International Financial Corporation

5/18/2018 International Financial Corporation

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InvestingforImpact

Capital Markets:Foundations for Long-Term Growt

!resentation to "ew #ork $niversit%&eptem'er ()* +)1,

ingdong .ua/ice !resident and Treasurer* IFC


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Todays Presentation

Overviewof IFC

FinancialStrength

IFC in theCapitalMarkets

Contacts

2


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(


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verviewof IFCOverviewof IFC


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verviewof IFCOverviewof IFC


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IFC: A Me!er of the "orld #ank $ro%p

The World Bank Group is madeup of several distinct legal entities:

Overview of IFC

7

Bond issuers:

Non-issuers:

The World Bank Groups mandate is toend extreme poverty within ageneration and boost sharedprosperity

!" is a legall# distinct part of the WorldBank Group $ith its o$n articles of

agreement% &alance sheet and staff

!" is the largest global developmentinstitution focused on the privatesector%and the onl# glo&al multilateralsource of de&t and e'uit# financing forprivate enterprise

(ead'uartered in Washington )" $ithover 108 offices worldwide in 98countries


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4

18 shareholders! governmentsof mem&er countries

*ppro+imatel#"#$ of capital isheld by %%%&%% sovereigns

,. of capital held G7

countries

!" does not pa# dividends orta+es

Strong Shareholder S%pport

/

We believe it is highly unlikely that the Corporation

would require shareholder assistance given the very

strong management of the resources it has on hand.However, given the shareholder support that the IFCenoys, along with its relatively modest si!e, it is likely

that shareholder governments would provide

additional capital well before any disruption in the

organi!ation"s ability to maintain operations would

occur.

'oody(s0 1 Novem&er 23

)nited *tates

1#9 other countries

Overview of IFC

+apan

Germany

,rance

)nited-ingdom

.ndia/ussia

anada

.taly

hina

etherlands

Belgium

%ustralia

*wit2erland

Bra2il

%rgentina

*pain

.ndonesia

*audi %rabia*outh -orea

'exico

3ene2uela

4akistan

*wedenigeria


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5

&'() &'(* &')( &'*& 1984 &'+' ,--- ,--'

!" $asfounded 2#ears after theBretton Woods"onferencecreated theWorld Bank tofinance post-

WWreconstructionanddevelopment lending togovernments

!"4s firstinvestment: a52 million loanto help the6iemensaffiliate in Brailmanufactureelectrical

e'uipment

!" firsts#ndicationmo&ilies58% forBrailian pulpand papercompan#"hampion

"ellulose9 Theproect alsolaunches !"4ss#ndicationsprogram

!" creates a"apital ;arkets)epartment tostrengthenlocal &anks%stock markets%and otherintermediaries

!" &ecomesfinanciall#independentfrom the rest ofthe World BankGroup% gainingapproval toissue its o$n

&onds ininternationalcapital markets

*** "redit


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1)

IFC: Creating Opport%nity

!"s vision is that people should have the opportunity to escape povertyand improve their lives9

!" creates opportunit# :

;o&iliing othersources of finance forprivate enterprisedevelopment

;o&iliing

=romoting open andcompetitive markets indeveloping countries

=romoting

6upporting companiesand other privatesector partners $herethere is a funding gap

6upporting

(elping generateproductive o&s anddeliver essentialservices to the poorand the vulnera&le

(elping

Overview of IFC

O i f C


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5oans

67uity products

*yndicated loans

rade finance *tructured finance and

securitied products

/isk management products

5ocal currency financing

%ccess to finance

6nvironmental and socialsustainability

nvestment climate

=u&lic - private partnerships

nfrastructure advice

Whollyowned subsidiaryof ., founded in 21

nvests thirdparty capitalin a private e'uit# format

*llo$s outside e'uit#investors to &enefit from!"s e+pertise in achievingstrong e7uity returns as$ell as developmentimpact

Investment Services

IFCs Three #%sinesses

Advisory Services Asset ManagementCompany

589> &illionunder management

5793 &illion invested in 2>%5,97 &illion committed portfolio

over 52 millionin fee income annuall#

Figures for fiscal year ended 30 June 2014

Overview of IFC

Overview of IFC


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1+

8otalloansande7uity

investments:)*;billions

>,

,

,,

6taff &ased in Washington )"

