The document provides advice on financing projects in China. It recommends securing entry through business delocalization and avoiding overestimating costs. Partnering is not necessary as local knowledge can be learned, but a global banking partner for long-term financing is important. Financing options include IFC loans in local currency or US dollars, though US dollar loans require careful planning. Patience and resilience are needed given the challenges of the Chinese market.
Guidebook for Impact Investors: Impact MeasurementPurpose Capital
Purpose Capital recently published Guidebook for Impact Investors: Impact Measurement, a guidebook for impact investors to help them enhance their use of social metrics.
The guide provides investors with with:
- A basic overview of social metrics for impact investing
- An outline of the issues and challenges of social impact measurement
-A summary of existing social impact measurement tools and a description of how they are being used
-A set of diagnostic tools to help you think through key questions and issues related to measurement and to select appropriate social impact metrics based on selected goals
For more information, visit: http://www.purposecap.com/portfolio/guidebook-for-impact-investors-impact-measurement/
When Agile teams begin to deliver products incrementally, new opportunities open up at the portfolio level, delivering strategic business value. However, the traditional approach to portfolio management — which depends upon long-range forecasting and fixed financial controls — breaks down as business environments grow more complex, leaving portfolio managers ill-equipped to reap the potential benefits of their Agile programs.
In this interactive session at Agile2014, SolutionsIQ Managing Director John Rudd introduced tools that help portfolio managers not only survive but thrive under conditions of high business uncertainty. Participants took part in facilitated team-based exercises which helped them gain an understanding of common financial language, real options analysis, the dynamic business case, and how to use risk profiles to determine which financial controls best fit different classes of investments.
Capital raising activity is ever-changing. Asset managers are looking for new ways to raise capital and push the boundaries as greater pressure is placed on traditional models.
The desire to increase hold periods, lower the cost of capital, alter and diversify investment strategies, and provide liquidity for investors has caused managers to reprioritize long-term business objectives. Indeed, permanent capital and other specialty finance structures which were once considered non-conventional in the industry have become a common discussion point for asset managers evaluating the strategy of their next fundraising effort.
Guidebook for Impact Investors: Impact MeasurementPurpose Capital
Purpose Capital recently published Guidebook for Impact Investors: Impact Measurement, a guidebook for impact investors to help them enhance their use of social metrics.
The guide provides investors with with:
- A basic overview of social metrics for impact investing
- An outline of the issues and challenges of social impact measurement
-A summary of existing social impact measurement tools and a description of how they are being used
-A set of diagnostic tools to help you think through key questions and issues related to measurement and to select appropriate social impact metrics based on selected goals
For more information, visit: http://www.purposecap.com/portfolio/guidebook-for-impact-investors-impact-measurement/
When Agile teams begin to deliver products incrementally, new opportunities open up at the portfolio level, delivering strategic business value. However, the traditional approach to portfolio management — which depends upon long-range forecasting and fixed financial controls — breaks down as business environments grow more complex, leaving portfolio managers ill-equipped to reap the potential benefits of their Agile programs.
In this interactive session at Agile2014, SolutionsIQ Managing Director John Rudd introduced tools that help portfolio managers not only survive but thrive under conditions of high business uncertainty. Participants took part in facilitated team-based exercises which helped them gain an understanding of common financial language, real options analysis, the dynamic business case, and how to use risk profiles to determine which financial controls best fit different classes of investments.
Capital raising activity is ever-changing. Asset managers are looking for new ways to raise capital and push the boundaries as greater pressure is placed on traditional models.
The desire to increase hold periods, lower the cost of capital, alter and diversify investment strategies, and provide liquidity for investors has caused managers to reprioritize long-term business objectives. Indeed, permanent capital and other specialty finance structures which were once considered non-conventional in the industry have become a common discussion point for asset managers evaluating the strategy of their next fundraising effort.
