
a In case of valuation techniques with multiple significant inputs, the range and weighted average are not provided.
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(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Equity investments - Equity investments valued using quoted prices in active markets are classified as Level 1. Equity investments classified as Level 2 are valued using quoted prices in inactive markets. Equity investments classified as Level 3 are primarily valued using discounted cash flow and market comparable approaches. The significant unobservable inputs include cost of equity, weighted average cost of capital, asset growth rate, return on assets, perpetual growth rate, price to book and market multiples. The valuation techniques and significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy for equity investments that were measured at fair value through net income as of September 30, 2025 and June 30, 2025 are presented below.
Table L7: Valuation techniques and significant unobservable inputs for equity securities classified as Level 3
(US$ in millions)
September 30, 2025
Sector Valuation technique Fair value Significant inputs Range Weighted average (%)
Banking and other financial Discounted cash flows $ 312 Cost of equity (%) 11.7 - 34.2 15.9
Institutions Asset growth rate (%) (10.8) - 56.6 6.4
Return on assets (%) 0.5 - 7.8 2.5
Perpetual growth rate (%) 3.0 - 15.0 5.8
Market comparables 330 Price to book value 0.3 - 3.4 1.9
EV/Sales 0.8 - 10.5 6.6
Other valuation multiples a
Listed price (adjusted) 158 Discount for lack of marketability (%) 20.0 - 30.0 29.6
Recent transactions 712
Other techniques 444
Associated options b
2
Total banking and other financial institutions 1,958
Funds Recent transactions 162
Other techniques 75
Total funds 237
Others Discounted cash flows 1,083 Weighted average cost of capital (%) 6.4 - 22.3 11.4
Cost of equity (%) 10.7 - 32.0 17.5
Market comparables 400 EV/Sales 0.6 - 13.9 5.2
EV/EBITDA 9.0 - 20.1 13.0
Price to book value 1.0 - 1.7 1.6
Other valuation multiples a
Recent transactions 352
Other techniques 248
Associated options b
67
Total others 2,150
Total $ 4,345
_________
a Includes price/earnings ratio and price/sales ratio, the range and weighted average are not provided due to the immaterial amounts.
b Fair values for associated options are derived by determining the present value of estimated future cash flows using appropriate discount rates and option specific models where appropriate.





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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Table L7.1:
(US$ in millions)
June 30, 2025
Sector Valuation technique Fair value Significant inputs Range Weighted average (%)
Banking and other financial Discounted cash flows $ 292 Cost of equity (%) 12.9 - 34.2 15.7
Institutions Asset growth rate (%) (11.3) - 56.6 5.9
Return on assets (%) 0.5 - 5.3 2.2
Perpetual growth rate (%) 3.0 - 15.0 5.7
Market comparables 349 Price to book value 0.3 - 3.7 2.1
EV/Sales 1.0 - 14.7 6.5
Other valuation multiples a
Listed price (adjusted) 174 Discount for lack of marketability (%) 20.0 - 30.0 29.6
Recent transactions 828
Other techniques 263
Associated options b
2
Total banking and other financial institutions 1,908
Funds Recent transactions 91
Other techniques 89
Total funds 180
Others Discounted cash flows 1,150 Weighted average cost of capital (%) 7.7 - 21.4 11.3
Cost of equity (%) 10.6 - 32.0 17.4
Market comparables 440 EV/Sales 0.6- 13.9 5.6
EV/EBITDA 9.8 - 20.2 13.2
Price to book value 1.0 - 1.7 1.6
Other valuation multiples a
Recent transactions 334
Other techniques 136
Associated options b
66
Total others 2,126
Total $ 4,214
_________
a Includes price/earnings ratio and price/sales ratio, the range and weighted average are not provided due to the immaterial amounts.
b Fair values for associated options are derived by determining the present value of estimated future cash flows using appropriate discount rates and option specific models where appropriate.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Fair value of assets and liabilities
Estimated fair values of IFC's financial assets and liabilities and off-balance-sheet financial instruments as of September 30, 2025 and June 30, 2025 are summarized below:
Table L8: Estimated fair values of financial assets, financial liabilities, and off-balance-sheet instruments
September 30, 2025 June 30, 2025
(US$ in millions) Carrying value Fair
value 		Carrying value Fair
value
Financial assets
Cash and due from banks, time deposits, trading securities and securities purchased under resale agreements and receivable for cash collateral pledged $ 49,136 $ 49,136 $ 51,419 $ 51,419
Investments
Loans at amortized cost, net of reserve against losses 42,342 44,369 40,282 41,924
Loans accounted for at fair value under the Fair Value Option 1,978 1,978 1,947 1,947
Total loans 44,320 46,347 42,229 43,871
Equity investments accounted for at fair value 12,279
a
12,274 11,777
a
11,772
Debt securities accounted for at fair value as available-for-sale 512 512 544 544
Debt securities accounted for at fair value under the Fair Value Option 13,128 13,128 12,970 12,970
Total debt securities 13,640 13,640 13,514 13,514
Total investments $ 70,239 $ 72,261 $ 67,520 $ 69,157
Total derivative assets 2,732 2,732 3,005 3,005
Other investment-related financial assets - 2 - 2
Financial liabilities
Securities sold under repurchase agreements and payable for cash collateral received $ 5,515 $ 5,515 $ 4,893 $ 4,893
Market, IBRD, IDA and other borrowings outstanding 70,334 70,338 71,450 71,453
Total derivative liabilities 6,281 6,281 6,620 6,620
_________
a For $5 million as of September 30, 2025 ($5 million - June 30, 2025) of equity investments primarily accounted for under the cost recovery method, no fair value measurement is provided since the recovery of invested capital is uncertain.
The fair value of loan commitments amounted to $29 million as of September 30, 2025 ($30 million - June 30, 2025). Fair values of loan commitments are based on present value of loan commitment fees.
Fair value hierarchy
As required by ASC 820, financial assets and financial liabilities are classified in their entirety based on the lowest level input that is significant to the fair value measurement: The following tables provide information as of September 30, 2025 and June 30, 2025, about IFC's financial assets and financial liabilities measured at fair value on a recurring basis.








