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.
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IFC is the largest global development institution focused exclusively on the private sector in developing countries
IFC and the World Bank Group
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IDA International Development Association
Support countries’ economic and institutional development Governments of member countries with annual per capita income of less than $1,025
Promote cross-border investment and lending Debt and Equity investors in member countries
Insurance
IFC International Finance Corporation
Promote private sector development Investors in member countries
Role Clients Products
Support countries’ economic and institutional development Governments of member countries with annual per capita income between $1,025 and $6,055
Shared Mission: “End extreme poverty and build shared prosperity”
IBRD International Bank For Reconstruction and Development MIGA Multilateral Investment Guarantee Agency
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countries
financing for the emerging markets private sector
corporate governance standards
development bank and flexibility of a merchant bank
60 years of investing in emerging markets
IFC at a Glance
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IFC Institutional Highlights Sector expertise and advice
engagement
Development, Corporate Governance, Community Development Funding
Country risk mitigation: honest broker role
Environmental and Social risk management & governance
IFC Added Value
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
Dakar Nairobi Johannesburg Cairo Washington Mexico City Bogota Buenos Aires São Paulo Port-of-Spain Moscow
IFC HQ/Hub Offices IFC Operational Centers IFC Country Offices
Hong Kong New Delhi Almaty Istanbul
3,860 staff (56% are based outside Washington DC) IFC Global Reach
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An extensive global network
$55 billion committed portfolio for 2,000+ clients in 170+ countries (as of end FY17)
IFC Client Network
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MENA $6.1 billion Portfolio Latin America and Caribbean $11.6 billion Portfolio Sub-Saharan Africa $9.4 billion Portfolio World Region $1.7 billion Portfolio South Asia $7.7 billion Portfolio East Asia & Pacific $8.8 billion Portfolio Europe & Central Asia $9.9 billion Portfolio
Committed Portfolio by Region: $55 billion (as of June 30, 2017)
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IFC Portfolio Across Regions
A well-diversified portfolio across regions
21 % 16 % 17 % 18 % 14 % 11 % 3 % Latin America and the Caribbean East Asia and the Pacific Sub-Saharan Africa Europe and Central Asia South Asia Middle East and North Africa Global
products
Funds
Senior Debt Mezzanine / Quasi- Equity Equity
For IFC own account Advice
Climate
Partnerships
industries
Trade Finance
Mobilization
IFC can play multiple roles
IFC Products
Loans/Parallel Loans)
Portfolio Program (MCPP)
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SME portfolio)
enhancement for debt/bonds) Guarantee
Management Company (AMC)
IFC is organized around four pillars 8
IFC Organization
MANUFACTURING AGRIBUSINESS & SERVICES (MAS) FINANCIAL INSTITUTIONS (FIG) INFRASTRUCTURE AND NATURAL RESOURCES (INR)
fertilizers, chemicals, fuel for farmers,
infrastructure such as warehouses.
construction materials companies,
machinery, equipment for solar and wind power.
property, health and education.
institutions: Investment and advisory support for microfinance, Insurance, Loans to SMEs and women-owned businesses Low and medium- income mortgages
projects: Fast-growing cities with critical needs in power, utilities, and transportation.
mining: Helping developing countries realize these benefits Helping promote sustainable energy sources.
TELECOMS, MEDIA AND TECHNOLOGY, VENTURE CAPITAL AND FUNDS
communications infrastructure
technology businesses,
technologies.
FY17 Commitment: $3.3 billion FY17 Commitment: $5.9 billion FY17 Commitment: $2.2 billion FY17 Commitment: $0.6 billion
Committed Portfolio by Sector: $55 billion (as of June 30, 2017)
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IFC Portfolio Across Sectors
A well-diversified portfolio across sectors
34 % 19 % 7 % 5 % 4 % 4 % 8 % 10 % 3 %6 % Financial Markets Infrastructure Agribusiness and Forestry Health and Education Tourism, Retail, and Property Oil, Gas, and Mining Funds Manufacturing Telecommunications and Information Technology Trade Finance
Development Association (“IDA”)
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weak institutions, e.g. Haiti)
(e.g. Sierra Leone)
(e.g. Lybia, Syria)
GNI per capita below an established threshold of $1,185 in 2017 (e.g. Benin, Cambodia)
Above the operational cutoff but lack the creditworthiness needed to borrow from IBRD (e.g. Cameroun, Pakistan) 35 FCS countries 75 IDA countries
IDA and FCS are a key priority
Geographical focus
Investment Focus: IFC is Investing in Challenging Environments
sustainable agriculture, green buildings and private sector adaptation to climate change, in addition to $11.9 billion
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Results to Date 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 IFC 2016 Climate Implementation Plan objectives:
Investment Focus: IFC and Climate Business
investments from own account amounted to $3.0 billion, which together with around $1.0 billion in core mobilization, amounted to a total of $4.0 billion invested in climate-smart projects
IFC enabled more than $600 million in climate-related investments in power, resource efficiency, access, and public- private partnerships.
* Climate-related is an attribute of a project involving Climate Mitigation, Climate Adaptation and/ or Special 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.
