the power of partnerships. ifc: part of the world bank group 2 conciliation and arbitration of...
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IFC: Part of the World Bank Group
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Conciliation and arbitration of investment disputes
Guarantees of private sector investment’s non-commercial risks
Interest-free loans and grants to governments of poorestcountries
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 and Guarantee Agency
ICSID
International Center for Settlement of Investment Disputes
IDA$16.3
b
IBRD$15.2 b
MIGA$2.8 b
IFC*$18.3
b
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World Bank Group Commitments, FY13
Loans, grants,
equity
investments,
guarantees, and
advisory services
to support
development
Total Commitments: $52.6 Billion
*Excluding mobilization ($6.5b)
4
IFC’s History
IFC Launch
PSD added to the global economic agenda
IFC coins term “emerging markets”
IFC scales up investments
The global leader in private sector development finance
1990-
2000s
1980
1956
Today
A global institution, now owned by 184 member countries
5
IFC’s Priorities
Frontier markets
Climate change and environmental & social sustainability
Local financial markets
Long-term client relationships
in emerging markets
Strategic Focus Areas
Constraints to private sector growth in infrastructure, health, education, & the
food supply chain
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We help clients in good times and bad by offering:
IFC: A Valuable Partner
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
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What Clients Value About IFC
Long-Term Partner
Role
WBG Stamp of Approval
Financing Not
Readily Available Elsewhere
Worldwide Presence
Broad Range of Products
Global/ Local
Knowledge of
Industries & Markets
Ability to Mobilize
Additional Funds
Perceived Risk
Mitigation
2013 IFC Client Survey
Our Three Businesses
IFC Asset Management
Company
• Wholly owned subsidiary of IFC
• Private equity fund manager
• Invests third-party capital alongside IFC
$5.5 b under mgmt (FY13)
Investment Services
• Loans
• Equity
• Trade finance
• Syndications
• Securitized finance
• Risk management
• Blended finance
$49.6 b portfolio (FY13)
Advisory Services
• Access to finance
• Investment Climate
• Sustainable Business
• Public-Private Partnerships
$232 m (FY13)
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Integrated Solutions, Increased Impact
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Investment Services
Loans
Equity
Trade Finance
Syndications
Structured Finance
Risk Management
Blended Finance
- Project and corporate financing - On-lending through intermediary institutions
- Direct equity investments (up to 20% of company’s equity)
- Private equity funds
- Guarantee of trade-related payment obligations of approved financial institutions
- Capital mobilization to serve developmental needs- Over 60 co-financiers: commercial banks, fund, and DFIs
- Products including credit guarantees, liquidity facilities, portfolio risk transfer, securitizations, and Islamic finance
- Derivative products to hedge interest rate, currency, or commodity-price exposures of IFC clients
- Combination of concessional funds with IFC resources to finance initiatives & achieve impact that would otherwise be unattainable
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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
Public-Private Partnerships
- Helps governments design and implement PPPs in infrastructure and other basic public services (electricity, water, health and education)
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
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IFC Asset Management Company
IFC Capitalization Fund- Helps strengthen systemically important
banks in emerging markets, bolstering their ability to cope with financial and economic downturnsIFC 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
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IFC’s Global Reach• 109 country and regional offices worldwide, AAA
credit rating • 4,015 staff (57% are based outside Washington DC)
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FY13 Investment Commitments: $24.8 Billion
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FY
06
FY
07
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
6.8 8.211.0 10.5 12.7 12.2
15.418.3
1.43.8
5.03.5
5.3 6.54.9
6.5
New commitments are growing($ Billions)
IFC's own account Mobilization
22% growth from FY12 to
FY13
Investments by Industry, FY13
Financial Markets20%
Infrastructure12%
Consumer & Social Services
9%Manufacturing
7%Agribusiness & Forestry
7%
Funds5%
Telecom & IT3%
Oil, Gas, & Mining2%
Trade Finance35%
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Commitments for IFC’s Account: $18.3 Billion
Investments by Region, FY13
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Commitments for IFC’s Account: $18.3 Billion
Latin America & the Caribbean
26%
Sub-Saharan Africa19%
Europe & Central Asia18%
East Asia & the Pacific16%
Middle East & North Africa11%
South Asia9%
Global1%
Advisory Services by Business Line, FY13
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Total Program Expenditures: $231.9 Million
Investment Climate32%
Access to Finance27%
Sustainable Business
24%
Public-Private Partnerships
17%
Advisory Services by Region, FY13
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Total Program Expenditures: $231.9 Million
Latin America & the Car-ibbean11%
Sub-Saharan Africa28%
Europe & Central Asia16%
East Asia & the Pacific17%
Middle East & North Africa
9%
South Asia14%
Global5%
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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
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
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 of banana plantations for export.
Committed: 1999, 2003, 2007
Favorita
Ecuador
Loan: $50 million
Syndication: $23 million
Expansion and vertical integration of banana 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
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
Bioparques
Mexico
Loan: $12 million
Construction and expansion of greenhouse-farmed beefsteak tomatoes for
export to North America.
Committed: 2008
BIOPARQUES DE OCCIDENTE, S.A. DE C.V.
BIOPARQUES DE OCCIDENTE, S.A. DE C.V.
Viru
Peru
Loan $15 million
Expansion of plantations, processing lines for canned
asparagus exports.
Committed: 2007
Viru
Peru
Loan $15 million
Expansion of plantations, processing lines for canned
asparagus exports.
Committed: 2007
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
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
Milagro
Uruguay
Loan: $10 million
Expansion of citrus plantations and packing &
processing facilities.
Committed: 2009
Milagro
Uruguay
Loan: $10 million
Expansion of citrus plantations and packing &
processing facilities.
Committed: 2009
Select Transactions in the Retail Sector
EMENA EMENA EMENA EMENA EMENA & Asia
Lebanon US$20 million Loan & Equity
India US$15 million Loan & Equity
China US$7 million Equity
Belarus US$26 million Loan & Equity
Egypt US$49 million Loan & Equity
Egypt US$15 million Loan
Ukraine US$51 million Loan
Russian FederationUS$67 million Loan
Turkey US$30 million Loan
BelarusUS$70 million Loan & Equity
Slovenia, Croatia, Serbia, Bosnia & HerzegovinaUS$51 million Loan
Russian FederationUS$171 million Loan
AzerbaijanUS$18 million Loan & Equity
Croatia, PolandUS$49 million Loan
Bulgaria US$52 million Loan
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IFC’s Experience in the Chemicals Sector
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US$70m Risk Sharing FacilityUkraine
US$25m DebtMozambique
US$4bGlobal
US$25m Debt and US$15m Concessional
FinancingMexico
Bayer Ukraine Ltd.BHP Biliton, Mitsubishi, Industrial Dev. Corp., Gov’t of Mozambique
Joint Venture
Global Trade Liquidity Program
€ 50m Share IssueUkraine and Russia
EDF La Ventosa
Veolia Voda S.A.A Loan $200MM, B
Loan $125mmEquity $50M
Egypt
Star Petroleum Refining Co.
US$ mm 350 DebtThailand
Shell Petroleum Corporation
US$ 135mm Financing
Philippines
Pecom (Now Petrobras
Argentina)US$ 50 mm Debt
Argentina
A Loan: US$ 30M Risk Management:
US$45MUSA - Colombia
Omimex (Abocol Colombia)
Examples of IFC’s Experience With Global Partners: Downstream Oil and Gas and Other Sectors
A Loan: US$40MEquity: US$35M
USA - Brazil
MBAC (Itafos)
US$80mIndia
Supply Chain Finance Facility
USA
Orascom
Dallas, TX