International Finance

Corporation

Olaf Schmidt Global Head - Tourism, Retail & Property

Manufacturing, Agribusiness & Services Department

Structured Finance Conference

November 15, 2012

IBRD International Bank

for Reconstruction

and Development

IDA International

Development

Association

MIGA Multilateral

Investment and

Guarantee Agency

To promote

institutional, legal and

regulatory reform

Governments of

poorest countries with

per capita income of

less than $1,025

Technical assistance

Interest Free Loans

Policy Advice

To reduce political

investment risk

Foreign investors in

member countries

Political Risk Insurance

Est. 1945 Est. 1960

IFC International

Finance Corporation

To promote private

sector development

Private companies in

member countries

Equity/Quasi-Equity

Long-term Loans

Risk Management

Advisory Services

Est. 1956 Est. 1988

To promote

institutional, legal and

regulatory reform

Governments of member

countries with per

capita income between

$1,025 and $6,055.

Technical assistance

Loans

Policy Advice

Shared Mission: To Promote Economic Development and Reduce Poverty

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IFC is a Member of the World Bank Group

Role:

Clients:

Products:

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Over US$100 billion Invested in Emerging Markets

since 1956

Shareholders 184 member countries

S&P & Moody’s Rating AAA/Aaa

Total Assets* US$76 billion

Portfolio* US$56 billion

Committed in FY12* US$20.3 billion

- Own Account - US$15.4 billion

- Mobilized - US$ 4.9 billion

# of Active Projects 1,737

# of Countries 129

# of Equity Investments 800

* As of 6/30/2012

Take market risk with no sovereign guarantees

Promoter of environmental, social, and corporate

governance standards

Focus on development impact

What we look for from clients:

Commitment to project (equity)

Successful track record & long-term strategy

Integrity

East Asia & the Pacific

17%

Europe & Central

Asia 19%

Latin America

&the Caribbean

24%

Middle East & North Africa 14%

South Asia 8%

Sub-Saharan Africa 18%

FY12 Commitments by Region

Largest global development institution

focused exclusively on the private sector in

developing countries

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IFC’s Global Reach

Global Knowledge and Local access: more than 100 offices worldwide in 84 countries,

with over half of IFC’s 3,700 staff based in emerging markets

Owned by 184 member countries. Collaborate with the rest of the World Bank Group

Staff with specializations in financial services, industry, environment, corporate

governance, advisory services and more

Dakar

Nairobi

Johannesburg

Cairo

IFC HQ/Regional Hub

IFC Hub Offices

IFC Regional Operations Center

IFC Country Offices

World Bank Group Hub Office

Washington

Mexico City

Bogota

Buenos Aires

São Paulo

Santo Domingo

Moscow

Hong Kong

New Dehli

Almaty

Istanbul

Singapore

Infrastructure & Natural Resources

Financial Markets

Manufacturing, Agriculture & Services

• Power

• Renewables

• Transport

• Utilities

• Oil & Gas

• Mining

• Sub-national

Finance

• Banking

• Sustainability and

Climate Change

Finance

• Private Equity/

Funds

• Housing Finance

• Insurance

• Microfinance

• SME Banking

• Trade Finance

• Securities Markets

• Agribusiness

• Forestry

• Healthcare &

Life Sciences

• Education

• Manufacturing

Industries

• Energy Efficient

Machinery

• Chemicals

• Tourism, Retail &

Property

Leveraging Global Industry Knowledge for Clients

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14%

64%

22%

Infra & Natural Resources

Financial Markets

Manufacturing, Agri & Services

Senior

Debt

On-lending

Liquidity management

Acquisition financing

Warehousing facilities

Syndicated loans

Local currency financing

Partial credit guarantees

Securitization

Bond underwriting

Mezzanine

Finance

Convertible debt

Subordinated debt

Other Tier II instruments

Private

Equity

Common shares

Preferred shares

Syndication via IFC Asset

Management Company

Trade Finance

Global trade supplier

finance (GTSF)

Distribution finance

Global trade finance

program (GTFP)

Global trade liquidity

program (GTLP)

