EXPERIENCE MATTERS Six Decades of Experience in Emerging Markets - PowerPoint PPT Presentation

EXPERIENCE MATTERS Six Decades of Experience in Emerging Markets

IFC AND THE WORLD BANK GROUP 1. IFC and the World Bank Group 2. IFC global reach 3. IFC value added 4. IFC products 5. IFC organization 6. Investment Focus 7. IFC results 8. IFC investments (FY14 - FY17) 9. IFC in Western Europe 10. Annexes 1

IFC and the World Bank Group IFC is the largest global development institution focused exclusively on the private sector in developing countries IBRD IDA MIGA IFC International Bank International Multilateral International Development For Reconstruction Investment Guarantee Finance Association and Development Agency Corporation Est. 1988 Est. 1956 Est. 1945 Est. 1960 Promote cross-border Promote private sector Support countries’ Support countries’ investment and development economic and economic and Role lending institutional institutional development development Investors in member Debt and Equity countries Governments of Governments of investors in member member countries with member countries with countries annual per capita annual per capita Clients income of less than income between $1,025 - Equity/Quasi-Equity $1,025 and $6,055 - Long-Term Loans - Political Risk - Advisory Services - Technical Assistance - Technical Assistance Insurance - Loans - Interest-Free Loans Products - Credit Enhancement - Policy Advice - Policy Advice Shared Mission: “End extreme poverty and build shared prosperity” 2

IFC at a Glance 60 years of investing in emerging markets IFC Institutional Highlights IFC Added Value Sector expertise and advice • Founded in 1956 with 184 member countries • Extensive knowledge gained from long-term sector engagement • AAA rated by S&P and Moody’s • In-house engineers and market expert • Assistance programs, including Local Supplier • Largest multilateral source of loan/equity Development, Corporate Governance, Community financing for the emerging markets private Development Funding sector Country risk mitigation: honest broker role • Promoter of environmental, social, and • Government relations corporate governance standards • World Bank synergies • Resources and know-how of a global Environmental and Social risk management development bank and flexibility of a & governance merchant bank • Advice on Environmental and Social best practices • Equator Principles modeled after IFC standards 3 3

IFC Global Reach IFC has reach in more than 100 regional offices present in 94 countries worldwide Drawing on our experience and lessons-learned, IFC shares sector best practices to the benefit of its clients Moscow Almaty Washington Istanbul New Delhi Cairo Mexico City Hong Kong Dakar Port-of-Spain Bogota Nairobi Johannesburg São Paulo Buenos Aires IFC HQ/Hub Offices IFC Operational Centers IFC Country Offices 3,860 staff (56% are based outside Washington DC) 4

IFC Client Network An extensive global network $55 billion committed portfolio for 2,000+ clients in 170+ countries (as of end FY17) Europe & Central Asia MENA East Asia & Pacific $6.1 billion Portfolio $9.9 billion Portfolio $8.8 billion Portfolio South Asia $7.7 billion Portfolio Latin America and Caribbean World Region $11.6 billion Portfolio Sub-Saharan Africa $1.7 billion Portfolio $9.4 billion Portfolio 5

IFC Portfolio Across Regions A well-diversified portfolio across regions Committed Portfolio by Region: $55 billion (as of June 30, 2017) Latin America and the Caribbean 3 % East Asia and the Pacific 11 % 21 % Sub-Saharan Africa 14 % Europe and Central Asia 16 % South Asia 18 % Middle East and North Africa 17 % Global 6

IFC Products IFC can play multiple roles Mobilization Advice For IFC own account • Project Finance • Loans • Financial Sector • Corporate Loans o Syndication (B- Senior Loans/Parallel Loans) • Long-term investment horizon • Investment Debt o Managed Co-Lending Climate • Local currency financing Portfolio Program (MCPP) • Public-Private • Subordinated loans Partnerships • Equity/Sub-debt Mezzanine • Income participating loans / Quasi- o IFC Asset Equity • Convertibles and other hybrid • Agribusiness Management products Company (AMC) • Up to 20% shareholding • Infrastructure Equity • Investments in Private Equity Funds • Solutions across industries • Risk Sharing Facility (e.g. on SME portfolio) Guarantee • Partial Credit Guarantee (credit enhancement for debt/bonds) Trade • Short term finance Finance 7

