Inter-American Investment Corporation. Investor Presentation

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2 Inter-American Investment Corporation Investor Presentation

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5 $11.2 BILLION TOTAL ASSETS UNDER MANAGEMENT AS OF JUNE 30, 2017 $2.7 BILLION EQUITY AVAILABLE FOR FINANCING OVER THE NEXT TEN YEARS 26 IDB GROUP REGIONAL OFFICES IN LATIN AMERICA AND THE CARIBBEAN 54 PERCENT OF SHARES HELD BY LATIN AMERICA AND THE CARIBBEAN MEMBER COUNTRIES 5

6 WE COMPLEMENT THE IDB IIC IDB CORPORATES INFRASTRUCTURE SPONSORS FINANCIAL INSTITUTIONS STATE-OWNED ENTERPRISES* GOVERNMENTS CIVIL SOCIETY LOANS GUARANTEES EQUITY LOANS GUARANTEES ADVISORY SERVICES GRANTS POLICY ADVICE TECHNICAL ASSISTANCE * Without government guarantee 6

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8 PORTFOLIO AND IMPACT $6.9 BILLION OUTSTANDING A-LOANS CLIENTS 1 PROJECTS 1 $4.2 BILLION OUTSTANDING B-LOANS MILLION MSMEs 3.6 MILLION 125,557 JOBS TCO 2 FINANCED 2 REDUCED CREATED 2 PER YEAR 2 1 Under management as of June, Actual amounts

9 PAYMENT TO THE IIC ON ITS FINANCINGS HAVE NEVER BEEN INTERRUPTED DUE TO AN INCONVERTIBILITY EVENT IN THE PROJECT HOST COUNTRY Venezuela (1994) Foreign Exchange controls Argentina ( ) Financial Crisis and default on external debt Peru (1980 s) Moratorium on external debt payments Bolivia (1998) HIPC Initiative Ecuador (2008) Default on several bonds IIC s Rating AA AA- AA Mexico (1994) Tequila Crisis Asia (1997) Financial Crisis Venezuela (2003) Oil Strike USA (2007) Subprime Mortgage Crisis Russia (1998) Default on debt Europe (2009) Sovereign debt Crisis 9

10 H OPERATIONAL HIGHLIGHTS Approvals: 88 Operations, US$ 925 million, vs US$ 327 million in H Mobilization: US$ 740 million, vs US$ 450 million in H Domestic Issuance Program registered in Paraguay expands IIC s local currency offering Client Focus: Field Presence Initiative 60% rolled out, new office in Sao Paulo opened IIC launched the IDB Group s 100% Committed to Gender Equality campaign, conveying the IIC s commitment to promote gender equality Net income of US$16.3 million GCI-II* payments increased Paid-In Capital to US$928 million * GCI-II: Second Global Capital Increase 10

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17 FINANCIAL PROFILE 17

18 FINANCIAL NUMBERS $2.237 MILLION $928 MILLION TOTAL PAID-IN ASSETS 1 CAPITAL 1 $207 MILLION RETAINED EARNINGS 1 AAA OUTLOOK STABLE Aa1 OUTLOOK STABLE AA OUTLOOK STABLE Fitch Ratings Moody s Standard & Poor s 1 As of June 2017 in US$ 18

19 STRONG BALANCE SHEET AS A RESULT OF CONSERVATIVE FINANCIAL AND RISK POLICIES Inter-American Investment Corporation BALANCE SHEET (US$000) As of 6/30/2017 6/30/2016 Cash and cash equivalents 25,219 16,889 Investment Securities 1,350,820 1,072,525 Gross loan and equity investment (GLEO) 878, ,537 Allowance for loan losses (39,010) (37,908) Receivable and other assets 20,708 30,276 Total Assets 2,236,583 2,013,319 Borrowings 1,063,186 1,094,012 Other liabilities 61,970 45,435 Inter-American Investment Corporation INCOME STATEMENT (US$000) Six months ended 6/30/2017 6/30/2016 Operating Income 57,822 49,942 Operating Expense (43,715) (34,591) Administrative & Other Expense and FX (38,148) (30,467) Pension Expense (5,567) (4,124) Investment Income 9,811 4,467 Interest Expense (8,694) (5,403) OTTI Losses on Equity Investments Total Liabilities 1,125,156 1,139,447 Total Capital 1,111, ,872 Provision for loan investment losses 3,177 1,002 Total Liabilities + Capital 2,236,583 2,013,319 Net Income 16,279 13,132 19

20 GROWING SHAREHOLDERS BASE The number of members countries has more tan doubled since inception Argentina Barbados Bolivia Brazil Chile Costa Rica Dominican Rep. Ecuador Austria France Bahamas Guatemala Colombia Guyana El Salvador Honduras Germany Jamaica Mexico Japan Paraguay Israel Nicaragua Spain Netherlands Panama Uruguay Peru Switzerland Trinidad y Tobago United States Venezuela Haiti Italy Denmark Suriname Belize Sweden Finland Norway Portugal Belgium Korea New shares issued China Canada Number of Member Countries 20

