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Naat bat louisville, ky 07 sep 2011 - 11 09 05 ep


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Naat bat louisville, ky 07 sep 2011 - 11 09 05 ep

  1. 1. Looking for win-win cases:Supporting U.S./developed world technology businessesby Financing their Emerging Markets green projects National Alliance for Advanced Technologies Batteries Louisville – 08 Sept 2011 Emmanuel POULIQUEN Principal Industry Specialist, Energy Efficient Machinery
  2. 2. Who We Are, What We Do• IFC, part of the World Bank Group, is the largest global development finance institution focused on the private sector – the global leader in private sector development finance• We create opportunity for people – to escape poverty and improve their lives• Driven by our vision and purpose, we make a unique contribution to development• We invest, advise, mobilize capital, and manage assets – providing solutions for an inclusive and sustainable world 2
  3. 3. Expertise: How we can help• Financial expertise  55+ years focused on sustainable projects financing in emerging markets• Country expertise  Part of the World Bank - hands on experience in fast growth countries and access to governments• Industries expertise (Manufacturing, Infrastructure, Retail, VC )  Unique combination of manufacturing expertise with VC experience  A different VC model … • Not just technology but scaling up operations • Higher variable costs (hardware) and higher breakeven points • Requirement for a global understanding of combined emerging and developed market  Evolution of grids and automotive energy issues are closely monitored • Renewables (Wind, Solar, Biomass, …) • Batteries (Vehicles, Grid storage) • Inverters, BMS, smart meters, RFID, Billing … • H-EVs/EVs 3
  4. 4. What we can do together (Feature)• Help grow your business overseas in Emerging Markets• “Neutral Broker” with local partners  Joint-Ventures, Clients, Suppliers  Corporate Governance (JVs)  Transparency  Intellectual Property  Ethics and Social dimensions• First range knowledge of policies – means to influence  Ex: World Bank report on China New Energy Vehicles program … … triggering policy support project on EV deployment in WuHan and ShenZhen  Close follow-up from WB shareholders at board level - United States (15.85%), Japan (6.84%), China. (4.42%), Germany (4%), Britain (3.75%) and France (3.75%).• Look for win-win cases  Sustainable economic growth effects in emerging countries  Dividends in capital, experience and technology in developed countries  Climate change mitigation 4
  5. 5. What can be expected (Benefits)• Financing solutions not readily available  Long tenor, grace periods  Equity, Quasi Equity  Syndication  Local currency (when regulations allow)  Global facilities• World Bank stamp of approval  Sustainable development  Corporate image  Credit enhancement• Industry, Financial and Global expertise sharing  Cross-fertilization  VC / PE partnership approach on a global scale with ethics  Portfolio supervision / follow-up 5
  6. 6. Virtuous partnership in the development cycleA case study Example:• Core technology and industrial practices from a U.S. company  Core system components from the best of U.S. technology  Patents combined with “secret sauces” in key areas• Tap into huge potential emerging market (ex: China)  Localize labor intensive, bulky product processes, local deployment  Leverage lessons learned to better U.S. products and operations  Second financing round to expand in • Other emerging countries (cheap, trimmed down solutions) • Developed countries (upscale solutions)• Raised VC (Mezzanine) Quasi-Equity financing from IFC  Co-investor joined IFC benefitting from due diligence and risk mitigation 6
  7. 7. Our Vision That people should have the opportunity to escape poverty and improve their livesWe foster sustainable economic growth in developingcountries by supporting private sector development,mobilizing private capital, and providing advisory and riskmitigation services to businesses and governments. 7
  8. 8. • IFC provides more than money • We spread innovative ideas, mobilizing money for clients from many sources• We blend investment and advice, helping the private sector find • As results come in, we influence the policy solutions debate and share our learning for wider impact 8
  9. 9. Questions ? Mr. Emmanuel POULIQUEN (普迈新) Principal Industry Specialist IFC – Manufacturing, Energy Efficient Machinery Financing production and deployment of equipment thatefficiently generate, store, transport or transform energy 2121 Pennsylvania Ave., NW Washington, DC 20433 Tel: +1 (202) 473-9114 Fax: +1 (202) 974-4394 Email: 9
  10. 10. Appendixes 10