IFC Organization IFC is organized around four pillars TELECOMS, MEDIA AND INFRASTRUCTURE AND MANUFACTURING FINANCIAL TECHNOLOGY, NATURAL AGRIBUSINESS & INSTITUTIONS (FIG) VENTURE CAPITAL RESOURCES (INR) SERVICES (MAS) AND FUNDS FY17 Commitment: FY17 Commitment: FY17 Commitment: FY17 Commitment: $2.2 billion $5.9 billion $3.3 billion $0.6 billion • Infrastructure • 800 financial • Inventories, seeds, • Modern projects: institutions: fertilizers, communications infrastructure chemicals, fuel for Investment and Fast-growing cities farmers, advisory support for • Information- with critical needs in microfinance, technology • Investments in power, utilities, and infrastructure such businesses, transportation. Insurance, as warehouses . • Climate-friendly Loans to SMEs and • Oil, gas, and • Chemical and technologies. women-owned mining: construction businesses materials Helping developing Low and medium- companies, countries realize income mortgages • Energy-efficient these benefits machinery , equipment for solar Helping promote and wind power. sustainable energy sources. • Tourism, retail, property, health and education . 8

IFC Portfolio Across Sectors A well-diversified portfolio across sectors Committed Portfolio by Sector: $55 billion (as of June 30, 2017) Financial Markets Infrastructure 3 %6 % Agribusiness and Forestry 10 % Health and Education 34 % Tourism, Retail, and Property 8 % Oil, Gas, and Mining 4 % Funds 4 % 5 % Manufacturing 7 % 19 % Telecommunications and Information Technology Trade Finance 9

Investment Focus: IFC is Investing in Challenging Environments Geographical focus • Sub-Saharan Africa • MENA • South Asia IDA and FCS are a key priority • About 1.5 billion people live in the 75 poorest countries eligible to borrow from the World Bank’s International Development Association (“IDA”) • By 2030, nearly half the world’s poor is expected to live in fragile and conflict-affected areas (“FCS”) 65 million people displaced due to conflict o Recurring nature of conflict (40% of states relapse into conflict within 5 years) o 35 FCS 75 IDA countries countries • IDA (59 countries) • Fragile countries (acute poverty, weak institutions, e.g. Haiti) GNI per capita below an established threshold of $1,185 in 2017 (e.g. Benin, Cambodia) • Post-conflict countries (e.g. Sierra Leone) • IDA-Blend (16 countries) Above the operational cutoff but lack the creditworthiness needed to borrow from IBRD • Countries in conflict (e.g. Cameroun, Pakistan) (e.g. Lybia, Syria) 10

Investment Focus: IFC and Climate Business IFC 2016 Climate Implementation Plan objectives:  Scale climate investments to reach 28% of IFC’s annual financing by 2020 ;  Catalyze $13 billion in private sector capital annually by 2020 to climate sectors  Maximize impact through greenhouse gas emissions reduction and resilience to the impact of global warming  Account for climate risk — both the physical risk of climate impacts and the carbon asset risk in IFC’s investment selection Results to Date • Since 2005, IFC has invested about $18.3 billion in long-term financing for renewable power, energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change, in addition to $11.9 billion of core mobilization. IFC Climate-related Commitments* • In FY17 IFC’s climate-related long-term 4,5 35% (in $ billions and % of total LT own account commitments) investments from own account amounted to 4,0 $3.0 billion, which together with around 30% 3,5 $1.0 billion in core mobilization, amounted 25% to a total of $4.0 billion invested in 3,0 climate-smart projects 20% 2,5 2,0 15% • In FY17 , through its Advisory services , 1,5 IFC enabled more than $600 million in 10% 1,0 climate-related investments in power, 5% resource efficiency, access, and public- 0,5 private partnerships. 0,0 0% FY13 FY14 FY15 FY16 FY17 * Climate-related is an attribute of a project involving Climate Mitigation, Climate Adaptation and/ or Special 11 Climate activities. For more details on these terms and activities, please visit http://www.ifc.org/climatemetrics. Includes IFC’s own account LTF and core mobilization commitments.

IFC Results 60 years of investing in emerging markets IFC Financial Highlights (as of June 30, 2017) Committed portfolio own account: $52 billion* Syndicated loans: $16 billion* Total committed portfolio: $68 billion* Advisory Services 700+ projects in 100+ countries Total assets $92 billion Of which:  Net loans: $23 billion  Equity investments: $13 billion (fair value)  Liquid assets: $39 billion *FY16 data 12 12