Global AgribusinessCreAtIng oPPortunIty In emergIng mArkets

IFC, a member of the World Bank Group, focuses on the private sector to promote growth, reduce poverty, and improve people’s lives in developing countries. IFC is the world’s largest multilateral financier for companies that do business in emerging markets. We finance and advise clients to support profitable and sustainable business development in these markets.

Established more than 50 years ago and owned by 182 shareholder countries, IFC has unparalleled experience in helping private companies succeed in emerging markets worldwide—we are global.

We are also local—with offices in more than 86 countries and active programs in many others.

We can work with clients anywhere in the developing world. Behind every IFC venture is a strong network that links people, institutions, ideas, and capital. We are your connection to success in the emerging marketplace.

In fiscal year 2010, IFC committed $18 billion, of which $12.7 billion was for its own account and $5.3 billion was mobilized through syndicated loans, structured and securitized products, and IFC new initiatives for 528 projects in 103 developing countries. Our Advisory Services portfolio comprised 736 active projects valued at more than $850 million, with annual expenditures totaling $268 million.

The IFC Difference

IFC: Key Facts

Credit rating: AAA (Moody’s, Standard & Poor’s)

Portfolio: $48.8 billion, representing 1,656 investments in more than 100 countries (as of June 30, 2010)

total staff: Approximately 3,400 (more than 50 percent are based in country offices worldwide)

number of Investments Committed in Fy10:528 in 103 countries

broad Industry expertise: IFC can help companies address potential risks and incorporate global best practices and technologies into their operations

broad Product range: Corporate and project finance, subnational finance, loans, equity, quasi-equity, structured finance, syndications, and advisory services

Partnership model: Emphasis on building long-term partnerships with clients

Committed Portfolio by RegionFor IFC’s own account as of june 30, 2010

Committed Portfolio by IndustryFor IFC’s own account as of june 30, 2010

Sub-Saharan Africa13%

Middle East andNorth Africa

11%

South Asia11%

East Asia andthe Pacific

14%

Global1%

Latin America andthe Caribbean25%

Europe and Central Asia25%

Private Equity and Investment Funds5%

Agribusiness 6%

Oil, Gas, Mining,and Chemicals

9%

Infrastructure16%

Global Information andCommunication Technologies

4%

Health and Education3% Subnational Finance

2%

Global Manufacturingand Services17%

Global Financial Markets37%

Global Agribusiness

IFC has made agribusiness a priority because of its potential for broad development impact and especially strong role in poverty re-duction. We combine investments and advisory services to help the private sector address higher demand and escalating food prices in an environmentally sustainable and socially inclusive way. We also support global initiatives for sustainable production of agricultural commodities.

The food crisis is putting pressure on the global supply chain and threatening progress in poverty reduction. To help clients prefinance inventories, seeds, fertilizers, chemicals, and fuel for farmers, IFC offers working capital facilities. In the medium term, we will scale up financing for agribusiness and address critical constraints along the agribusiness value chain. We aim to bring land into sustainable production, improve productivity by transferring technologies and practices, and make the best use of water and other resources. We will also pursue investments, with both private and public sectors,

in physical infrastructure (ports, warehouses, cold storage, telecom-munications) that can facilitate trade and lower cost. To reach small farmers and rural enterprises, particularly in low-income countries, IFC works with trading companies and financial intermediaries, helping channel financing and advisory services effectively.

Agribusiness companies increasingly recognize that the sector needs to make sustainable use of land, water, and other key natural resources, while increasing supply to meet market demand. The sector also faces social challenges, including the need to raise labor standards. IFC seeks commercially viable solutions and helps companies set benchmarks for responsible production in line with industry best practices. In areas such as sequestering carbon, manag-ing watersheds, preserving biodiversity, and producing renewable energy resources, IFC’s efforts can also help generate new income through environmental services. IFC is also working with clients to strengthen their supply chains by helping small farmers increase productivity and apply appropriate environmental, social, and quality standards.