6taff &ased in countr# offices

Total ?oans and @'uit# nvestments committed as of fiscal #ear-end

O i f IFC

Overview of IFC


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1(

., is a pioneer of socially and environmentally responsibleinvestments in emerging markets

*ll proects financed must adhere to .,(s stringent environmental andsocial re7uirements $hich cover transparenc# and accounta&ilit#% stipulatingspecific performance standards

!"s 67uator 4rinciplesis an esta&lished &enchmark for the financialindustr# to assess and manage social and environmental risk in proectfinancing

currentl# adopted / leading financial institutions%accounting for 1,. of proect finance transactions

$orld$ide

S%staina!ility: 1ey to IFCs Mission

Overview of IFC

3

IFC co-sponsors &ustaina'le 6anking 7wardswit te Financial Times

Overview of IFC


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1,

FinancialStrength

Financial Strength


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Conservative #alance Sheet

Financial Strength

In USD billions as of 30 June 2014

*ssets ?ia&ilities and "apital

,

Borrowings ; 9=#

>ther 5iabilities 10="

et Worth ?=0

=aid in "apital

29,


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Consistent Asset $rowth

Financial Strength

IFCs fiscal year-end is 30June

8

)*Abillions

34%

66%

IFCs total disbursed loans and equity and net liquid assets at fiscal year!end

!C, !C8 !C7 !C/ !C1 !C !C !C2 !C3 !C>

,

,

2

2,

3

3,

>

>,

@'uit# nvestments ?oans and Dther )e&t ?i'uid *ssets

Financial Strength


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Financial Strength

Organic $rowth fro 2etained 3arnings

IFCs fiscal year!end is 30 June7

)*Abillions

IFCs total net "ort# as of 30 June of eac# year

We e#pect IFC to be able to finance a large part of its

growth through internal capital generation, given its

profitable record.

*tandard 4oor(s C 3 *pril 23

!C, !C8 !C7 !C/ !C1 !C !C !C2 !C3 !C>

,

,

2

2,

3


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;@@=8 billion of net li7uid assetsAe'uivalent to >. of total assets

Digh 7uality investments% $ith mainl#:

6overeign and supra &onds

Non-government triple-* fi+ed income securities !inancial institution deposits

=erformance is measured against market benchmarks $ithin riskparameters

4roactive investment approach focused on capital preservation%

reasona&le returns and diversification

.igh 4i5%idity

Financial Strength

/

$ur funding and liquidity ratios for IFC indicate that it

would be able to fulfill its mandate for at least one year,

even under e#tremely stressed market conditions,

without access to the capital markets.

*tandard 4oor(s C 3 *pril 23

Financial Strength


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Track 2ecord of Pro6ta!ility

g

!" has recorded operating profit in ever# #ear since its founding in 1,8

1

)*;billions

%sian risisE/ussian risis

Bra2ilrisis

%rgentina risisEurkey risis

6' growth Global ,inancialrisis

6' growth Aeleveraging

!C11 !C !C !C2 !C3 !C> !C, !C8 !C7 !C/ !C1 !C !C !C2 !C3 !C>

9,

9,

2

29,

3

Dperating ncome

IFCs fiscal year!end is 30 June

Financial Strength


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+)

)8

+08

0)8

308

1))8

2

Strong F%ndaentals

g

$ctual le%el figures as of 30 June 2014

&ini'u' and 'a(i'u' t#res#olds based on tri)le!$ rating 'et#odology guidelines as deter'ined by rating agencies

%percentage of estimated net cash

requirements for the ne#t & years'

)*Abillions

298+actualA

ebt

tonetworthE

times

*e%erage +is,!ad-usted ca)ital *iquidity ratio

>nly supranational withfully paidin capitalAheld e+clusivel# in E6 dollars !" has one of the lowest ratios of debt to net worthof an# supranational

!"s growth is financed by retained earnings

@'uit# investments are funded by .,(s net worth% not &orro$ings

onservative balance sheet:

)

1

+

(

,

297+actual

9)

90

91)

910

9+) 5298actual

5/9min

>9+ma+

7/.actual

>,.min

Financial Strength


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Consistent Triple7A 2ating

'aFor /atings onsiderations

;em&er of World Bank Group

6overeign sponsorship $ith fully paidin capital

6trong financial profile $ith su&stantial capital

and high li'uidit# "onservative statutor# and management policies

*s a multilateral development &ank% !" has a0$ risk weightingunder the Basel frame$ork

g

(he International Finance Corporation"s %IFC' )aa rating with a stable outlook is

based on its robust capital adequacy and liquidity, preferred creditor status, andstrong shareholder support.