Critical commodity

finance program (CCFP)

Advisory

Services

Sustainable Business

Advisory, including:

―Food safety

―Hospitality training

―Corporate governance

Access to finance,

including housing finance

Investment Climate

Public-Private

Partnerships

Sustainable

Finance

Carbon finance

Renewable energy

Green building & energy-

efficiency finance

Supply chain financing

Corporate governance

financing

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IFC’s Products and Services

Structured

Finance

Global Industry

Expertise

Long-term

Competitive

Financing

Capital

Mobilization

Country Risk

Mitigation

Regional

Knowledge

― Global investment team dedicated to industry sectors in emerging markets

― Industry specialists on staff

― Green Building and energy efficient expertise and advisory services

― One-stop-shop for financing: equity, debt, structured finance, etc., based on

client needs

― Longer investment horizon and less cyclical than most financial investors:

up to 10-12 years, both equity and debt

― Reduced Political risk through government relations, preferred creditor

status, neutral broker role

― Withholding tax benefit

― Global and local presence in more than 80 countries with increase focus on

local presence and expertise

― Investment professionals in regional hubs and large country offices

― Advice on Environmental and Social Best Practices

― Equator Principles modeled after IFC Standards (60 international banks)

― Local Consultation and Disclosure

― Corporate Governance and Sustainability Toolkit

― IFC can mobilize funding: debt from commercial banks and other DFIs

(syndications), equity from investors (AMC), etc.

How IFC Differs from Other Partners

Environmental &

Social Risk

Management

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IFC Has Established Several Innovative Special Initiatives

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• Global Trade Liquidity Program - $5 bn from IFC and partners

• Global Trade Finance Program - $3 bn from participant banks in over 82 countries

IFC aims to support $50 bn of trade over 3 years

• IFC Capitalization Fund - $3 bn from JBIC & IFC

• Microfinance Enhancement Facility - $0.5 bn from EIB, FMO, SIDA, and others

• Infrastructure Crisis Facility - $4 bn from KfW, DEG, Proparco, EIB

• Debt & Asset Recovery Program – Target $4 bn to invest in NPL pools

Active Crisis

Response

Initiatives

• Global Agriculture and Food Security Program (GAFSP) – target of $1 bn for SMEs,

smallholders to improve productivity, and access to finance

• Education for Employment – as part of Arab World Initiative

• Export Credit Agency Initiative – ECAs & emerging market importer linkages

• SME Initiatives – to double IFC’s SME reach in 4 years

Initiatives

Under

Development

• Health For Africa – to expand affordable health care services in Africa, via research, technical

assistance and Access to Finance (new $100 m fund, $100 m risk sharing facilities, etc.)

• AMC’s ALAC Fund – Sovereign, pension funds to co-invest $1 bn with IFC in ALAC region

• Water – reach 100 mn people through projects to improve water access, quality & reduce waste

Linked

Initiatives

Business Opportunity at the Middle and Base of Pyramid

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Most businesses focus on mature markets, while the huge markets of

6 billion living on less than $20,000/ year remain to be tapped

4 billion

2 billion

0.5 billion

Individual annual income (US$)

Mature markets: > $20,000

Emerging markets: $3,000 to $20,000 (Size: $12.5 trillion)

Survival markets: <$3,000

(Size: $5 trillion)

Population

Source: IFC, WRI

IFC Priority: Fighting Climate Change

• IFC invested $1.7 billion in energy

efficiency, renewable energy, and

other climate-friendly projects in FY11

By FY13, over 20% of IFC investments

will be in climate-friendly projects, up

from 14% last year

IFC launched the EUR150 million Post

2012 Carbon Facility in Feb 2012

• Along with investments, IFC also adds

value to clients through:

Advisory services

Concessional donor funds

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EDGE: Excellence in Design for Greater Efficiencies

IFC developed a green buildings classification system

designed for emerging markets:

EDGE is a tool that reveals technical solutions for

going green and captures capital costs and

projected operational savings.

EDGE can be used by building professionals without

the need for expensive green building specialists.

