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THE POWER OF PARTNERSHIPS

THE POWER OF PARTNERSHIPS. IFC: Part of the World Bank Group. ICSID International Center for Settlement of Investment Disputes. IFC International Finance Corporation. IDA International Development Association. MIGA Multilateral Investment and Guarantee Agency. IBRD

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THE POWER OF PARTNERSHIPS

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  1. THE POWER OF PARTNERSHIPS

  2. IFC: Part of the World Bank Group ICSID International Center for Settlement of Investment Disputes IFC International Finance Corporation IDA International Development Association MIGA Multilateral Investment and Guarantee Agency IBRD International Bank for Reconstruction and Development Guarantees of private sector investment’s non-commercial risks Loans to middle-income and credit-worthy low-income country governments Interest-free loans and grants to governments of poorest countries Solutions in private sector development Conciliation and arbitration of investment disputes

  3. World Bank Group Commitments, FY13 Total Commitments: $52.6 Billion Loans, grants, equity investments, guarantees, and advisory services to support development *Excluding mobilization ($6.5b)

  4. IFC’s History A global institution, now owned by 184 member countries 1956 1980 1990-2000s Today The global leader in private sector development finance IFC Launch PSD added to the global economic agenda IFC scales up investments IFC coins term “emerging markets”

  5. IFC’s Priorities Long-term client relationships in emerging markets Frontier markets Strategic Focus Areas Climate change and environmental & social sustainability Local financial markets Constraints to private sector growth in infrastructure, health, education, & the food supply chain

  6. IFC: A Valuable Partner We help clients in good times and bad by offering: A strong financial position, strategy, staff Low leverage ratios, prudent risk management policies A long-term partnership perspective, providing clients important countercyclical financing when commercial banks cut back The expertise and experience needed to make a difference, focusing on innovative transactions where our development impact is the highest

  7. What Clients Value About IFC 2013 IFC Client Survey Long-Term Partner Role WBG Stamp of Approval Financing Not Readily Available Elsewhere Ability to Mobilize Additional Funds Worldwide Presence Broad Range of Products Global/ Local Knowledge of Industries & Markets Perceived Risk Mitigation

  8. Integrated Solutions, Increased Impact Our Three Businesses Investment Services Advisory Services IFC Asset Management Company • Loans • Equity • Trade finance • Syndications • Securitized finance • Risk management • Blended finance • Access to finance • Investment Climate • Sustainable Business • Public-Private Partnerships • Wholly owned subsidiary of IFC • Private equity fund manager • Investsthird-party capital alongside IFC $5.5 b under mgmt (FY13) $232 m (FY13) $49.6 b portfolio (FY13)

  9. Investment Services Loans • Project and corporate financing • On-lending through intermediary institutions Equity • Direct equity investments (up to 20% of company’s equity) • Private equity funds Trade Finance • Guarantee of trade-related payment obligations of approved financial institutions Syndications • Capital mobilization to serve developmental needs • Over 60 co-financiers: commercial banks, fund, and DFIs Structured Finance • Products including credit guarantees, liquidity facilities, portfolio risk transfer, securitizations, and Islamic finance Risk Management • Derivative products to hedge interest rate, currency, or commodity-price exposures of IFC clients Blended Finance • Combination of concessional funds with IFC resources to finance initiatives & achieve impact that would otherwise be unattainable

  10. Advisory Services Access to Finance • Increases availability and affordability of financial services for individuals and micro, small, and medium enterprises Investment Climate • Helps governments implement reforms that improve business environment and retain investments • Helps governments design and implement PPPs in infrastructure and other basic public services (electricity, water, health and education) Public-Private Partnerships Sustainable Business • Helps clients promote sound environmental, social, governance, and industry standards; catalyze investment in clean energy/resource efficiency; and support sustainable supply chains and community investment