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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Table L9: Fair value hierarchy - Financial assets and liabilities
September 30, 2025
(US$ in millions) Level 1 Level 2 Level 3 Total
Investments - Trading
Time deposits $ - $ 9,900 $ - $ 9,900
Asset-backed securities - 6,249 - 6,249
Corporate debt securities a
- 5,633 - 5,633
Government obligations 17,925 4,601 50 22,576
Total Investments - Trading 17,925 26,383 50 44,358
Securities purchased under resale agreements 400 2,000 - 2,400
Loans
Loans - 128 1,845 1,973
Loans measured at net asset value b
5
Total Loans (outstanding principal balance $1,971)
- 128 1,845 1,978
Equity investments
Banking and other financial institutions 659 4 1,958 2,621
Funds - 12 237 249
Others 814 6 2,150 2,970
Equity investments measured at net asset value b
6,434
Total equity investments 1,473 22 4,345 12,274
Debt securities
Corporate debt securities - 3,978 8,205 12,183
Preferred shares - - 186 186
Asset-backed securities - 87 620 707
Debt securities measured at net asset value b
564
Total debt securities - 4,065 9,011 13,640
Derivative assets
Interest rate - 528 - 528
Foreign exchange - 125 - 125
Interest rate and currency - 1,851 90 1,941
Equity and other - - 111 111
Credit and Other derivative contracts - 27 - 27
Total derivative assets - 2,531 $ 45,029 201 2,732
Total assets at fair value $ 19,798 $ 35,129 $ 15,452 $ 77,382
Borrowings
Structured bonds $ - $ 6,224 $ 22 $ 6,246
Unstructured bonds - 60,979 179 61,158
Total borrowings (outstanding principal balance $72,926) c
- 67,203 201 67,404
Securities sold under repurchase agreements 101 5,136 - 5,237
Derivative liabilities
Interest rate - 1,642 - 1,642
Foreign exchange - 377 - 377
Interest rate and currency - 4,188 37 4,225
Equity and other - - 21 21
Credit and Other derivative contracts - 16 - 16
Total derivative liabilities - 6,223 58 6,281
Total liabilities at fair value $ 101 $ 78,562 $ 259 $ 78,922
_______
a Includes securities priced at par plus accrued interest, which approximates fair value.
b In accordance with ASC 820, investments that are measured at fair value using net asset value per share have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in condensed consolidated balance sheets.
c Includes discount notes (not under the short-term Discount Note Program), with original maturities greater than one year, with principal due at maturity of $5.4 billion, with a fair value of $1.9 billion as of September 30, 2025.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Table L9.1:
June 30, 2025
(US$ in millions) Level 1 Level 2 Level 3 Total
Investments - Trading
Time deposits $ - $ 14,263 $ - $ 14,263
Asset-backed securities - 5,468 - 5,468
Corporate debt securities a
- 4,972 - 4,972
Government obligations 18,122 5,149 - 23,271
Total Investments - Trading 18,122 29,852 - 47,974
Securities purchased under resale agreements - 946 - -
Loans
Loans - 128 1,814 1,942
Loans measured at net asset value b
- - - 5
Total Loans (outstanding principal balance $1,985)
- 128 1,814 1,947
Equity investments
Banking and other financial institutions 700 3 1,908 2,611
Funds - 11 180 191
Others 699 5 2,126 2,830
Equity investments measured at net asset value b
- - - 6,140
Total equity investments 1,399 19 4,214 11,772
Debt securities
Corporate debt securities - 4,376 7,667 12,043
Preferred shares - - 244 244
Asset-backed securities - 89 585 674
Debt securities measured at net asset value b
553
Total debt securities - 4,465 8,496 13,514
Derivative assets
Interest rate - 547 1 548
Foreign exchange - 85 - 85
Interest rate and currency - 2,113 87 2,200
Equity and other - - 140 140
Credit and Other derivative contracts - 32 - 32
Total derivative assets - 2,777 228 3,005
Total assets at fair value $ 19,521 $ 38,187 $ 14,752 $ 78,212
Borrowings
Structured bonds $ - $ 5,425 $ - $ 5,425
Unstructured bonds - 63,152 216 63,368
Total borrowings (outstanding principal balance $74,313) c
- 68,577 216 68,793
Securities sold under repurchase agreements - 4,547 - 4,547
Derivative liabilities
Interest rate - 1,710 - 1,710
Foreign exchange - 615 - 615
Interest rate and currency - 4,236 30 4,266
Equity and other - - 21 21
Credit and Other derivative contracts - 8 - 8
Total derivative liabilities - 6,569 51 6,620
Total liabilities at fair value $ - $ 79,693 $ 267 $ 79,960
_________
a Includes securities priced at par plus accrued interest, which approximates fair value.
b In accordance with ASC 820, investments that are measured at fair value using net asset value per share have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in condensed consolidated balance sheets.
c Includes discount notes (not under the short-term Discount Note Program), with original maturities greater than one year, with principal due at maturity of $5.3 billion, with a fair value of $1.8 billion as of June 30, 2025.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
The following tables present the changes in the carrying value of IFC's Level 3 financial assets and financial liabilities for the three months ended September 30, 2025 and September 30, 2024.
Table L10: Carrying value of Level 3 financial assets and financial liabilities
For the three months ended September 30, 2025
(US$ in millions)
Balance as of July 1, 2025 Net gains (losses) (realized and unrealized) included in Purchases, issuances, sales, settlements and others
Transfers into
Level 3 a
Transfers out of Level 3 b
Balance as of September 30, 2025
Net unrealized gains (losses) included in net income (loss) related to assets / liabilities held at period end
Net unrealized gains (losses) included in OCI related to assets / liabilities held at period end
Net Income Other Comprehensive Income
Investments - Trading
Government obligations $ - $ - $ - $ 50 $ - $ - $ 50 $ - $ -
Total Investments - Trading - - - 50 - - 50 - -
Loans 1,814 47 - (16) - - 1,845 53 -
Equity investments
Banking and other financial institutions 1,908 119 - (84) 15 - 1,958 97 -
Funds 180 (15) - 72 - - 237 (15) -
Others 2,126 5 - 60 (41) 2,150 (22) -
Total equity investments 4,214 109 - 48 15 (41) 4,345 60 -
Debt securities
Corporate debt securities 7,667 (6) 28 216 715 (415) 8,205 14 15
Preferred shares 244 (63) (1) 6 - - 186 (63) (1)
Asset-backed securities 585 (6) - 41 - - 620 (6) -
Total debt securities 8,496 (75) 27 263 715 (415) 9,011 (55) 14
Derivative assets
Interest rate and currency 87 (2) - 5 - - 90 4 -
Interest rate 1 (1) - - - - - - -
Equity and other 140 (29) - - - - 111 (5) -
Total derivative assets 228 (32) - 5 - - 201 (1) -
Total assets at fair value $ 14,752 $ 49 $ 27 $ 350 $ 730 $ (456) $ 15,452 $ 57 $ 14
Borrowings:
Structured bonds $ - $ - $ - $ (22) $ - $ - $ (22) $ - $ -
Unstructured bonds (216) 29 - (55) - 63 (179) 29 $ -
Total borrowings (216) 29 - (77) - 63 (201) 29 -
Derivative liabilities
Interest rate and currency (30) (8) - (3) - 4 (37) (12) -
Equity and other (21) - - - - - (21) - -
Total derivative liabilities (51) (8) - (3) - 4 (58) (12) -
Total liabilities at fair value $ (267) $ 21 $ - $ (80) $ - $ 67 $ (259) $ 17 $ -
_________
a Transfers into Level 3 are due to lack of observable market data resulting from a decrease in market activity for these securities as of September 30, 2025.