'oody(s C 3 Novem&er 23

%aa?ong-term rating

ANovem&er 23

Dutlook: *table

%%%?ong-term rating

A*pril 23

Dutlook:*table

2

Financial Strength


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B# compan#

;arket &ased loan pricing

6trong capital position% &acked economic capital frame$ork andleverage limits

?oans match-funded to manage

currenc#% interest rate andmaturit# risks

?imits on glo&al sectore+posure% and on ke# sectore+posure $ithin countries

@conomic capital-&asedlimits on countr# e+posure

Strict loan and equity )ortfolio di%ersification guidelines to reduce concentration ris,s.

Portfolio 2isk Manageent


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!" has de&t and e'uit# e+posurein 1?" countries andover ?E000companies

@'uit# investments comprise 3>.of !"s investment portfolio

.ighly 0iversi6ed $lo!alPortfolio

23

+egional )ortfolio di%ersification

6urope andentral %sia

?1$

*ub*aharan%frica1$

6ast %siaand the4acific

1"$

'iddle 6ast andorth %frica

11$

*outh %sia11$

Global ?$

Figures as of 30 June 2014

5atin %mericaand aribbean

??$

Financial Strength


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+,2>

!ive largest countr# e+posuresaccount for @1$of total committedportfolio

Top ten e+posures comprise @$of total committed portfolio

?argest 2, e+posures comprise"$of !"s total committedportfolio

.igh 0iversi6cation of Portfolio !y Co%ntry


Country )ortfolio di%ersification

)s a global institution, IFC*s geographic e#posure is

well diversified, both within countries and aggregating

e#posures at the country level.

*tandard 4oor(s C @0 %pril ?01@

.ndia9=1$

hina

"=0$

urkey"=?$

Bra2il#=$

/ussia=0$

'exico @=0$

igeria @=0$)kraine ?=0$

.ndonesia ?=0$

6gypt 1=9$olombia 1=8$

*outh %frica 1=$4eru 1="$

4akistan 1="$-enya 1="$

3ietnam 1=#$hile 1=#$

4hilippines 1=$%rgentina 1=$

+ordan 1=$Ghana 1=$

*erbia 1=?$/omania 1=?$

4anama 1=1$Bangladesh 1=1$

101 other countries@"=1$

Financial Strength


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+0

.igh 0iversi6cation of Portfolio !y Ind%stry

!"s portfolio is highl#diversified across a wide rangeof industries and sectors

2,

Financial

Markets

29%

Funds

8%

rade

Finance!%In"rastructure

2#%

$il &as andMining

'%

elecommunications and.nformation echnology

$

'anufacturing1?$

%gribusinessand ,orestry

8$

onsumerand *ocial*ervices

8$


Financial Strength


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+2

/ of disbursed loan )ortfolio

?o$ N=?s F ?oans 8 da#s past due classified as non-accruing

@ntire portfolio revie$ed on a 'uarterl# &asis

Total reserves against losses e'ualed 891. A5981 &illion of the totaldis&ursed loan portfolio as of 3 une 2>

8%ality 4oan Portfolio

28IFCs fiscal year!end is 30 June

!C !C !C2 !C3 !C> !C, !C8 !C7 !C/ !C1 !C !C !C2 !C3 !C>

.

,.

.

,.

2.

2,.

non-accruing loans reserves

Financial Strength


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+3

IFC: Providing 9al%e to Investors

Dnl# supranational institution $ithfully paid in capital

Well capitali2ed: capital and retainedearnings represent almost H3 of its total&alance sheet

mem&er countries

"onsistentl#rated %%%&%aa 6I= and ;ood#s

0$ risk weighting under Basel program

(as consistentl# recorded operating profits ever# #ear since its founding

in 1,8 %nnual funding program of )*;18 billion for the current fiscal #ear

ending 3 une 2,

27

We believe IFC benefits from strong access to capitalmarkets, bolstered by frequent issuance in many

markets and currencies. IFC has no callable capital,

unlike most -Is, so our ICs reflect our /aaa" 0tand

)lone Credit 1rofile.

