CREATING MARKETSIFC Corporate Presentation, 2018–2019

▪ A member of the World Bank Group

▪ Provides investment, advice, resource mobilization

▪ Triple-A credit rating; owned by 184 countries

▪ Present in nearly 100 countries

IFC is the largest global development institution focused on

the private sector in emerging markets.

1

IFC: A MEMBER OF THE WORLD BANK GROUP

2

Conciliation

and arbitration

of investment

disputes

Guarantees of

foreign direct

investment’s non-

commercial risks

Interest-free loans

and grants to

governments

of poorest

countries

Loans to

middle-income

and credit-worthy

low-income country

governments

Solutions in

private sector

development

IBRD

International

Bank for

Reconstruction

and

Development

IDA

International

Development

Association

IFC

International

Finance

Corporation

MIGA

Multilateral

Investment

Guarantee

Agency

ICSID

International

Centre for

Settlement of

Investment

Disputes

WORLD BANK GROUP COMMITMENTS, FY18

17.3%

35.9%

7.9%

34.4%

4.5%

3

Loans, grants, equity

investments, guarantees,

and advice to support

development

*Excluding funds mobilized from

other investors ($11.7 bn)

Total Commitments: $66.9 BN

IFC* – $11.6

MIGA – $5.3

IDA

$24.0

IBRD

$23.0

All dollar figures are in US$ bn

Recipient-

Executed Trust

Funds – $3.0

DEVELOPMENT FINANCE TODAY

Major opportunities for mobilizing private capital to:

4

End Poverty Boost Shared Prosperity

Tackle Climate Change Advance Gender Equality

4

5

▪ In mobilizing private capital for

development

▪ More than $285 billion invested since

our founding in 1956

IFC: SIX DECADES OF

EXPERIENCE

▪ The world’s largest development finance

institution focused on the private sector

▪ Leveraging the full range of

World Bank Group capabilities

Experience Matters.

Burkina Faso

6

CREATING MARKETS

CREATING MARKETS

A comprehensive approach to tap the power

of the private sector by:

▪ Establishing regulatory and policy

frameworks that improve public governance

and enable markets to thrive

▪ Promoting competition and innovation

▪ Achieving demonstration effects that

encourage replication

▪ Introducing new solutions driven by

improved technology and logistics

▪ Building capacity and skills to open new

markets

Sri Lanka

7

Global Context: Meeting Development Goals in a

Challenging Context

Source: World Bank and United Nations Population Division's World Population Prospects

More than 3 million new jobs are needed every month in Africa,

MENA and South Asia…

Increase in working age population per month

Over the next 15 years, thousands

-50

-15

300

300

720

1,020

1,770

Europe andCentral Asia

East Asiaand the Pacific

EAP (ex-China)

Latin Americaand the Caribbean

MENA

South Asia

Sub-Saharan Africa

8

0

200

400

600

800

1000

Power Transport Telecoms Water FoodSecurity

ClimateChange

Health Education

Annual Investment gap

(average 2015-2030)

Investment (2014)

Global Context: Meeting Development Goals in a

Challenging Context

Source: World Bank Group. 2017. Global Economic Prospects, January 2017

$3 trillion per year are needed to reach SDG goals, including …

Investment Gaps in Reaching SDG1

In US$ Billion

9

Global Context: Meeting Development Goals in a

Challenging Context

Source: Center for Global Development, “Quantifying Vulnerability to Climate Change”

Trillions of investments needed to mitigate and adapt to climate change …

Adaptation - Vulnerability to climate change

Rank 1 169

Physical impacts adjusted

for coping ability

▪ UMIC emitted 45% of

global CO2 in 2014

▪ LMIC emitted 12%

MIC and Mitigation

10

Global Context: Meeting Development Goals in a

Challenging Context

Source: UCDP/PRIO Armed Conflict Dataset - UNHCR Global Trends 2017, as of end-2016 - OECD 2015

Increased fragility and conflicts that are not contained by borders…

More countries experienced violent conflict in 2016 than at

any time in nearly 30 years.

Fragility threatens to slow – or reverse – recent gains in

poverty reduction. If current trends persist, by 2030, more

than half of the world’s poor will live in countries affected

by high levels of violence.

65.6 million people forcibly displaced globally.

