CO COFI FIDE DE Cor orpo porate rate Presentat esentation - PowerPoint PPT Presentation

CO COFI FIDE DE Cor orpo porate rate Presentat esentation ion September 2018

Disclaimer The material that follows is a presentation of general background information about Corporación Financiera de Desarrollo S.A. and its subsidiaries (“COFIDE”), as of the date of the presentation, prepared solely for purposes of meetings with capital markets participants. The material contained herein is in summary form and does not purport to be complete. This presentation contains statements that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are not guarantees of future performance. We caution you that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of COFIDE that may cause actual results to be materially different from any future results expressed or implied in such forward-looking statements. Although COFIDE believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to COFIDE’s management, COFIDE cannot guarantee future results or events. COFIDE expressly disclaims any duty to update any of the forward-looking statements, or any other information contained herein. .

COFIDE We are PERU’s Development Bank We are a state-owned development bank established in 1971 by the government of Peru. We are a key participant in Peru’s economic and social development programs. We focus in on infrastructure finance and long term productive sustainable projects, as well as micro and small enterprises credit. Our lending activities are conducted on commercially reasonable terms and funded mainly through debt issuance in local and international capital markets. We receive syndicated loans and other forms of financing from Peruvian and international commercial banks, multilateral agencies, as well as capital contributions from the Peruvian government. COFIDE also plays a key role in financial inclusion, SME formalization and “start up” development. 1

Key Highlights for COFIDE 1 Strategic Asset for the Peruvian Government

1 Strategic Asset for the Peruvian Government  Sovereign development bank established in 1971.  Autonomous board of directors manages day-to-day operations independently of the Peruvian Government.  Part of the National Financial System and regulated by the Superintendencia de Banca Seguros y AFPs (SBS). Capital Adequacy Ratio (1) INTERNATIONAL CREDIT RATINGS 44.1% Moody’s S&P Fitch 38.6% 36.3% 30.5% 28.8% 25.7% 26.8% 25.0% Republic of A3 BBB+ BBB+ Peru (stable) (stable) (stable) Baa3 BBB BBB+ COFIDE (negative) (negative) (stable) 2012 2013 2014 2015 2016 2017 Jun-18 2018 100% CAF FONAFE  Regional development bank established in  Created in 1999 to oversee the Peruvian Government’s corporate 1970 activities and equity stakes  Acquired stake in COFIDE in 1997 0.8% 99.2%  Board of directors appoints  US$37.1bn in assets (US$23.0Bn in loans) management team for the as of September 2017 government’s majority holdings,  CAF ratings: Aa3 / AA- / AA- including COFIDE Notes: (1) Capital adequacy ratio calculated as regulatory capital over risk weighted assets 3

1 Business Lines: USD 6,850 MM Bank • Productive Loan • Infrastructure Loan Portfolio: US$ 691 MM Portfolio: US$ 587MM Infrastructure Productive Investment* Investment* 8.6% 10.1% • SME Financing • Trusts and Funds: US$ 476 MM AUM: US$ 3,137 MM Fiduciary SME Agent 6.9% 45.7% Inclusion and Treasury and Bond Entrepreneurship Portfolio Programs 28.7% • PRIDER**: S/. 124MM • Corporate Bond accum. loans Portfolio: US$ 560MM • Entrepreneurship Development Center: +125M beneficiaries • Liquidity and CAF: • Start up Grind: 51 meet ups >USD 1,400 MM Notes: *Business Lines since 2008. Includes loans and financial guarantees. As of June 2018 **PRIDER: Rural Inclusion Program for Entrepreneurship Development 4

Key Highlights for COFIDE 1 Strategic Asset for the Peruvian Government 2 Strong Macroeconomic Fundamentals

2 Strong Macroeconomic Fundamentals GDP Latin America (% anual change) 4.2% 4.0% 3.6% 3.5% 3.0% 2.9% 2.9% 2.6% 2.3% 2.5% 2.5% 2.5% 2.2% 2017 2.0% 1.8% 2018* 1.7% 1.5% 2019* 1.0% Perú Chile Colombia Brasil México Argentina Source: Central Reserve Bank of Peru Inflation Latin America 2018* (% anual change) Inflation Latin America 2019* (% anual change) Perú 2.0% Perú 2.2% Ecuador 2.0% Chile 2.5% Chile 3.1% Colombia 3.2% Colombia 3.2% Brasil 3.5% México 3.6% Bolivia 3.6% Paraguay 4.0% México 3.9% Bolivia 4.0% Paraguay 4.2% Brasil 4.2% Uruguay 6.9% Uruguay 6.8% Argentina 25.9% Argentina 18.0% Venezuela Venezuela 20345.0% 4665.0% Source: Central Reserve Bank of Peru Source: Central Reserve Bank of Peru *Proyection 6

