IFC

Report
THE POWER
OF PARTNERSHIPS
IFC: Part of the World Bank Group
IBRD
IDA
IFC
MIGA
ICSID
International
Bank for
Reconstruction
and
Development
International
Development
Association
International
Finance
Corporation
Multilateral
Investment and
Guarantee
Agency
International
Center for
Settlement of
Investment
Disputes
Loans to
middle-income
and creditworthy lowincome country
governments
Interest-free
loans and
grants to
governments
of poorest
countries
Solutions
in
private
sector
development
2
Guarantees of
private sector
investment’s
noncommercial
risks
Conciliation
and arbitration
of investment
disputes
World Bank Group Commitments, FY13
Total Commitments: $52.6 Billion
Loans, grants,
equity investments,
IDA
$16.3 b
IFC*
$18.3 b
guarantees, and
advisory services
to support
development
MIGA
$2.8 b
IBRD
$15.2 b
*Excluding mobilization ($6.5b)
3
IFC’s History
A global institution, now owned by 184 member countries
1956
IFC Launch
PSD added to
the global
economic
agenda
19902000s
1980
IFC coins
term
“emerging
markets”
IFC scales
up
investments
4
Today
The global
leader in
private
sector
development
finance
IFC’s Priorities
Long-term
client relationships
in emerging markets
Local financial
markets
Frontier
markets
Strategic
Focus
Areas
Climate change
and environmental
& social sustainability
Constraints to private sector growth in infrastructure,
health, education, & the food supply chain
5
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
6
What Clients Value About IFC
Long-Term
Partner
Role
Worldwide
Presence
WBG
Stamp of
Approval
Financing
Not Readily
Available
Elsewhere
Ability to
Mobilize
Additional
Funds
Broad
Range of
Products
Global/
Local
Knowledge
of Industries
& Markets
Perceived
Risk
Mitigation
2013 IFC Client Survey
7
Our Three Businesses
Integrated Solutions, Increased Impact
Investment
Services
Advisory
Services
•
Loans
•
Access to finance
•
Equity
•
Investment Climate
•
Trade finance
•
Sustainable Business
•
Syndications
•
•
Securitized finance
Public-Private
Partnerships
•
Risk management
•
Blended finance
$49.6 b portfolio (FY13)
$232 m (FY13)
8
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
-
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 commodityprice exposures of IFC clients
Blended Finance
-
Combination of concessional funds with IFC resources to finance
initiatives & achieve impact that would otherwise be unattainable
9
Advisory Services
Access to
Finance
-
Increases availability and affordability of financial services for
individuals and micro, small, and medium enterprises
-
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
Investment
Climate
10
IFC Asset Management Company
IFC Capitalization Fund
IFC African, Latin American,
& Caribbean Fund
Africa Capitalization Fund
IFC Russian Bank
Capitalization Fund
IFC Catalyst Fund
IFC Global Infrastructure
Fund
-
Helps strengthen systemically important banks in
emerging markets, bolstering their ability to cope with
financial and economic downturns
-
Co-invests with IFC in equity and equity-related
investments across a range of sectors in Sub-Saharan
Africa, Latin America, and Caribbean
-
Invests in systemically important commercial banking
institutions in Africa
-
Invests in commercial banking institutions in Russia
-
Invests in funds that provide growth capital to
companies developing innovative ways to address
climate change in emerging markets
-
Co-invests with IFC and equity-related investments in
the infrastructure sector in emerging markets
11
IFC’s Global Reach
•
109 country and regional offices worldwide, AAA credit rating
•
4,015 staff (57% are based outside Washington DC)
12
FY13 Investment Commitments: $24.8 Billion
New commitments are growing
($ Billions)
22% growth from
FY12 to FY13
30.0
25.0
6.5
20.0
4.9
15.0
5.0
6.5
3.5
12.7
12.2
FY11
FY07
10.5
FY10
8.2
11.0
FY09
6.8
FY06
1.4
FY08
3.8
10.0
5.0
5.3
15.4
18.3
IFC's own account
13
13
Mobilization
FY13
FY12
0.0
Investments by Industry, FY13
Commitments for IFC’s Account: $18.3 Billion
Financial Markets
20%
Trade Finance
35%
Infrastructure
12%
Oil, Gas, & Mining
2%
Telecom & IT
3%
Funds
5%
Agribusiness &
Forestry
7%
14
Consumer &
Social Services
9%
Manufacturing
7%
Investments by Region, FY13
Commitments for IFC’s Account: $18.3 Billion
South Asia
9%
Global
1%
Latin America & the
Caribbean
26%
Middle East & North
Africa
11%
East Asia & the
Pacific
16%
Sub-Saharan Africa
19%
Europe & Central
Asia
18%
15
Advisory Services by Business Line, FY13
Total Program Expenditures: $231.9 Million
Public-Private
Partnerships
17%
Investment
Climate
32%
Sustainable
Business
24%
Access to Finance
27%
16
Advisory Services by Region, FY13
Total Program Expenditures: $231.9 Million
Global
5%
South Asia
14%
Latin America & the
Caribbean
11%
Sub-Saharan Africa
28%
Middle East &
North Africa
9%
East Asia & the
Pacific
17%
Europe & Central
Asia
16%
17
IFC’s Selected Agribusiness Investments in Horticulture
Kongoni
Yantai North Andre
Favorita
China
Ecuador
Loan: $20 million
Loan: $15 million
Loan: $50 million
Syndication: $10 million
Expansion of apple juice
concentrate business.