21 PROJECTED DEVELOPMENT OF PAID-IN CAPITAL 2,736 OVER THE NEXT 10 YEARS 1) 2,665 US$ MILLION 2,593 2,521 2,326 2,126 1,866 1,576 1, Transfers from the IDB New capital contributions Total Paid-in Capital 1) Projections assume payment of US$725 million IDB transfers as scheduled. IDB transfers are subject to annual approval by the IDB s Board of Governors. 21

22 STRONG CAPITALIZATION AND LOW LEVERAGE As of June 30, 2017 Strong Capitalization The IIC operates exclusively with fully paid in capital 48% Equity to Total Assets 57% 48% 43% 50% Equity to Total Assets ratio of 50% Equity + Provisions coverage of 131% of IIC s investment portfolio Low leverage The IIC operates with a very conservative Debt to Net Worth ratio, well below the institutional limit of 3x capital Debt to Equity Ratio of 1.0 : Jun-17 Leverage (Debt/Equity) 3.0x 2.0x 1.0x Actual Prudential Target Charter Limit 22

23 AMPLE LIQUIDITY COVERAGE AND A HIGH QUALITY LIQUIDITY PORTFOLIO As of June 30, 2017 Liquid assets to gross debt ratio Conservative Liquidity Profile Ample debt service coverage of 129%. Liquidity levels are greater than those of most other Multilateral Institutions. 79% 84% 88% 120% 129% High quality Treasury Portfolio Conservative investment guidelines: Minimum Rating A+ Maximum Portfolio Duration: 4 years Maximum tenor and limit amount linked to issuer rating No exposure to ABS/MBS/CDO Jun-17 Treasury portfolio rating composition A+ 21% A 12% <A 1% AAA 7% AA+ 7% AA 12% AA 39% 23

24 HIGH ASSET QUALITY Strong asset performance - As of June 30, 2017 Impaired loans to Gross Loans 1.7% 1.7% 1.7% 1.0% 1.0% Jun-17 24

25 DIVERSIFIED INVESTMENT PORTFOLIO Gross loan and equity investment portfolio as of June 30, 2017 Composition by Country Composition by Sector Other countries 37.2% Brasil 14.1% Other sectors 14.9% Financial Markets 62.0% Mexico 8.0% Ecuador 9.2% Peru 10.2% Panama 10.5% Chile 10.7% Agribusiness 5.0% Manufacturing 7.2% Energy 11.0% 25

26 A CONSISTENT TRACK RECORD OF PROFITABILITY 2005 June 2017 net income (US$000) 83,473 39,409 13,735 13,913 5,211 12,447 10,305 5,560 19,206 13,334 3,002 17,771 16, Jun-17 26

27 FUNDING

28 FUNDING STRATEGY IIC Funding Mix USD millions, as of Dec-16 The IIC follows a diversified funding strategy with three main funding sources: Term Notes under its Euro Medium Term Note Program, Local Currency Bonds and bilateral or syndicated loans. Established in 2012, the Euro Medium Term Note Program has quickly become IIC s main funding instrument, with US$1.300 million issued since inception. Historically, loans used to be the main source of funding for the IIC, and still play a role in its funding mix to date. Domestic bond issues are important funding sources for local currency loans. Currently, the IIC has domestic issuance programs in Mexico and Paraguay. EMTN 900,000 85% Bilateral Loans 162,383 15% IIC Local currency issues 2005 Colombia COP 150 billion 2007 Mexico MXN 480 million 2011 Mexico MXN 800 million 2012 Mexico MXN 800 million 28

29 EURO MEDIUM TERM NOTE PROGRAM Over 75 investors have participated in IIC s EMTN issues, providing a well diversified investor base. Increased name recognition and potential rating upside provide a compelling investment proposition. Program dealers provide secondary market liquidity for IIC issues. Historical Concession vs IADB secondary levels IIC EMTN Issues Issue Date Tenor Amount Coupon 11/16/12 3Y $400 3ML+35 10/02/14 3Y $400 3ML+14 04/27/16 3Y $500 3ML+30 Source: Bloomberg 29

30 2017 FUNDING PROGRAM Projected 2017 Funding: US$ million Main funding instrument: EMTN Floating Rate Notes Preferred Tenor: 3-5 years Preferred Currency: USD Local currency issues in Latin American domestic markets depending on customer demand and market conditions Outlook: annual funding of US$0.5-$1 billion expected in the next 2 years 30

