partnering with ifc syndications
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Partnering with IFC Syndications
IFC’S GLOBAL REACH
102 offices in 95 countries worldwide
3,940 staff (55% are based outside of
Washington, D.C.)
3
Overview of IFC
▪ Overview of IFC
▪ IFC Syndications▪ B Loans
▪ Parallel Loans
▪ Credit Insurance
▪ Managed Co-Lending Portfolio Program
▪ IFC/MIGA Business Development Partnership
▪ Portfolio Update
▪ Awards, Tombstones & Contacts
▪ A member of the World Bank Group
▪ Provides investment, advice, resource mobilization
▪ Triple-A credit rating; owned by 185 countries
▪ Present in nearly 100 countries
IFC is the largest global development institution focused on the
private sector in emerging markets.
Overview of IFC
IFC: A MEMBER OF THE WORLD BANK GROUP
Conciliation
and arbitration
of investment
disputes
Guarantees of
foreign direct
investment’s non-
commercial risks
Interest-free loans
and grants to
governments
of poorest
countries
Loans to
middle-income
and creditworthy
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
Guarantee
Agency
ICSID
International
Centre for
Settlement of
Investment
Disputes
5
Overview of IFC
DEVELOPMENT FINANCE TODAY
Create major opportunities for mobilizing private capital to:
6
End Poverty Boost Shared Prosperity
The World Bank Group’s Twin Goals
6
Overview of IFC
7
MEETING DEVELOPMENT GOALS
The World Bank Group is uniquely positioned to mobilize domestic
resources, attract private capital, and create markets.
IDA &IBRD
IFC & MIGA
▪ Create jobs in a sustainable manner
▪ Improve access to services,
innovation and technology
▪ Demonstrate commercial viability
of new markets
▪ Strengthen financial intermediation
and expand local capital markets
▪ Generate tax revenues
▪ Mobilize third-party capital
▪ Increase competition, set standards,
and improve sector performance
▪ Establish a supportive investment
climate to mobilize private capital
for investment in development
▪ Address market failures and
reduce risks.
▪ Improve domestic resource
mobilization, from tax revenues
to capital markets
▪ Enhance management of public
expenditures
Use of private sector solutions
helps to
Use of public sector solutions
helps to
The World Bank Group’s Unique Positioning
Overview of IFC
8
MEETING DEVELOPMENT GOALS
The WBG business model …
… maximizes development impact.
Public &
Private
Country-Led
Global Reach
Knowledge
Financing
Convening Power &
Partnership
The World Bank Group’s Unique Positioning
Overview of IFC
9
▪ Mobilizing private capital for
development
▪ More than $321 billion invested since
our founding in 1956
IFC: SIX DECADES OF
EXPERIENCE
▪ The world’s largest development finance
institution focused on the private sector
▪ Leveraging the full range of
World Bank Group capabilities
Experience Matters.
Tunisia
9
Overview of IFC
10
IFC’s $8 BILLION COVID 19 RESPONSE
In its initial package, IFC is providing $8 billion to help companies
continue operating and sustain jobs during the crisis.
Global Trade Liquidity and Critical Commodities Finance Programs: $2 billion
Working Capital Solutions: $2 billion
Global Trade Finance Program: $2 billion
Real Sector Envelope: $2 billion
PHASE 1: Relief
PHASE 2: Restructuring, Recovery
IFC is also launching a $4 billion Global Health Platform, helping expand access to medical supplies such as masks, ventilators, test kits and, eventually, a COVID-19 vaccine.
Overview of IFC
Broadening our
Scope – capital
market development
IFC’s HISTORY
Leading the Way in Private Sector Development
11
Putting PSD
on the Global
Agenda
Emphasizing Innovation
– coining ‘emerging
markets’ and increased
advisory services
1990s1980s1950s
1960s 2010s1970s 2000s
Rising Global Influence –
focus on privatization and
private infrastructure finance
Setting a Demonstration
Effect – Equator
Principles, AMC,
sustainability, financial
inclusion
Increasing Impact –
the recognized leader
in PSD
DECADE 1 DECADE 2 DECADE 3 DECADE 4 DECADE 5 DECADE 6
IFC Syndicated Loans & Management - Contacts Portfolio UpdateB LoansB LoansB LoansOverview of IFC
▪ Systematically develop markets
▪ Work more effectively through Upstream
engagement and deeper World Bank Group
collaboration
▪ Focus on the poorest countries and fragile and
conflict situations
IFC’S STRATEGY
Combined with IFC’s traditional approach to financing development projects through
▪ IFC 1.0: Attracting foreign private investments to developing countries
▪ IFC 2.0: Investing in local companies and banks with local private investors
CREATING MARKETS
▪ Crowd in much more patient private capital
than before.
▪ Expand use of private sector solutions.
▪ Leverage mobilization platforms.
