EXPERIENCE MATTERS Six Decades of Experience in Emerging Markets. September 22, 2016

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1 EXPERIENCE MATTERS Six Decades of Experience in Emerging Markets September 22, 2016

2 PROVIDING DEVELOPMENT SOLUTIONS Customized To Meet Client Needs A member of the World Bank Group Provides investment, advice, resource mobilization AAA credit rating; owned by 184 countries Present in nearly 100 countries 2 IFC is the largest global development institution focused exclusively on the private sector in developing countries.

IFC: A MEMBER OF THE WORLD BANK GROUP IBRD IDA IFC MIGA ICSID International Bank for Reconstruction and Development International Development Association International Finance Corporation

3 IFC: A MEMBER OF THE WORLD BANK GROUP IBRD IDA IFC MIGA ICSID International Bank for Reconstruction and Development International Development Association International Finance Corporation Multilateral Investment and Guarantee Agency International Centre for Settlement of Investment Disputes Loans to middleincome and credit-worthy low-income country governments Interest-free loans and grants to governments of poorest countries Solutions in private sector development Guarantees of foreign direct investment s noncommercial risks Conciliation and arbitration of investment disputes 2

4 IFC S HISTORY Six Decades of Experience The First Institution of Its Kind 1956: Founded on a bold idea that the private sector is essential to development The Largest Institution of Its Kind 2016: More than $245 billion in cumulative financing delivered to businesses in emerging markets Experience Matters Shaping the agenda, providing solutions, sharing knowledge 3

5 IFC S HISTORY A global institution, now owned by 184 member countries Today 2000s IFC Launch PSD added to the global economic agenda IFC coins term emerging markets IFC scales up Investments and builds global advisory footprint The global leader in private sector development 4

6 THE WORLD BANK GROUP S TWIN GOALS Ending Extreme Poverty Increased incomes for bottom 40% of every country From 18% to 3% of world population by 2030 Boosting Shared Prosperity Private sector investment is ESSENTIAL 5

7 WHAT CLIENTS VALUE ABOUT IFC RESULTS OF IFC Client Survey Long-Term Partner Role Stamp of Approval Financing Not Readily Available Elsewhere Ability to Mobilize Additional Funds Worldwide Presence Global Expertise and Knowledge Affiliation with the World Bank Group Pricing 6

8 WHAT WE DO Integrated Solutions, Increased Impact 3 Focus Industries: MANUFACTURING AGRIBUSINESS & SERVICES FINANCIAL INSTITUTIONS INFRASTRUCTURE AND NATURAL RESOURCES 3 Product Areas: INVESTMENT (Loans, Equity, Trade Finance, Syndications, Derivative and Structured Finance, Blended Finance) ADVICE (Integrated with IFC Investment) IFC ASSET MANAGEMENT COMPANY (Mobilizing and Managing Capital for Investment) 7

9 INVESTMENT Loans Equity Trade Finance And Supply Chain Syndications Derivative and Structured Finance Project and corporate financing On-lending through intermediary institutions Direct equity investments Private equity funds Guarantee of trade-related payment obligations of approved financial institutions Capital mobilization to serve developmental needs Over 60 co-financiers: banks, funds, DFIs Derivative products to hedge interest rate, currency, or commodity-price exposures of IFC clients Blended Finance Augmenting IFC resources with donor funds 8

10 ACTIVE ADVISORY PORTFOLIO BY REGION, END OF FY15 BUSINESS LINES CLIENT ENGAGEMENTS Financial Sector* 425 Investment Climate* 151 Public-Private Partnerships 102 Agribusiness 102 Energy & Resource Efficiency 102 Cross-Industry 102 *Delivered through integrated WBG global practices 9

11 IFC ASSET MANAGEMENT COMPANY AMC FUNDS IFC Capitalization Fund IFC Asset Management Company had about $8.5 BILLION in assets under management in FY15 IFC African, Latin American Africa Capitalization Fund IFC Russian Bank Capitalization Fund IFC Catalyst Fund IFC Global Infrastructure Fund China-Mexico Fund IFC Financial Institutions Growth Fund IFC Global Emerging Markets Fund Of Funds 10

12 IFC S GLOBAL REACH 108 regional offices present in 100 countries worldwide, AAA credit rating 11 3,358 staff (59% are based outside Washington DC)

13 FISCAL YEAR 2016 HIGHLIGHTS $18.8 billion in long-term investment: $11.1 billion for IFC s own account $7.7 billion mobilized $52 billion committed portfolio $5.4 billion invested in IDA Countries Advice: 62% of program in IDA countries, 21% in fragile and conflictaffected areas 12

14 FY16 LONG-TERM INVESTMENT COMMITMENTS BY INDUSTRY COMMITMENTS FOR IFC S ACCOUNT: $11.1 BILLION Financial Markets Infrastructure 7.4% 4.9% Agribusiness & Forestry Consumer & Social Services Oil, Gas, & Mining Funds 7.4% 9.4% 4.8% 40.2% Manufacturing Telecommunications & Information Technology 9.6% 16.3% 13

