IFC in Serbia Per Kjellerhaug, IFC Regional Manager, Western Balkans

Size: px

Start display at page:

Download "IFC in Serbia Per Kjellerhaug, IFC Regional Manager, Western Balkans"

Jeremy Griffin
5 years ago
Views:

1 IFC in Serbia Per Kjellerhaug, IFC Regional Manager, Western Balkans

The World Bank Group IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation MIGA Multilateral Investment and

1998 Role To promote institutional, legal and regulatory reform To promote institutional, legal and regulatory reform To promote private sector development To reduce political investment risk Clients

2 The World Bank Group IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation MIGA Multilateral Investment and Guarantee Agency Est Est Est Est Role To promote institutional, legal and regulatory reform To promote institutional, legal and regulatory reform To promote private sector development To reduce political investment risk Clients Governments of member countries with per capita income between $1,025 and $6,055 Governments of poorest countries with per capita income of less than $1,025 Private companies in member countries Foreign investors in member countries Products Technical Assistance Loans Policy Advice Technical Assistance Interest Free Loans Policy Advice Equity/Loans Risk Management Advisory Services Political Risk Insurance 2

Investment Climate PPPs Sustainable Business E&S Guidance Wholly-owned

3 IFC s Three Businesses IFC Investment Services IFC Advisory Services IFC Asset Management Company Loans Equity Other forms of financing Access to Finance Investment Climate PPPs Sustainable Business E&S Guidance Wholly-owned subsidiary of IFC Private equity fund manager Invests third-party capital alongside IFC 3

A Broad Range of Financial Products Equity Corporate Typically 5-15% shareholding Long-term investor, typically 6-8 year holding period Not just financial investor, adding to shareholder value

4 A Broad Range of Financial Products Equity Corporate Typically 5-15% shareholding Long-term investor, typically 6-8 year holding period Not just financial investor, adding to shareholder value Usually no seat on board Mezzanine / Quasi-Equity Subordinated loans Income participating loans Convertibles Other hybrid instruments Senior Debts & Equivalents Senior Debt (corporate finance, project finance) Fixed/floating rates, US$, Euro and local currencies available Commercial rates, repayment tailored to project/company needs Long maturities: 7-12 years, appropriate grace periods Range of security packages suited to project/country Mobilization of funds from other lenders and investors, through financings, syndications (IFC B Loan structure), underwritings and guarantees 4

5 IFC s Global Reach 100+ country and regional offices worldwide Moscow Almaty Washington Istanbul New Delhi Cairo Mexico City Hong Kong Dakar Port-of-Spain Bogota Nairobi São Paulo Johannesburg Buenos Aires IFC HQ/Hub Offices IFC Operational Centers IFC Country Offices 5

6 The Reach of IFC s Projects Last year our clients provided: 2.5 million jobs $200 billion in micro, small, and medium enterprise loans 12.2 million patients with health care treatment 34.3 million people with clean water 41.9 million people with power connections 900,000 students with education 6

7 Fiscal Year 2012 Highlights Investments: 576 new projects in 103 countries Advisory services: Nearly $200 million in program expenditures $20.3 billion in financing: $15.4 billion for IFC s own account, $4.9 billion mobilized $56.5 billion committed portfolio, representing investments in 1,825 firms IDA countries account for almost half of IFC projects overall: $2.7 billion invested in Sub-Saharan Africa 7

Sub-Saharan Africa 18% East Asia and Pacific 16% Latin

8 Investments by Region, FY12 Commitments for IFC s Account: $15.4 Billion Middle East and North Africa 14% Global >1% Sub-Saharan Africa 18% East Asia and Pacific 16% Latin America and the Caribbean 24% Europe and Central Asia 19% South Asia 8% 8