  11. 11. IFC: Our Reputation and Value (Who we are)• IFC is the world’s largest multilateral private sector investor in the emerging markets• AAA rating• Profitable every year since it was established• 2,600+ people in more than 100 offices worldwide• In-house syndications department working with over 200 banks• Global benchmarking - identifies and disseminates international best practice• Advice on environmental and social issues• Political risk mitigation• IFC Performance Standards adopted through the Equator Principles by over 50 global institutions. 11
  12. 12. Investments by Industry, FY10 Commitments for IFC’s Account: $12.7 Billion Private Equity and Subnational Investment Funds 3% Finance 1% Oil, Gas, Mining Agribusiness 4% and Chemicals 8% Infrastructure 12% Global Financial Health and Markets 54% Education 3%• Global Manufacturing and Services 11% Global Information and • Low emissions Cars, EVs • Wind, Solar, Grids, Batteries Communication Technologies 4% • Low Emissions Machines • Other … 12
  13. 13. Investments by Region, FY10 Commitments for IFC’s Account: $12.7 Billion Global 1% Sub-Saharan Africa 19% Middle East and North Africa 12% East Asia and Pacific 13%Latin America and theCaribbean 24% South Asia 8% Europe and Central Asia 23% 13
  14. 14. IFC Financing IFC’s own account Mobilization* Loan Participants $20bn $15bn $10bn $5bn $0* “Mobilization” includes syndicated loans, structured finance, IFC initiatives and other, and IFC Asset Management Company. 14
  15. 15. IFC’s Business (What we do) Investment Services• Loans and intermediary services• Equity and quasi-equity• Syndications• Structured and securitized products• Risk management products• Trade finance• Subnational finance• Treasury operations• CleanTech Venture Capital 15
  16. 16. Finance: manage in a wild world• Currency fluctuations (not-so-low cost sourcing)• Market fluctuations• Accelerate in emerging markets – with the right Banker  Bankers support (Knows east/west/south)  Hands on experience in your trade  Development AND investment banker  Present in all emerging countries  World class understanding of your industry  Long term view• Promoting efficient products and processes 16
  17. 17. IFC Offers to Clients (What we bring) Unparalleled Expertise• Knowledge of global industries and local markets• Financial sector influence• Long-term partnerships; countercyclical role• Sustainable investments• Leadership on corporate governance• Value-adding expertise 17
  18. 18. IFC Offers Clients A Unique Role• Emphasis on development impact World Bank affiliation• Market discipline• Risk-taking and risk management• Preferred creditor status• Political risk cover 18
  19. 19. How IFC differs from other Investors• IFC can provide debt, equity, or a combination of both depending on the client’s needs• IFC has a longer investment horizon (5-7 years) and is less cyclical than most financial investors• With its equity investments, IFC can act as an “honest broker” in joint venture situations, give additional comfort for minority shareholders, and be a catalyst for other investors.• Leading multilateral source of development finance – IFC’s breadth of investment expertise and years of experience in emerging markets add value to its clients• IFC strong reputation adds credibility to investee companies that access international capital markets• Best practice know-how on corporate governance, environmental management, local communities,and insurance requirements 19
  20. 20. IFC Customer Profile: Multinationals, Regional and Local•What is important about IFC to a company, by size and locationWhat IFC brings to an investment Multinational Regional LocalQuality stamp of approvalCountry risk mitigationExposure to country risk volatilityGood contacts/knowledgeCompetitive cost •AlwaysLong tenors •OftenAccess to local currency funding •SometimesComplementary funding source
  21. 21. IFC Strategic Priorities• Strengthening the focus on frontier markets – IDA countries, poorer regions of middle-income countries, conflict affected and fragile states, and industries with the broadest potential for development impact• Building enduring partnerships with emerging market players• Addressing climate change and ensuring environmental and social sustainability• Promoting private sector growth in infrastructure, health, education, and the food supply chain• Developing local financial markets 21
  22. 22. Combating Climate Change • The developing world has great demand for energy, but cannot afford to increase emissions due to climate change concerns. • Solar, wind and other forms of renewable energy pose great opportunities for private investors – if risks can be overcome. • IFC invested $1.6 billion in renewables in fiscal 2010, a 60 percent increase from the previous year. 22
  23. 23. Fossil-fuel CO2 emissions, 2007 •World emissions: 30.7 billion tons CO2
  24. 24. Cars: Enough oil for the world ?Oil prices will skyrocketChina can’t afford a petrol/diesel engine model for long term growthChina will be a key driving market for EVs 24
  25. 25. How fast ? The E-Bikes model• 2009, Chinas output of electric bikes (E2W) reached 22.2 M 25