ifc presentation spri bilbao october 2013
TRANSCRIPT
Introduction to IFCBilbao, October 2013
THE POWER OF PARTNERSHIPS
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Overview of IFC within World Bank Group
IFC: Part of the World Bank Group
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Conciliation and arbitration of investment disputes
Guarantees of private sector investment’s non-commercial risks
Interest-free loans and grants to governments of poorestcountries
Loans to middle-income and credit-worthy 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 and Guarantee Agency
ICSID
International Center for Settlement of Investment Disputes
IDA$16.3 b
IBRD$15.2 b
MIGA$2.8 b
IFC*$18.3 b
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World Bank Group Commitments, FY13
Loans, grants,
equity investments,
guarantees, and
advisory services
to support
development
Total Commitments: $52.6 Billion
*Excluding mobilization ($6.5b)
Twin Goals of the World Bank Group
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EndingExtremePoverty
Boosting Shared Prosperity
From 18% to 3% of world population by 2030
Increased incomes for bottom 40% of every developing country
An Unprecedented Opportunity: Ending Extreme Poverty in One Generation
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Meeting the Twin Goals: IFC’s Commitment
Ending Extreme Poverty, Boosting Shared Prosperity
Increasing cooperation across World Bank Group
Strengthening long-term relationships with partners (clients, donors, investors, others)
Building the Private
Sector’s Role
IFC’s History
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IFC Launch
PSD added to the global economic agenda
IFC coins term “emerging markets”
IFC scales up investments
The global leader in private sector development finance
1990-2000s
19801956 Today
A global institution, now owned by 184 member countries
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IFC’s Priorities
Frontier markets
Climate change and environmental & social sustainability
Local financial markets
Long-term client relationships in emerging markets
Strategic Focus Areas
Constraints to private sector growth in infrastructure, health, education, & the food supply chain
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IFC’s Three Business Lines
Our Three Businesses
IFC Asset Management
Company
• Wholly owned subsidiaryof IFC
• Private equity fund manager
• Invests third-party capital alongside IFC
$5.5 b under mgmt (FY13)
Investment Services
• Loans
• Equity
• Trade finance
• Syndications
• Securitized finance
• Risk management
• Blended finance
$49.6 b portfolio (FY13)
Advisory Services
• Access to finance
• Investment Climate
• Sustainable Business
• Public-Private Partnerships
$232 m (FY13)
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Integrated Solutions, Increased Impact
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Investment Services
Loans
Equity
Trade Finance
Syndications
Structured Finance
Risk Management
Blended Finance
- Project and corporate financing - On-lending through intermediary institutions
- Direct equity investments (up to 20% of company’s e quity)- Private equity funds
- Guarantee of trade-related payment obligations of a pproved financial institutions
- Capital mobilization to serve developmental needs- Over 60 co-financiers: commercial banks, fund, and DFIs
- Products including credit guarantees, liquidity fac ilities, portfolio risk transfer, securitizations, and Islamic finance
- Derivative products to hedge interest rate, currenc y, or commodity-price exposures of IFC clients
- Combination of concessional funds with IFC resources to finance initiatives & achieve impact that would otherwise b e unattainable
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FY13 Investment Commitments: $24.8 Billion
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6,8 8,211,0 10,5
12,7 12,215,4
18,31,4
3,8
5,03,5
5,3 6,5
4,9
6,5
0,0
5,0
10,0
15,0
20,0
25,0
30,0
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
New commitments are growing($ Billions)
IFC's own account Mobilization
22% growth from FY12 to FY13
Investments by Industry, FY13
Financial Markets20%
Infrastructure12%
Consumer & Social Services
9%
Manufacturing7%
Agribusiness & Forestry
7%Funds
5%
Telecom & IT3%
Oil, Gas, & Mining2%
Trade Finance35%
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Commitments for IFC’s Account: $18.3 Billion
Investments by Region, FY13
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Commitments for IFC’s Account: $18.3 Billion
Latin America & the Caribbean
26%
Sub-Saharan Africa19%
Europe & Central Asia18%
East Asia & the Pacific16%
Middle East & North Africa11%
South Asia9%
Global1%
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Advisory Services
Access to Finance
- Increases availability and affordability of financi al services for individuals and micro, small, and medium enterprise s
Investment Climate
- Helps governments implement reforms that improve bu siness environment and retain investments
Public-Private Partnerships
- Helps governments design and implement PPPs in infrastructure and other basic public services (ele ctricity, water, health and education)
Sustainable Business
- Helps clients promote sound environmental, social, governance, and industry standards; catalyze investment in clea n energy/resource efficiency; and support sustainable supply chains and community investment
Advisory Services by Business Line, FY13
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Total Program Expenditures: $231.9 Million
Investment Climate
32%
Access to Finance27%
Sustainable Business
24%
Public-Private Partnerships
17%
Advisory Services by Region, FY13
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Total Program Expenditures: $231.9 Million
Latin America & the Caribbean
11%
Sub-Saharan Africa28%
Europe & Central Asia16%
East Asia & the Pacific17%
Middle East & North Africa
9%
South Asia14%
Global5%
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IFC Asset Management Company
IFC Capitalization Fund- Helps strengthen systemically important banks in
emerging markets, bolstering their ability to cope with financial and economic downturns
IFC African, Latin American, & Caribbean Fund
- Co-invests with IFC in equity and equity-related investments across a range of sectors in Sub-Sahara n Africa, Latin America, and Caribbean
Africa Capitalization Fund- Invests in systemically important commercial bankin g
institutions in Africa
IFC Russian Bank Capitalization Fund
- Invests in commercial banking institutions in Russi a
IFC Catalyst Fund- Invests in funds that provide growth capital to
companies developing innovative ways to address climate change in emerging markets
IFC Global Infrastructure Fund
- Co-invests with IFC and equity-related investments i n the infrastructure sector in emerging markets
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IFC: A Valuable Partner
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We help clients in good times and bad by offering:
IFC: A Valuable Partner
A strong financial position, strategy, staff
Low leverage ratios, prudent risk management policies
A long-term partnership perspective, providing clients important countercyclical financing when commercial banks cut back
The expertise and experience needed to make a difference, focusing on innovative transactions where our development impact is the highest
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What Clients Value About IFC
Long-Term Partner
Role
WBG Stamp of Approval
Financing Not Readily
Available Elsewhere
Worldwide Presence
Broad Range of Products
Global/ Local
Knowledge of Industries & Markets
Ability to Mobilize
Additional Funds
Perceived Risk
Mitigation
2013 IFC Client Survey
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Our Performance Standards
Standard Setting
1 Assessment and management of environmental and social risks and impacts
2 Labor and working conditions
3 Resource efficiency and pollution prevention
4 Community, health, safety and security
Land acquisition and involuntary resettlement
Biodiversity conservation and sustainable management of living natural resources
Cultural heritage
Indigenous peoples
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6
7
8
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IFC’s Global Reach
• 109 country and regional offices worldwide, AAA credit rating
• 4,015 staff (57% are based outside Washington DC)
Investment clients provided:
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• 2.7 million jobs
• Health services to 17.2 million patients
• Education to 1 million students
• Improved opportunities for 3.1 million
farmers
• Electric power to 52.2 million
• Water distribution to 42 million people
The Reach of IFC’s Projects—2013