IFC 3.0
MOBILIZING THE PRIVATE SECTOR
12
Overview of IFC
IFC’S STRATEGY
13
Maximizing Development Impact, Maintaining Financial Sustainability
IFC FOCUS
Industries that contribute to
productivity and growth
Regionswith the greatest
poverty and fragility
Themeswith the largest risks
and opportunities
Overview of IFC
IFC’S STRATEGY
14
Key Focus Areas
Infrastructure
South Asia
Agribusiness MENA
Africa
CROSS CUTTING: Gender, Disruptive Technology, Developing Local Capital Markets,
Scaling up Mobilization
INDUSTRIES THEMES REGIONS
Financial Inclusion
Health and Education
Climate Finance
Fragility
Digital Economy
SUSTAINABILITY
Strong environmental, social, and governance standards are critical to IFC’s
business growth and development impact
Overview of IFC
WHAT CLIENTS VALUE ABOUT IFC
Results of IFC Client Survey
15
Long-Term
Partner Role
Specialized Expertise
and Knowledge
Environmental,
Social, and Corporate
Governance Expertise
World Bank Group
Stamp of Approval
Providing Financing
Not Readily Available
Elsewhere
Understanding
of Client Needs
Global PresenceLoan Maturities
Overview of IFC
WHAT WE DOIntegrated Solutions, Increased Impact
▪ Loans
▪ Equity
▪ Trade and Commodity
Finance
▪ Derivatives and Structured
Finance
▪ Blended Finance
▪ Help Create New Markets
▪ Unlock Investment
Opportunities
▪ Strengthen Clients’
Performance and Impact
▪ Improve Environmental,
Social, and Corporate
Governance Standards
▪ Syndications
▪ IFC Asset Management
Company
ADVICE
Innovative solutions combining
IFC’s expertise and tools
INVESTMENT
Financial products tailored to
client needs
MOBILIZATION
Mobilizing and managing
capital for investment
$21.9 billion committed in FY20
$58.7 billion committed portfolio
$274.4 million program in FY20 $28 billion syndicated in last
five years
$10.1 billion
under management at IFC AMC
16
Overview of IFC
INVESTMENT
17
LOANS▪ Project and corporate financing
▪ On-lending through intermediary institutions
EQUITY▪ Direct equity investments
▪ Private equity funds
TRADE AND
COMMODITY
FINANCE
Guarantee of trade-related payment obligations of
approved financial institutions
DERIVATIVES AND
STRUCTURED
FINANCE
Derivative products to hedge interest rate, currency, or
commodity-price exposures of IFC clients
BLENDED FINANCE Using donor funds to crowd in private financing
Overview of IFC
ADVICE
TO COMPANIES
▪ Attracting private investors and partners
▪ Entering new markets
▪ Increasing impact
▪ Improving operational performance and sustainability standards
▪ Advancing gender equality
TO FINANCIAL
INSTITUTIONS AND
FUNDS
TO
GOVERNMENTS
▪ Strengthening risk management, diversifying product offerings
▪ Promoting universal access to finance, strengthening capital markets, and establishing credit bureaus and collateral registries
▪ Developing the private equity industry in frontier markets
▪ Structuring public-private partnerships that improve people’s access to high-quality infrastructure and basic services
▪ Implementing reforms that encourage private investment, spur growth, and create jobs
18
Overview of IFC
19
SYNDICATIONS
▪ Mobilizes 3rd-party debt through a broad suite of products
▪ Capital mobilization to serve developmental needs
▪ Managed Co-Lending Portfolio Program (MCPP) assets under management of over $10 billion
IFC ASSET
MANAGEMENT
COMPANY
▪ Mobilizing and managing capital for businesses in emerging markets
▪ $10.1 billion in assets under management in 12 investment funds
MOBILIZATION
19
Overview of IFC
20
IFC’S TOOLS AND PLATFORMS
Reducing investment risks in countries, sectors, and projects
▪ The Managed Co-Lending Portfolio
Program: Crowds in billions in private
capital from insurance companies and
others for IFC projects.
▪ IFC Asset Management Company:
Manages billions in assets for
investment in IFC projects.
Mobilization Platforms Blended Finance
▪ Uses small amounts of concessional
donor funds to mitigate risks, opening
the door to much larger amounts of
private investment.
▪ IDA 18 IFC-MIGA Private Sector
Window: Mobilizes private investment
and contributes to creating markets in
the most challenging economic
environments.
Overview of IFC
SUSTAINABILITY
IFC’s commitment to environmental and social sustainability and
good corporate governance helps clients:
Critical to Client Success, Development Impact
21
Improve business
performance
Enhance transparency
Increase impactEngage with affected
communities
Protect the environment
Overview of IFC
IFC PERFORMANCE STANDARDSA Global Benchmark
22
2Treat workers fairly
and provide safe and
healthy working
conditions.
3Promote energy
efficiency, use
resources sustainably,
and cut greenhouse
emissions.
4Protect local
communities from
worksite accidents and
other project-related
dangers.
7Protect the rights,
dignity, and culture of
indigenous populations.
LABOR
RESOURCE
EFFICIENCY COMMUNITY
INDIGENOUS
PEOPLES
1Anticipate risks,
avoid, minimize and
compensate for any
impacts.
RISK
MANAGEMENT
5Avoid involuntary
resettlement and
minimize the impact on
those displaced.
LAND
RESETTLEMENT 6Protect biodiversity
and ecosystems.
BIODIVERSITY 8 CULTURAL
HERITAGE
Protect cultural
heritage and promote
equitable sharing of
related benefits.
Overview of IFC
23
2Board roles, composition,
committee structure,
procedures, director duties,
and overall
functioning
3Effectiveness of internal
controls, risk management,
internal/external
audit, and
compliance
functions
BOARD STRUCTURE
AND FUNCTION
CONTROL
ENVIRONMENT
GOVERNANCE OF STAKEHOLDER ENGAGEMENT
1Awareness and
formalization of sound
practices
COMMITMENT
Information disclosure to
shareholders and markets;
transparency of information
and financial
standards used
DISCLOSURE AND
TRANSPARENCY 5 6Treatment of investors,
shareholders rights and
protections, annual
meeting procedures,
conflict/related-party
transaction policies
MINORITY SHAREHOLDER TREATMENT
IFC CORPORATE GOVERNANCE (CG) METHODOLOGY
35 development finance institutions now follow IFC’s approach, covering
six key areas of risk assessment:
Sharing Best Practice
4Oversight over
stakeholder mapping,
stakeholder
engagement policy
and grievance
mechanisms
Overview of IFC
$21.9 billion in long-term investment:
▪ $11.1 billion for IFC’s own account
▪ $10.8 billion mobilized
$58.7 billion committed portfolio
Advice: 57% of program in IDA countries,
22% in fragile and conflict-affected areas,
34% in sub-Saharan Africa, 25% climate-
related.
FISCAL YEAR 2020
HIGHLIGHTSWest Bank & Gaza
24
Overview of IFC
FY20 IFC LONG-TERM INVESTMENT COMMITMENTS:
$21.9 BILLION
25 25
Overview of IFC
$17.7 bn$19.3 bn$18.8 bn
$23.3 bn
$19.1 bn
$21.9 bn
10.6 11.111.9 11.6
8.9
11.1
7.17.7 7.4
11.7
10.2
10.8
0
5
10
15
20
25
FY15 FY16 FY17 FY18 FY19 FY20
IFC's Own Account Mobilization
Fiscal year-end is June 30, 2020
26
Overview of IFC
▪ Overview of IFC
▪ IFC Syndications▪ B Loans
▪ Parallel Loans
▪ Credit Insurance
▪ Managed Co-Lending Portfolio Program
▪ IFC/MIGA Business Development Partnership
▪ Portfolio Update
▪ Awards, Tombstones & Contacts
Sabrina BorliniDIRECTOR
(WASHINGTON D.C.)
