IFCINTERNATIONAL FINANCE
CORPORATION
1
INTRODUCTION
•Six decades of creating opportunity – Created on 20 July
1956.
•IFC is the largest organization of its kind.
•184 countries are members of IFC.
•Holds $48.8 billion portfolio touching almost every major
industry.
•Reach millions of people in over 100 countries.
2
The IFC is a member of the World Bank Group and is
headquartered in Washington, D.C., United States.
The International Finance Corporation (IFC) is an
international financial institution that offers investment,
advisory, and asset management services to encourage
private sector development in developing
countries(MEMBER).
Since 2009, Its goals are to increase
1.sustainable agriculture opportunities,
2.improve health and education,
3.increase access to financing for microfinance and
business clients,
4.advance infrastructure,
5.help small businesses grow revenues,
3
WORLDBANKGROUP
IBRD: International Bank for Reconstruction and
Development
IFC : International Finance Corporation
IDA : International Development Association
MIGA : Multilateral Investment Gurantee Agency
ICSID : International Centre for Settlement of Investment
disputes
4
PLACES WHERE IFC WORKS
IFC OPERATES IN MORE THAN 100 COUNTRIES.
East Asia & Pacific
Europe & Central Asia
Latin America & Caribbean
Middle East & North Africa
South Asia
Sub Saharan Africa
Western Europe
5
PLACES WHERE IFC
WORKS
6
SERVICES
1. Loans
2. Equity
3. Trade and Supply Chain Finance
4. Syndications
5. Treasury Client Solutions
6. Venture Capital
7. Advisory
8. Asset Management
7
EXPERTISE
1. Agribusiness and Forestry
2. Financial Institutions
3. Funds
4. Health and Education
5. Infrastructure
6. Manufacturing
7. Oil, Gas, and Mining
8. Public-Private Partnerships
9. Telecommunications, Media and Technology
10. Tourism, Retail and Property
8
PURPOSE OF FORMING
IFC
The Purpose of forming IFC is
1.create opportunities for people to escape poverty
and achieve better living standards by mobilizing
financial resources for private enterprise,
2.promoting accessible and competitive markets,
3.supporting businesses and other private sector
entities,
4.and creating jobs and delivering necessary
services to those who are poverty-stricken or
otherwise vulnerable. 9
OBJECTIVES
1. To invest in productive private enterprises, in
association with private investors, and without
government guarantee of repayment, in cases where
sufficient private capital is not available on
reasonable terms.
2. To serve as a clearing house to bring together
investment opportunities, private capital (both
foreign and domestic) and experienced management.
3. To help in stimulating the productive investment of
private capital, both domestic and foreign.
10
GOVERNANCE
The IFC is owned and governed by its member
countries (184), but has its own executive leadership
and staff that conduct its normal business
operations.
It is a corporation whose shareholders are member
governments that provide paid-in capital and which
have the right to vote on its matters.
The IFC is governed by its Board of Governors
which meets annually and consists of one governor
per member country (most often the country's
finance minister or treasury secretary).
11
Each member typically appoints one governor and also one
alternate. Although corporate authority rests with the Board
of Governors, the governors delegate most of their
corporate powers and their authority over daily matters
such as lending and business operations to the Board of
Directors.
The IFC's Board of Directors consists of 25 executive
directors who meet regularly and work at the IFC's
headquarters, and is chaired by the President of the World
Bank Group.
The executive directors collectively represent all 184
member countries. When the IFC's Board of Directors
votes on matters brought before it, each executive
director's vote is weighted according to the total share
capital of the member countries represented by that12
The IFC's Executive Vice President and CEO oversees its
overall direction and daily operations.
As of October 2012, Jin-Yong Cai serves as the Executive
Vice President and CEO of the IFC.
President of the World Bank Group Jim Yong Kim
appointed Jin-Yong Cai to serve as the new Executive Vice
President and CEO of the IFC.
13
INDIA’S ROLE IN IFC
1. India is one of the founder members of IBRD, IDA and
IFC.
