IFC presentation spri bilbao october 2013
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IFC presentation spri bilbao october 2013 IFC presentation spri bilbao october 2013 Presentation Transcript

  • Introduction to IFC Bilbao, October 2013 THE POWER OF PARTNERSHIPS
  • 2 Overview of IFC within World Bank Group
  • IFC: Part of the World Bank Group 3 Conciliation and arbitration of investment disputes Guarantees of private sector investment’s non- commercial risks Interest-free loans and grants to governments of poorest countries Loans to middle-income and credit- worthy low- income country governments Solutions in private sector development IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation MIGA Multilateral Investment and Guarantee Agency ICSID International Center for Settlement of Investment Disputes
  • IDA $16.3 b IBRD $15.2 b MIGA $2.8 b IFC* $18.3 b 4 World Bank Group Commitments, FY13 Loans, grants, equity investments, guarantees, and advisory services to support development Total Commitments: $52.6 Billion *Excluding mobilization ($6.5b)
  • Twin Goals of the World Bank Group 5 Ending Extreme Poverty Boosting Shared Prosperity From 18% to 3% of world population by 2030 Increased incomes for bottom 40% of every developing country An Unprecedented Opportunity: Ending Extreme Poverty in One Generation
  • 6 Meeting theTwin Goals: IFC’s Commitment Ending Extreme Poverty, Boosting Shared Prosperity Increasing cooperation across World Bank Group Strengthening long-term relationships with partners (clients, donors, investors, others) Building the Private Sector’s Role
  • IFC’s History 7 IFC Launch PSD added to the global economic agenda IFC coins term “emerging markets” IFC scales up investments The global leader in private sector development finance 1990- 2000s 19801956 Today A global institution, now owned by 184 member countries
  • 8 IFC’s Priorities Frontier markets Climate change and environmental & social sustainability Local financial markets Long-term client relationships in emerging markets Strategic Focus Areas Constraints to private sector growth in infrastructure, health, education, & the food supply chain
  • 9 IFC’sThree Business Lines
  • Our Three Businesses IFC Asset Management Company • Wholly owned subsidiary of IFC • Private equity fund manager • Invests third-party capital alongside IFC $5.5 b under mgmt (FY13) Investment Services • Loans • Equity • Trade finance • Syndications • Securitized finance • Risk management • Blended finance $49.6 b portfolio (FY13) Advisory Services • Access to finance • Investment Climate • Sustainable Business • Public-Private Partnerships $232 m (FY13) 10 Integrated Solutions, Increased Impact
  • 11 Investment Services Loans Equity Trade Finance Syndications Structured Finance Risk Management Blended Finance - Project and corporate financing - On-lending through intermediary institutions - Direct equity investments (up to 20% of company’s equity) - Private equity funds - Guarantee of trade-related payment obligations of approved financial institutions - Capital mobilization to serve developmental needs - Over 60 co-financiers: commercial banks, fund, and DFIs - Products including credit guarantees, liquidity facilities, portfolio risk transfer, securitizations, and Islamic finance - Derivative products to hedge interest rate, currency, or commodity- price exposures of IFC clients - Combination of concessional funds with IFC resources to finance initiatives & achieve impact that would otherwise be unattainable
  • 12 FY13 Investment Commitments: $24.8 Billion 12 6,8 8,2 11,0 10,5 12,7 12,2 15,4 18,3 1,4 3,8 5,0 3,5 5,3 6,5 4,9 6,5 0,0 5,0 10,0 15,0 20,0 25,0 30,0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 New commitments are growing ($ Billions) IFC's own account Mobilization 22% growth from FY12 to FY13
  • Investments by Industry, FY13 Financial Markets 20% Infrastructure 12% Consumer & Social Services 9% Manufacturing 7% Agribusiness & Forestry 7% Funds 5% Telecom & IT 3% Oil, Gas, & Mining 2% Trade Finance 35% 13 Commitments for IFC’s Account: $18.3 Billion
  • Investments by Region, FY13 14 Commitments for IFC’s Account: $18.3 Billion Latin America & the Caribbean 26% Sub-Saharan Africa 19% Europe & Central Asia 18% East Asia & the Pacific 16% Middle East & North Africa 11% South Asia 9% Global 1%
  • 15 Advisory Services Access to Finance - Increases availability and affordability of financial services for individuals and micro, small, and medium enterprises Investment Climate - Helps governments implement reforms that improve business environment and retain investments Public-Private Partnerships - Helps governments design and implement PPPs in infrastructure and other basic public services (electricity, water, health and education) Sustainable Business - Helps clients promote sound environmental, social, governance, and industry standards; catalyze investment in clean energy/resource efficiency; and support sustainable supply chains and community investment
  • Advisory Services by Business Line, FY13 16 Total Program Expenditures: $231.9 Million Investment Climate 32% Access to Finance 27% Sustainable Business 24% Public-Private Partnerships 17%
  • Advisory Services by Region, FY13 17 Total Program Expenditures: $231.9 Million Latin America & the Caribbean 11% Sub-Saharan Africa 28% Europe & Central Asia 16% East Asia & the Pacific 17% Middle East & North Africa 9% South Asia 14% Global 5%
  • 18 IFC Asset Management Company IFC Capitalization Fund - Helps strengthen systemically important banks in emerging markets, bolstering their ability to cope with financial and economic downturns IFC African, Latin American, & Caribbean Fund - Co-invests with IFC in equity and equity-related investments across a range of sectors in Sub-Saharan Africa, Latin America, and Caribbean Africa Capitalization Fund - Invests in systemically important commercial banking institutions in Africa IFC Russian Bank Capitalization Fund - Invests in commercial banking institutions in Russia IFC Catalyst Fund - Invests in funds that provide growth capital to companies developing innovative ways to address climate change in emerging markets IFC Global Infrastructure Fund - Co-invests with IFC and equity-related investments in the infrastructure sector in emerging markets
  • 19 IFC:AValuable Partner
  • 20 We help clients in good times and bad by offering: IFC: A Valuable Partner A strong financial position, strategy, staff Low leverage ratios, prudent risk management policies A long-term partnership perspective, providing clients important countercyclical financing when commercial banks cut back The expertise and experience needed to make a difference, focusing on innovative transactions where our development impact is the highest
  • 21 What ClientsValue About IFC Long-Term Partner Role WBG Stamp of Approval Financing Not Readily Available Elsewhere Worldwide Presence Broad Range of Products Global/ Local Knowledge of Industries & Markets Ability to Mobilize Additional Funds Perceived Risk Mitigation 2013 IFC Client Survey
  • 22 Our Performance Standards Standard Setting 1 Assessment and management of environmental and social risks and impacts 2 Labor and working conditions 3 Resource efficiency and pollution prevention 4 Community, health, safety and security Land acquisition and involuntary resettlement Biodiversity conservation and sustainable management of living natural resources Cultural heritage Indigenous peoples 5 6 7 8
  • 23 IFC’s Global Reach • 109 country and regional offices worldwide,AAA credit rating • 4,015 staff (57% are based outside Washington DC)
  • Investment clients provided: 24 • 2.7 million jobs • Health services to 17.2 million patients • Education to 1 million students • Improved opportunities for 3.1 million farmers • Electric power to 52.2 million • Water distribution to 42 million people The Reach of IFC’s Projects—2013