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International Finance Corporation at a glance
History, ownership and vision• Founded in 1956 to foster private sector
investment in the developing world• Part of the World Bank Group and owned by
its 179 member countries• Vision: That poor people have the opportunity
to escape poverty and to improve their lives.
$0
$2
$4
$6
$8
$10
$12
$14
$16
2002 2003 2004 2005 2006 2007 2008 2009
US$
billion
s
IFC's own account* Syndications
IFC Financing as of June 30, 2009Total Commitments: US$10.5 billion for own account, US$4.0 billion mobilized
*Includes loans, equity, guarantees, risk management products
Infrastructure 17%Global Manufacturingand Services 18%
Subnational Finance 1%
Private Equity and Investment Funds 5%
Health and Education 2%
Global Financial Markets Group 36%
Oil, Gas, Mining, andChemicals 10%
Agribusiness 7%
Global ICT 4%
IFC Portfolio as of June 30, 2009, by Industry
Total US$32.4 Billion
IFC Portfolio as of June 30, 2009, by Region
Total US$32.4 Billion
Middle East and North Africa 11%
Europe and Central Asia 26%
East Asia and the Pacific 14%
Sub-Saharan Africa 11%
South Asia 12%
Global 1%
Latin America and the Caribbean 25%
IFC FY09 Annual Report data
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IFC has a well established franchise in Latin America
($600)
$100
$800
$1,500
$2,200
$2,900
$3,600
$4,300
$5,000
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
IFC syndications IFC loans, equity, guarantees, risk mgt.
Historical CommitmentsUS$ millions
Fiscal Year 2009 CommitmentsUS$ millions
LoansUS$ 1,648
SyndicationsUS$670
Guarantees and RM US$824
Equity US$250
US$ 3,392 million
IFC Portfolio by Country (largest exposure)US$ millions
BrazilUS$ 2,364
Argentina US$1,054
Colombia US$873
US$ 12,201 million
Total Committed Portfolio US$12,201
Committed portfolio for IFC’s account
US$8,776
Committed portfolio held for others(loan and guarantee participants)
US$3,425
Regional PortfolioUS$ millions
IFC FY09 Annual Report data
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IFC Investment Strategy: 3 Fundamental Principles
• Commercially viable investments ― Market based― Must produce returns
• Value added beyond capital― Opportunity to help clients achieve higher standards of
management and social responsibility
• Strong development impact― Support projects that will expand much needed services
in a socially and environmentally responsible way
The Education Sector is a pillar of IFC’s Strategy IFC has invested in 64 projects in 31 countries Total project value: US$1,577 million
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Summary of IFC Investments in Education
Chile23%
Antigua & Barbuda
13%
Mexico11%Brazil
10%
Egypt7%
West Bank & Gaza7%
The rest29%
Education CHE Portfolio by Country*
* Total education portfolio size US$316 million
Loan65%
Equity2%
Guarantees33%
Education CHE Portfolio by Product
Examples of IFC Investments in Education
Education Education Education Education Education
US$30mm Bond Guarantee
Chile
US$30mm Senior Loan
MexicoUS$8mm Senior Loan
Argentina
US$39mm in Senior Loans
Brazil
US$30mm Senior Loan
US$50mm Guarantee
Chile
US$18.4mm Guarantee
Pakistan
US$30mm in Senior Loans
US$1mm Capital
Mexico
US$5mm Senior Loan
Trinidad Tobago US$8mm Senior Loan
Lebanon
US$7.3mm Senior Loan
Vietnam
US$12mm Senior Loan
Turkey
US$5mm Senior Loan
Uruguay
US$2.5mm Senior Loan
Ghana
US$8mm Equity Investment
Mexico
US$14mm Student Loan Guarantee
Brazil
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Global Trends in Education
Major Regional and International PlayersAnhanguera Educacional
Participações S/A
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• Up to 12 years final maturity and 2 to 3 years grace period for principal on average• Security package typical: physical assets, pledge of shares, leases, etc.• Market based pricing• Available in fixed / floating and, depending on market conditions, local or USD currency
• IFC syndicates portions of loans in order to mobilize additional financing partners• Commercial banks take comfort in IFC due diligence and structuring experience• Over 150 commercial banks and other institutions currently participate in IFC’s B loan program
• Hybrid featuring characteristics of both debt and equity– Subordinated, convertible, income participation, bullet repayment and others
• Typically in the form of common or preferred stock• Denominated in local currency
• Securitizations: asset-backed securities, including future revenues, receivables, etc.• Guarantees: partial credit guarantees enhancing credit worthiness of client's financing• Risk-sharing facilities: allowing for alternative risk allocation
• IFC provides technical assistance / advisory services in support of its clients• Country and sector specific• Funded by donor governments and other multilateral institutions
IFC has a Full Range of Financing Capabilities
Senior Loan
B Loan / Syndication
Mezzanine
Equity
StructuredProducts
Advisory Services
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IFC’s Teams Work Closely with Clients
• Identify project• Analyze and
discuss with company business plan and sources and uses of funds
• Obtain management approval to formally consider investment
• In-depth business review
• Senior management interview and site visit
• Obtain approval to negotiate final transaction terms
• Negotiate final investment terms
• IFC lawyers initiate draft investment documents
• Final approval• Sign legal
documents• Disbursement
• IFC monitors the project closely
• Consults periodically with project managers
• Field missions to enterprise
• Requires progress reports, annual audited statements, and other material information
2 – 4 weeks 2 – 4 weeks 1 – 2 weeks 3 – 5 weeks 4 weeks As appropriate
SupervisionBoard
Approval
Negotiation &
Documentation
Investment Review Meeting
AppraisalIdentification &
Review