2. First investment of IFC in India took place in 1959 with
US$ 1.5 million. India became a member of MIGA in
January 1994.
3. India has an Executive Director, in the Board of
Directors of IBRD / IFC / IDA/ MIGA. The Executive
Director from India represents a constituency
comprising of four countries: India, Bangladesh,
Bhutan and Sri Lanka. Mr. M. N. Prasad represents
India in the Board of Directors w. e. f. 30th September
2011. Mr. Kazi M. Aminul Islam from Bangladesh is
currently the Alternate Executive Director for this
constituency.
14
FUND MOBILIZATION
IFC mobilizes its funds through either Central Banks
(or other Banks which they consider eligible) present
in within the country or in another country.
Examples of such banks,
AKA Export Finance Bank, DHB Bank (Nederland)
N.V., ING Bank N.V., Intesa Sanpaolo S.p.A.,
RosEvroBank JSCB, and Sumitomo Mitsui Banking
Corporation
15
INVESTMENTS &
PROJECTS
1. The corporation is assessed by an independent evaluator
each year. In 2011, its evaluation report recognized that its
investments performed well and reduced poverty, but
recommended that the corporation define poverty and
expected outcomes more explicitly to better-understand its
effectiveness and approach poverty reduction more
strategically.
2. The corporation's total investments in 2011 amounted to
$18.66 billion.
3. It committed $820 million to advisory services for 642 projects
in 2011, and held $24.5 billion worth of liquid assets.
4. The IFC is in good financial standing and received the highest
ratings from two independent credit rating agencies in 2010
and 2011. 16
LIST OF RECENT
PROJECTS
17
S. NO. COMPANY DATE COUNTRY
1 Canvest Environmental
Protection Group
Company Limited
JANUARY 20, 2016 CHINA
2 UNITED BANK FOR
AFRICA PLC
JANUARY 20, 2016 NIGERIA
3 ACL ASEAN Tower
Holdco Limited
JANUARY 19, 2016 VIETNAM
4 FOTOWATIO
RENEWABLE
VENTURES BV
JANUARY 14, 2016 JORDON
5 OLAM
INTERNATIONAL
LIMITED
JANUARY 6, 2016 SINGAPORE,
INDIA, NIGERIA
6 NOBLE AGRI DECEMBER 29, 2016 CHINA
RECENT PROJECTS
Company name: OLAMINTERNATIONAL LTD.
Date: January 6, 2016
IFC is considering an up to US$100 million loan facility and up to US$75
million mobilization to Olam International Limited (“Olam” or the
“Borrower”), a global agri-business group headquartered in Singapore and
listed on the Singapore Stock Exchange (SGX: Olam). The proceeds of the
loan provided by IFC shall be used for financing permanent working capital
and capital expenditure requirements in respect of Approved Projects.
Approved Projects are projects of Olam’s subsidiaries that are pre-agreed
between Olam and IFC in the Loan Agreement. Currently, approved
projects are expected to consist of the following:
India – Hemarus Industries Limited - Sugarand Cogeneration Facility
India – SVI Spices Processing Facility
Nigeria – Crown FlourMill Factory
Nigeria – Greenfield Sesame Hulling Unit
18
Company name: NOBLE AGRI LTD.
Date: December29, 2015
Noble Agri, recently spun out of Noble Group, is a global agri
commodities company, involved in the origination, processing
and distribution of grains and oilseeds, sugar and ethanol, and
other soft commodities (coffee and cotton). It operates through
60 major offices around the world, including Brazil, China,
Argentina, Eastern Europe, India and South Africa and has over
13,000 employees. IFC is considering an investment to
participate its pro-rata share to buy out the 49% minority stake of
Noble Group in Noble Agri, together with COFCO Corporation
(“COFCO”), the leading agribusiness group in China, and an
international consortium of investors (IC, including IFC, HOPU
Fund and other investors). This is a follow-on investment (project
no. 34738) in which COFCO and the IC bought a 51%
shareholding in Noble Agri through a subsidiary and created a
joint-venture trading platform to capitalize on potential synergies
across the supply chain with COFCO. IFC’s investment
transferred into an indirect ownership of 4.6 percent in Noble
Agri. 19
RECENT NEWS (IFC PRESS
RELEASE)
Bhopal, India, January 16, 2016
IFC, a member of the World Bank Group, is working with
the Indian government to assist in meeting its large-scale
solar energy generation goals. IFC is supporting the
government of Madhya Pradesh to set up the 750-MW
Rewa ultra-mega solar power project. This will be the
largest single-site solar power project in the world.