b Transfers out of Level 3 are due to availability of observable market data resulting from an increase in market activity for these securities that were part of the July 1, 2025 beginning balance as of September 30, 2025.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Table L10.1:
For the three months ended September 30, 2024
(US$ in millions)
Balance as of July 1, 2024 Net gains (losses) (realized and unrealized) included in Purchases, issuances, sales, settlements and others
Transfers into
Level 3 a
Transfers out of Level 3 b
Balance as of September 30, 2024
Net unrealized gains (losses) included in net income (loss) related to assets / liabilities held at period end
Net unrealized gains (losses) included in OCI related to assets / liabilities held at period end
Net Income Other Comprehensive Income
Investments - Trading
Asset-backed securities $ - $ - $ - $ 25 $ - $ - $ 25 $ - $ -
Government obligations - 1 - 132 - - 133 1 -
Total Investments - Trading - 1 - 157 - - 158 1 -
Loans 1,671 26 - 42 - - 1,739 26 -
Equity investments:
Banking and other financial institutions 1,875 38 - 39 - (40) 1,912 38 -
Funds 210 (2) - (62) - - 146 (2) -
Others 2,266 5 - 74 - - 2,345 (14) -
Total equity investments 4,351 41 - 51 - (40) 4,403 22 -
Debt securities:
Corporate debt securities 7,170 148 16 484 168 (537) 7,449 168 16
Preferred shares 238 5 1 3 - - 247 5 1
Asset-backed securities 802 2 (1) (7) - (105) 691 2 -
Other debt securities - - - - - - 4 -
Total debt securities 8,210 155 16 480 168 (642) 8,387 179 17
Derivative assets:
Interest rate and currency 120 (10) - (1) - (2) 107 - -
Equity and other 96 12 - 1 - - 109 12 -
Total derivative assets 216 2 - - - (2) 216 12 -
Total assets at fair value $ 14,448 $ 225 $ 16 $ 730 $ 168 $ (684) $ 14,903 $ 240 $ 17
Borrowings:
Unstructured bonds $ (83) $ 3 $ 1 $ (89) $ - $ - $ (168) $ 3 $ 1
Total borrowings (83) 3 1 (89) - - (168) 3 1
Derivative liabilities:
Interest rate and currency (7) (1) - (11) - - (19) (23) -
Equity and other (10) (1) - - - - (11) (1) -
Total derivative liabilities (17) (2) - (11) - - (30) (24) -
Total liabilities at fair value $ (100) $ 1 $ 1 $ (100) $ - $ - $ (198) $ (21) $ 1
_________
a Transfers into Level 3 are due to lack of observable market data resulting from a decrease in market activity for these securities as of September 30, 2024
b Transfers out of Level 3 are due to availability of observable market data resulting from an increase in market activity for these securities that were part of July 1, 2024 beginning balance as of September 30, 2024




INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
The following tables present gross purchases, sales, issuances and settlements related to the changes in the carrying value of IFC's Level 3 financial assets and financial liabilities for the three months ended September 30, 2025 and September 30, 2024.
Table L11: Gross purchases, sales, issuances and settlements- Level 3 financial assets and financial liabilities
For the three months ended September 30, 2025
(US$ in millions)
Purchases Sales Issuances Settlements and others Net
Investments - Trading
Government obligations $ 50 $ - $ - $ - $ 50
Total Investments - Trading 50 - - - 50
Loans - - 29 (45) (16)
Equity investments
Banking and other financial institutions 80 (146) - (18) (84)
Funds 142 (1) - (69) 72
Others 123 (64) - 1 60
Total equity investments 345 (211) - (86) 48
Debt securities
Corporate debt securities 633 (1) - (416) 216
Preferred shares 7 - - (1) 6
Asset-backed securities 85 - - (44) 41
Total debt securities 725 (1) - (461) 263
Derivative assets
Interest rate and currency - - 6 (1) 5
Total derivative assets - - 6 (1) 5
Total assets at fair value $ 1,120 $ (212) $ 35 $ (593) $ 350
Borrowings
Structured Bonds $ - $ - $ (22) $ - $ (22)
Unstructured Bonds - - (55) - (55)
Total Borrowings - - (77) - (77)
Derivative liabilities
Interest rate and currency - - (2) (1) (3)
Total derivative liabilities - - (2) (1) (3)
Total liabilities at fair value $ - $ - $ (79) $ (1) $ (80)







INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE L - FAIR VALUE MEASUREMENTS (continued)
Table L11.1:
For the three months ended September 30, 2024
(US$ in millions)
Purchases Sales Issuances Settlements and others Net
Investments - Trading
Asset-backed securities $ 25 $ - $ - $ - $ 25
Government obligations 132 - - - 132
Total Investments - Trading 157 - - - 157
Loans - - 28 14 42
Equity investments
Banking and other financial institutions 90 (52) - 1 39
Funds 16 - - (78) (62)
Others 101 (16) - (11) 74
Total equity investments 207 (68) - (88) 51
Debt securities
Corporate debt securities 660 - - (176) 484
Preferred shares 3 - - - 3
Asset-backed securities 60 - - (67) (7)
Total debt securities 723 - - (243) 480
Derivative assets
Interest rate and currency - - 7 (8) (1)
Equity and other - - - 1 1
Total derivative assets - - 7 (7) -
Total assets at fair value $ 1,087 $ (68) $ 35 $ (324) $ 730
Borrowings:
Unstructured Bonds $ - $ - $ (89) $ - $ (89)
Total Borrowings - - (89) - (89)
Derivative liabilities
Interest rate and currency - - (3) (8) (11)
Total derivative liabilities - - (3) (8) (11)
Total liabilities at fair value $ - $ - $ (92) $ (8) $ (100)
The following table summarizes the line items on the condensed consolidated statements of operations where gains and losses are reported by major types of financial assets and financial liabilities:
Table L12: Gains and losses reflected in the condensed consolidated statements of operations
Instruments Line item on the condensed consolidated statements of operations
Investments - Trading Income from liquid asset trading activities
Loans Income from Loans and guarantees including realized gains and losses on loans and associated derivatives
Equity investments Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives
Debt securities Income from debt securities and realized gains and losses on debt securities and associated derivatives
Loans, debt securities, borrowings and related derivatives Net unrealized gains and losses on loans, debt securities, borrowings and related derivatives
INTERNATIONAL FINANCE CORPORATION
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE M - SEGMENT REPORTING
The President is the Chief Operating Decision Maker (CODM), who regularly reviews operational performance and financial measures of IFC to assess performance and allocate resources.
