José Carlos Miranda Executive Director - Brazil and Suriname

1. José Carlos Miranda Executive Director - Brazil and Suriname Trade Finance and Multilateral Financing in BrazilJune, 2009

2. IICInter-American Investment Corporation IDBInter-American Development Bank Sovereign guaranteed operations Private sector and non-sovereign guaranteed operations SCF Structured and Corporate Financing Department MIF Multilateral Investment Fund

3. Inter-American Development Bank (IDB) Largest regional multilateral institution with 48 member countries dedicated to accelerate economic & social development in Latin America and the Caribbean Structured and Corporate Finance Department • Goal • Primary operational responsibility for the Bank's financing without sovereign guarantees from the central government. • Target Clients • Private an state-own utilities and/or infrastructure operators. • Private and state-own banks with assets above US$500 million and other financial intermediaries. • Privately controlled entities in all sectors of the economy with annual revenues of US$100 million and above.

4. IDB’s Competitive Advantages • Deep Knowledge and Excellent Relations with Latin America and the Caribbean • Oldest and largest multilateral lender to Latin America and the Caribbean • Cooperative of 48 regional and non-regional countries • Helps mitigate political risks • Exemption from withholding taxes on debt service payments and de facto preferred creditor status • Solid Financial Position • AAA/Aaa Rating (S&P, Moody’s) • Authorized capital of US$101 billion • Ability to extend tenors at market pricing • IDB Value-Added • Umbrella effect: Unique ability to open channels of communications with governments, communities and other regional entities provides comfort to borrowers and helps to attract other commercial lenders to transactions. • Catalytic role: IDB partners with other commercial lenders to help mobilize financing. • Honest broker: Internationally recognized environmental, social, labor and health standards provide comfort to governments, communities, lenders and sponsors. • Products and Services: Flexible risk sharing arrangements, no country exposure limits and ability to mobilize grant financing to support preparation and execution of strategic transactions.

5. Work with Us Clients Private or state-owned corporate entities and financial institutions* Sectors All economic sectors, with special focus in infrastructure, financial markets and “green” projects* Currency Loans in US dollars and guarantees in US dollars and local currencies Limits US$200 million per project** / 50% of project cost. 25-40% if greenfield Other Ownership: controlled by investors from IDB members countries Location: benefiting LAC economies Environmental and Social Standards: IDB policies applies * Exceptions: negative exclusion list ** Up to US$400 Million in Exceptional Cases

6. Operational Performance New Commitments US$ Millions and # of Deals

7. Commitments – Historical Composition

8. Financial Products: Commercial Loans • Characteristics • A-Loan: Direct loan facility from IDB own resources. • A/B Loan: “Syndicated” facility where the Bank works with banks and institutional investors to participate them on a co-financing basis with the IDB through the sale of loan participations, or “B Loans.” The IDB acts as Lender of Record and Administrative Agent for the entire A plus B loan facility. • Terms and Conditions • Interest Rates: Fixed or floating interest rates over Libor. Spread priced according to existing market conditions and reflecting the overall characteristics of the underlying project • Seniority:Senior and/or subordinated loans • Tenors: up to 30 years (average: 10-15 years) • Currency: US$ Dollars and local currency, when hedging is available. • Preparation and Execution Fees: Typical fees charged by commercial banks including analysis fees to evaluate the project, up front and structuring fees.

9. Financial Products: Partial Credit Guarantees • Characteristics • Credit enhancement from the IDB to allow borrowers to access to better financing terms from domestic and foreign lenders or investors or target institutional investors restricted to invest in non-investment grade obligations. • Terms and Conditions • Currency: partial credit guarantees can be issued to enhance credit obligations in US$ Dollars and local currency. Eventual payments and reimbursement claims are in the currency of the guarantee. • Guarantee Fees: Annual guarantee fees for credit guarantees are charged on a similar basis as a percentage of the approximate spreads charged for long-term loans. Rates are based on several considerations, including the tenor of the underlying loan, financial and corporate market benchmarks, and the overall risk characteristics of the project. • Preparation and Execution Fees: Same as of Loans