Kyiv, Ukraine, October7, 2015
IFC and Raiffeisen Bank Aval are launching a new risk-
sharing facility that will enable farmers to buy crop
protection products on credit from industry leader Bayer,
with the purchases to be paid in full once the year’s crops
are sold. It will cover up to $60 million of seasonal
payment obligations to Bayer, of which IFC will
guarantee up to half the value.
20
GLOBAL GDP GROWTH
21
22
PERFORMANCE LEVEL OF IFC
23
YEAR COMMITMENTS
In Million USD
DISTRIBUTED
In Million USD
PERFORMANCE
LEVEL
2010 12664 6793 53.60%
2011 12186 6715 55.10%
2012 15462 7981 51.61%
2013 18349 9971 54.34%
2014 17261 9904 57.37%
PERFORMANCE LEVEL
OF IFC
24
CONCLUSION
The graph in previous slide tells us that the IFC is showing
increasing trend in its performance but still there is a lot to
acheive for IFC.
25
ANY DOUBTS OR
QUESTIONS
YOU ARE MOST
WELCOME
26
International Finance Corporation (IFC)

International Finance Corporation (IFC)

  • 1.
  • 2.
    INTRODUCTION •Six decades ofcreating opportunity – Created on 20 July 1956. •IFC is the largest organization of its kind. •184 countries are members of IFC. •Holds $48.8 billion portfolio touching almost every major industry. •Reach millions of people in over 100 countries. 2
  • 3.
    The IFC isa member of the World Bank Group and is headquartered in Washington, D.C., United States. The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries(MEMBER). Since 2009, Its goals are to increase 1.sustainable agriculture opportunities, 2.improve health and education, 3.increase access to financing for microfinance and business clients, 4.advance infrastructure, 5.help small businesses grow revenues, 3
  • 4.
    WORLDBANKGROUP IBRD: International Bankfor Reconstruction and Development IFC : International Finance Corporation IDA : International Development Association MIGA : Multilateral Investment Gurantee Agency ICSID : International Centre for Settlement of Investment disputes 4
  • 5.
    PLACES WHERE IFCWORKS IFC OPERATES IN MORE THAN 100 COUNTRIES. East Asia & Pacific Europe & Central Asia Latin America & Caribbean Middle East & North Africa South Asia Sub Saharan Africa Western Europe 5
  • 6.
  • 7.
    SERVICES 1. Loans 2. Equity 3.Trade and Supply Chain Finance 4. Syndications 5. Treasury Client Solutions 6. Venture Capital 7. Advisory 8. Asset Management 7
  • 8.
    EXPERTISE 1. Agribusiness andForestry 2. Financial Institutions 3. Funds 4. Health and Education 5. Infrastructure 6. Manufacturing 7. Oil, Gas, and Mining 8. Public-Private Partnerships 9. Telecommunications, Media and Technology 10. Tourism, Retail and Property 8
  • 9.
    PURPOSE OF FORMING IFC ThePurpose of forming IFC is 1.create opportunities for people to escape poverty and achieve better living standards by mobilizing financial resources for private enterprise, 2.promoting accessible and competitive markets, 3.supporting businesses and other private sector entities, 4.and creating jobs and delivering necessary services to those who are poverty-stricken or otherwise vulnerable. 9
  • 10.
    OBJECTIVES 1. To investin productive private enterprises, in association with private investors, and without government guarantee of repayment, in cases where sufficient private capital is not available on reasonable terms. 2. To serve as a clearing house to bring together investment opportunities, private capital (both foreign and domestic) and experienced management. 3. To help in stimulating the productive investment of private capital, both domestic and foreign. 10
  • 11.
