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 Association International Finance Corporation Multilateral Investment Guarantee Agency International Centre for Settlement of Investment Disputes Loans to middle-income and creditworthy lowincome country governments Interest-free loans and grants to governments of poorest countries Solutions in private sector development Guarantees of foreign direct investment s non-commercial risks Conciliation and arbitration of investment disputes 1

WORLD BANK GROUP COMMITMENTS, FY16 TOTAL COMMITMENTS: $64.2 BN Loans, grants, equity investments, guarantees, and advice to support development *Excluding mobilizations ($7.7 bn) Recipient- Executed Trust Funds $2.9 IBRD $29.7 4,5% 46,3% IFC* $11.1 17,2% 25,3% 6,7% IDA $16.2 MIGA $4.3 2 All dollar figures are in US$ bn

FY16 LONG-TERM INVESTMENT COMMITMENTS: $18.8 BILLION 20 18 16 14 12 $14.1 bn 4,9 $17.5 bn 6,5 $15.1 bn 5,1 $17.7 bn 7,1 $18.8 bn 7,7 10 8 9,2 11,0 10,0 10,6 11,1 6 4 2 0 FY12 FY13 FY14 FY15 FY16 IFC's Own Account Mobilization 3 3

IFC S GLOBAL REACH 104 regional offices present in 98 countries worldwide 4 3,757 staff (59% are based outside Washington DC)

IFC S STRATEGY Maximizing Development Impact, Maintaining Financial Sustainability FOCUS INDUSTRIES FOCUS REGIONS FOCUS CHALLENGES Infrastructure Global Engagement Fragility and Conflict Agribusiness Financial Inclusion Health and Education Emphasizing Highest-Impact Opportunities in Each Region Particular Focus: Africa, MENA, South Asia Climate Change Responding to Global Downturn CROSS CUTTING: Disruptive Technology SUSTAINABILITY Strong environmental, social, and governance standards are critical to IFC s business growth and development impact 5

WHAT WE DO Wide-ranging solutions, combining investments, advice and resource mobilization INVESTMENT ADVICE IFC ASSET MANAGEMENT COMPANY Loans Equity Trade and Commodity Finance Syndications Derivative and Structured Finance Blended Finance Access to finance Investment Climate Environmental and social sustainability Infrastructure advisory Corporate advice Mobilizing and Managing Capital for Investment $18.9 billion committed in FY16 $52 billion committed portfolio over $200 million in advisory services income annually 12 funds with $8.9 billion under management 6

INVESTMENT Loans Equity Trade and Commodity Finance 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 7

ADVICE To Companies To Financial Institutions and Funds To Governments Improving productivity and standards Strengthening the performance of SMEs in their networks Advancing gender equality Addressing energy, environmental, social, governance challenges Helping build new markets and improve competitiveness Strengthening risk management, diversifying product offerings Promoting universal access to finance Developing the private equity industry Designing and implementing public-private partnerships in infrastructure and basic public services Improving the business environment via reforms that promote investment, spur growth, and create jobs Addressing water scarcity by convening multi-stakeholder platforms (2030 Water Resources Group) 8

IFC ASSET MANAGEMENT COMPANY AMC FUNDS IFC Capitalization Fund IFC Asset Management Company had about $8.9 BILLION in assets under management in FY16 IFC African, Latin American and Caribbean Fund 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 IFC Middle East and North Africa Fund IFC Women Entrepreneurs Debt Fund 9

FOLDING IN THE PRIVATE SECTOR 10

WHAT CLIENTS VALUE ABOUT IFC Results of IFC Client Survey Long-Term Partner Role Financing Not Readily Available Elsewhere Stamp of Approval Ability to Mobilize Additional Funds Advice based on Global Expertise and Knowledge Worldwide Presence Affiliation with the World Bank Group Environmental, Social, and Corporate Governance Expertise 11

SUSTAINABILITY Critical to Client Success, Development Impact IFC s commitment to environmental and social sustainability and good corporate governance helps clients: Improve business performance Protect the environment Engage with affected communities Enhance transparency Increase impact 12

IFC PERFORMANCE STANDARDS A Global Benchmark 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 5 6 7 8 Land acquisition and involuntary resettlement Biodiversity conservation and sustainable management of living natural resources Indigenous peoples Cultural heritage 13

IFC s Long-Term Investment Portfolio with Portuguese Partners 14

SUCCESSFUL COOPERATION In 2014, IFC committed an equity investment of up to $32 million in Portucel Moçambique, a fully owned subsidiary of the leading European pulp and paper producer Portucel Soporcel Group. Purpose: to establish operational base in Mozambique and develop up to 40,000 hectares of sustainably managed eucalyptus plantations. to construct a 1.5 million ton pulp as well as a biomass power generation plant by 2023. Expected outcomes: The project will develop several types of infrastructure, generate up to 6,500 jobs, and improve the livelihood of 23,000 farmer households through. The project will also promote the development of roughly 100 micro, small and medium entrepreneurs as suppliers of goods and services to Portucel Moçambique. As the first integrated eucalyptus plantation, agriculture, pulp and energy project in Mozambique, the project has contributed to increasing the country s competitiveness through economic diversification. 15

SUCCESSFUL COOPERATION In 2011, IFC committed a 82 million senior loan (including a 26 million B loan) to Cernavoda Power and Renovation Power, majority owned by EDP Renováveis, the renewable energy arm of Energias de Portugal. Purpose: The project financed the Cernavoda and Pestera greenfield wind power plants in the Dobrogea region of Romania, totaling 228 MW of wind capacity. Expected impact: Help Romania meet its renewable energy generation targets for 2020, by displacing fossil-fuel generation, decreasing carbon emissions, reducing local air pollutants, and improving air quality for the local population. Demonstration effect, by sending a strong signal to commercial lenders that the Romanian wind market presents attractive opportunities for renewable energy investors. 16

THANK YOU! Contacts: Andrea Engel Principal Country Officer, CWEBR aengel@ifc.org Lucia Mitariu Associate Operations Officer, CWEBR emitariupereirad@ifc.org 17