Specifications

EDGE has contextual data of utility costs and

climate for different cities

EDGE uses building physic calculations to give

design-specific results

EDGE spells out the most effective technical

measures

EDGE provides an investment planning tool for

building owners and developers

IFC’s EDGE Tool

EDGE applied to Hotels

The EDGE Standard:

‘A greenfield building that has 20% less energy,

water and material consumption compared to an

equivalent local benchmark.’

Example of IFC’s Green Building Client: Artha Capital, Mexico

Key Features: • 80% of developments to be within 200 meters of public transportation options.

• 50% of all street lighting to use solar-powered LED lighting.

• 60,000 homes to be constructed with low-energy lighting (CFLs) and solar

water heaters.

Green Homes Artha Capital provides investments in

real estate developments for

integrated and sustainable

communities in Mexico.

IFC’s equity investment helped this

property fund to acquire land and

provide basic infrastructure for 60,000

homes with low-energy lighting and

solar water heaters. By taking an

approach that integrates industrial,

retail, tourism, and residential, Artha

Capital creates employment

opportunities in communities with

high environmental standards,

enabling people to live near their

place of work.

IFC Financing:

US$25 million equity

Significance: First example of a green

building element in a property fund.

Germany and IFC – Shared Goals and Values

• A history of collaboration with the Federal Foreign Office, Federal

Environment Ministry, Federal Ministry of Economic Cooperation and

Development, DEG and KfW

• IFC and DEG collaborated in developing the report – IFIs and Development

Through the Private Sector

• Germany and IFC share common interests particularly in the areas of IDA

countries and Africa, climate change and environment, agriculture and

food security, fragile and conflict-affected states, gender

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IFC is increasing its cooperation with the German private

and public sectors to capture new opportunities for

growth and enhancing development impact

Select German Clients

• 2011: Financing of Bayer’s farming clients in Ukraine. IFC extended a

$70 million risk-sharing facility to Raffeisen Bank Ukraine.

• 2010: Refurbishment of cement operations in Sub-saharan Africa. IFC provided

$110 million equity, $70 million in debt, and IFC AMC provided $35 million

equity.

• 2010: Pulkovo St Peterburg airport. €170 million senior debt, including €100

million B-loan mobilization.

• 2008: Lima airport. $20 million equity investment from IFC.

• 2011: Modernization and expansion of metal water management operations in

the Balkans and Romania. IFC provided €46 million senior debt.

• 2009: VW’s auto plant in Pune, India. IFC extended €135 million in debt,

including €75 million B-loan.

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IFC cooperation with select German Financial Institutions

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• IFC has over $1 billion in co-investments with DEG and KfW (6/2011).

• In 2009, DEG and IFC signed a Master Cooperation Agreement.

• KFW and IFC are partners in the Microfinance Enhancement Facility and

the Infrastructure Crisis Facility.

• 2009 & 2010: Global Trade Liquidity Program GTLP. $75 million unfunded

risk-sharing facility on trade portfolio in Africa; $125 million funded risk-

sharing facility to global trade portfolio.

• As of June 2011: Commerzbank is the 3rd largest German B-loan

participant with US$80 million committed exposure.

• 2011: local currency swap guarantee facility. $100 million risk-sharing

facility to support banks with local currency hedging.

• 2011: Global Climate Partnership Fund. $75 million investment in DB-

managed climate fund.

• Since 2000, IFC has financed ProCredit’s network banks in the Balkans,

Ukraine, Romania, Georgia, El Salvador, Ecuador, Nicaragua, & Bolivia.

• IFC is an equity holder in Procredit Holding.

IFC Western Europa (Paris, London, Frankfurt, Brussels)

Role • Business development with Western European companies that invest in Emerging

Markets

• Mobilization of financing with commercial banks and other IFIs for IFC projects

as well as donor grants for IFC technical assistance

• Coordination mit European Governments and other relevant parties

Thank you

Olaf Schmidt

Global Head – Tourism, Retail & Property Investments

Manufacturing, Agribusiness & Services Department

Principal Investment Officer

oschmidt@ifc.org

+33 1 40693352

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