Loan: $1.9 million
Syndication: $23 million
Expansion of existing
10 hectare horticulture
and flower production
sites.
Committed: 2005
Committed: 1999, 2003,
2007
San Miguel, S.A.
Argentina
Rehabilitation and expansion
of lemon production and
processing operations.
Restructuring of debt and
expansion of export capacity.
Committed: 2005
Expansion and vertical
integration of banana
plantations for export.
Kenya
Committed: 2005
BIOPARQUES DE OCCIDENTE,
S.A. DE C.V.
Bioparques
Viru
Karsten Farms
Mexico
Peru
South Africa
Loan: $12 million
Loan $15 million
Construction and expansion
of greenhouse-farmed
beefsteak tomatoes for
export to North America.
Expansion of plantations,
processing lines for canned
asparagus exports.
Expansion of farming
operations & establishment of
fruit trading, logistics and
handling services in South
Africa.
Committed: 2007
Committed: 2006
Committed: 2008
Loan: $7.2 million
18
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
Azerbaijan
US$18 million Loan &
Equity
Belarus
US$70 million Loan &
Equity
Ukraine
US$51 million Loan
Belarus
US$26 million Loan &
Equity
Lebanon
US$20 million Loan &
Equity
Bulgaria
US$52 million Loan
Russian Federation
US$171 million Loan
Turkey
US$30 million Loan
Egypt
US$15 million Loan
China
US$7 million Equity
Russian Federation
US$67 million Loan
Egypt
US$49 million Loan &
Equity
India
US$15 million Loan &
Equity
Croatia, Poland
US$49 million Loan
Slovenia, Croatia,
Serbia, Bosnia &
Herzegovina
US$51 million Loan
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IFC’s Experience in the Chemicals Sector
Examples of IFC’s Experience With Global Partners:
Downstream Oil and Gas and Other Sectors
USA
Star Petroleum Refining Co.
US$ mm 350 Debt
Thailand
MBAC (Itafos)
A Loan: US$40M
Equity: US$35M
USA - Brazil
Bayer Ukraine Ltd.
US$70m Risk Sharing
Facility
Ukraine
Pecom
(Now Petrobras Argentina)
US$ 50 mm Debt
Argentina
Dallas, TX
Supply Chain Finance
Facility
Omimex (Abocol Colombia)
US$80m
India
A Loan: US$ 30M
Risk Management: US$45M
USA - Colombia
BHP Biliton, Mitsubishi,
Industrial Dev. Corp., Gov’t
of Mozambique Joint Venture
EDF La Ventosa
US$25m Debt
Mozambique
US$25m Debt and US$15m
Concessional Financing
Mexico
Orascom
A Loan $200MM, B Loan
$125mm
Equity $50M
Egypt
Veolia Voda S.A.
€ 50m Share Issue
Ukraine and Russia
Shell Petroleum Corporation
US$ 135mm Financing
Philippines
Global Trade Liquidity
Program
US$4b
Global
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David Fulton
Head, USA and Canada
International Finance Corporation
[email protected]
21

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