11

Meeting Development Goals: The World Bank Group’s

Unique Positioning

The WBG business model …

… maximizes development impact.

Public & Private

Country-led

Global reach

Knowledge

Financing

Convening Power & Partnership

12

Meeting Development Goals: The World Bank Group’s

Unique Positioning

The World Bank Group is uniquely positioned to mobilize domestic

resources, attract private capital, and create markets.

Both private and public sector arms play an equally important role.

IDA &IBRD

IFC & MIGA

Use of private sector solutions

helps to:

▪ Create jobs in a sustainable manner

▪ Improve access to services,

innovation and technology

▪ Demonstrate commercial viability of

new markets

▪ Strengthen financial intermediation &

expand local capital markets

▪ Generate tax revenues

▪ Mobilize third party capital

▪ Increase competition, set standards &

improve sector performance

Use of public sector solutions

helps to:

▪ Establish a supportive investment

climate to mobilize private capital for

investment in development

▪ Address market failures & reduce

risks.

▪ Improve domestic resource

mobilization, from tax revenues to

capital markets

▪ Enhance public expenditure

management

CAPITAL INCREASE

In April 2018, shareholders approved a landmark

$13 billion capital increase package:

▪ $7.5 billion for the World Bank

▪ $5.5 billion for IFC

A Historic Vote of Confidence

13

This more than triples the amount of paid-in capital

IFC has received since inception in 1956.

IFC’s annual IDA transfers have also been suspended.

Along with the paid-in capital, these provides a total of

$9.2 billion in new capital to support IFC operations.

$13 bnCAPITAL INCREASE

MORE THAN

3XPAID-IN CAPITAL

CAPITAL INCREASE

By 2030, IFC is now targeting:

What it Means for IFC

14

▪ Increasing annual investment commitments to $48 billion ($25 billion for

IFC’s own account, $23 billion mobilized from others)

▪ Having 40% of these investments be in IDA countries and fragile and

conflict-affected areas

▪ Making 35% of its own-account investments climate-related

▪ Scaling up on gender: investing $2.6 billion per year in financial institutions

targeting women and increasing by 50% the number of women directors on

companies where IFC has a board seat.

15

ASKING THE RIGHT QUESTIONS

15

12

34

If the answer is YES,

we promote private

solutions If the answer is NO, we ask:

Is it because of:

▪ Policy or regulatory

gaps or weaknesses?

If so, we provide support

for policy and regulatory

reforms.

▪ Risks? If so, we assess

whether World Bank

Group instruments can

mitigate them.

If the project requires

public funding, we pursue

that option

The Cascade: A Decision-Making Sequence Prioritizing Private Sector Solutions

Is there a sustainable

private sector solution

that limits public debt

and contingent

liabilities?

The IFC-funded Rikweda raisin-

processing plant is helping 3,000

smallholder farmers by buying

their produce at higher prices.

AFGHANISTAN

16

ACHIEVING THE BEST OUTCOMES

INDIASewage plants

to clean up the

Ganga River and

improve water

quality for millions

FIJIThe first developing

nation to issue a

$50M sovereign

green bond to reduce

the impact of climate

change

MADAGASCARFinancing of BoViMa

to revitalize the

country's cattle

industry and create

jobs

17

IFC’S TOOLS AND PLATFORMS

Reducing investment risks in countries, sectors, and projects

▪ The Managed Co-Lending Portfolio

Program: Crowds in billions in private

capital from insurance companies and

others for IFC projects.

▪ IFC Asset Management Company:

Manages billions in assets for

investment in IFC projects.

Mobilization Platforms Blended Finance

▪ Uses small amounts of concessional

donor funds to mitigate risks, opening

the door to much larger amounts of

private investment.

▪ IDA 18 IFC-MIGA Private Sector

Window: Mobilizes private investment

and contributes to creating markets in

the most challenging economic

environments.