31 Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESENTATION OR BY READING THE PRESENTATION SLIDES YOU ACKNOWLEDGE AND AGREE TO THE FOLLOWING: This document and its contents are confidential and proprietary to the Inter American Investment Corporation ( IIC ) and may not be reproduced, redistributed, published or passed on (or the contents otherwise divulged) to any other person, directly or indirectly, in whole or in part, for any purpose. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation and the information contained herein are not an offer of securities for sale in the United States. This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of the IIC, or the solicitation of an offer to subscribe for or purchase securities of the Issuer, and nothing contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase any securities of the Issuer should be made solely on the basis of the final terms and conditions of the securities and the information to be contained in the prospectus or equivalent disclosure document produced in connection with the offering of such securities. Prospective investors are required to make their own independent investigations and appraisals of the IIC and the nature of the securities before taking any investment decision withrespectto securities of the IIC. The prospectus (or equivalent disclosure document) may contain information different from the information contained herein. The information in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such information. None of the Issuer, their advisers, connected persons or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentation or its contents. THESE MATERIALS ARE NOT DIRECTED AT OR ACCESSIBLE BY PERSONS IN THE UNITED STATES, OR PERSONS RESIDENT OR LOCATED IN AUSTRALIA, CANADA OR ANY OTHER JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE MATERIALS TO WHICH YOU ARE SEEKING ACCESS WOULD BREACH ANY APPLICABLE LAW OR REGULATION. The materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or in any jurisdiction in which such offers or sales are unlawful (the "Excluded Jurisdictions"). Any securities issued in connection with an offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any applicable securities laws of any state, province, territory, county or jurisdiction of the United States. Accordingly, unless an exemption under relevant securities laws is applicable, no such securities may be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in or into the United States or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction. There will be no offer of securities in the United States. The materials are only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In addition, in the United Kingdom, the materials are being distributed only to, and is directed only at, Qualified Investors who are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"),persons who are high net worth entities and other persons to whom it may otherwise lawfully be communicated falling within Article 49(2)(a)-(d) of the Order or persons to whom an invitation or inducement to engage in investment activity has been made (within the meaning of section 21 of the Financial Services and Markets Act 2000 (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which the materials relate is available only to relevant persons in the United Kingdom and Qualified Investors in any member state of the European Economic Area other than the United Kingdom, and will only be engaged with such persons.

32 Disclaimer This presentation includes statements that are, or may be deemed to be, forward looking statements. These forward looking statements can be identified by the use of forward looking terminology, including the terms anticipates, believes, estimates, expects, aims, continues, intends, may, plans, considers, projects, should or will, or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives,goals, future events or intentions. These forward looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not limited to, statements regarding the Issuer s intentions, beliefs or current expectations concerning the Issuer s economy. By their nature, forward looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward looking statements are not guarantees of future performance and the actual results, performance, achievements or industry results of the IIC s economy may differ materially from those described in, or suggested by, the forward looking statements contained in this presentation THESE MATERIALS ARE NOT DIRECTED AT OR ACCESSIBLE BY PERSONS IN THE UNITED STATES, OR PERSONS RESIDENT OR LOCATED IN AUSTRALIA, CANADA OR ANY OTHER JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE MATERIALS TO WHICH YOU ARE SEEKING ACCESS WOULD BREACH ANY APPLICABLE LAW OR REGULATION. The materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or in any jurisdiction in which such offers or sales are unlawful (the "Excluded Jurisdictions"). Any securities issued in connection with an offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any applicable securities laws of any state, province, territory, county or jurisdiction of the United States. Accordingly, unless an exemption under relevant securities laws is applicable, any such securities may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in or into the United States or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction. There will be no offer of securities in the United States. The materials are only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). In addition, in the United Kingdom, the materials are being distributed only to, and is directed only at, Qualified Investors who are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or who are high net worth entities falling within Article 49(2)(a)-(d) of the Order and other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which the materials relate is available only to relevant persons in the United Kingdom and Qualified Investors in any member state of the European Economic Area other than the United Kingdom, and will only be engaged with such persons. If you are not permitted to view materials on this website or are in any doubt as to whether you are permitted to view these materials, please exit this webpage. These materials must not be, released or otherwise forwarded, distributed or sent in or into the United States or any jurisdiction in which such offers or sales are unlawful. Persons receiving such documents (including custodians, nominees and trustees) must not distribute or send them in, into or from the United States or any jurisdiction in which such offers or sales are unlawful. Confirmation of understanding and acceptance of disclaimer I warrant that I am not located in the United States or any other jurisdiction where accessing these materials is unlawful, and I agree that I will not transmit or otherwise send any materials contained in this website to any person in the United States or any other territory where to do so would breach applicable local law or regulation. I have read and understood the disclaimer set out above. I understand that it may affect my rights and I agree to be bound by its terms. I confirm that I am permitted to proceed to electronic versions of the materials.

33 CONTACT INFORMATION Eusebio Garre Treasurer a.i. Jorge Cortes Lead Funding Officer Monica Landaeta Funding Officer Phone: +1 (202) Phone: +1 (202) l: Phone: +1 (202) l: Investor Website: Bloomberg IICORG Corp <GO>