SYNDICATIONS OPERATIONS
LAC & Sub-Saharan Africa
(Washington D.C.)
ORGANIZATIONAL STRUCTURE
Overview of IFC Syndications
Juan Jose Garcia
Head
ECA-MENA(London)
ASIA(Singapore)
Investor Operations
(Washington D.C.)
MCPP (Washington D.C.)
John Groesbeek
Head
Michael Emery
Head
Petra Tojslova
Head
Anjali Varma
Head
Elona Krypa
Head
IFC-MIGA Partnership
(Washington D.C.)
INVESTOR ENGAGEMENT
Euan Marshall
Global Head
(Washington D.C.)
Meaghan McGrath
Global Head
(Washington D.C)
27
28
IFC’S SYNDICATED LENDING PROGRAM
▪ Oldest and largest syndicated lending program among multilateral development banks, established in 1957
▪ Over US$90 billion mobilized for over 1,500 projects
▪ Co-financiers include international commercial banks, local and regional banks in emerging markets, funds, insurance companies, development finance institutions (DFIs) & an emerging market central bank
▪ IFC’s syndicated loan portfolio under management totals US$16 billion
IFC SyndicationsB LoansB LoansB LoansB LoansOverview of IFC Syndications
28
29
IFC SyndicationsB LoansB LoansB LoansB LoansOverview of IFC Syndications
29
Types of IFC Syndicated Lending
B Loans Parallel Loans Credit Insurance
Managed Co-Lending
Portfolio Programs
(MCPPs)
Type of
Investor
Commercial
Banks
Development
Finance Institutions
& Sovereign Entities
Insurance Companies Institutional Investors
(public and private)
Investment
Approach
Active Deal by
Deal Selection
Active Deal by Deal
Selection
Active Deal by Deal
Selection
Passive Portfolio
Participation in Eligible
Projects
Investor’s
Strategy
Follow their own
client strategy
Developmental
Mandate (DFIs)
Follow their own
credit strategy
Follow IFC’s Strategy
Investment
Process
Investor makes
credit approval
Investor makes
credit approval
Investor makes credit
approval
Full delegation to IFC post
mandate
Tenor Generally
shorter than A
Loan
Generally matching
A Loan
Matching IFC A Loan
Tenors
Matching IFC’s A Loan
Tenors
Portfolio
Rights
Voting Voting Limited voting and
consultation
Follow IFC’s Decisions
Documentation Participation in
an IFC Loan
Agreement
Parallel Loan with a
Common Terms
Agreement
Unfunded Risk
Participation
Agreement or Credit
Insurance Policy
Administration
Agreement/Common Service
Agreement
Different Products Target Different Investors
30
Fiscal year-end is June 30, 2020
FY2018 FY2019 FY2020
B Loans ParallelMCPP
Loans
B
LoansParallel
MCPP
Loans
B
LoansParallel
MCPP
Loans
Volume (US$m): 1,794 5,319 878 1,699 3,472 566 1,062 2,892 1,036
Number of Deals: 32 34 26 22 29 16 19 32 29
Average Loan Size
(US$m):56 156 34 77 119 35 56 90 36
Average Final Maturity
(yrs):8 11 - 6 11 - 7 11 -
Average Margin (bps): 368 453 - 390 399 - 319 337 -
B LoansB LoansB LoansB Loans
30
STATISTICS
Overview of IFC Syndications
31
Borrower
Participants
Loan Agreement
A + B Loans
Participation
AgreementB Loan ▪ One loan agreement – IFC is lender of
record and administers entire loan
▪ IFC fully shares project risks with participants
▪ Participation structure allows participants to benefit from IFC’s privileges and immunities
B LOAN STRUCTURE
B LoansB LoansB Loans
31
32
IFC AND RISK MITIGATION
Credit RiskCountry Risk Reputational Risk
✓ First-class due diligence and analysis
✓ IFC’s global presence and knowledge
✓ IFC’s structuring and restructuring skills
✓ Strong security packages
✓ Long-term funding, avoiding refinancing risks
✓ IFC’s Environmental & Social Standards
✓ Extensive governance due diligence
✓ World-class in-house specialists
✓ IFC’s Preferred Creditor Status
✓ IFC’s effective mitigation of transfer and convertibility risk
✓ IFC access / relationships to national governments
B LoansB LoansB Loans
32
33
PREFERRED CREDITOR STATUS (PCS)
▪ Preferred access to foreign exchange in the event of country foreign exchange shortage
▪ Excluded from general country debt reschedulings
▪ Not subject to mandatory new money obligations under general country debt rescheduling
▪ Consistent universal recognition - Pakistan, Russia, Argentina
▪ Bank regulators exempt B Loans from mandatory country risk provisioning
▪ Allows rated transactions to pierce sovereign ceiling
▪ Recognized mitigant of country risk under Basel II
B LoansB LoansB Loans
33
34
Standardized approach:
Banks may apply the local currency rating of the borrower (as opposed to the foreign currency rating), recognizing the effective mitigation of transfer and convertibility risk
Advanced Internal Ratings-Based (IRB) approach:
Banks may reflect the country risk mitigation afforded by the B Loan structure through lower country risk weighting
PCS: CAPITAL TREATMENT OF B LOANS
UNDER BASEL II
B LoansB LoansB Loans
34
35
PCS: CAPITAL TREATMENT OF B LOANS UNDER BASEL II
B LoansB LoansB Loans
35
36
▪ Enables loans with longer tenors & no withholding tax
▪ Completes financial package
▪ Introduces new banking relationships
▪ IFC’s “stamp of approval”
▪ IFC’s environmental and social leadership
BENEFITS TO BORROWERS
B LoansB LoansB Loans
36
37
▪ Preferred Creditor Status (PCS)
▪ Recognition of IFC’s risk mitigation by
➢ Regulators
➢ Rating agencies
➢ Basel II
▪ Private PRI providers
▪ IFC’s environmental and social leadership
▪ IFC’s structuring and restructuring skills
BENEFITS TO PARTICIPANTS
B LoansB LoansB Loans
37
38
TOP 20 B LOAN PARTICIPANTS
New Signings
July 1, 2019 – June 30, 2020
B LoansB LoansB Loans
1 FMO
2 KFW IPEX-Bank
3 Societe Generale
4 Banco Santander
5 SMBC
6 BNP Paribas
7 Bank of China
8 Natixis
9 ING Bank
10 Industrial and Commercial Bank of China (ICBC)
11 Unicredit Bank
11 Finance in Motion
13 Rabobank
14 RMB International (Mauritius) LTD
15 HSBC Bank
16 Erste Group Bank
17 Raiffeisen Bank
18 Commerzbank
19 EFSE
20 DBS Bank
38
39
PARTICIPANT’S VOTING RIGHTS
B Loans
39
▪ 100%: Change in money terms
