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
inves...
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,
...
Twin Goals of the World Bank Group
5
Ending
Extreme
Poverty
Boosting
Shared
Prosperity
From 18%
to 3% of world
population ...
6
Meeting theTwin Goals: IFC’s Commitment
Ending Extreme Poverty,
Boosting Shared Prosperity
Increasing cooperation
across...
IFC’s History
7
IFC Launch
PSD added to
the global
economic
agenda
IFC coins
term
“emerging
markets”
IFC scales
up
investm...
8
IFC’s Priorities
Frontier
markets
Climate change
and environmental
& social sustainability
Local financial
markets
Long-...
9
IFC’sThree Business Lines
Our Three Businesses
IFC Asset
Management
Company
• Wholly owned subsidiary
of IFC
• Private equity fund
manager
• Invests...
11
Investment Services
Loans
Equity
Trade Finance
Syndications
Structured Finance
Risk Management
Blended Finance
- Projec...
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...
Investments by Industry, FY13
Financial Markets
20%
Infrastructure
12%
Consumer &
Social Services
9%
Manufacturing
7%
Agri...
Investments by Region, FY13
14
Commitments for IFC’s Account: $18.3 Billion
Latin America & the
Caribbean
26%
Sub-Saharan ...
15
Advisory Services
Access to
Finance
- Increases availability and affordability of financial services for
individuals an...
Advisory Services by Business Line, FY13
16
Total Program Expenditures: $231.9 Million
Investment
Climate
32%
Access to Fi...
Advisory Services by Region, FY13
17
Total Program Expenditures: $231.9 Million
Latin America & the
Caribbean
11%
Sub-Saha...
18
IFC Asset Management Company
IFC Capitalization Fund
- Helps strengthen systemically important banks in
emerging market...
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...
21
What ClientsValue About IFC
Long-Term
Partner
Role
WBG
Stamp of
Approval
Financing
Not Readily
Available
Elsewhere
Worl...
22
Our Performance Standards
Standard Setting
1 Assessment and management of environmental and social risks and impacts
2 ...
23
IFC’s Global Reach
• 109 country and regional offices worldwide,AAA credit rating
• 4,015 staff (57% are based outside ...
Investment clients provided:
24
• 2.7 million jobs
• Health services to 17.2 million patients
• Education to 1 million stu...
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IFC presentation spri bilbao october 2013

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IFC presentation spri bilbao october 2013

  1. 1. Introduction to IFC Bilbao, October 2013 THE POWER OF PARTNERSHIPS
  2. 2. 2 Overview of IFC within World Bank Group
  3. 3. 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
  4. 4. 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)
  5. 5. 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. 6. 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
  7. 7. 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. 8. 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. 9. 9 IFC’sThree Business Lines
  10. 10. 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. 11. 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. 12. 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
  13. 13. 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
  14. 14. 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. 15. 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
  16. 16. 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%
  17. 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. 18. 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. 19. 19 IFC:AValuable Partner
  20. 20. 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. 21. 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. 22. 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. 23. 23 IFC’s Global Reach • 109 country and regional offices worldwide,AAA credit rating • 4,015 staff (57% are based outside Washington DC)
  24. 24. 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

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