IFC's business comprises three segments: investment services, treasury services, and upstream and advisory services. The investment services segment consists primarily of lending and investing in debt (loans and debt securities) and equity securities. Operationally, the treasury services segment consists of the borrowing, liquid asset management, asset and liability management and client risk management activities. Upstream and advisory services includes providing advisory services to government and private sector clients to create markets and mobilize private capital, and engages in early stage project development activities to develop bankable investment projects. Consistent with internal reporting, net income or expense from asset and liability management and client risk management activities in support of investment services is allocated from the treasury segment to the investment services segment.
IFC's management reporting system and policies are used to determine revenues and expenses attributable to each segment. Consistent with internal reporting, administrative expenses are allocated to each segment based largely upon personnel costs and segment headcounts. Transactions between segments are immaterial and, thus, are not a factor in reconciling to the consolidated data.
The assets of the investment, treasury, and upstream and advisory services segments are detailed in Notes D, C, and O, respectively. An analysis of IFC's major components of income and expense by business segment for the three months ended September 30, 2025 and September 30, 2024, is provided below:
Table M1: Income and expense by business segment
For the three months ended September 30, 2025
(US$ in millions)
Investment services Treasury services Upstream and Advisory services Total
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives $ 858 $ - $ - $ 858
Provision for losses on loans, off-balance-sheet credit exposures and other receivables (73) - - (73)
Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives 388 - - 388
Income from debt securities, including realized gains and losses on debt securities and associated derivatives 202 - - 202
Release of provision for losses on available-for-sale debt securities 3 - - 3
Income from liquid asset trading activities - 605 - 605
Charges on borrowings (595) (358) - (953)
Upstream and advisory services income - - 48 48
Service fees and other income 85 - - 85
Administrative expenses (364) (13) (38) (415)
Upstream and advisory services expenses - - (68) (68)
Other, net 3 2 4 9
Foreign currency transaction losses on non-trading activities (38) - - (38)
Income (loss) before net unrealized gains and losses on loans, debt securities, borrowings and related derivatives 469 236 (54) 651
Net unrealized gains on loans, debt securities, borrowings and related derivatives 80 3 - 83
Net income (loss) $ 549 $ 239 $ (54) $ 734

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE M - SEGMENT REPORTING (continued)
Table M1.1:
For the three months ended September 30, 2024
(US$ in millions)
Investment services Treasury services Upstream and Advisory services Total
Income from loans and guarantees, including realized gains and losses on loans and associated derivatives $ 862 $ - $ - $ 862
Provision for losses on loans, off-balance-sheet credit exposures and other receivables (3) - - (3)
Income from equity investments, including realized and unrealized gains and losses on equity and associated derivatives 198 - - 198
Income from debt securities, including realized gains and losses on debt securities and associated derivatives 216 - - 216
Release of provision for losses on available-for-sale debt securities 2 - - 2
Income from liquid asset trading activities - 832 - 832
Charges on borrowings (618) (343) - (961)
Upstream and advisory services income - - 54 54
Service fees and other income 99 - - 99
Administrative expenses (306) (11) (42) (359)
Upstream and advisory services expenses - - (65) (65)
Other, net 2 - 1 3
Foreign currency transaction on non-trading activities 20 - - 20
Income (loss) before net unrealized gains and losses on loans, debt securities, borrowings and related derivatives 472 478 (52) 898
Net unrealized (losses) gains on loans, debt securities, borrowings and related derivatives (159) 143 - (16)
Net income (loss) $ 313 $ 621 $ (52) $ 882

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE N - VARIABLE INTEREST ENTITIES
Non-Consolidated VIEs
IFC has identified investments in 247 VIEs which are not consolidated by IFC but in which it is deemed to hold significant variable interests as of September 30, 2025 (238 investments - June 30, 2025). The majority of these VIEs do not involve securitizations or other types of structured financing. IFC is usually the minority investor in these VIEs. These VIEs are mainly: (a) investment funds, where the general partner or fund manager does not have substantive equity at risk, which IFC does not consolidate because it does not have the power to direct the activities of the VIEs that most significantly impact their economic performance and (b) entities whose total equity investment is considered insufficient to permit such entity to finance its activities without additional subordinated financial support or whose activities are so narrowly defined by contracts that equity investors are considered to lack decision making ability, which IFC does not consolidate because it does not have the power to control the activities that most significantly impact their economic performance. IFC's involvement with these VIEs includes investments in equity interests and senior or subordinated interests, guarantees and risk management arrangements.
IFC's maximum exposure to loss as a result of its investments in these VIEs was $7.1 billion as of September 30, 2025 ($6.9 billion - June 30, 2025). IFC's maximum exposure to loss is based on the unlikely event that all of the assets in the VIEs become worthless and incorporates not only potential losses associated with assets recorded on IFC's condensed consolidated balance sheets (maximum funded exposure) but also potential losses associated with undisbursed commitments (maximum unfunded exposure). The maximum funded exposure represents the balance sheet carrying value of IFC's investment in the VIE and reflects the initial amount of cash invested in the VIE, adjusted for principal payments received, increases or declines in fair value and any impairment in value recognized in earnings. The maximum exposure of unfunded positions represents the remaining committed but undisbursed amount.