▪ 100%: Waive or amend conditions precedent
▪ 67%: Acceleration following payment default
▪ 67%: Release security
▪ 67%: Waive or amend guarantees or support arrangements
▪ 51%: Change in ownership control provision
▪ 51%: Waive or amend financial covenants
▪ Consult: Waive or amend non-financial covenants
(Percentages reflect consent level required, based on total B Loan amount)
40
IFC shares with Participants all information received from Borrowers
under the Loan Agreement, including regular financial reporting &
knowledge of key credit events
INFORMATION SHARING
B Loans
40
41
PARTICIPANT ELIGIBILITY
▪ Objective participant eligibility criteria
▪ “Eligible Financial Institution”
➢ Not incorporated or residing in the country of the borrower or the project
➢ Not an export credit, governmental, or multilateral agency
➢ International investment-grade rating from Fitch, Moody’s or S&P
▪ Non-investment grade and unrated financial institutions may be considered on a case-by-case basis
B LoansB LoansB Loans
41
42
PCS + PRI = Additional Risk Mitigation
▪ Participants may obtain political risk insurance (PRI) on B
Loans from eligible financial institutions to further mitigate
country risk
▪ IFC B Loans may also benefit from war and civil disturbance
insurance provided by the World Bank Group’s Multilateral
Investment Guarantee Agency (MIGA)
B LoansB LoansB Loans
42
43
SYNDICATED PARALLEL LOANS
▪ Partnership with financial institutions which are not eligible B Loan
participants such as Development Financial Institutions (“DFIs”) or
local commercial banks
▪ To improve cooperation with DFIs, IFC developed a Master
Cooperation Agreement (MCA) that streamlines how IFC works
with DFIs to co-finance projects when IFC is the mandated lead
arranger
▪ The MCA now has 34 signatories
B LoansB LoansParallel Loans
43
44
MCA SIGNATORIES
Parallel LoansB LoansB LoansParallel Loans
44
45
TOP 20 PARALLEL LENDERS
New Signings
July 1, 2019 – June 30, 2020
B LoansB LoansParallel Loans
1 Overseas Private Investment Corporation (OPIC)
2 DEG
3 U.S. Development Finance Corporation (USDFC)
4 OPEC Fund for International Development (OFID)
5 Japanese International Cooperation Agency (JICA)
6 KFW IPEX-Bank
7 Bank of Communications
8 African Development Bank (AfDB)
9 Emerging Africa Infrastructure Fund (EAIF)
10 Barclays
11 Korea Eximbank (KEXIM)
12 North American Development Bank (NADB)
13 Asian Development Bank (ADB)
14 Export Development Canada (EDC)
15 Bank AL Habib
16 Proparco
16 Inter-American Development Bank (IDB)
18 OEEB
19 Meezan Bank
20 First Abu Dhabi Bank
45
46
SYNDICATED PARALLEL LOAN STRUCTURE
Borrower
Lender 5
Lender 4
Lender 6
Lender 2
Lender 3
IFC as Arranger
and/or Administrative
Agent
B LoansB LoansParallel Loans
46
47
Pre-Signing:
IFC approaches parallel lenders as if syndicating a B Loan
▪ Early contact for preliminary interest and feedback
▪ Assist due diligence process by sharing information memorandum
and managing project appraisals
▪ Negotiate documentation among all parallel lenders
▪ All lenders sign a single Common Terms Agreement and short form
individual loan agreements covering money terms (IFC does not act
as Lender of Record for parallel lenders)
SYNDICATED PARALLEL LOANS
B LoansB LoansParallel Loans
47
48
BENEFITS
For Borrowers:
▪ Enhanced access to financing from DFIs and other ineligible B
Loan participants, particularly for longer tenors and in frontier
countries and sectors
▪ Time and cost savings throughout the life of the facility
B LoansB LoansParallel Loans
48
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BENEFITS
For Lenders:
▪ Increased deal flow through IFC’s global origination capacity
▪ Access to IFC’s due diligence, structuring and restructuring skills
and global presence
▪ Time and cost savings
▪ All lenders, including IFC, share the same rights and obligations
B LoansB LoansParallel Loans
49
50
Borrower
Insurance
Counterparty
Loan Agreement
A Loan
Unfunded Risk
Participation
Agreement
Or Credit
Insurance Policy
▪ One loan agreement – IFC is lender of record and administers entire loan
▪ IFC fully shares project risks with insurance counterparty
▪ Typically executed on a silent participation basis
CREDIT INSURANCE STRUCTURE
50
B LoansB LoansB LoansB LoansCredit Insurance
51
B Loan
Packaged Loan
Portfolio (MCPP)
B LoansB Loans
51
B LoansB LoansMCPP
Loans (73%)
IFC DEBT PROJECTS PRIMARY DEBT MOBILIZATION
PRODUCTSINVESTORS
IFC Syndications has a 60-year track record of mobilizing third-party investors into our emerging market debt
investments. MCPP builds on this success using a pioneering portfolio approach, enabling IFC to
mobilize new institutional investors and harness billions of dollars of capital for development
% based on FY13-17
Single
Project
Single
Project
Single
Project
Single
Project
Banks
Since 1959, IFC has mobilized over $50bn from
banks and DFIs/IFIs to complete more than 1,000
debt financing packages for clients in 115
countries
The MCPP packages loans into
diversified portfolios, allowing IFC to go
beyond banks and mobilize institutional
investors
AN INNOVATIVE SOLUTION
Institutional
Investors
DFIs/IFIs
Facility Agreement
Parallel Loan
Single
Project
Participation Agreement
Master Cooperation
Agreement (MCA)
Bonds and Other (27%)
52
ACTIVE MCPP FACILITIES UNDER MANAGEMENT
Facility Focus Investor(s) Amount
MCPP SAFE
Cross-sectoral $3 billion
MCPP HKMA
Cross-sectoral $2 billion
MCPP Infra
Infrastructure $1.6 million
MCPP URP
Infrastructure $500 million
MCPP FIG I
FIG $1 billion
MCPP FIG II
FIG $2 billion
Total $10.1 billion
▪ The Managed Co-Lending
Portfolio Program (MCPP)
leverages IFC’s global
origination capacity, market
knowledge and syndications
expertise to build emerging
market loan portfolios for
investors.
