UN agency earns strong credit rating for boosting rural prosperity
Published: Nov 20, 2020
By TIOL News Service
NEW DELHI, NOV 20, 2020: THE United Nations' (UN) International Fund for Agricultural Development (IFAD) obtained an AA+ credit rating, facilitating its access to private funds to invest in increasing rural prosperity and development in the world's poorest countries.
The IFAD is the first UN fund to receive a public credit rating from Standard and Poor's (S&P) Global Ratings which complements the AA+ Fitch rating received last month. The stable rating sets the stage for increased investments in food security, employment and rural economic growth.
"As hunger grows in rural areas, the demand for our services is greater than ever and we need to broaden our investor base as much as possible", said Gilbert F. Houngbo, President of IFAD.
"With two positive ratings, we can mobilize more funds from various potential investors at a favourable cost. And this means we can do more to increase the incomes and food supply of the poor rural people who desperately need it. This is a prerequisite for building global stability and resilience."
As the leading global development organization dedicated exclusively to eradicating poverty and hunger in rural areas, IFAD plays a critical role in achieving the Sustainable Development Goals (SDGs) by 2030. The international financial institution and specialised UN agency has provided USD 22.4 billion in grants and low-interest loans to projects that have reached an estimated 512 million people since its institution.
IFAD-supported projects and programmes are currently funded through contributions from its 177 member states, investment income and reflows, as well as co-financing from other sources.