The carrying values and the maximum exposure of IFC's investment in these VIEs as of September 30, 2025 and June 30, 2025 are as follows:
Table N1: Carrying values and the maximum exposure of IFC's investment in nonconsolidated VIEs
Nonconsolidated VIEs September 30, 2025 June 30, 2025
(US$ in millions)
Carrying Value Maximum Exposure Carrying Value Maximum Exposure
Assets
Investments
Loans a
$ 1,256 $ 1,506 $ 1,015 $ 1,091
Equity Investments 2,922 4,140 2,829 3,964
Debt Securities 1,463 1,534 1,658 1,838
Derivative Assets b
1 1 1 1
Liabilities
Derivative Liabilities b
$ (45) $ (45) $ (51) $ (51)
Other Off-Balance-Sheet Arrangements
Guarantees Not Applicable $ - Not Applicable $ 38
_________
a The presented carrying value of the loans does not include the associated loan loss reserve of $72 million and $48 million as of September 30, 2025 and June 30, 2025, respectively.
b Represents Client Risk Management arrangements.
Consolidated VIEs
IFC securitizes originated loans from companies in emerging markets through the special purpose vehicles or VIEs to generate funding and transfer a portion of the associated economic risk to third-party investors. IFC's continuing involvement in the securitization transaction includes servicing the underlying loans and retaining interests in the mezzanine and junior tranches. The principal risks associated with this ongoing involvement relate to the performance of the underlying loans, IFC's position within the capital structure of the securitization vehicle, and prevailing market yields on the securities. Creditors of the VIEs have legal recourse only to the VIEs' assets and not IFC's general credit. The VIEs' assets, primarily loans, are restricted from being sold or pledged as collateral, with their cash flows solely servicing the non-recourse liabilities. IFC has controlling financial interest in the VIEs due to (1) the power to direct the activities of the VIEs through servicing and the right to direct redemption of the securities under certain circumstances, and (2) the obligation to absorb losses or the right to receive benefits from the VIEs that could potentially be significant to the VIE. As the primary beneficiary, IFC consolidates the assets and liabilities of these VIEs.
INTERNATIONAL FINANCE CORPORATION
Page 88
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE N - VARIABLE INTEREST ENTITIES (continued)
The table summarizes consolidated VIE's assets and liabilities on IFC's condensed consolidated balance sheets as of September 30, 2025, excluding intercompany balances which are eliminated during consolidation.
Table N2: Carrying values of IFC's investment in consolidated VIEs
(US$ in millions)
September 30, 2025
Assets
Cash and due from banks
$ 10
Loans at amortized cost 486
Less: Reserve against losses on loans (13)
Loans at amortized cost less reserve against losses 473
Loans accounted for at fair value under the Fair Value Option 11
Other receivables 2
Total Assets $ 496
Liabilities
Securitized borrowings $ 342
Payables and Other Liabilities 1
Total Liabilities $ 343
Separately, IFC is the primary beneficiary of a VIE for the building and the land at 2100 K Street. The building and land, with a combined value of $103 million ($104 million - June 30, 2025), are reported under "Receivables and other assets" on IFC's condensed consolidated balance sheets.
INTERNATIONAL FINANCE CORPORATION
Page 89
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE O - UPSTREAM AND ADVISORY
IFC continues to address increasingly complex development challenges and is enhancing its creating markets strategy by undertaking both Upstream and Advisory activities. Specifically, IFC provides advisory services to government and private sector clients to create markets and mobilize private capital, and engages in early stage project development activities to develop bankable investment projects. IFC also works in collaboration with the IBRD and IDA to provide policy advice and develop activities that help create markets and support future transactions in multiple industries, especially in IDA eligible member countries and FCS. IFC funds this business line by a combination of cash received from IFC shareholders' development agencies and other development partners, IFC's operations via retained earnings and operating budget allocations, as well as fees received from the recipients of the services.
As of September 30, 2025, undisbursed donor funds of $514 million ($519 million - June 30, 2025) were included in other assets. As the undisbursed donor funds are refundable, a corresponding liability is recorded in other liabilities. IFC's advisory services funding of $300 million ($315 million - June 30, 2025) was included in other assets.
The following table summarizes the upstream and advisory services income and expenses including the expenses out of funds sourced from government and other development partners for the three months ended September 30, 2025 and September 30, 2024 :
Table O1: Upstream and advisory services income and expenses
For the three months ended September 30, 2025
(US$ in millions)
2025 2024
Upstream and advisory services income $ 48 $ 54
Upstream and advisory services expenses 68 65
Sourced from government and other development partners a
47 50
_________
a The funds received from government and other development partners were also recognized as advisory services income in IFC's condensed consolidated statements of operations.
NOTE P - PENSION AND OTHER POSTRETIREMENT BENEFITS
IBRD, IFC and MIGA participate in the defined benefit Staff Retirement Plan (SRP), a Retired Staff Benefits Plan (RSBP) and a Post-Employment Benefits Plan (PEBP) (collectively "the Pension Plans") that cover all WBG employees, retirees and their beneficiaries. The SRP provides pension benefits and includes a cash balance plan. The RSBP provides certain health and life insurance benefits to eligible retirees. The PEBP provides certain pension benefits administered outside the SRP.
IFC uses a June 30th measurement date for its pension and other post-retirement benefit plans. All costs, assets, and liabilities associated with the Pension Plans are allocated among IBRD, IFC, and MIGA based upon their employees' respective participation in the Pension Plans. IDA, IFC, and MIGA reimburse IBRD for their proportionate share of any contributions made to the Plans by IBRD. Contributions to the Pension Plans are calculated as a percentage of salary.
The following table summarizes the benefit costs associated with the SRP, RSBP, and PEBP allocated to IFC for the three months ended September 30, 2025 and September 30, 2024. For the three months ended September 30, 2025 and September 30, 2024, the service costs of $47 million and $52 million are included in "Administrative expenses", respectively. The components of net periodic pension cost, other than the service cost component, are included in "Other, net" in the condensed consolidated statements of operations.
Table P1: Net periodic pension Cost - SRP, RSBP & PEBP
For the three months ended September 30,
2025 2024
(US$ in millions)
SRP RSBP PEBP Total SRP RSBP PEBP Total
Pension Plan Benefit costs
Service cost $ 34 $ 6 $ 7 $ 47 $ 37 $ 8 $ 7 $ 52
Other components
Interest cost 74 9 10 93 73 10 9 92
Expected return on plan assets (81) (16) - (97) (80) (15) - (95)
Amortization of unrecognized prior service cost - - - - - - 1 1
Amortization of net unrecognized actuarial gains (7) (8) (1) (16) - (4) - (4)
Sub total (14) (15) 9 (20) (7) (9) 10 (6)
Net periodic pension cost $ 20 $ (9) $ 16 $ 27 $ 30 $ (1) $ 17 $ 46
INTERNATIONAL FINANCE CORPORATION
Page 90
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE Q - OFFSETTING ASSETS AND LIABILITIES
IFC does not present derivative assets and liabilities or amounts due or owed under resale, repurchase and securities lending transactions related to contracts entered into with the same counterparty under a legally enforceable netting agreement on a net basis on its condensed consolidated balance sheets. The following table provides the gross and net positions of IFC's derivative contracts, resale, repurchase and securities lending agreements considering amounts and collateral held or pledged in accordance with enforceable counterparty credit support and netting agreements described below. The gross and net positions include derivative assets of $215 million and derivative liabilities of $328 million as of September 30, 2025, related to derivative contracts that are not subject to counterparty credit support or netting agreements. Collateral amounts are included only to the extent of the related net derivative fair values or net resale, repurchase and securities lending agreements amounts.