Basel Accords - Basel I, II, and III Advantages, limitations and contrastSyed Ashraf Ali
The Basel Accords is referred to the banking supervision Accords (recommendations on banking regulations). Basel I, Basel II and Basel III was issued by the Basel Committee on Banking Supervision (BCBS). They are called the Basel accords as the BCBS maintains its secretariat at the Bank for
International Settlements in Basel, Switzerland and the committee normally meets there. The Basel Accords is a set of
recommendations for regulations in the banking industry.
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
This monthly newsletter provides an overview of Canadian mutual fund industry vital signs, product development highlights for the month and interesting facts about our industry.
This presentation is the one stop point to learn about Basel Norms in the Banking
This is the most comprehensive presentation on Risk Management in Banks and Basel Norms. It presents in details the evolution of Basel Norms right form Pre Basel area till implementation of Basel III in 2019 along with factors and reason for shifting of Basel I to II and finally to III.
Links to Video's in the presentation
Risk Management in Banks
https://www.youtube.com/watch?v=fZ5_V4RW5pE
Tier 1 Capital
http://www.investopedia.com/terms/t/tier1capital.asp
Tier 2 Capital
http://www.investopedia.com/terms/t/tier2capital.asp
Basel I
http://www.investopedia.com/terms/b/basel_i.asp
Capital Adequacy Ratio
http://www.investopedia.com/terms/c/capitaladequacyratio.asp
Basel II
http://www.investopedia.com/video/play/what-basel-ii/?header_alt=c
Basel III
http://www.investopedia.com/terms/b/basell-iii.asp
RBI Governor - Raghuram G Rajan on the importance if Basel III regulations
https://youtu.be/EN27ZRe_28A
OECD, 7th Meeting on Public-Private Partnerships - Virginie GRANDOECD Governance
This presentation by Virginie GRAND was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm
Basel Accords - Basel I, II, and III Advantages, limitations and contrastSyed Ashraf Ali
The Basel Accords is referred to the banking supervision Accords (recommendations on banking regulations). Basel I, Basel II and Basel III was issued by the Basel Committee on Banking Supervision (BCBS). They are called the Basel accords as the BCBS maintains its secretariat at the Bank for
International Settlements in Basel, Switzerland and the committee normally meets there. The Basel Accords is a set of
recommendations for regulations in the banking industry.
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
This monthly newsletter provides an overview of Canadian mutual fund industry vital signs, product development highlights for the month and interesting facts about our industry.
This presentation is the one stop point to learn about Basel Norms in the Banking
This is the most comprehensive presentation on Risk Management in Banks and Basel Norms. It presents in details the evolution of Basel Norms right form Pre Basel area till implementation of Basel III in 2019 along with factors and reason for shifting of Basel I to II and finally to III.
Links to Video's in the presentation
Risk Management in Banks
https://www.youtube.com/watch?v=fZ5_V4RW5pE
Tier 1 Capital
http://www.investopedia.com/terms/t/tier1capital.asp
Tier 2 Capital
http://www.investopedia.com/terms/t/tier2capital.asp
Basel I
http://www.investopedia.com/terms/b/basel_i.asp
Capital Adequacy Ratio
http://www.investopedia.com/terms/c/capitaladequacyratio.asp
Basel II
http://www.investopedia.com/video/play/what-basel-ii/?header_alt=c
Basel III
http://www.investopedia.com/terms/b/basell-iii.asp
RBI Governor - Raghuram G Rajan on the importance if Basel III regulations
https://youtu.be/EN27ZRe_28A
OECD, 7th Meeting on Public-Private Partnerships - Virginie GRANDOECD Governance
This presentation by Virginie GRAND was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm
The basics of development financing for real estate development and businesses, from how banks make loan decisions to how SBA and other programs work to help create and retain jobs. Presented at the 2016 Ohio Basic Economic Development Course.
Three months after COVID crisis | What to do now ?aditya72
When we are approaching towards the end of Quarter 1 of FY 20-21, we need to revisit the events of last three months. Watch this presentation to learn about the suggested rebalancing to be done in our MF portfolios
Angels, VCs and Fundraising in China 2010Chris Evdemon
This presentation explains the current status in China's early stage ecosystem, in terms of angel investors and venture capital. It also provides aspiring entrepreneurs with some advice on the local fundraising process.