▪ The MCPP platform has grown
from an initial investment from
the People’s Bank of China in
2013 to a $10.1 billion platform
with 11 global investors.
▪ The MCPP participants are
both public and private
investors making available both
funded and unfunded financing
for IFC projects.
MANAGED CO-LENDING PORTFOLIO PROGRAM
MCPP leverages IFC’s origination capacity, market knowledge and track record to build
emerging market debt portfolios for investors. To date, the platform has raised more than
$10 billion of co-financing to support IFC clients.
B LoansB LoansB LoansB LoansMCPP
53
B LoansB LoansB LoansB LoansMCPP
53
•
•
•
•
•
•
IFC has adapted the MCPP to meet the needs of different investor classes. MCPP now
employs a variety of product structures that address investors’ business and regulatory
requirements and connect them to our pipeline of emerging-market projects.
•
•
•
•
•
•
•
•
•
A FLEXIBLE APPROACH
54
MCPP follows a “blind pool” approach with investors committing to take exposure for a set of future IFC loans.
Standing agreements with MCPP investors improve investment process efficiency and allow IFC to offer
larger financing packages to clients
Portfolio design
is customized to
meet investor’s
strategy, with
eligibility criteria
and
concentration
limits
MCPP identifies
eligible
transactions and
builds a portfolio
that mimics IFC’s
own portfolio
Investors
participate in IFC-
originated
projects
alongside IFC and
on the same
terms as IFC
IFC manages
investor’s
exposure in line
with decisions
taken for IFC’s
own account for
the life of the loan
MCPP PROCESS
Diversified portfolio of
emerging market loans
IFC and investor
sign administration
agreement
IFC signs loan
agreement
with borrower
MCPP
HOW IT WORKS
54
55
25%
24%20%
10%
10%
7%4%
Sub-Saharan Africa East Asia & Pacific
LatAm & Caribbean Europe & Central Asia
Mid. East & N. Africa South Asia
World
47%
28%
24%
1%
Infrastructure Financial institutions
Real sector Telecoms & IT
Through the MCPP, investors join IFC to invest for impact. MCPP provides investors a platform for
participation in emerging market projects that address development needs and reduce poverty
MCPP connects to IFC 3.0 strategic priorities
35%
26%
MCPPSAFE
B Loans
Mobilization Share in IDA Countries
40%
27%
MCPPSAFE
B Loans
Mobilization Share in Climate Change Projects
MCPP funding follows IFC’s own-account strategy to
reach priority areas under IFC 3.0. Through MCPP, IFC
is mobilizing more financing in IDA countries and for
climate change-related projects
MCPP offers reach into all regions and industries
Distribution of
funds approved to date
Data based on U.S. dollar volumes since FY13
Region
(outer pie)
INCREASING REACH IN PRIORITY SECTORS
MCPP
MCPP
55
Sector
(inner pie)
MCPP
56
In certain situations, MCPP structures may include credit enhancement. IFC and partners can provide first-
loss coverage on the portfolio by taking a junior tranche so that investor exposure reaches a target
risk level
Borrower
Borrower
Borrower
Investor
Investor
IFC
originates
eligible deals
for loan fund
Senior Tranche
Junior Tranche
IFC invests in junior tranche to
credit enhance the vehicle
Investors
participate in
senior tranche
Partners may support IFC in
providing credit enhancement
IFC
IFC
In the MCPP Infrastructure facility, the Swedish International Development
Cooperation Agency (Sida) joined IFC to provide first-loss coverage
First-Loss
Partner
MCPP
OPTION FOR CREDIT ENHANCEMENT
56
57
IFC
▪ Enables IFC to do more through bigger
ticket sizes on transactions
▪ Lowers the cost and time to complete
financing packages by simplifying the
syndication process
▪ Allows IFC to spread mobilization across
portfolio into difficult areas, including
greater reach sectors with limited
mobilization history
▪ Creates a market demonstration effect
as a proven solution for mobilizing new
sources of financing for development
Investors
▪ Offers first-time entry into emerging
markets for entire classes of investors
▪ Provides diversification benefits due to
institutional investors’ extremely limited
current exposure to direct lending in
emerging markets
▪ Includes capacity to create global
portfolios or to tailor by sector
▪ Creates a cost-effective delivery process
that directly leverages IFC’s inbuilt
capacity
▪ Negates the need to build origination
capacity in global markets
Borrowers
▪ Provides larger volumes at reduced
transaction costs and time to complete
the financing package process
▪ Allows borrowers to have certainty of
financing at mandate
▪ Makes investor money available on
same terms as IFC, including longer
tenors
▪ Reduces complexity, as IFC is the sole
interface for the borrower on all MCPP
loans
MCPP
The MCPP creates value for all participants. The program has demonstrated proof
of concept and can be used as a reference point to support the standardization of
portfolio loan syndication platforms by other DFIs/IFIs
PROGRAM BENEFITS
57
▪ IFC and MIGA has a formalized relationship for IFC to provide marketing support to
MIGA through a Joint Business Development Agreement.
▪ The strategic partnership between IFC and MIGA is a great example of intra-WBG
collaboration which proves that synergies between WBG entities wherever feasible
can strengthen the overall effectiveness and maximize impact for poverty
alleviation.
▪ IFC/MIGA Partnership presents a strong global business development model
consistently delivering results in strategic priority areas, generating $6.6 billion since
the partnership’s inception, and $1.1 billion in the 2019 fiscal year.