    GOVERNANCE The IFC isowned and governed by its member countries (184), but has its own executive leadership and staff that conduct its normal business operations. It is a corporation whose shareholders are member governments that provide paid-in capital and which have the right to vote on its matters. The IFC is governed by its Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary). 11
  • 12.
    Each member typicallyappoints one governor and also one alternate. Although corporate authority rests with the Board of Governors, the governors delegate most of their corporate powers and their authority over daily matters such as lending and business operations to the Board of Directors. The IFC's Board of Directors consists of 25 executive directors who meet regularly and work at the IFC's headquarters, and is chaired by the President of the World Bank Group. The executive directors collectively represent all 184 member countries. When the IFC's Board of Directors votes on matters brought before it, each executive director's vote is weighted according to the total share capital of the member countries represented by that12
  • 13.
    The IFC's ExecutiveVice President and CEO oversees its overall direction and daily operations. As of October 2012, Jin-Yong Cai serves as the Executive Vice President and CEO of the IFC. President of the World Bank Group Jim Yong Kim appointed Jin-Yong Cai to serve as the new Executive Vice President and CEO of the IFC. 13
  • 14.
    INDIA’S ROLE INIFC 1. India is one of the founder members of IBRD, IDA and IFC. 2. First investment of IFC in India took place in 1959 with US$ 1.5 million. India became a member of MIGA in January 1994. 3. India has an Executive Director, in the Board of Directors of IBRD / IFC / IDA/ MIGA. The Executive Director from India represents a constituency comprising of four countries: India, Bangladesh, Bhutan and Sri Lanka. Mr. M. N. Prasad represents India in the Board of Directors w. e. f. 30th September 2011. Mr. Kazi M. Aminul Islam from Bangladesh is currently the Alternate Executive Director for this constituency. 14
  • 15.
    FUND MOBILIZATION IFC mobilizesits funds through either Central Banks (or other Banks which they consider eligible) present in within the country or in another country. Examples of such banks, AKA Export Finance Bank, DHB Bank (Nederland) N.V., ING Bank N.V., Intesa Sanpaolo S.p.A., RosEvroBank JSCB, and Sumitomo Mitsui Banking Corporation 15
  • 16.
    INVESTMENTS & PROJECTS 1. Thecorporation is assessed by an independent evaluator each year. In 2011, its evaluation report recognized that its investments performed well and reduced poverty, but recommended that the corporation define poverty and expected outcomes more explicitly to better-understand its effectiveness and approach poverty reduction more strategically. 2. The corporation's total investments in 2011 amounted to $18.66 billion. 3. It committed $820 million to advisory services for 642 projects in 2011, and held $24.5 billion worth of liquid assets. 4. The IFC is in good financial standing and received the highest ratings from two independent credit rating agencies in 2010 and 2011. 16
  • 17.
    LIST OF RECENT PROJECTS 17 S.NO. COMPANY DATE COUNTRY 1 Canvest Environmental Protection Group Company Limited JANUARY 20, 2016 CHINA 2 UNITED BANK FOR AFRICA PLC JANUARY 20, 2016 NIGERIA 3 ACL ASEAN Tower Holdco Limited JANUARY 19, 2016 VIETNAM 4 FOTOWATIO RENEWABLE VENTURES BV JANUARY 14, 2016 JORDON 5 OLAM INTERNATIONAL LIMITED JANUARY 6, 2016 SINGAPORE, INDIA, NIGERIA 6 NOBLE AGRI DECEMBER 29, 2016 CHINA
  • 18.
    RECENT PROJECTS Company name:OLAMINTERNATIONAL LTD. Date: January 6, 2016 IFC is considering an up to US$100 million loan facility and up to US$75 million mobilization to Olam International Limited (“Olam” or the “Borrower”), a global agri-business group headquartered in Singapore and listed on the Singapore Stock Exchange (SGX: Olam). The proceeds of the loan provided by IFC shall be used for financing permanent working capital and capital expenditure requirements in respect of Approved Projects. Approved Projects are projects of Olam’s subsidiaries that are pre-agreed between Olam and IFC in the Loan Agreement. Currently, approved projects are expected to consist of the following: India – Hemarus Industries Limited - Sugarand Cogeneration Facility India – SVI Spices Processing Facility Nigeria – Crown FlourMill Factory Nigeria – Greenfield Sesame Hulling Unit 18
  • 19.