Capital raising activity is ever changing. Asset managers are looking for new ways to raise capital and push the boundaries as greater pressure is placed on traditional models.
The desire to increase hold periods, lower the cost of capital, alter and diversify investment strategies, and provide liquidity for investors has caused managers to reprioritize long-term business objectives. Indeed, permanent capital and other specialty finance structures, which were once considered non-conventional in the industry, have become a common discussion point for asset managers that are evaluating the strategy of their next fundraising effort.
Our panel will discuss the range of various permanent capital structures, including Permanent Capital Acquisition Partnerships (PCAPs), Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs), YieldCos, Special Purpose Acquisition Companies (SPACs), Public Asset Managers, Business Development Companies (BDCs), Closed End Funds, Interval Funds, and Variable Annuity and Variable Life Funds. We will also discuss various issues associated with these products, including:
• Strategic comparison of structures;
• Market trends and investor base;
• Distribution requirements;
• Tax consequences; and
• Regulatory requirements.
Similar to Ifc presentation gai china 21 sep 2006 (20)
Is Permanent Capital Structure Right for Your Fund?
Ifc presentation gai china 21 sep 2006
1. Financing your Chinese Projects
What structure, what partner, what finance,
IFC’s experience and perspective
Emmanuel Pouliquen
IFC Senior Transportation Industry Specialist
General Manufacturing and Services Department
2. Macro Trends and Forces China
• GDP Growth: 8.2% pa for past 10 years. Expected to be 8% pa for the
next 10 years. Shift from export-led to domestic/consumer growth.
• Urbanization: in past 10 years, urban population has gone from 28%
to 40% of total population.
• Financial Markets: Dominated by bank lending, which can be
controlled, to some extent.
• Government Policies: Go West and Harmonious Society initiatives
make a big difference on areas and types of development.
• Social Tensions: Conflicts between rural populations and local
govts/companies are real and increasing.
• Regulatory Environment: Still quite complex, providing practical
challenges to doing business.
2
3. Structure
• JV times have changed …
• Big Three (SAIC, FAW, DongFeng) have chosen their partners
long ago, not just for cars, but also for equipment
• JV opportunities still exist but motivated by:
• very specific technology needs:
• segments where Magna, Valeo or other Bosch have no
proposal
• exchange of territory (Swaps: your technology in China, my
cheap products in your territory)
• Be very lucid on what your partner wants
• Technology a mean but also an end (“The party said …”)
• 50 years JV = 50 years of “negotiated friendship”
• A boat with 2 captains tends to go on rocks
3
4. Partner
• Perceived benefits of a JV partner:
• Knows the market
• Knows the culture
• Have connections
• Transfer staff from its existing operations
• … but can’t you do without a partner ?
• Market:
• GM or Ford: you already know the market !
• Local OEMs or Tier 1s: connections
• Culture:
• learn it yourself, the sooner, the better.
• Learning the culture through your partner may just complicate things …
• Connections:
• governmental connections less and less relevant, consultants can help you
• Customers connections: may or may not be relevant.
• Build-up your GuanXi !
• Transfer staff:
• Watch out: it goes with transferred H.R. practices ! 4
5. Sleeping partner, or no partner ?
• Impacts:
• Master of your destiny
• Keep your corporate culture intact, for better or for worse
• “Start right”
• … but need to build your market up from scratch
• Stand alone penetration strategy:
• Piggy back on existing U.S. relocated programs
• Transfer existing production to China
• Stick to western customers in the early stages
• Send your best people, ready to stay for 5 years or more
• HQs are far away: go there often, direct reporting line to CEO
• Be patient …
5
6. Financing
• Specific points:
• Multi-stage funding
• Working Capital for
• Growth
• Exports back to U.S.