▪ The IFC and MIGA collaboration also helps clients to:
➢ Unlock investment opportunities in joint strategic priority areas.
➢ Make an impact through de-risking and innovation. MIGA products are a great
risk mitigating tool.
➢ Create new markets that influence development outcomes.
IFC/MIGA Business Development Partnership
PROGRAM HIGHLIGHTS
58
Political RiskInsurance
Transfer and Convertibility
Breach of Contract
Expropriation
Non-honoringof FinancialObligations
Sovereign
Sub-sovereign
War and Civil Disturbance
State-owned Enterprise
Private Sector
Projects & PPPs
Public Sector
Projects
Equity
Lenders
Lenders
Project Investor Product Cover
IFC/MIGA Business Development Partnership
MIGA’S PRODUCT LINE
59
Strong pre-claim management
Highly rated
Financially stable
Strong risk appetite
Environmental and social risk mitigation
• Manages risks in pre-claims (100+ pre-claims managed among 830+ projects. Two claims paid for expropriation, eight for war and civil disturbance.)
• Leverages World Bank network
• Recognized as highly rated multilateral institution by Basel Committee
• Efficient economic capital consumption
• Operates in challenging markets (lower income, conflict affected, and fragile states)
• Longer tenors (15 years)
• Best practices in environmental and social standards
IFC/MIGA Business Development Partnership
MIGA’S VALUE ADDED
60
61
Overview of IFC
▪ Overview of IFC
▪ IFC Syndications▪ B Loans
▪ Parallel Loans
▪ Managed Co-Lending Portfolio Program
▪ IFC/MIGA Business Development Partnership
▪ Portfolio Update
▪ Awards, Tombstones & Contacts
SYNDICATIONS PORTFOLIO*as of June 30, 2020 – by Region
TOTAL COMMITTED PORTFOLIO: US$16.26 BILLION
B LoansB LoansPortfolio Update
*Includes B Loans, Parallel Loans, MCPP Loans, A Loan Participations (ALPs) & Unfunded Risk Participations (URPs)
62
23%
20%
14%
30%
7%4%
2%
Sub-Saharan Africa
East Asia and the Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
World
B LoansB Loans
SYNDICATIONS PORTFOLIO*as of June 30, 2020 – by Industry Group
B LoansB LoansPortfolio Update
63
*Includes B Loans, Parallel Loans, MCPP Loans, A Loan Participations (ALPs) & Unfunded Risk Participations (URPs)
TOTAL COMMITTED PORTFOLIO: US$16.26 BILLION
20%
47%
33% Financial Markets
Infrastructure & Natural Resources
Manufacturing, Agriculture & Services
64
▪ Instrument seniority and
security structuring
increase likely magnitude of
recoveries on loans relative
to bonds
▪ IFC has a demonstrated
ability to manage troubled
loans
▪ Global Special Operations
Team
▪ Longer term approach than
most commercial banks,
leading to greater recovery
▪ IFC benefits from standing
as an International
Organization
B LoansB LoansPortfolio Update
LOSS GIVEN DEFAULT (LGD)
Comparison of IFC LGD to Other Asset Classes
Note: IFC Straight Senior Loans (FY87 –FY18); S&P for US Senior Unsecured Bonds (Private Sector) (1987-
2013); Moody’s for Emerging Market Bonds (~80% Private Sector) (1995-2008)
28%
43%
64%
0%
10%
20%
30%
40%
50%
60%
70%
IFC US Senior Secured Bonds Emerging Market Bonds
64
65
NON PERFORMING LOANS (NPLs)
Non-Performing A Loans as a % of all A Loans
with a B Loan/MCPP Loan attached
Fiscal year-end is June 30
NPLs = 60 days past due
B LoansB LoansPortfolio Update
65
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
66
Overview of IFC
▪ Overview of IFC
▪ IFC Syndications
▪ B Loans
▪ Parallel Loans
▪ Credit Insurance
▪ Managed Co-Lending Portfolio Program
▪ IFC/MIGA Business Development Partnership
▪ Portfolio Update
▪ Awards, Tombstones & Contacts
67
B LoansB Loans
67
Power Deal of the Year
Myingyan IPP Myanmar
2017
Innovative Lawyers North America
Managed Co-Lending Portfolio Program
2017
Middle East & Africa Logistics Deal
of the Year
Nacala Mozambique
2017
MENADFI of the Year
International Finance Corporation
2017
MENA Infrastructure
Programme Award
Solar FIT ProgramEgypt
2017
Asia Pacific Wind Deal Award
TriconBoston Sapphire Wind
Pakistan
2017
Global Multilateral Deal of the Year
Solar FIT ProgramEgypt
2017
Midstream Oil & Gas Deal of the Year
Bangla LNG (Excelerate)Bangladesh
2017
Awards
68
B LoansB LoansAwards
68
African Refinancing Deal of the Year
Bujagali Hydro Uganda
MENA DFI of the Year
Baynouna, XENEL, Daehan Wind Projects
Jordan
20182018
African Petrochemical Deal
of the Year
Eleme Nigeria
2018
African Power Deal of the Year
NachtigalCameroon
2018
Power Deal of the Year
Sirajganj 4 Dual FuelBangladesh
2018
MENA DFI of the Year
Baynouna, XENEL, Daehan Wind Projects
Jordan
2018
Latin America Natural Resources
Finance Dealof the Year
Renova Argentina
2018
Global Multilateral Deal of the Year
NachtigalCameroon
2018
69
B LoansB Loans
European Onshore Wind Deal of the Year
Tesla Wind (Dolovo Wind Farm)
Serbia
20192019
Best Refinancing Deal Africa
EFC Egypt IIEgypt
2019
European Airports Deal of the Year
Belgrade AirportSerbia
2019
Best Multilateral Deal of the Year
India REWA and HK Canvest
India
2020
Global Multilateral Deal of the Year