    Company name: NOBLEAGRI LTD. Date: December29, 2015 Noble Agri, recently spun out of Noble Group, is a global agri commodities company, involved in the origination, processing and distribution of grains and oilseeds, sugar and ethanol, and other soft commodities (coffee and cotton). It operates through 60 major offices around the world, including Brazil, China, Argentina, Eastern Europe, India and South Africa and has over 13,000 employees. IFC is considering an investment to participate its pro-rata share to buy out the 49% minority stake of Noble Group in Noble Agri, together with COFCO Corporation (“COFCO”), the leading agribusiness group in China, and an international consortium of investors (IC, including IFC, HOPU Fund and other investors). This is a follow-on investment (project no. 34738) in which COFCO and the IC bought a 51% shareholding in Noble Agri through a subsidiary and created a joint-venture trading platform to capitalize on potential synergies across the supply chain with COFCO. IFC’s investment transferred into an indirect ownership of 4.6 percent in Noble Agri. 19
  • 20.
    RECENT NEWS (IFCPRESS RELEASE) Bhopal, India, January 16, 2016 IFC, a member of the World Bank Group, is working with the Indian government to assist in meeting its large-scale solar energy generation goals. IFC is supporting the government of Madhya Pradesh to set up the 750-MW Rewa ultra-mega solar power project. This will be the largest single-site solar power project in the world. Kyiv, Ukraine, October7, 2015 IFC and Raiffeisen Bank Aval are launching a new risk- sharing facility that will enable farmers to buy crop protection products on credit from industry leader Bayer, with the purchases to be paid in full once the year’s crops are sold. It will cover up to $60 million of seasonal payment obligations to Bayer, of which IFC will guarantee up to half the value. 20
  • 21.
  • 22.
  • 23.
    PERFORMANCE LEVEL OFIFC 23 YEAR COMMITMENTS In Million USD DISTRIBUTED In Million USD PERFORMANCE LEVEL 2010 12664 6793 53.60% 2011 12186 6715 55.10% 2012 15462 7981 51.61% 2013 18349 9971 54.34% 2014 17261 9904 57.37%
  • 24.
  • 25.
    CONCLUSION The graph inprevious slide tells us that the IFC is showing increasing trend in its performance but still there is a lot to acheive for IFC. 25
  • 26.
    ANY DOUBTS OR QUESTIONS YOUARE MOST WELCOME 26

Editor's Notes

  • #4 A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services.Read more: Microfinance Definition | Investopedia http://www.investopedia.com/terms/m/microfinance.asp#ixzz3xueOPzif
  • #8 Syndications IFC promotes development by mobilizing financing for the private sector in its developing member countries. In carrying out this role, we operate as both a financial and developmental institution. This developmental mandate is what differentiates IFC from commercial financiers. IFC acts as a catalyst in raising capital from foreign and domestic sources, in both private and public markets, for projects in the private sector of its member countries. Treasury Client Solutions IFC offers innovative derivative, structured finance, and local currency products and solutions that enable clients to hedge foreign exchange, interest rate, and commodity price exposure. Trade and Supply-Chain Finance The IFC Global Trade Finance Program guarantees trade-related payment obligations of approved financial institutions. The program extends and complements the capacity of banks to deliver trade finance by providing risk mitigation on a per-transaction basis for more than 250 banks across more than 80 countries. In the fiscal year ended in June 2015, IFC had an average outstanding balance of $2.8 billion in trade finance.
  • #10 http://www.ifc.org/wps/wcm/connect/1d30b9004028f151b28fff23ff966f85/Road+Map+FY14-16+redacted.pdf?MOD=AJPERES
  • #24 SOURCE: IFC Annual report 2014