2 Strong Macroeconomic Fundamentals Net International Reserves International Coverage Indicators (in billions of USD) 65.7 64.4 64.0 63.6 62.6 62.3 61.7 61.5 2011 2016 2017 2018* 2019* 48.8 44.1 Net International Reserves as 28.9 31.5 29.5 27.8 27.3 33.1 31.2 % of GDP 27.7 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*2019* Source: Central Reserve Bank of Peru Source: Central Reserve Bank of Peru. Foreign trade exchange terms Commercial balance - FOB values (millons USD) (var %) 10,011 9,224 21 9,025 8,503 6,988 6,393 6,266 10.9 6,060 7.2 7.3 4.9 4.3 2,569 1.3 1,888 504 -2.6 -2.4 -5.2 -5.4 -7 -6.4 (1,509) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019* (2,916) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*2019* Source: Central Reserve Bank of Peru Source: Central Reserve Bank of Peru 7

2 Strong Macroeconomic Fundamentals Medium and long-term external Current account and Long-term external capitals inflows from the private sector debt (% GDP) Current account Long-term external capitals inflows from the private sector 11 2017 2018* 2019* 10 7.7 7.1 6.6 5.6 4.6 4.4 4.4 Total 32.0 29.6 28.6 Privada 16.7 15.0 14.2 -1.2 -1.3 -1.3 -1.8 -2.7 -2.8 -4.4 -4.7 -4.8 2011 2012 2013 2014 2015 2016 2017 2018* 2019* Source: Central Reserve Bank of Peru. Gross Public Debt (% GDP) Public Debt: 2011- 2019 (% PBI) 2017 * Gross debt Net debt 26.3 25.3 24.8 23.8 BRASIL 83.4 BOLIVIA 45.7 23.3 22.3 20.8 20.1 20 URUGUAY 59.8 ECUADOR 39.0 14.8 12.3 9.5 ARGENTINA 53.4 PARAGUAY 25.7 8.2 6.9 5.5 4.5 3.2 3.3 MÉXICO 53.3 CHILE 24.9 COLOMBIA 48.5 PERÚ 24.8 2011 2012 2013 2014 2015 2016 2017 2018* 2019* Source: Central Reserve Bank of Peru . 8

Key Highlights for COFIDE 1 Strategic Asset for the Peruvian Government 2 Strong Macroeconomic Fundamentals Peru’s Infrastructure Gap Creates Several Development 3 Opportunities

Peru’s Infrastructure Gap Creates Several Development 3 Opportunities (Cont’d) Peruvian Infrastructure GAP 2016 - 2025 Infrastructure GAP* 2016 - 2025 (US$MM) Hydraulic 5.3% GAP Short GAP Mid GAP Large Sector Horizon Horizon Horizon Transport 2016 - 2020 2021 - 2025 2016 - 2025 36.0% Energy 19.3% Water and 6,970 5,282 12,252 Sanitation Communications 12,603 14,432 27,036 Health 11.9% Transport 21,253 36,246 57,499 Education Energy 11,388 19,387 30,775 2.9% Water and Comunicat Sanitation ions Health 9,472 9,472 18,944 16.9% 7.7% Loans & Investments by Economic Sector (%) Education 2,592 1,976 4,568 Others Hydraulic 18% 4,537 3,940 8,477 Ports and Airports 2% Energy Total 68,815 90,735 159,551 33% Health 1% Source: "Un Plan para salir de la pobreza: Plan Nacional de Infraestructura 2016 - 2025" – Fishing AFIN (2015) 2% Sanitation * The infrastructure gap estimate takes into account a horizontal gap (as a result of the 1% comparison with the Pacific alliance countries in the medium term, and OECD countries in the long run), and a vertical gap (which depends on the needs Of the country associated Highways with its growth) 6% SME 10% Agribusines Transportati s on 14% 13% 9

COFIDE Participation in closing the Infrastructure’s Gap 3 2012-2017 Summary of projects outlined in this map:  Total Financing: US$ 2,570 MM / COFIDE’s Participation : US$ 830 MM  We have been Catalyst (3 to 1) of Private Investment in Infrastructure Projects and concessions through APPs prioritized by Proinversión. Highway: Longitudinal de la Sierra tranch 2 US$ 60 MM Credit Suisse / Santander El Carmen and 8 de Agosto Mini- Port of Paita Hydroelectric US$ 34 MM US$ 20 MM Goldman Sachs Nederlandse Financierings- Maatschappij voor Wind Farm Cupisnique Ontwikkelingslanden N.V andTalara US$ 100 MM Chaglla Hydroelectric US$ 100 MM Goldman Sachs Deutsche Bank Cold Reserve Generation – H1 Hydroelectric Plant Eten US$ 33.65 MM US$ 45 MM BTG Pactual BCP Taboada Wastewater La Virgen Hydroelectric Treatment Plant US$ 30 MM PEN 84 MM Banco Santander Panamá S.A. BNP Paribas Cerro del Águila Hydroelectric Vía Parque Rímac US$ 75 MM PEN 230 MM Interbank & HSBC BNP Paribas El Ángel Hydroelectric Lima Metro Line 2 US$ 47 MM US$ 110 MM Interbank Deutche Bank Combinated Cycle Generation - Plant Chilca I US$ 82 MM Scotiabank / BCP 10