Guinea Alumina Corp Guinea
69
Awards
2020
European Waste Deal of the Year
Belgrade Energy from Waste Serbia
2020
Power Deal of the Year
Upper Trishuli-1Nepal
2020
Asia Pacific Onshore Wind Deal of the Year
Super Six Wind Programme
Pakistan
70
B LoansB LoansSelected Transactions
70
November 2019
$229 million
MCPP / USD Parallel Loan / PKR
Parallel Loan
12–15.5 years
Pakistan
Mandated Lead Arranger
PakistanSuper 6
Guinea Alumina Corp
$753 million
B Loan / Parallel Loan /
MIGA / Credit Insurance
12–14 years
Guinea
Mandated Lead Arranger
April 2019
Belgrade Waste to Energy
$182 million
B Loan / Parallel Loan /
MIGA
15–18 years
Serbia
Mandated Lead Arranger
October 2019
June 2020
$441 million
Parallel Loan
15 years
Mexico
Mandated Lead Arranger
October 2020
$111 million
MCPP / Credit Insurance
8 years
MENA Region
Mandated Lead Arranger
June 2020
$300 million
B Loan / MCPP
9–11 years
Brazil
Mandated Lead Arranger
CO-INVESTOR PARTNERSHIPS Selected Transactions
Portfolio UpdateB LoansB LoansB LoansSelected Transactions in Asia
71
May 2018
US$ 130,000,000
Parallel Loan
5 years
Corporate Finance
China
Mandated Lead Arranger
US$ 355,000,000
Parallel Loan
16 years
Project Finance
India
Mandated Lead Arranger
June 2018
US$ 55,000,000
IFC B Loan
US$ 33,750,000
MCPP Loan
7 years
Corporate Finance
China
Mandated Lead Arranger
August 2018
July 2019
US$ 15,000,000
IFC B Loan
US$ 20,000,000
Parallel Loan
7 years
Corporate Finance
Cambodia
Mandated Lead Arranger
US$ 285,000,000
Parallel Loan
17 years
Project Finance
Bangladesh
Mandated Lead Arranger
June 2019
US$ 125,000,000
IFC B Loan
US$ 90,000,000
MCPP Loan
6.5 years and 5 years
Corporate Finance
Indonesia
Mandated Lead Arranger
December 2018
US$ 86,000,000
Parallel Loan
US$ 10,000,000
HALP Loan
2 years and 3 years
Corporate Finance
China
Mandated Lead Arranger
January 2019
US$ 180,000,000
Parallel Loan
5 years and 3 years
Corporate Finance
India
Mandated Lead Arranger
May 2019
Meghnaghat II Power Station
Orient InvIT
Portfolio UpdateB LoansB LoansB LoansSelected Transactions in Europe, Central Asia, Middle East & North Africa
August 2018 May 2019
US$ 121,910,000
MCPP / Parallel Loan
15 years
Project Finance
Armenia
Mandated Lead Arranger
EUR 110,000,000
IFC B Loan
15 - 17 years
Project Finance
Serbia
Mandated Lead Arranger
December 2018
US$ 61,200,000
IFC B / MCPP / Parallel Loan
18 years
Project Finance
Jordan
Mandated Lead Arranger
72
Local Currency - TRL equivalent of:
US$ 130,000,000
Parallel Loan
12 years
Project Finance
Turkey
Mandated Lead Arranger
August 2019
US$ 40,000,000
IFC HALP Loan
3 years
Financial Institution
Kazakhstan
Mandated Lead Arranger
EUR 70,000,000
IFC B / Parallel Loan
15 -18 years
Project Finance
Serbia
Mandated Lead Arranger
October 2019
US$ 60,000,000
MCPP Loan
5 years
Financial Institution
Turkey
Mandated Lead Arranger
May 2019
US$ 57,620,000
MCPP Loan
19 years
Project Finance
Egypt
Mandated Lead Arranger
July 2019
Daehan Wind
September 2018
November 2018
Nachtigal Hydro Power Company
EUR 806,000,000
Parallel Loan
18-21 years
Project Finance
Cameroon
Mandated Lead Arranger
Selected Transactions in Sub-Saharan Africa
EUR 11,000,000
Parallel Loan
7-8 years
Project Finance
Cote D'Ivoire,
Guinea &
Mali
Mandated Lead Arranger
August 2018 November 2018
US$ 100,000,000
MCPP / Parallel Loan
7 years
Corporate Finance
South Africa
Mandated Lead Arranger
73
Mbiza
US$ 20,000,000
IFC B / Parallel Loan
6 years
Project Finance
South Africa
Mandated Lead Arranger
February 2019
Gaselia Group
July 2018
Bangweulu Power
EUR 4,000,000
Parallel Loan
8 years
Corporate Finance
Senegal
Mandated Lead Arranger
US$ 73,000,000
MCPP / Parallel Loan
10 years
Project Finance
Kenya &
Uganda
Mandated Lead Arranger
February 2019
NCCL IIGuinea Alumina Corp
US$ 625,000,000
IFC B / Parallel Loan & MIGA
14 years
Project Finance
Guinea
Mandated Lead Arranger
April 2019June 2019
US$ 4,700,000
PSW / NA Parallel Loan
3 years
Project Finance
Rwanda
Mandated Lead Arranger
3B Hotels
Portfolio UpdateB LoansB LoansB Loans
October 2018 March 2019
US$ 25,000,000
IFC B Loan
7 years
Financial Institution
Ecuador
Mandated Lead Arranger
US$ 200,000,000
IFC B Loan
5-6 years
Corporate Finance
Argentina
Mandated Lead Arranger
March 2019
US$ 15,000,000
IFC B Loan
2 years
Financial Institution
Bolivia
Mandated Lead Arranger
74
BRL 268,900,000
IFC B / Parallel Loan
6 years
Corporate Finance
Brazil
Mandated Lead Arranger
June 2019
US$ 38,000,000
IFC B Loan Loan
5 years
Corporate Finance
Nicaragua
Mandated Lead Arranger
US$ 95,730,000
IFC B / MCPP / Parallel Loan
12 years
Corporate Finance
Mexico
Mandated Lead Arranger
June 2019
US$ 1,500,000
IFC B Loan
3 years
Financial Institution
Haiti
Mandated Lead Arranger
May 2019
US$ 365,000,000
IFC B / MCPP Loan
5-8 years
Corporate Finance
Argentina
Mandated Lead Arranger
June 2019
July 2018
Selected Transactions in Latin America & Caribbean
75
Director’s Office
Sabrina Borlini Director Washington DC +1 202 458 4115 sborlini@ifc.org