Table Q1: Gross a and net positions of derivative contracts
September 30, 2025
Gross amount presented in the condensed consolidated balance sheets
Amounts subject to legally enforceable master netting
agreements 		Collateral received/pledged Net amount
(US$ in millions)
Derivative assets $ 4,543
a
$ 2,537 $ 273
b
$ 1,733
Resale agreements 2,400 75 2,325 -
Total assets $ 6,943 $ 2,612 $ 2,598 $ 1,733
Derivative liabilities $ 7,838
a
$ 2,537 $ 3,387 $ 1,914
Repurchase and securities lending agreements 5,276 75 5,200 1
Total liabilities $ 13,114 $ 2,612 $ 8,587 $ 1,915
Table Q1.1:
June 30, 2025
Gross amount presented in the condensed consolidated balance sheets
Amounts subject to legally enforceable master netting
agreements 		Collateral received/pledged Net amount
(US$ in millions)
Derivative assets $ 4,702
a
$ 2,828 $ 310
b
$ 1,564
Resale agreements 946 204 742 -
Total assets $ 5,648 $ 3,032 $ 1,052 $ 1,564
Derivative liabilities $ 7,901
a
$ 2,828 $ 3,288 $ 1,785
Repurchase and securities lending agreements 4,586 204 4,382 -
Total liabilities $ 12,487 $ 3,032 $ 7,670 $ 1,785
_________
a Gross amount presented herein comprises of derivatives and accrued interest income/expenses. Accrued income of $1,811 million ($1,697 million - June 30, 2025) is reported in "receivables and other assets" and accrued expenses of $1,557 million ($1,281 million - June 30, 2025) are reported "payables and other liabilities" in IFC's condensed consolidated balance sheets.
b Includes cash collateral only as of September 30, 2025 and June 30, 2025 respectively.
IFC's derivative contracts with market counterparties are entered into under standardized master agreements published by the International Swaps and Derivatives Association (ISDA). ISDA Agreements provide for a single lump sum settlement amount upon the early termination of transactions following a default or termination event whereby amounts payable by the non-defaulting party to the other party may be applied to reduce any amounts that the other party owes the non-defaulting party. This setoff effectively reduces any amount payable by the non-defaulting party to the defaulting party.
IFC's ISDA Agreements are appended by a Credit Support Annex (CSA) that provides for the receipt or posting of collateral in the form of cash, U.S. Treasury securities or U.K. gilts to reduce mark-to-market exposure among derivative market counterparties. Cash collateral received is recorded as an asset with a corresponding liability for the obligation to return it. For cash collateral posted, a corresponding receivable is recorded on IFC's condensed consolidated balance sheets. Securities received as collateral are not recognized on IFC's condensed consolidated balance sheets, while securities posted as collateral remain on the balance sheets and are disclosed as securities pledged.
INTERNATIONAL FINANCE CORPORATION
Page 91
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE Q - OFFSETTING ASSETS AND LIABILITIES (continued)
In accordance with the CSAs, IFC may rehypothecate securities received as collateral, subject to the obligation to return such collateral and any related distributions received. In the event of a counterparty default, IFC may exercise certain rights and remedies, including the right to set off any amounts payable by the counterparty against any collateral held by IFC and the right to liquidate any collateral held. As of September 30, 2025 and June 30, 2025, no collateral received was rehypothecated under securities lending agreements.
The table below summarizes IFC's collateral pledged and received under CSAs as of September 30, 2025, and June 30, 2025:
Table Q2: Collateral pledged and received under CSA
(US$ in millions)
September 30, 2025 June 30, 2025
Cash collateral received $ 278 $ 346
Cash collateral pledged 1,532 1,263
Trading securities pledged (fair value) 2,018 2,126
Under certain CSA's IFC is not required to pledge collateral unless its credit rating is downgraded from its current AAA/Aaa. The aggregate fair value of derivatives containing such a credit risk-linked contingent feature in a net liability position was $73 million as of September 30, 2025 ($93 million - June 30, 2025). As of September 30, 2025, IFC had no collateral posted under these agreements. If IFC's credit rating were to be downgraded from its current AAA/Aaa to AA+/Aa1 or below, then collateral in the amount of $57 million would be required to be posted against net liability positions with counterparties as of September 30, 2025 ($48 million - June 30, 2025).
IFC's resale, repurchase and securities lending transactions are entered into with counterparties under industry standard master netting agreements which generally provide the right to offset amounts owed one another with respect to multiple transactions under such master netting agreement and to liquidate the purchased or borrowed securities in the event of counterparty default. The estimated fair value of all securities received and held as collateral under these master netting agreements by IFC was $2.4 billion as of September 30, 2025 ($946 million - June 30, 2025).
The following table presents an analysis of IFC's repurchase agreements by (1) class of collateral pledged and (2) their remaining contractual maturity as of September 30, 2025 and June 30, 2025:
Table Q3: Repurchase agreements - Categorized by remaining contractual maturity
Remaining Contractual Maturity of the Agreements - September 30, 2025
(US$ in millions)
Overnight and Continuous Up to 30 days 30-90 days Greater than
90 days 		Total
Repurchase agreements
U.S. Treasury securities $ - $ 2,161 $ 1,813 $ 1,302 $ 5,276
Total Repurchase agreements $ - $ 2,161 $ 1,813 $ 1,302 $ 5,276
Plus: cash collateral payable 278
Less: accrued interest on cash collateral and repos, net. (39)
Securities sold under repurchase agreements and payable for cash collateral received $ 5,515
Table Q3.1:
Remaining Contractual Maturity of the Agreements - June 30, 2025
(US$ in millions)
Overnight and Continuous Up to 30 days 30-90 days Greater than
90 days 		Total
Repurchase agreements
U.S. Treasury securities $ - $ 995 $ 1,764 $ 1,827 $ 4,586
Total Repurchase agreements $ - $ 995 $ 1,764 $ 1,827 $ 4,586
Plus cash collateral payable 346
Less: accrued interest on cash collateral and repos, net. (39)
Securities sold under repurchase agreements and payable for cash collateral received $ 4,893
As of both September 30, 2025 and June 30, 2025, IFC has no repurchase-to-maturity transactions nor securities lending transactions outstanding.