0% 5% 10% 15% 20% 25% 30% 35% 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5
FY13 FY14 FY15 FY16 FY17
IFC Climate-related Commitments*
(in $ billions and % of total LT own account commitments)
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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:
$23 billion
$39 billion
IFC Results
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*FY16 data
Committed Portfolio by Region: $52 billion (as of June 30, 2016)
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IFC Total long term investments and Core Mobilization over FY14 – FY17
IFC INVESTMENT (PERIOD FY14 - FY17) In US$ Million FY14 FY15 FY16 FY17 CAGR FY14 - FY17 Vol % Vol % Vol % Vol % Total Own Account LT investments 9,967 10,539 11,117 11,854 4.4% Of which: Debt 7,327 74% 7,019 67% 8,097 73% 9,643
81%
7.1% Equity 2,324 23% 3,187 30% 2,595 23% 1,601
14%
Others (Guarantees, Risk-management…) 316
3%
333
3%
425
4%
610
5%
17.9% Total Core Mobilization 5,143 7,133 7,739 7,462 9.8% Of which: Debt 2,773 54% 3,375 47% 4,875 63% 3,119
42%
3.0% Equity 830
16%
761
11%
476
6%
531
7%
Other (MCPP, PPP, GTLP…) 1,540 30% 2,997 42% 2,388 31% 3,812
51%
25.4%
# of projects 364 406 344 n/a
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IFC in Western Europe
media) through a team of Country Managers.
A strategic platform to engage with European clients and stakeholders
IFC WE Committed Portfolio: $10.7 billion
Syndications: In FY17, Western European lenders committed $1.5 billion (via B loans, parallel loans, and unfunded risk participations). A $500 million Managed Co-Lending Portfolio Program has been signed in FY17 as well.
Regional Focus Investment Portfolio & Syndications (as of June 30, 2017) Four Offices Deliver the Whole of IFC in Europe: Paris - London - Brussels - Frankfurt
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IFC Project Cycle – a 3-Step Process
Mandate Investment Committee Disbursement 1 2 3
Early Stage
Discuss Project Agree on product(s) and main terms Early decision from IFC management
Appraisal
Due diligence & site visit, assessing:
potential
soundness
(E&S) aspects
Public disclosure
Final Negotiation
Finalize term sheet with client Board consideration and approval Crafting and signing legal documents
Portfolio Supervision
Bi-annual reporting on financial, E&S, and development impact indicators
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How To Apply For Financing
FUNDS ARE OFTEN PAID OUT IN STAGES OR ON CONDITION OF CERTAIN STEPS BEING COMPLETED AS AGREED IN THE LEGAL AGREEMENT. TO BE ELIGIBLE FOR IFC FUNDING, A PROJECT MUST MEET A NUMBER OF CRITERIA. THE PROJECT MUST: BE LOCATED IN A DEVELOPING COUNTRY THAT IS A MEMBER OF IFC; BE IN THE PRIVATE SECTOR; BE TECHNICALLY SOUND; HAVE GOOD PROSPECTS OF BEING PROFITABLE; BENEFIT THE LOCAL ECONOMY; AND BE ENVIRONMENTALLY AND SOCIALLY SOUND, SATISFYING OUR ENVIRONMENTAL AND SOCIAL STANDARDS AS WELL AS THOSE OF THE HOST COUNTRY. IFC DOES NOT LEND DIRECTLY TO MICRO, SMALL, AND MEDIUM ENTERPRISES OR INDIVIDUAL ENTREPRENEURS, BUT MANY OF OUR INVESTMENT CLIENTS ARE FINANCIAL INTERMEDIARIES THAT ON-LEND TO SMALLER BUSINESSES.
Eligibilty
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Investment Proposal
Application process
THERE IS NO STANDARD APPLICATION FORM FOR IFC
DOMESTIC, SEEKING TO ESTABLISH A NEW VENTURE OR EXPAND AN EXISTING ENTERPRISE CAN APPROACH IFC DIRECTLY BY SUBMITTING AN INVESTMENT PROPOSAL. PROPOSALS CAN BE SUBMITTED TO IFC’S INDUSTRY DEPARTMENTS; REGIONAL DEPARTMENTS AT IFC HEADQUARTERS IN WASHINGTON; OR THE REGIONAL FIELD OFFICE CLOSEST TO THE LOCATION OF THE PROPOSED PROJECT. AN INVESTMENT PROPOSAL SHOULD INCLUDE THE FOLLOWING PRELIMINARY INFORMATION: 1. BRIEF DESCRIPTION OF PROJECT; 2. SPONSORSHIP, MANAGEMENT & TECHNICAL ASSISTANCE; 3. MARKET & SALES; 4. TECHNICAL FEASIBILITY, MANPOWER, RAW MATERIAL RESOURCES & ENVIRONMENT; 5. INVESTMENT REQUIREMENTS, PROJECT FINANCING, AND RETURNS; 6. GOVERNMENT SUPPORT & REGULATIONS; 7. TIMETABLE ENVISAGED FOR PROJECT PREPARATION AND COMPLETION. FURTHER DETAILS ARE AVAILABLE ON IFC’S WEBSITE.
Henri Duféÿ Principal Investment Officer Country Manager for Finland Email: HDufey@ifc.org Telephone: +33 1 40 69 31 83 Mobile Phone: +33 6 80 75 56 36
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