10. Financial Products: Grant Financing • Characteristics • Non-reimbursable and contingent recovery financing for specific activities related to project preparation and execution. For contingent recovery operations, the funds are recovered if and when the project formalizes its financing. • Eligible Activities: Preparation of pre-feasibility and feasibility studies including technical, economic, financial, credit, environmental, social, energy audits, institutional and other types of analyses. • Terms and Conditions • Grant Size: Support from the IDB or its Trust Funds typically does not exceed US$1,500,000 per operation. • Eligible Beneficiaries: Private, state-own and mixed-capital entities from all IDB member countries. • Counterpart Financing: The beneficiary entity/ies shares the financial costs of each operation by an amount to be decided on a case-by-case basis, and typically is never lower than twenty percent (20%) of the total cost of the project.

11. Trade Finance Facilitation Program (TFFP) - Guarantees • Characteristics • Nature: Credit Guarantee (“CG”) in favor of Confirming Banks to cover the risk they take on eligible trade financing instruments issued by LAC Issuing Bank • Participants: Issuing Banks: Private or state-owned banks incorporated in IDB Borrowing Member Countries, track record in trade finance, satisfactory credit worthiness, compliance with IDB standards Confirming Banks: Any international/regional bank with recognized track record in international trade financing • Terms and Conditions • Applicable Exposure Limits: Max. total program exposure: USD 1 billion Max. country limit: USD 300 million • Tenor (individual transactions): Up to 3 years • Coverage level: Up to 100% per individual transaction • Eligible Transactions: (i) Letters of Credit, (ii) Export and import financing funded by Confirming Banks and (iii) International Guarantees (Bid, Performance, Advance Payment Bonds) and Stand-by Letters of Credit • Currency: USD, Euro, Yen and other currencies • Costs: No joining costs. Usually, guarantee fees equivalent to 75-85% of confirmation fee/spread on the TFFP-guaranteed amount depending on the percentage of the IDB guarantee

12. Trade Finance Facilitation Program (TFFP) – Short Term Loans • Characteristics • Nature: Portfolio–based trade finance loans • Participants: Issuing Banks: Private or state-owned banks incorporated in IDB Borrowing Member Countries, track record in trade finance, satisfactory credit worthiness, compliance with IDB standards Confirming Banks: Any international/regional bank that are part of the program • Terms and Conditions • Applicable Exposure Limits: Max. total program exposure at any time: USD 1 billionMax. country limit: USD 300 million • Tenor (individual transactions): Up to 360 days • Minimum loan amount: USD 1 million • Eligible Transactions: Portfolio of qualified trade transactions • Currency: USD • Possible Confirming Bank participation: As a Co-Lender As B-Lender to benefit from IDB’s preferred credit status • Costs: No joining costs. Price will be in accordance with current market conditions at the time of disbursement

13. The Inter-American Investment Corporation • Member of the IDB Group • The only regional multilateral institution in the world mandated by its member countries to provide financing to private enterprises in Latin America and the Caribbean, particularly those that are small and medium in size • To date we have made more than US$3.368 billion in loans to and investments in: • nearly 550 companies • more than 956,625 SMEs indirectly • In 2008, the IIC approved 64 projects and programs • Total: US$300.5 million

14. What makes us different? • Financial solutions • Environmental management and labor considerations • Resource mobilization • Business management • know-how and good practice • specialized technical advisory services • Technical assistance for SMEs focused on the following key areas: • pre-investment consulting services • technical assistance as part of the approval process for SMEs • post-investment technical assistance for IIC clients

15. What we offer companies • loans (short-, medium-, and long-term in U.S. dollars and in local currency in certain markets; subordinated loans; syndicated A/B loans) • partial credit guarantees for loans and debt securities; equity and quasi- equity investments • financing through supply chains • tailored technical advice for improving financial, environmental, and business management • small business loans in certain markets

16. What we offer financial intermediaries • lines of credit for expansion projects • working capital lines • financial and operating lease lines • trade finance facilities • syndicated A/B loans • agency lines • loan and bond issue guarantees