9 IFC in Serbia Serbia became a shareholder and member of IFC in As of 31 January 2013, IFC's portfolio in Serbia stands at $761.6 million. Last financial year FY12 (July 2011 June 2012), IFC invested US$351.2 million and mobilized US$152.8 million in Serbia, supporting projects in the financial sector, agribusiness, and manufacturing sectors. 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. Our priorities in Serbia include: crisis response, agribusiness, climate change and improvements in investment climate. 9

10 IFC Advisory Services - Infrastructure IFC provides advice on designing and implementing public-private partnership (PPP) transactions to national and municipal governments to improve infrastructure and access to basic services such as water, power, health and education. The program is supported by our donor partners: Austria, Norway and 2.2 billion Switzerland. The Balkans Renewable Energy Project works to develop the small hydro power plants (SHPP) market in the Western Balkans countries. Supported by the Ministry of Finance of Austria. * Sept

11 IFC Advisory Services - Corporate Governance and Investment Climate Projects IFC s Corporate Governance Program in Serbia is aimed at improving corporate governance practices in companies and financial institutions, as well as enhancing the corporate governance framework at the institutional, regulatory and policy levels. The Southeast Europe Tax Transparency and Simplification Program works to simplify tax administration procedures to reduce tax compliance costs, particularly for SMEs; and improve the legal framework and 2.2 billion efficiency of administration of international taxation procedures, with a focus on transfer pricing and double taxation treaties. Supported by the Swiss State Secretariat for Economic Affairs (SECO). The Western Balkans Trade Logistics Project works to Reduce the number of documents and days needed for goods to be exported and imported; and streamline procedures for the flow of cargo by road, air, and river. Supported by the EU. 11

12 IFC Investment Services Recent Agribusiness Projects 57 million loan to Victoria Group, a leading agricultural group in Serbia. 55 million loan to Atlantic Group (Croatia), a leading regional food and beverage producer and distributor of FMCG. A portion of the funds will be disbursed directly in Serbia to the Atlantic s Serbian subsidiaries million to Serbia s beverage maker Vino Zupa to support development of agribusiness in the country. 2.2 billion 45 million to MK Group, a Serbian food producer, to modernize and expand production. * Sept

13 IFC Investment Services Recent Financial Markets Projects 70 million loan to the Serbian unit of Societe Generale SA to finance agricultural development. IFC extended a 50 million loan to UniCredit equally divided between housing line (focus on low income households) and agribusiness line supporting one of Serbia s key sectors. Banca Intesa a.d. Beograd: US$12.1 million (EUR 9.1 million) participation 2.2 billion in rights issue. Cacanska Banka: US$7.2 million loan aimed at the SME lending in frontier regions (following $9.1 million equity investment in FY11). Komercijalna Banka a.d. Beograd: US$75 million sub-debt for strengthening capital base (following US$65.2 million preferred share investment (through AMC) to help capitalize the largest state owned bank and extend support to the SME sector). 13

14 IFC Investment Services Recent General Manufacturing Projects IFC invested 50 million for a minority stake in Titan Cement Cyprus, owned by Greek cement manufacturer Titan Cement. The investment will support Titan s subsidiaries in the Western Balkans: Cemertara Kosjeric in Serbia, Cementarnica USJE in the FYR Macedonia, and SharrCem in Kosovo. IFC extended 20 million to PMC Automotive Serbia, a joint venture between Italian automotive suppliers CLN Group and PROMA Group. The 2.2 billion venture is a Greenfield metal stamping facility in the designated supplier park, aimed at supporting the automotive supply chain for the production of the new sub-compact vehicle in the FIAT plant in Kragujevac. Kronospan: US$30 million subordinated loan to help the sponsor complete a US$120 million investment in a new particle board production plant. 14

15 Contact Per Kjellerhaug, IFC Regional Manager, Western Balkans Bulevar Kralja Aleksandra Belgrade Tel:

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

EXPERIENCE MATTERS Six Decades of Experience in Emerging Markets September 22, 2016 PROVIDING DEVELOPMENT SOLUTIONS Customized To Meet Client Needs A member of the World Bank Group Provides investment,