*tandard 4oor(s 0 3 *pril 23

&*Is2 multilateral institutions IC+s. internal credit ratings


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+4

IFC in theCapitalMarkets

IFC in the Capital Markets


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+5

IFCs F%nding Strategy

., accesses a wide range of products to raise funding at favorable costand targeted maturity

!" e+ecutes its funding strateg# in three ke# $a#s:

21

1= 6stablishing a regular presence in its core markets

?= 6nsuring access to a wide range of markets to &enefit from opportunistic andcompetitivel# priced transactions

@= 4romoting development of emerging capital markets issuing &onds in localcurrencies% often in domestic markets



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()

IBRD IFC IADB ADB EBRD AfDB

-;-

&+;- &*;(& !C,

5

5,

5

5,

52

1=

?=8

"=0

10=011=0 11=@

1?=81@=

1"=0

18=0



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(1

F%nding in 9ario%s Markets and C%rrencies

3

!" has issuedglobal benchmarks ineach #ear since 2

!" complements its pu&lic issuance accessing a variet# of different marketssuch as green bondsE uridashiE privateplacements anddiscount notes

,irst nondomestic issuer in "hina%"osta


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(+

$reen #onds

!" has pla#ed a pioneering role in

creating investment opportunities $hichsupport climate changerelated proFects

6ince its inaugural issue in 2% !" hasraised ;@= billion through its green &ondprogram% including the market(s first

benchmarksi2ed green bonds issued in!e&ruar# and Novem&er 23

!"s green &ond proceeds are held in aseparate account for investing e+clusivel#in renewable energyE energy efficientE

and other climatefriendly proFects Green &onds are consistentl# priced in line

with .,(s vanilla curve

32



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((

#anking on "oen #onds

!"s Banking on Women &onds help

fund !"s Banking on Women program$hich supports womenowned smalland medium enterprises in emergingmarkets

Women entrepreneurs in developing

countries are a powerful source ofeconomic growth and opportunity


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(,

Capital Markets: Fo%ndations for 4ong7Ter$rowth

)*A#"$

+4H#$

IA$

*trengthenstability

,inance growth)omestic and international investment flo$s closefinancing gaps for infrastructure% housing% 6;@s% etc9

Dffset the impact of capital flo$ volatilit#--lessonsfrom the 117 *sian financial crisis

.ntermediatecapital in an

economy

;o&ilie resources from investors and channelsavings into productive investments



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(0

S%pporting Capital Markets: A Strategic Priorityfor IFC!" supports domestic capital market development through

ssuing local currenc# &onds

*dvice to regulators% authorities% and market participants

(elping first-time corporate issuers access capital markets

!" promotes access to local currenc# finance through

?oans

6$aps

"ustomied structured and risk management products



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(2

IFC Capital Market Sol%tions Across the Spectr%



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(3

IFC Pioneer Iss%ances in Capital Markets $lo!ally

37

Bra2il L %ma2onian Bond :?0073 8,

huaOifc9org

&anage'ent

%lexandra -lMpferCommunications $fficer

22 >73 >8>,

aklopferOifc9org

&edia

!" P 22 =enns#lvania *venue NW P Washington )" 2>33 E6* P 22 >73 /312

$e&site: ifc=org&investors P email: investorsNifc=org PBloom&erg: .,KG>O P NifcPinvestors

'onish 'ahurkar4irector(reasury arket $perations

22 >73 83>

mmahurkarOifc9org

>

-eshav Gaur5lobal Head

(reasury Client 0olutions

22 >73 83>

kgaurOifc9org

6lena 4anomarenko)dvisor

22 >73 /82epanomarenkoOifc9org

0eptember 6789


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Disclaimer

Tis document as 'een prepared for informational purposes onl%* and te information erein ma% 'e condensed or

incomplete IFC specificall% does not make an% warranties or representations as to te accurac% or completeness of tesematerials IFC is under no o'ligation to update tese materials

Tis document is not a prospectus and is not intended to provide te 'asis for te evaluation of an% securities issued '% IFCTis information does not constitute an invitation or offer to su'scri'e for or purcase an% of te products or servicesmentioned $nder no circumstances sall IFC or its affiliates 'e lia'le for an% loss* damage* lia'ilit% or e;pense incurred orsuffered wic is claimed to ave resulted from use of tese materials* including witout limitation an% direct* indirect*special or conseInformation &tatement?* financial statements andoter relevant information availa'le at www.ifc.org/invesors

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