IFC’S STRATEGY

18

Maximizing Development Impact, Maintaining Financial Sustainability

IFC FOCUS

Industries that contribute to

productivity and growth

Regionswith the greatest

poverty and fragility

Challengeswith the largest risks

and opportunities

IFC’S STRATEGY

19

Key Focus Areas

Infrastructure

South Asia

Agribusiness MENA

Africa

CROSS CUTTING: Gender, Disruptive Technology, Developing Local Capital Markets,

Scaling up Mobilization

FOCUS INDUSTRIES FOCUS CHALLENGES FOCUS REGIONS

Financial Inclusion

Health and Education

Climate Finance

Fragility

Digital Economy

SUSTAINABILITY

Strong environmental, social, and governance standards are critical to

IFC’s business growth and development impact

THE POWER OF PARTNERSHIPS

20

Financial

Institution Clients

Host Country

Governments

Sovereign

Wealth Funds/

Institutional Investors

Approximately

2,000 Clients

Civil Society

IFIs/DFIsBilateral Donors/

Private Foundations

IFC’S GLOBAL

NETWORK FOR

SOLUTIONS

Strong capital base, commitment to sustainability

Strategic and innovative advisory solutions that enable clients to

strengthen their performance in a sustainable way, especially in

fragile and conflict-affected areas

A long-term partnership perspective, providing clients important

countercyclical financing when commercial banks cut back

IFC: A VALUABLE PARTNER

We help clients in good times and bad by offering:

21

WHAT CLIENTS VALUE ABOUT IFC

Results of IFC Client Survey

22

Long-Term

Partner Role

Financing

Not Readily Available

Elsewhere

Stamp of

Approval

Ability to Mobilize

Additional Funds

Advice based on Global

Expertise and KnowledgeWorldwide

Presence

Affiliation with the

World Bank Group Environmental,

Social, and Corporate

Governance Expertise

WHAT WE DO

Integrated Solutions, Increased Impact

23

▪ Loans

▪ Equity

▪ Trade and Commodity

Finance

▪ Syndications

▪ Derivatives and

Structured Finance

▪ Blended Finance

▪ Innovative Solutions

Combining IFC’s

Expertise and Tools to:

– Help Create New

Markets

– Unlock Investment

Opportunities

– Strengthen Clients’

Performance and

Impact

– Improve Environmental,

Social, and Corporate

Governance Standards

▪ Mobilizing and Managing

Capital for Investment

ADVICEINVESTMENT

IFC ASSET

MANAGEMENT

COMPANY

INVESTMENT

24

LOANS▪ Project and corporate financing

▪ On-lending through intermediary institutions

EQUITY▪ Direct equity investments

▪ Private equity funds

TRADE AND

COMMODITY

FINANCE

Guarantee of trade-related payment obligations of

approved financial institutions

SYNDICATIONS▪ Capital mobilization to serve developmental needs

▪ Over 60 co-financiers: banks, funds, DFIs

DERIVATIVES AND

STRUCTURED

FINANCE

Derivative products to hedge interest rate, currency, or

commodity-price exposures of IFC clients

BLENDED FINANCE Using donor funds to crowd in private financing

ADVICE

TO COMPANIES

▪ Attracting private investors and partners

▪ Entering new markets

▪ Increasing impact

▪ Improving operational performance and sustainability standards

▪ Advancing gender equality

TO FINANCIAL

INSTITUTIONS AND

FUNDS

TO

GOVERNMENTS

▪ Strengthening risk management, diversifying product offerings

▪ Promoting universal access to finance, strengthening capital markets, and establishing credit bureaus and collateral registries

▪ Developing the private equity industry in frontier markets

▪ Structuring public-private partnerships that improve people’s access to high-quality infrastructure and basic services

▪ Implementing reforms that encourage private investment, spur growth, and create jobs

25

26

IFC Asset Management

Company had about

$10.1 BILLION in assets under

management in FY18

▪ IFC Capitalization Fund

▪ IFC African, Latin American and Caribbean Fund

▪ Africa Capitalization Fund

▪ IFC Catalyst Fund

▪ IFC Global Infrastructure Fund

▪ China-Mexico Fund

▪ IFC Financial Institutions Growth Fund

▪ IFC Global Emerging Markets Fund of Funds

▪ IFC Middle East and North Africa Fund

▪ Women Entrepreneurs Debt Fund

▪ IFC Emerging Asia Fund

AMC FUNDS

IFC ASSET MANAGEMENT COMPANY

26

SUSTAINABILITY

IFC’s commitment to environmental and social sustainability and

good corporate governance helps clients:

Critical to Client Success, Development Impact

27

Improve business performance

Increase impact

Enhance transparencyEngage with affected

communities

Protect the environment

IFC PERFORMANCE STANDARDS

A Global Benchmark

28

2Treat workers fairly

and provide safe and

healthy working

conditions.