15 FY16 LONG-TERM INVESTMENT COMMITMENTS BY REGION COMMITMENTS FOR IFC S ACCOUNT: $11.1 BILLION Latin America and the Caribbean East Asia and the Pacific 8.6% 1.9% 24.2% Sub-Saharan Africa 12.9% Europe and Central Asia South Asia Middle East and North Africa Global 19.2% 12.6% 20.8% 14

16 STANDARD SETTING Our Performance Standards 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 Indigenous peoples Cultural heritage 15

IFC in Europe, Central Asia, Middle East and North Africa (EMENA) Barents Sea IFC Hub Offices IFC Operation Center IFC Offices ATLANTIC OCEAN London North Sea Brussels Frankfurt Paris Tunis Vienna

17 IFC in Europe, Central Asia, Middle East and North Africa (EMENA) Barents Sea IFC Hub Offices IFC Operation Center IFC Offices ATLANTIC OCEAN London North Sea Brussels Frankfurt Paris Tunis Vienna Warsaw Zagreb Sarajevo Tirana Minsk Kiev Moscow Belgrade Bucharest Pristina Sofia Black Sea Tbilisi Istanbul Yerevan Baku Aral Sea Almaty Bishkek Tashkent Dushanbe Rabat Mediterranean Sea Jerusalem Cairo Beirut Amman Baghdad Kabul Islamabad Dubai Karachi Sana a 16

18 FY15 IFC EMENA ECA: IFC ECA invested $2.4 billion, including $878 billion in funds mobilized from our partners. IFC s work in ECA helped create new, sustainable energy resources, expand regional food production and trade, finance infrastructure projects and advise governments on public-private partnerships (PPPs), adoption of new legislations, cut red tape and combat climate change. MENA: IFC MENA committed a total of $1.3 billion in long-term finance packages across MENA and delivered a wide-ranging advisory program to drive growth. IFC s work in MENA helped grow smaller businesses, create new, sustainable energy sources, develop vital infrastructure projects, cut red tape, combat climate change, champion intraregional investments, and support fragile and conflict-affected states. 17

19 Common Themes in the Western Balkans The crisis which started in 2008 has never ended. States are bloated and over indebted, for the most part failing to make the tough structural reforms needed to spur growth, including privatizations. Domestic industry uncompetitive. Unemployment 18%. Financial sector has high levels of NPLs, averaging between 15 to 20%. Resolution requires better legal framework. Several countries have Swiss Franc mortgages and systemically important presence of Greek banks. Migration: a) part of region was a major conduit of refugees headed north. Boarders now closed, leaving thousands stranded. b) W. Balkans also a source of out migration because of low economic prospects. Every country has EU membership as a clear policy target. Renewed interest in the region by the EU with the Berlin process. Relative political stability in the region (Serbia and Kosovo talking to each other). 18

20 SERBIA Serbia became a shareholder and member of IFC in Since then, IFC's long term finance investment in Serbia totaled $2.13 billion, including $794.7 million mobilized from our partners, in 52 projects across a variety of sectors. In addition, IFC has supported trade flows of $175.4 million through its trade finance program. Our committed investment portfolio in Serbia as of 30 June 2016 is $285 million. In fiscal year 2016, IFC invested $69 million in Serbia. IFC works with private sector clients, government, and civil society to bring the benefit of global expertise to the country through its advisory services and investment projects. IFC s priorities in Serbia include agribusiness, climate change, and improvements in the investment climate. IFC is also focusing its investment services on increasing access to finance by supporting the development of local financial institutions, especially those that concentrate on SMEs. Through the joint GPs and independently, IFC s advisory services aim to improve the investment climate and the performance of private sector companies, and to attract private sector participation in the development of infrastructure projects. IFC Committed Portfolio in Serbia by Sector as of June 30, 2016 (285$, m) 196.1, 59% 1.8, 0% 136.8, 41% FM MAS INFRA 19

21 IFC STRATEGY IN SERBIA Through investment and advisory services we will continue to partner with clients in strategic sectors crucial for Serbia s long-term sustainable development, with a particular focus on: The financial sector, with a special emphasis on small and medium enterprises and energy efficiency lending (Komercijalna banka, UniCredit, Eurobank, Banca Intesa) Climate change, including investments in infrastructure and energy sectors (wind projects) Agribusiness, with an emphasis on food retail and manufacturing (MK Group, Victoria Group) Value-added manufacturing (Johnson Electric, PMC Automotive, Kronospan) Business infrastructure, with a focus on logistics and distribution (Atlantic Group, Nelt) Sub-national finance, with a focus on municipal infrastructure and waste management (Vinca advisory) 20

22 THANK YOU Magdalena Soljakova Senior Country Officer 21

IFC SUPPORT TO THE PRIVATE SECTOR STRATEGY AND INSTRUMENTS

IFC SUPPORT TO THE PRIVATE SECTOR STRATEGY AND INSTRUMENTS IFC: A MEMBER OF THE WORLD BANK GROUP IBRD IDA IFC MIGA ICSID International Bank for Reconstruction and Development International Development