Ifc final


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Ifc final

  1. 1. International Finance Corporation
  2. 2. History <ul><li>The IFC was established in 1956. </li></ul><ul><li>Corporate Office is at Washington, DC. </li></ul><ul><li>To support the growth of the private sector in the developing world. </li></ul><ul><li>The IFC's stated mission is “to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. </li></ul>
  3. 3. <ul><li>The IFC has worked with more than 3319 companies in 140 countries since its inception in 1956. </li></ul><ul><li>One of the fastest growing institutions in the World Bank Group. </li></ul><ul><li>IFC is the world’s largest multilateral institution focused on private sector development, widely seen as an essential source of job creation, growth, and poverty reduction. </li></ul>
  4. 4. IFC’s Purpose <ul><li>Promote open and competitive markets in developing countries. </li></ul><ul><li>Support companies and other private sector partners. </li></ul><ul><li>Generate productive jobs and deliver basic services. </li></ul>THEIR vision is that people should have the opportunity to escape poverty and improve their lives. their values are excellence ,commitment, integrity, and teamwork.
  5. 5. Characteristics of IFC <ul><li>Participates primarily in private sector ventures. </li></ul><ul><li>Shares same risks as other investors. </li></ul><ul><li>Invests in equity. </li></ul><ul><li>Has market pricing policies. </li></ul><ul><li>Does not accept government guarantees. </li></ul><ul><li>Is profit-oriented. </li></ul>
  6. 6. IFC’s Three Businesses <ul><li>Investment Services: Short & long-term loans & guarantees (including in selected local currencies), syndicated loans, equity & equity-type products, trade finance, structured finance, risk management products, and sub-national finance </li></ul><ul><li>Advisory Services: Access to finance, investment climate, corporate advice, environmental & social sustainability, and infrastructure </li></ul><ul><li>Asset Management Company: Launched in 2009, invests third-party capital in a private equity fund format </li></ul>
  7. 7. Members of IFC <ul><li>IFC's entire share capital was held by 182 countries. </li></ul><ul><li>To join the IFC, a country must first be a member of the World Bank. </li></ul><ul><li>States is the largest single shareholder, with 23.66 percent of votes, by Japan (5.87 percent), Germany (5.36 percent), the United Kingdom (5.04 percent), and France (5.04 percent) </li></ul>
  8. 8. President , Vice-Presidencies and Board of Executive Directors <ul><li>President of World Bank, Robert Zoellick also serves as IFC President. </li></ul><ul><li>IFC Executive Vice President and CEO is Lars Thunell. </li></ul><ul><li>Board of Directors is comprised of the same members as the World Bank’s Board. </li></ul>
  9. 9. Strategies Of IFC <ul><li>Promote private sector growth in infrastructure, health, education, and the food supply chain. </li></ul><ul><li>Develop local financial markets. </li></ul><ul><li>Address climate change and ensure environmental and social sustainability. </li></ul><ul><li>Build long-term partnerships with emerging market players and assist their cross-border growth. </li></ul>
  10. 10. Lending products of IFC Loans usually have the following characteristics <ul><li>Terms amortizing with final maturities of up to 12 years. </li></ul><ul><li>Currencies in major convertibles such as the U.S. dollar, Euro, Swiss Franc, or the Japanese Yen. </li></ul><ul><li>Fixed or variable interest rates. </li></ul><ul><li>Pricing that reflects the market conditions along with country and project risks. </li></ul>
  11. 11. Investment process of IFC <ul><li>Accepts investment proposals directly from companies or entrepreneurs. </li></ul><ul><li>Many of IFC projects entail close coordination and relationships with government agencies in developing countries. </li></ul>
  12. 12. Investments Total Commitments: US$10.5 billion
  13. 13. Requirements for receiving funding <ul><li>Be an IFC member from the developing country. </li></ul><ul><li>Be in the private sector. </li></ul><ul><li>Be sound technically. </li></ul><ul><li>Be commercial with profitability. </li></ul><ul><li>Be economically beneficial to the developing community. </li></ul><ul><li>Meets the IFC standard for social and environmental policy. </li></ul>
  14. 14. IFC - INDIA <ul><li>To reduce poverty and promote sustainable economic growth, IFC believe that India needs a vibrant private sector which will: </li></ul><ul><li>· increase the availability of high-quality infrastructure </li></ul><ul><li>· accelerate rural growth </li></ul><ul><li>· develop competitive manufacturing and service industries </li></ul><ul><li>· strengthen the financial sector . </li></ul>
  15. 15. <ul><li>Cont……. </li></ul><ul><li>Since 1956, IFC has invested in 199 companies in India </li></ul><ul><li>India IFC's third largest country of operations with portfolio of $2.3 billion (as of June 2007 ) </li></ul>
  16. 16. <ul><li>PROJECTS IN INDIA </li></ul><ul><li>IFC eyes funding to green projects in Gujarat (Rutam Vora / Mumbai/ Ahmedabad January 03, 2011,) </li></ul><ul><li>IFC may invest Rs 450 cr in Sagar-Vicat cement plant . </li></ul><ul><li>IFC looks at affordable housing projects in India </li></ul>
  17. 17. IFC’s Expertise regarding Conservation Finance <ul><li>Business Appraisal: </li></ul><ul><ul><li>Tremendous in-house capabilities regarding financial, technical, environmental, social, legal, and economic analysis. </li></ul></ul><ul><ul><li>Extensive investment experience in many sectors & countries </li></ul></ul><ul><li>Concession Design: </li></ul><ul><ul><li>IFC can leverage its experience with water, electricity, & tourism concessions </li></ul></ul><ul><li>Investment Structuring: </li></ul><ul><ul><li>IFC can structure equity, quasi-equity, debt, guarantees, etc. for for-profit ventures in developing countries. </li></ul></ul>
  18. 18. IFC’s Needs & Potential Role in Conservation Finance Alliance <ul><li>Needs: </li></ul><ul><ul><li>IFC is looking for viable business opportunities that will benefit biodiversity conservation. </li></ul></ul><ul><li>IFC’s Potential Contributions: </li></ul><ul><ul><li>For viable projects, IFC could provide significant financial engineering expertise as well as commercial and/or concessional financing </li></ul></ul>
  19. 19. <ul><li>Thank You………!!!!!! </li></ul>