Institutional Presentation October 2019 Disclaimer The information - PowerPoint PPT Presentation

Institutional Presentation October 2019

Disclaimer The information herein is presented in summary form; consequently, FONPLATA does not provide any assurance with respect to the completeness of any market, financial, legal and/or other issues summarized or discussed herein. FONPLATA is not acting as advisor or agent and shall have no liability, contingent or otherwise, for the quality, accuracy, timeliness, continued availability or completeness of the information, data, calculations nor for any special, indirect, incidental or consequential damages which may be experienced because of the use of the material made available herein. This presentation and the documents incorporated by reference into this presentation contain statements that constitute “forward -looking statements” based on current expectations related to FONPLATA's strategic goals and objectives, which are subject to inherent risks and uncertainties beyond FONPLATA’s control. Consequently, actual future results could differ materially from those currently anticipated. FONPLATA undertakes no obligation to update any forward-looking statements. This information is provided for discussion purposes only and may not be reproduced or redistributed without the express consent of FONPLATA. This document does not constitute, or form part of, an offer to sell or a solicitation of an offer to purchase any securities and neither it nor any part of it shall form the basis of, or be relied upon, in connection with any contract or commitment whatsoever. 1

Institutional Overview

FONPLATA at a Glance Overview Financial Highlights (in US$ millions) % CAGR 1 2Q 2018 2Q 2019 ◼ FONPLATA is a multilateral development bank. Consistent with its mission, 2016 2017 2018 % it provides financing through loans and grants to support economic and Income Statement social development to its member countries (Argentina, Bolivia, Brazil, Paraguay and Uruguay), with an aim of helping reduce socioeconomic differences Total interest income 20.5 27.5 40.4 40.4% 18.1 26.6 47.0 ◼ FONPLATA was founded in 1974 by its five member countries, established by the Tratado de la Cuenca del Plata , and governed by the Vienna Net interest income 20.5 26.8 37.7 35.6% 17.1 22.9 33.9 Convention ◼ FONPLATA is based in Santa Cruz de la Sierra and enjoys immunity of jurisdiction and exemption of taxes Net income 14.8 20.1 26.6 34.1% 11.7 18.7 59.8 ◼ FONPLATA’s loans are sovereign -guaranteed financings Balance Sheet ◼ Preferred status: FONPLATA receives preferred creditor treatment granted by its borrowing members ◼ FONPLATA´s authorized and subscribed capital is US$ 3,014 million Total Assets 17.3% 976.9 1,239.1 26.8 758,6 851.6 1,042.9 ◼ Rated A2/A- by Moody’s & S&P since 2016 Gross loans 21.2% 687.0 855.2 24.5 ◼ FONPLATA’s inaugural bond issuance was for CHF 150MM in March 2019 543.8 662.0 799.4 due 2024 Shareholders and Member Countries Total net equity 14.0% 883.3 996.9 12.9 733.0 815.8 952.9 Key Ratios Paraguay Uruguay 11.1% 11.1% NPLs / Gross loans 0.0% 0.0% 0.0% 0.0% 0.0% Argentina Brazil Liquidity ratio 27.8% 21.5% 22.5% 28.9% 30.0% 33.3% 33.3% HQ Santa Cruz de la Sierra, Bolivia Equity / Total Assets 96.6% 95.8% 91.4% 90.4% 80.5% Regional offices Bolivia Asuncion, Paraguay 11.1% Buenos Aires, Argentina Montevideo, Uruguay Source: FONPLATA as of June 30, 2019. (1) 2016 – 2018 3

FONPLATA’s Journey From a Financial Fund to a Full-Fledged Regional Development Bank 1974-2007 2008-2010 2011-2012 2013 - 2019 Realignment and Continuous Growth Inception Inflexion Point New Mandate Appointment and 2013 – Strategic 2017 – Strategic business Initial funding No loan approvals staffing of the plan revision (2018 – 2022). from 2008 – 2009 US$100 MM in business plan (2013- Executive 2022). 1 st capital Revision of financial policies 1974, increased to President’s office US$200 MM in IDB Tech. replenishment completed in 2018 – Governors’ update to 1979, including Cooperation August 2012 2016 – 2 nd capital FONPLATA’s Charter US$40 MM of replenishment completing the transition callable capital In 2010, Governors from a fund to a Regional approved changes Received credit ratings Development Bank and Yearly capitalization paving the way for of A- from S&P and A2 FONPLATA’s paving the way for the of retained earnings from Moody’s addition of new members through 2007 transformation 2019 – Access to Capital Markets: CHF 150MM bond issuance Loan approvals reach US$ 1,700 million since 2013 4