  11. IFC Asset Management Company IFC Capitalization Fund • Helps strengthen systemically important banks in emerging markets, bolstering their ability to cope with financial and economic downturns IFC African, Latin American, & Caribbean Fund • Co-invests with IFC in equity and equity-related investments across a range of sectors in Sub-Saharan Africa, Latin America, and Caribbean Africa Capitalization Fund • Invests in systemically important commercial banking institutions in Africa IFC Russian Bank Capitalization Fund • Invests in commercial banking institutions in Russia IFC Catalyst Fund • Invests in funds that provide growth capital to companies developing innovative ways to address climate change in emerging markets IFC Global Infrastructure Fund • Co-invests with IFC and equity-related investments in the infrastructure sector in emerging markets

  12. IFC’s Global Reach • 109 country and regional offices worldwide, AAA credit rating • 4,015 staff (57% are based outside Washington DC)

  13. FY13 Investment Commitments: $24.8 Billion 22% growth from FY12 to FY13 13

  14. Investments by Industry, FY13 Commitments for IFC’s Account: $18.3 Billion

  15. Investments by Region, FY13 Commitments for IFC’s Account: $18.3 Billion

  16. Advisory Services by Business Line, FY13 Total Program Expenditures: $231.9 Million

  17. Advisory Services by Region, FY13 Total Program Expenditures: $231.9 Million

  18. IFC’s Selected Agribusiness Investments in Horticulture San Miguel, S.A. Argentina Loan: $20 million Syndication: $10 million Rehabilitation and expansion of lemon production and processing operations. Restructuring of debt and expansion of export capacity. Committed: 2005 Yantai North Andre China Loan: $15 million Expansion of apple juice concentrate business. Committed: 2005 Favorita Ecuador Loan: $50 million Syndication: $23 million Expansion and vertical integration ofbanana plantations for export. Committed: 1999, 2003, 2007 Kongoni Kenya Loan: $1.9 million • Expansion of existing 10 hectare horticulture and flower production sites. Committed: 2005 Bioparques Mexico Loan: $12 million Construction and expansion of greenhouse-farmed beefsteak tomatoes for export to North America. Committed: 2008 Viru Peru Loan $15 million Expansion of plantations, processing lines for canned asparagus exports. Committed: 2007 Milagro Uruguay Loan: $10 million Expansion of citrus plantations and packing & processing facilities. Committed: 2009 Karsten Farms South Africa Loan: $7.2 million Expansion of farming operations & establishment of fruit trading, logistics and handling services in South Africa.Committed: 2006

  19. 28.2 Select Transactions in the Retail Sector EMENA EMENA EMENA EMENA EMENA & Asia Bulgaria US$52 million Loan Egypt US$15 million Loan Lebanon US$20 million Loan & Equity China US$7 million Equity Belarus US$26 million Loan & Equity Turkey US$30 million Loan Belarus US$70 million Loan & Equity Russian Federation US$171 million Loan Azerbaijan US$18 million Loan & Equity Ukraine US$51 million Loan Slovenia, Croatia, Serbia, Bosnia & Herzegovina US$51 million Loan Croatia, Poland US$49 million Loan Egypt US$49 million Loan & Equity Russian Federation US$67 million Loan India US$15 million Loan & Equity

  20. IFC’s Experience in the Chemicals Sector Examples of IFC’s Experience With Global Partners: Downstream Oil and Gas and Other Sectors Omimex (Abocol Colombia) Dallas, TX Shell Petroleum Corporation US$ 135mm Financing Philippines Star Petroleum Refining Co. US$ mm 350 Debt Thailand Pecom (Now Petrobras Argentina) US$ 50 mm Debt Argentina US$80m India US$70m Risk Sharing Facility Ukraine USA BHP Biliton, Mitsubishi, Industrial Dev. Corp., Gov’t of Mozambique Joint Venture EDF La Ventosa Bayer Ukraine Ltd. Supply Chain Finance Facility US$25m Debt and US$15m Concessional Financing Mexico US$25m Debt Mozambique Orascom Veolia Voda S.A. MBAC (Itafos) Global Trade Liquidity Program A Loan $200MM, B Loan $125mm Equity $50M Egypt A Loan: US$ 30M Risk Management: US$45M USA - Colombia € 50m Share Issue Ukraine and Russia A Loan: US$40M Equity: US$35M USA - Brazil US$4b Global 20

  21. David Fulton Head, USA and Canada International Finance Corporation dfulton@ifc.org

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