INTERNATIONAL FINANCE CORPORATION
Page 92
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE R - CONTINGENCIES
From time to time, IFC may be named as a defendant or co-defendant in legal actions on different grounds in various jurisdictions. The outcome of any existing legal action, in which IFC has been named as a defendant or co-defendant, as of and for the three months ended September 30, 2025, is not expected to have a material adverse effect on IFC's financial position, results of operations or cash flows.
INTERNATIONAL FINANCE CORPORATION
Page 93
Reporting to SEC on New and Matured Borrowings
Quarter Ending Date
September 30, 2025
New Medium and Long-Term Market Borrowings
External Id Currency Code Currency Amount USD Amount Interest Rate Settle Date
26_10XXXXX AUD 300,000,000 195,690,000 4.50 18-Jul-25
26_14XXXXX AUD 200,000,000 130,210,000 4.90 22-Jul-25
26_18XXXXX AUD 125,000,000 81,381,250 4.90 22-Jul-25
26_25XXXXX AUD 100,000,000 65,105,000 4.90 29-Jul-25
26_27XXXXX AUD 100,000,000 64,910,000 4.60 30-Jul-25
26_43XXXXX AUD 30,000,000 19,969,500 5.05 15-Sep-25
26_44XXXXX AUD 20,000,000 13,341,000 5.05 17-Sep-25
26_55XXXXX AUD 100,000,000 65,630,000 4.50 29-Sep-25
Sum Of Notional 975,000,000 636,236,750
26_20XXXXX AZN 17,000,000 10,000,000 8.00 23-Jul-25
26_39XXXXX AZN 10,000,000 5,882,353 7.80 08-Sep-25
Sum Of Notional 27,000,000 15,882,353
26_01XXXXX BRL 75,000,000 13,766,267 10.75 09-Jul-25
26_06XXXXX BRL 150,000,000 26,840,354 11.50 15-Jul-25
26_11XXXXX BRL 200,000,000 36,041,556 11.75 18-Jul-25
26_17XXXXX BRL 100,000,000 17,919,541 11.50 21-Jul-25
26_19XXXXX BRL 150,000,000 26,954,420 12.75 23-Jul-25
26_32XXXXX BRL 50,000,000 9,149,382 - 22-Aug-25
26_34XXXXX BRL 75,000,000 13,807,831 11.50 27-Aug-25
26_45XXXXX BRL 150,000,000 28,327,809 - 17-Sep-25
26_47XXXXX BRL 75,000,000 14,163,905 11.50 17-Sep-25
26_51XXXXX BRL 250,000,000 47,326,525 11.50 24-Sep-25
Sum Of Notional 1,275,000,000 234,297,590
26_07XXXXX CHF 115,000,000 142,662,201 0.76 07-Aug-25
Sum Of Notional 115,000,000 142,662,201
26_29XXXXX COP 75,000,000,000 18,633,540 10.00 12-Aug-25
26_46XXXXX COP 120,000,000,000 30,951,767 8.25 18-Sep-25
Sum Of Notional 195,000,000,000 49,585,307
26_05XXXXX GBP 650,000,000 874,640,000 4.00 15-Jul-25
26_26XXXXX GBP 80,000,000 106,812,000 4.00 29-Jul-25
26_40XXXXX GBP 50,000,000 67,887,500 4.00 09-Sep-25
26_48XXXXX GBP 50,000,000 68,252,500 4.00 18-Sep-25
26_53XXXXX GBP 25,000,000 33,363,750 4.00 26-Sep-25
Sum Of Notional 855,000,000 1,150,955,750
26_502XXXX GEL 40,000,000 14,713,997 8.16 17-Sep-25
Sum Of Notional 40,000,000 14,713,997
26_28XXXXX HKD 300,000,000 38,216,804 2.69 01-Aug-25
26_52XXXXX HKD 200,000,000 25,707,932 2.86 26-Sep-25
Sum Of Notional 500,000,000 63,924,736
26_04XXXXX KRW 8,600,000,000 6,257,367 2.01 11-Jul-25
Sum Of Notional 8,600,000,000 6,257,367
INTERNATIONAL FINANCE CORPORATION
Page 94
Reporting to SEC on New and Matured Borrowings
External Id Currency Code Currency Amount USD Amount Interest Rate Settle Date
26_35XXXXX KZT 12,500,000,000 23,144,077 15.00 02-Sep-25
Sum Of Notional 12,500,000,000 23,144,077
26_503YYYY MNT 105,000,000,000 29,190,992 10.25 29-Sep-25
Sum Of Notional 105,000,000,000 29,190,992
26_41XXXXX PEN 50,000,000 14,368,848 - 11-Sep-25
Sum Of Notional 50,000,000 14,368,848
25_505XXXX RON 253,200,000 59,019,603 7.29 03-Jul-25
26_15XXXXX RON 35,500,000 8,193,222 6.25 22-Jul-25
26_30XXXXX RON 54,075,000 12,484,704 6.96 18-Aug-25
Sum Of Notional 342,775,000 79,697,529
26_501XXXX RWF 24,000,000,000 16,608,997 10.50 15-Jul-25
Sum Of Notional 24,000,000,000 16,608,997
26_02XXXXX USD 390,000,000 390,000,000 4.62 10-Jul-25
26_03XXXXX USD 15,000,000 15,000,000 5.32 11-Jul-25
26_08XXXXX USD 45,000,000 45,000,000 3.90 17-Jul-25
26_09XXXXX USD 250,000,000 250,000,000 4.62 17-Jul-25
26_12XXXXX USD 100,000,000 100,000,000 4.33 21-Jul-25
26_13XXXXX USD 50,000,000 50,000,000 4.92 23-Jul-25
26_16XXXXX USD 30,000,000 30,000,000 4.91 23-Jul-25
26_21XXXXX USD 125,000,000 125,000,000 4.62 24-Jul-25
26_22XXXXX USD 20,000,000 20,000,000 4.92 25-Jul-25
26_23XXXXX USD 20,000,000 20,000,000 4.90 28-Jul-25
26_24XXXXX USD 20,000,000 20,000,000 4.90 30-Jul-25
26_31XXXXX USD 30,000,000 30,000,000 5.02 22-Aug-25
26_36XXXXX USD 15,000,000 15,000,000 4.28 28-Aug-25
