Scaling Up Financing In Vietnam Vietnam Wind Power Virtual 10 June, 2020 dfc.gov | 1
Who We Are As the U.S. Government’s development finance institution, DFC provides private companies with financing and risk mitigation tools for private sector projects in emerging markets and developing countries. dfc.gov | 2
Our Global Presence dfc.gov | 3 dfc.gov |
What We Offer Social USAID Infrastructure Access to Enterprise Mission Financing Finance Program Support Limited recourse project Corporate and structured Loans to high-impact Projects meeting financing for financial financing for infrastructure businesses in agriculture, USAID country investment, including institutions to expand local fintech, healthcare, and mission priorities are energy, transportation and access to capital, including other sectors, with a focus eligible for loans and telecommunications SME, microfinance and on inclusion and economic credit guarantees mortgage lending empowerment dfc.gov | 4
Investment Priorities Energy Infrastructure Technology Healthcare Small Businesses and Women Entrepreneurs Connect emerging Help meet growing Create jobs and stimulate Provide access to Investing in women markets to the world demand for energy, economic growth through medical services, entrepreneurs and small expand access in remote increased trade and and create new facilities, and lifesaving businesses to create jobs opportunities for the and developing areas, connectivity by supporting treatments, as well as and opportunity at the developing world to and promote energy critical infrastructure, promote critical water, local level that can be leapfrog traditional independence including roads, railways, sanitation, and hygiene reinvested to grow airports and sea ports boundaries projects communities dfc.gov | 5
Products and Services Debt Political Risk Investment Equity Technical Financing Insurance Funds Investment Assistance Debt and equity Corporate and project Protection up to $1 billion Direct investment into Targeted technical investments in loans and guarantees of against risks including high impact assistance to promote up to $1 billion with currency inconvertibility, emerging market businesses seeking viability or impact of private equity funds tenors as long as 20 governmental interference, growth capital potential DFC-supported years for private sector- and political violence projects driven, commercially viable investments dfc.gov | 6
DFI Roles & Project Lifecycle Development Finance Institutions (DFIs) seek to catalyze Implementation private sector investment into emerging economies by - Investor interest providing support to viable projects that are unable to - DFI + Private sector obtain the requisite support from private sector lending financing and insurance institutions. Identification of Primary DFI roles are in the implementation stage of a Opportunities project, providing long term debt financing, political risk - Program design, feasibility studies insurance or equity in order for a project to move forward into execution and implementation. - ODA + other agency grants Host Country Government Initiative to Some DFIs also provide project preparation assistance, Attract Private Sector Investment such as PPP program advice, structuring and - Defining needs, strategy, resource implementation of project RFPs, and funding to support requirements related preparatory work. - ODA assistance, eg. World Bank, USAID dfc.gov | 7
DFI Support during the Covid Crisis Existing clients are the primary focus of DFIs, who want Existing loans are, where necessary, being proactively to be sure projects in the portfolio and in the pipeline – restructured and provided with for example additional approved but not yet disbursed, for example – remain funding, extended grace periods, adjusted amortization viable and come out of the crisis in a sustainable manner. and longer tenors to survive and move beyond the crisis. Prospective clients and projects are typically impacted New projects must be assessed or reassessed in light of by government and other market forces that create delays potential revised power demand projections and possible and uncertainty. DFIs are supportive but have limited adjustments to national power development plans. capability to move projects forward on their own. Vietnam wind financing prospects are less affected by New clients may surface should originally anticipated Covid than by the current government FIT policy and private sector sources of financing and insurance show PPA, pending changes to the program – including, longer signs of stress, such as reduced liquidity and risk term, the move to an auction process – and domestic appetite, thus necessitating a turn to DFIs to fill the gap. bank appetite for incremental EVN exposure. dfc.gov | 8
Contacts & Resources Contact Resources Geoffrey Tan For more information, Managing Director, Asia Pacific visit www.dfc.gov. U.S. International Development Finance Corporation (DFC) geoffrey.tan@dfc.gov dfc.gov | 9
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