FONPLATA’s Core Pillars and Business Strategy Enabling Countries’ Integration Through Infrastructure Business Strategy Investments, Such as the Pilar Port in Paraguay ◼ Small-to-medium-sized projects, with an average US$50-60mm loan ticket size ◼ Special focus on vulnerable zones, border regions and integration ◼ Proportional participation of member countries in loan portfolio ◼ Target sectors: − Road Infrastructure − Disaster risk reduction − Environment − Logistics − Sanitation & Water − Urban development in small cities − Social Infrastructure − Sustainable Energy Improving Prevention and Control Against Chagas Fostering Corumbá’s Urban Disease in the North of Five Strategic Pillars Argentina Development in Brazil ◼ Institutional efficiency ◼ Functional specialization ◼ Strategic complementarity ◼ Focus on the value to member countries ◼ Financial strength and growth in loan capacity In addition to lending, FONPLATA provides technical assistance grants for capacity building among member states 5

Well-Positioned for Opportunities in Growing Economies Key Statistics Bolivia Brazil Population 1 Population 1 11.4m 209.2m Nominal GDP 2 Nominal GDP 2 US$40.3bn US$1,868.3bn Real GDP growth 3 4.0% Real GDP growth 3 1.7% Moody's S&P Fitch Moody's S&P Fitch Long Long Term Ba3 BB- BB- Term Ba2 BB- BB- Rating Rating Argentina Uruguay Paraguay Population 1 Population 1 Population 1 44.4m 3.5m 6.9m Nominal GDP 2 US$519.7bn Nominal GDP 2 US$59.4bn Nominal GDP 2 US$40.6bn Real GDP growth 3 (0.2)% Real GDP growth 3 1.5% Real GDP growth 3 2.9% Moody's S&P Fitch Moody's S&P Fitch Moody's S&P Fitch Long Long Long Term Caa2 CCC- CC Term Baa2 BBB BBB- Term Ba1 BB BB+ Rating Rating Rating Geographic region covers nearly three-quarters of South American landmass Source: Economist Intelligence Unit (EIU). Updated on October 10, 2019 (1) 2018E (2) 2018 6 (3) Average of 2019E, 2020E and 2021E

FONPLATA’s Credit Risk Rating is Among the Best in Latin America Moody’s Rating Non-investment Grade Investment Grade Country / bank NR C Ca Caa3 Caa2 Caa1 B3 B2 B1 Ba3 Ba2 Ba1 Baa3 Baa2 Baa1 A3 A2 A1 Aa3 Aa2 Aa1 Aaa (1) 1 CAF (2) 2 CABEI 3 Chile 4 FONPLATA 5 Mexico 6 Peru 7 Panama 8 Colombia 9 Uruguay 10 Paraguay 11 Brazil 12 Bolivia 13 Argentina 14 Ecuador Source: Moody’s as of October 10, 2019. (1) CAF: Corporacion Andina de Fomento – Development Bank of Latin America. (2) CABEI: Central American Bank of Economic Integration. 7

FONPLATA’s Rating Trajectory Moody’s Aa1 Aa2 FONPLATA’s Aa3 Aa3 Aa3 long-term issuer A1 A1 rating: A2 A2 A2 A2 A3 A3 Baa1 ◼ Outlook: Baa2 Baa2 Stable Baa3 Baa3 ◼ Last affirmed: 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jun. 13, 2019 CAF – Development Bank of Latin America CABEI – Central American Bank of Economic Integration FONPLATA S&P AA+ AA AA FONPLATA’s AA- AA- long-term issuer A+ A+ A+ A+ rating: A A A A- A- A- A- A- BBB+ BBB+ BBB+ BBB BBB ◼ Outlook: BBB BBB- Positive BBB- 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ◼ Last affirmed: Sep. 25, 2019 CAF – Development Bank of Latin America CABEI – Central American Bank of Economic Integration FONPLATA Source: Moody’s, S&P. 8

FONPLATA’s Medium Term Debt Strategy Signed Borrowings Outstanding Borrowings 1 (in US$ millions) (in US$ millions) 225 449 149 300 149 15 15 60 60 185 20 20 79 100 100 5 54 5 100 28 75 28 30 30 10 28 16 30 30 10 75 75 75 75 16 16 16 13 2016 2017 2018 jun-19 2016 2017 2018 jun-19 CAF BCBo IADB AFD EIB ICO CHF Bond Total Medium Term Debt Strategy Execution Timeline Credit Ratings: Moody’s : A2 Bolivian Central IADB’s Credit First Credit Line ICO’s Credit Line S&P: A- Bank Promissory Line US$100 (CAF) US$75 US$15 million Note US$30 million million million December November December May - 2018 2018 2016 2017 February April - 2018 July - 2018 March 2017 2019 EIB’s Credit Line AFD’s Credit Line Bolivian Central Access to Capital US$60 million Bank Deposit US$20 million Markets September US$10 million CHF150 million 2016 Source: FONPLATA as of June 30, 2019. 1. At face value 9