Christine Chan Chor Program Assistant Washington DC +1 202 458 0134 cchanchor@ifc.org
Investor Engagement Group
Euan Marshall Global Head Washington DC +1 202 458 0349 emarshall1@ifc.org
Anjali Varma Head Washington DC +1 202 458 8721 avarma@ifc.org
Mahfuza Afroz Senior Syndications Officer Washington DC +1 202 458 1118 mafroz@ifc.org
Carl Chastenay Senior Syndications Officer Washington DC +1 202 458 9622 cchastenay@ifc.org
Michael Kurdyla Syndications Officer Washington DC +1 202 458 0033 mkurdyla@ifc.org
Joshua McCann Associate Syndications Officer London +44 20 7592 8025 jmccann@ifc.org
Liang Chen Associate Syndications Officer Washington DC +1 202 458 1502 lchen@ifc.org
Ergun Ertekin Syndications Analyst Washington DC +1 202 473 3891 eertekin@ifc.org
Ning Li Syndications Analyst Washington DC +1 202 458 9611 nli2@ifc.org
Paul Rukundo Consultant Washington DC +1 202 473 4985 prukundo@ifc.org
Samatar Yonis Consultant Washington DC +1 202 458 0485 syonis@ifc.org
Tho Nhu Hoang Program Assistant Washington DC +1 202 473 7989 htho@ifc.org
IFC/MIGA Business Development Partnership
Elona Krypa Head Washington DC +1 202 473 5891 ekrypa@ifc.org
Vera Sevrouk Senior Operations Officer Washington DC +1 202 458 1522 vsevrouk@ifc.org
Fadima Savadogo Associate Knowledge Management Officer Washington DC +1 202 473 2563 fsavadogo@ifc.org
75
Syndications’ Contacts
76
Syndications Operations
Meaghan McGrath Global Head Washington DC +1 202 473 0463 mmcgrath@ifc.org
Asia
John Groesbeek Head Singapore +65 6501 3605 jgroesbeek@ifc.org
Claudia Scheuerl Senior Syndications Officer Singapore +65 6501 3683 cscheuerl@ifc.org
Gary Wilmer Senior Syndications Officer Singapore +65 6501 3607 gwilmer@ifc.org
Nitesh Kumar Agrawal Syndications Officer Singapore +65 6501 3606 nagrawal1@ifc.org
Huaixue Sherry Fu Syndications Officer Singapore +65 9182 3771 hfu@ifc.org
Radhika Gupta Associate Syndications Officer Singapore +65 6501 3720 rgupta13@ifc.org
Zhen Yu Peh Associate Syndications Officer Singapore +65 6501 3762 zpeh@ifc.org
Joowon Lee Associate Financial Officer Singapore +65 6501 3719 jlee42@ifc.org
Aditi Jain Syndications Analyst Singapore +65 9248 7003 ajain24@ifc.org
Ning Theekhamongkhon Team Assistant Singapore +65 6501 3714 ptheekhamongkhon@ifc.org
Europe, Central Asia, Middle East & North Africa
Michael Emery Head London +44 20 7592 8421 memery@ifc.org
Burak Egemen Senior Syndications Officer London +44 20 7592 8032 begemen@ifc.org
Pars Ayaz Syndications Officer London +44 20 7592 8031 payaz@ifc.org
Cem Karadayi Syndications Officer London +44 20 7592 8413 ckaradayi@ifc.org
Ilaria Trifogli Syndications Officer London +44 20 7592 8424 itrifogli@ifc.org
Hannah Joy Yi Associate Syndications Officer London +44 20 7592 8035 hyi@ifc.org
Jayesh Thawrani Syndications Analyst London +44 20 7592 8431 jthawrani@ifc.org
Asli Deniz Torunoglu Program Assistant London +44 20 7592 8012 atorunoglu@ifc.org
76
Syndications’ Contacts
77
Syndications Operations
Latin America, Caribbean & Sub-Saharan Africa
Juan Jose Garcia Head Washington DC +1 202 473 6702 jgarcia1@ifc.org
Yan Jin Principal Syndications Officer Washington DC +1 202 473 9088 yjin@ifc.org
Angela Cuesta Senior Syndications Officer Washington DC +1 202 458 0658 acuesta@ifc.org
Olimpia Gjino Senior Syndications Officer Washington DC +1 202 458 8296 ogjino@ifc.org
Paul Adams Syndications Officer Washington DC +1 202 458 2798 padams1@ifc.org
Sekou Calliste Syndications Officer Washington DC +1 202 473 0682 scalliste@ifc.org
Rashed Shoaib Sultan Syndications Officer Washington DC +1 202 458 5777 rsultan@ifc.org
Enrique Carlos Tizon Syndications Officer London +44 20 7592 8406 etizon@ifc.org
Helen Berhe Associate Syndications Officer Washington DC +1 202 473 5644 hberhe@ifc.org
Ozlem Onerci Associate Syndications Officer Washington DC +1 202-458-7231 oonerci@ifc.org
Fernando Ventura Associate Syndications Officer Washington DC +1 2020 428 9252 fventurarodrigue@ifc.org
Olivia Djina Syndications Analyst Washington DC +1 202 458 1553 odjina@ifc.org
Neelam Chowdhary Program Assistant Washington DC +1 202 458 4384 nchowdhary@ifc.org
Investor Operations Group
Petra Tojslova Head Washington DC +1 202 473 8516 ptojslova@ifc.org
Fiona Chen Operations Officer Washington DC +1 202 458 2545 fchen1@ifc.org
Chafik Belaaziz Associate Syndications Officer Washington DC +1 202 458 1527 cbelaaziz@ifc.org
Evelina Stanoeva Syndications Analyst Washington DC +1 202 473 7493 estanoeva@ifc.org
Ayse Samli Syndications Analyst Washington DC +1 202 473 4158 asamli@ifc.org
Yue Chen Syndications Analyst Washington DC +1 202 458 1107 ychen23@ifc.org
Robin Bryant Program Assistant Washington DC +1 202 458 0109 rbryant1@ifc.org
Florence Makokha Program Assistant Washington DC +1 202 473 9052 fmakokha@ifc.org
Syndications’ Contacts
78
www.ifc.org/syndications
September 2008
B LoansB LoansB LoansSyndications’ Contacts
78
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