• China banking system still immature, very focused on state-owned entities
• Issues:
• Your U.S Banker may be uncomfortable with your Chinese project
• Your focus must be on strategy and operations. Little time/resources to
discover the Chinese banking world
• Financing through global institutions
• Must be close to you both in the U.S. and in China
• Must be familiar with U.S.-Chinese issues
• Beyond financing, must understand your business, your strategy, and be able
to advise even on operations
6
7. IFC financing approach
World Bank Group
The World Bank Int‘l Finance
(IBRD) Corporation (IFC)
Est. 1945 Est. 1956
Government Private Sector
8. Capital Stock Held by IFC’s
Shareholders
(As of June 30, 2006)
Five largest: 45%
Other countries: 55%
United States
23.68%
Other countries Japan 5.88%
54.99%
Germany
5.37%
France 5.04%
178 Member United Kingdom
5.04%
Countries 8
9. IFC Services Offered
Promote Sustainable Private Sector Development
• Financial products: loans, equity, quasi-
equity and risk management facilities
• Resource mobilization: loan participations,
partial guarantees of local financing, and
securities offerings
• Advisory services: country, industry, financial,
and technical
10. IFC Financing: Key Elements
Equity Loan
• Normally 5%-15% Ownership • Normally Hard Currencies
• Not Single Largest • Market Interest Rates
Shareholder
• Long-term: 5-10 years
• No Direct Involvement in
Management
• Appropriate Grace Period
• Long-term Investor: 5-10 years • Secured by Project Assets
• Public Listing Preferred Exit • No Government Guarantees
Mechanism
11. IFC and China
• IFC is world’s largest • IFC’s role in China is
multilateral investor in increasing
the private sector
• Global portfolio of over $24.6 • $2.0 billion in over 100
billion investments since 1985
• $6.7 billion in new • SME facility in Sichuan
investments in FY06 • Portfolio over $1.5 billion
• IFC sets global standard for • Over $600 million in new
environmental and social investments in FY06
safeguards
• Plan to increase annual
• We bring value to clients by investments to over US$700
encouraging long term million per year, and double
sustainability of business portfolio in next 2-3 years
12. Project Cycle and Timing
As Seen by Client Internal to IFC
Initial Review
Initial Discussions & Authorization
to Appraise
Mandate Letter
Appraisal Management Approval
Financing Negotiations
Info. Memo and Syndication
Legal Documentation Board Approval
Disbursement
Supervision/Evaluation
12
13. Financing Options 1: Local Currency
• Local Banking Sector is very liquid, but
• Mostly short-term loans
• Still based on Relationship Banking rather than Credit Analysis
• Bank preference towards lending to SOEs rather than private companies
• IFC Local Currency Options are Limited
• Panda Bond successful, but not a permanent, recurring solution
• Direct lending in RMB will depend on development of the long-term swap
market; happening, but progress is slow
• IFC can provide partial guarantees of long-term local bank loans, but
between fees and interest rates, may not be the lowest cost solution
13
14. Financing Options 2: Hard Currency
• IFC US$ Loans a Viable Option
• Long-term, grace periods appropriate for capital projects
• If RMB appreciates, US$ loans are less expensive to repay
(though US$ Libor is currently relatively high)
• But Plan and Structure Carefully Up Front:
• Only Sino-Foreign JVs or Wholly Owned Foreign Enterprises
are regulatorily allowed to borrow in US$
• Only Direct Borrowers can provide assets for security
• No Co-Borrowing structures, probably no guarantees from
Chinese companies, no “exotic” financial instruments
14
15. Summary/Recommendations
• Secure your entry on no thrills business (de-localization)
• Don’t underestimate start-up costs
• Be master in your house
• You need time, have a long term global banking partner
• Share your strategy and operations vision with them, and
they’ll provide you with much more than funds
• Have courage, patience and resilience … it is worth it !
15
16. Questions/Answers
谢谢你的注意 !
XièXiè Ni De ZhùYì !
Thank you for your attention !
16