26_37XXXXX USD 30,000,000 30,000,000 5.00 02-Sep-25
26_38XXXXX USD 100,000,000 100,000,000 3.58 05-Sep-25
26_42XXXXX USD 35,000,000 35,000,000 5.27 15-Sep-25
26_49XXXXX USD 100,000,000 100,000,000 4.30 26-Sep-25
26_50XXXXX USD 38,500,000 38,500,000 4.60 24-Sep-25
Sum Of Notional 1,413,500,000 1,413,500,000
26_33XXXXX UZS 125,000,000,000 10,157,812 10.90 26-Aug-25
Sum Of Notional 125,000,000,000 10,157,812
TOTAL NEW MARKET BORROWINGS 3,901,184,306
NEW SECURITIZED BORROWINGS
External Id Currency Code Currency Amount USD Amount Interest Rate Settle Date
- USD 320,000,000 320,000,000 5.45 10-Sep-25
- USD 25,000,000 25,000,000 - 10-Sep-25
Sum Of Notional 345,000,000 345,000,000
TOTAL NEW SECURITIZED BORROWINGS 345,000,000
INTERNATIONAL FINANCE CORPORATION
Page 95
Reporting to SEC on New and Matured Borrowings
Medium and Long-Term Matured Market Borrowings
External Id Currency Code Currency Amount USD Amount Interest Rate Maturity Date
23_600_1XX AZN 4,372,740 2,572,200 6.00 15-Jul-25
23_600_2XX AZN 4,129,810 2,429,300 6.00 15-Jul-25
Sum Of Notional 8,502,550 5,001,500
External Id Currency Code Currency Amount USD Amount Interest Rate Maturity Date
24_656XXXX BDT 82,500,000 677,897 10.50 08-Sep-25
Sum Of Notional 82,500,000 677,897
21_04XXXXX BRL 30,000,000 5,396,703 4.25 16-Jul-25
21_61XXXXX BRL 170,000,000 30,581,315 4.25 16-Jul-25
21_115XXXX BRL 40,000,000 7,572,244 - 24-Sep-25
21_32XXXXX BRL 30,000,000 5,679,183 - 24-Sep-25
21_59XXXXX BRL 10,100,000 1,911,992 - 24-Sep-25
21_90XXXXX BRL 40,000,000 7,572,244 - 24-Sep-25
Sum Of Notional 320,100,000 58,713,681
21_31XXXXX CAD 500,000,000 363,279,689 0.63 16-Sep-25
Sum Of Notional 500,000,000 363,279,689
22_120XXXX CLP 20,000,000,000 20,631,318 5.25 04-Aug-25
Sum Of Notional 20,000,000,000 20,631,318
23_22XXXXX CNY 300,000,000 42,124,774 2.75 15-Sep-25
Sum Of Notional 300,000,000 42,124,774
22_27XXXXX HKD 300,000,000 38,514,619 0.54 10-Sep-25
Sum Of Notional 300,000,000 38,514,619
16_28XXXXX JPY 350,000,000 2,371,515 5.60 26-Aug-25
Sum Of Notional 350,000,000 2,371,515
22_156XXXX KRW 10,600,000,000 7,736,802 2.35 08-Jul-25
24_11XXXXX KRW 8,300,000,000 6,007,745 2.90 07-Aug-25
24_16XXXXX KRW 49,700,000,000 35,974,087 2.90 07-Aug-25
24_23XXXXX KRW 49,000,000,000 35,467,410 2.90 07-Aug-25
Sum Of Notional 117,600,000,000 85,186,044
19_519XXXX KZT 659,769,257 1,237,551 8.30 18-Jul-25
Sum Of Notional 659,769,257 1,237,551
18_174_B1X MXN 3,920,000,000 209,495,154 - 06-Aug-25
Sum Of Notional 3,920,000,000 209,495,154
21_30XXXXX NZD 400,000,000 237,580,000 0.38 10-Sep-25
INTERNATIONAL FINANCE CORPORATION
Page 96
Reporting to SEC on New and Matured Borrowings
21_41XXXXX NZD 425,000,000 252,428,750 0.38 10-Sep-25
Sum Of Notional 825,000,000 490,008,750
18_718_1XX PHP 165,641,920 2,902,943 6.34 18-Sep-25
Sum Of Notional 165,641,920 2,902,943
23_536XXXX RON 89,000,000 20,548,103 7.94 18-Aug-25
23_537XXXX RON 50,400,000 11,636,229 7.92 18-Aug-25
Sum Of Notional 139,400,000 32,184,332
External Id Currency Code Currency Amount USD Amount Interest Rate Maturity Date
24_49XXXXX USD 150,000,000 150,000,000 5.33 1-Jul-25
21_01XXXXX USD 4,700,000 4,700,000 0.25 14-Jul-25
21_03XXXXX USD 29,950,000 29,950,000 0.38 15-Jul-25
21_06XXXXX USD 2,000,000,000 2,000,000,000 0.38 16-Jul-25
21_21XXXXX USD 18,940,000 18,940,000 0.25 15-Aug-25
23_17XXXXX USD 25,000,000 25,000,000 3.33 25-Aug-25
25_26XXXXX USD 12,000,000 12,000,000 3.92 29-Aug-25
21_28XXXXX USD 15,000,000 15,000,000 0.35 08-Sep-25
21_29XXXXX USD 20,000,000 20,000,000 0.20 15-Sep-25
23_35XXXXX USD 2,000,000,000 2,000,000,000 3.63 15-Sep-25
Sum Of Notional 4,275,590,000 4,275,590,000
TOTAL MATURED MARKET BORROWINGS 5,627,919,767
Matured IBRD and IDA Borrowings
External Id Currency Code Currency Amount USD Amount Interest Rate Maturity Date
15_30XXXXX USD 27,459,150 27,459,150 1.84 15-Sep-25
Sum Of Notional 27,459,150 27,459,150
TOTAL MATURED IBRD AND IDA BORROWINGS 27,459,150
Net increase in Short-term Borrowings for the quarter ended September 30, 2025 205,024,250
* Bonds where the stated interest rate is zero includes zero coupon bond issues where the contractual interest rate is zero, and structured notes where the contractual interest rate is initially zero.


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