3Promote energy

efficiency, use

resources sustainably,

and cut greenhouse

emissions.

4Protect local

communities from

worksite accidents and

other project-related

dangers.

7Protect the rights,

dignity, and culture of

indigenous populations.

LABOR

RESOURCE

EFFICIENCY COMMUNITY

INDIGENOUS

PEOPLES

1Anticipate risks,

avoid, minimize and

compensate for any

impacts.

RISK

MANAGEMENT

5Avoid involuntary

resettlement and

minimize the impact on

those displaced.

LAND

RESETTLEMENT 6Protect biodiversity

and ecosystems.

BIODIVERSITY 8 CULTURAL

HERITAGE

Protect cultural

heritage and promote

equitable sharing of

related benefits.

IFC CORPORATE GOVERNANCE (CG) METHODOLOGY

35 development finance institutions now follow IFC’s approach,

covering five key areas of risk assessment:

Sharing Best Practice

29

Commitment to CG: Awareness and formalization of sound practices

Structure/Functioning of Boards of Directors: Board roles, composition,

committee structure, procedures, director duties, and overall functioning

Control Environment and Processes: Effectiveness of internal controls,

risk management, internal/external audit, and compliance functions

Transparency and Disclosure: Information disclosure to shareholders and

markets; transparency of information and financial standards used

Rights of Minority Shareholders: Treatment of investors, shareholders

rights and protections, annual meeting procedures, conflict/related-party

transaction policies

3

4

5

2

1

IFC’S GLOBAL REACH

101 offices in 94 countries worldwide

3,921 staff (55% are based outside

Washington, D.C.)

30

31

2.5 million jobs

Health services to 41.2 million patients

Education to 5.7 million students

Improved opportunities for 3.7 million farmers

Cambodia

DEVELOPMENT REACH

OF IFC'S CLIENTS IN

CALENDAR YEAR 2017

32

62.7 million microfinance and SME

loans, totalling $438.6 billion

Power generated for 79.2 million people

Water distributed to 18.2 million people

186.7 million people receiving phone

connections

Egypt

DEVELOPMENT REACH

OF IFC'S CLIENTS IN

CALENDAR YEAR 2017

33

$23.3 billion in long-term investment:

▪ $11.6 billion for IFC’s own account

▪ $11.7 billion mobilized

$57.2 billion committed portfolio

$6.8 billion invested in IDA countries

Advice: 57% of program in IDA countries,

19% in fragile and conflict-affected areas,

32% in sub-Saharan Africa, 27% climate-

related.

FISCAL YEAR 2018

HIGHLIGHTS

Kenya

10.0 10.6 11.111.9 11.6

5.1

7.17.7 7.4

11.7

0

5

10

15

20

25

FY14 FY15 FY16 FY17 FY18

IFC's Own Account Mobilization

FY18 LONG-TERM INVESTMENT COMMITMENTS:

$23.3 BILLION

34 34

$17.7 bn

$15.1 bn

$19.3 bn$18.8 bn

$23.3 bn

47.4%

17.8%

8.2%

6.4%

6.6%

0.8%

6.4%4.6% 1.8%

Financial Markets

Infrastructure

Agribusiness and Forestry

Health and Education

Tourism, Retail, and Property

Oil, Gas, and Mining

Funds

Manufacturing

Telecommunications and Information Technology

FY18 LONG-TERM INVESTMENT COMMITMENTS BY INDUSTRY

35

COMMITMENTS FOR IFC’S ACCOUNT: $11.6 BILLION

21.6%

16.9%

13.2%

19.4%

17.9%

8.7%2.3%

Latin America and the Caribbean

East Asia and the Pacific

Sub-Saharan Africa

Europe and Central Asia

South Asia

Middle East and North Africa

Global

FY18 LONG-TERM INVESTMENT COMMITMENTS BY REGION

36

COMMITMENTS FOR IFC’S ACCOUNT: $11.6 BILLION

35%

20%7%

5%

5%

3%

8%

8%

3%6%

Financial Markets

Infrastructure

Agribusiness and Forestry

Health and Education

Tourism, Retail, and Property

Oil, Gas, and Mining

Funds

Manufacturing

Trade Finance

FY18 COMMITTED INVESTMENT PORTFOLIO BY INDUSTRY

37

TOTAL PORTFOLIO: $57.2 BILLION

Telecommunications and

Information Technology

Trade Finance

22%

16%

15%

18%

17%

9%3%

Latin America and the Caribbean

East Asia and the Pacific

Sub-Saharan Africa

Europe and Central Asia

South Asia

Middle East and North Africa

Global

FY18 COMMITTED INVESTMENT PORTFOLIO BY REGION

38

TOTAL PORTFOLIO: $57.2 BILLION

11%

17%

32%

14%

15%

5%6%

Latin America and the Caribbean

East Asia and the Pacific

Sub-Saharan Africa

Europe and Central Asia

South Asia

Middle East and North Africa

Global

FY18 ADVISORY SERVICES PROGRAM EXPENDITURES

BY REGION

39

TOTAL EXPENDITURES: $273.4 MILLION

9%

22%

20%

29%

7%

13%

Energy and Resource Efficiency

Investment Climate

Cross-Industry Areas

Financial Sector

Agribusiness

Public Private Partnerships

FY18 ADVISORY SERVICES PROGRAM EXPENDITURES

BY BUSINESS AREA

40

TOTAL EXPENDITURES: $273.4 MILLION

IFC IN WESTERN EUROPE, THE MIDDLE EAST,

AND NORTH AFRICA

41

Moscow

Minsk

Kiev

WarsawLondon

Frankfurt

ZagrebBelgrade

Bucharest

SofiaTirana Istanbul

Tbilisi

Yerevan Baku

Dushanbe

BishkekAlmaty

Rabat

Cairo

Jerusalem

Dubai

Tashkent

KabulIslamabad

Karachi

Paris

Brussels

Beirut

Amman

Tunis

ATLANTIC

OCEAN

Mediterranean

Sea

Black Sea

Aral

Sea

Barents

Sea

North

Sea

IFC Hub Offices

IFC Operational Centers

IFC Offices

Vienna

Baghdad

Sarajevo Pristina

IFC IN EUROPE AND CENTRAL ASIA

42

IstanbulTirana

Zagreb

Sarajevo

Moscow

Warsaw

Belgrade

SofiaSkopje

Bucharest

Kiev

Minsk

Tbilisi

Yerevan Baku

Dushanbe

Kabul

Tashkent

BishkekAlmaty

IFC Hub Offices

IFC Operational Centers

IFC Offices

Vienna

IFC IN ASIA AND THE PACIFIC

43

PACIFIC

OCEAN

INDIAN

OCEAN

Ulaanbaatar

BishkekTashkent

Dushanbe

KabulIslamabad

Karachi New Delhi

Mumbai

Colombo

Beijing

Tokyo

DhakaHanoi

Vientiane

Ho Chi Minh City

Phnom Penh

Bangkok

Hong Kong

Manila

JakartaDili Port Moresby

Sydney

Almaty

Yangon

Kathmandu

Thimphu (Bhutan)

Singapore

Honiara

IFC Hub Offices

World Bank Group Hub Office

IFC Country Offices

Seoul

Suva

Vanuatu

IFC Hub Offices

IFC Country Offices

Caribbean Sea

ATLANTIC

OCEAN

Gulf of Mexico

PACIFIC

OCEAN

ATLANTIC

OCEAN

Rio de Janeiro

Buenos Aires

La Paz

Lima

Bogota

Santo Domingo

Managua

Mexico City

São Paulo

Port-au-Prince

TegucigalpaGuatemala City

Kingston

San Salvador

IFC IN LATIN AMERICA AND THE CARIBBEAN

44

Panama City

IFC IN SUB-SAHARAN AFRICA

45

IFC Hub Offices

IFC Country Offices

ATLANTIC

OCEAN

Mediterranean

Sea

INDIAN

OCEAN

JohannesburgMaputo

Antananarivo

Lusaka

Freetown

NairobiKigali

Douala

LagosAccra

Ouagadougou

Abidjan

Dakar

CairoAmman

JerusalemBeirut

Algiers

Rabat

Sana’a

Dubai

Monrovia

Kinshasa

Addis Ababa

Dar es-Salaam

Bujumbura

Bamako

Bangui Juba

Tunis

AbujaConakry