IFC: A Global Partner

Washington, dC

moscow

Istanbul

Cairo

johannesburg

Mexico City

Managua

Bogotá

Port-of-Spain

Lima

Rio de Janeiro

Dakar

Rabat

Paris

London Brussels

Lagos

Nairobi

= IFC Hub Offices

= IFC Field Offices (a partial list)

= IFC Headquarters

= Markets where IFC invests

Mumbai

Almaty

TbilisiBeijing

Chengdu

Jakarta

Baku

Kyiv

Minsk

Accra

São Paulo

Buenos Aires

new delhi

Hong kong

IFC’s Added vAlue In AgrIbusIness

Competitive long-term financing

Regional knowledge

Global sector expertise

Country risk mitigation

Environmental and social risk management

Sustainability toolkit

Advisory services

From Farm to Factory to Fork IFC provides investment and advisory services to the agribusiness sector along the full value chain directly to companies and indirectly through intermediaries.

dIreCt FInAnCIng

Inputs jain Irrigation (India): $45 million loan and $14 million equity to India’s largest provider of micro irrigationsystems to increase efficient water delivery and reach more than 2,000 farmers.

Farm Production

Wadi (egypt): $40 million in loans to expand poultry operations, feed-milling and pelleting capacity, plant olive groves, and grape farms, as well as to establish a celpad plant and expand the company’s glass containers capacity.

sourcing salala rubber (liberia): $10 million loan to finance rehabilitation of post-conflict rubber plantations and further export of semi-processed natural rubber to tire manufacturers worldwide.

Processing Wings (Indonesia): $92 million in loans to expand and finance working capital of Wings Group’s operating companies producing instant noodles.

trade/ distribution

Finatrade (West Africa): $20 million loan to support regional expansion of a leading distribution company that specializes in soft commodities (rice, sugar, and vegetable oils) and fast-moving consumer goods.

Wholesale/ retail

AdA-ticaret (Azerbaijan): $18 million loan and equity to support direct purchases from suppliers and wholesal-ers, efficient handling, storage, and distribution by the state-of-the-art grocery retail chain.

Infrastructure/ logistics

snowman Frozen Foods limited (India): $5 million equity to expand temperature-controlled transportation and storage infrastructure.

IndIreCt FInAnCIng

Pre-Harvest Finance

ecom (latin America, West Africa, Asia): $80 million corporate loan facility to a commodity trader foronlending to farmers for capital expenditures and crop financing and to improve supply-chain standards, social and environmental practices, and key performance indicators of coffee suppliers.

IFC’s Agribusiness Investments

IFC significantly scaled up its investments in agribusiness in the last few years. During FY10, IFC invested nearly $2 billion across the agribusiness supply chain—from farm to retail—to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers. At the end of FY10 IFC’s agribusiness portfolio stood at $3.9 billion.

IFC’s CommItments In AgrIbusIness by FIsCAl yeAr

IFC’s AgrIbusIness PortFolIo by regIon

IFC’s AgrIbusIness PortFolIo by subseCtor

0

500

1000

1500

2000

2500

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10

Agribusiness Production & Processing

Equity Funds

Agri Infrastructure

Food Retail

Fertilizers

Rural and Trade Finance

$ M

illio

ns

Food Retail12%

Fertilizers6%

AgriInfrastructure4%

Agribusiness Productionand Processing 75%

Equity Funds3%

Animal Processing 14%

Beverages 5%

Grains & Milling 7%

Dairy Products 4%

Fruits & Vegetables 6%

Veg Fats & Oils 15%

Sugar 17%

Other Foods 22%

Other 10%

Africa6%

Middle East / North Africa2%

South Asia11%

East Asia11%

Latin America45%

Europe and Central Asia25%

Note: All portfolio data include syndications

IFC’S Approach to Financing Agribusiness

IndIreCt FInAnCIng: trAders And FInAnCIAl InstItutIons

Expand reach to small farms and businesses, which are essential to the sector but too small for IFC to finance directly

Build on local market knowledge of intermediaries (regulations, business customs, and client/ supplier reputations)

Channel investment and advisory services to end users via intermediaries

Develop and promote sustainability best practices through intermediaries

dIreCt FInAnCIng: CorPorAte And ProjeCt FInAnCIng

Direct financing of agribusiness firms

Build long-term partnerships with emerging industry leaders

Promote best practices in corporate governance and environment and social sustainability

Implement programs to support individual farmers and distribution companies

Provide advisory services that add value in IFC’s financing package

Investment servICes

Equity and long-term loans

Partial credit guarantees and risk-sharing facilities

Syndications

AdvIsory servICes

Strengthen farmers, small businesses, supply chain linkages, and infrastructure

Facilitate market development of local supply through helping farms meet quality and quantity requirements

Raise standards of corporate governance and business transparency

Support the development and uptake of eco-standards

Correspondence to:

IFC Agribusiness

2121 Pennsylvania Ave., NW, MSN 8P-807

Washington, DC 20433, USA

Fax: +1 (202) 974-4338

ifc.org/agribusiness

2011