CREATING OPPORTUNITY IFC in Latin America and the Caribbean
With a global presence in more than 100 countries, a network of more than 900 financial institutions, and nearly 2,000 private sector clients, IFC is uniquely positioned to create opportunity where it s needed most.
who we ARE IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. By providing finance and advice, we help companies create jobs, promote growth, and improve people s lives. Our businessesinvestment, advice and asset managementare mutually reinforcing, delivering global expertise to clients. In fiscal year 2014, we provided more than $22 billion in financing globally, of which $5 billion was mobilized from other investors. IFC Investments by Region 10% 16% 1% 9% 20% 23% 21% Latin America & the Caribbean Europe & Central Asia Sub-Saharan Africa East Asia & the Pacific Middle East & North Africa South Asia Global 1
IFC in Latin America ANd the CARIbbEAN Since its first project in Brazil in 1956, IFC has invested over $65.7 billion in Latin America and the Caribbean, including $20 billion mobilized from partners. We are now based in 16 countries in the region, with more than 200 staff. Committed Portfolio in Latin America and the Caribbean: $14.6 billion BILLIONS OF DOLLARS 16 14 12 10 8 6 4 2 0 2011 2012 YEARS 2013 2014 Debt Equity Committed Portfolio by Sector 37% 6% 9% 28% 6% 6% 8% Financial Markets Manufacturing Infrastructure Trade Finance (TF) Consumer & Social Services Agribusiness & Forestry Oil, Gas, & Mining Our Strategy Focuses on Promoting: Competitiveness and Innovation Regional Integration Inclusive Growth Business Solutions to Climate Change 3
Our Clients have AN impact IN LATIN AmERICA ANd the CARIbbEAN 1 in 8 people benefited from IFC infrastructure projects. $ Our 72 billion clients provided $72 billion in loans to micro, small, and medium enterprises. Our clients supported over 325,000 farmers. Our clients reached 4.1 million students and patients. 1.7 million Our clients supported about 1.7 million jobs. Our clients distributed power for 10.5 million people. * in 2014 4
What makes Us different Long-Term Partnerships: We often provide multiple rounds of financing to help companies grow. Sector Expertise: Our industry specialists assess each of our projects and provide invaluable guidance. Broad Reach: With nearly 2,000 clients in more than 100 countries, we share our expertise and lessons learned worldwide. Brand Enhancement: IFC s internationally recognized standards help strengthen clients reputation and open doors to new sources of financing. Mobilization Capacity: We increase investors confidence and help mitigate the perceived risk of investing in emerging markets. Leadership in Sustainability: IFC helps clients raise their environmental, social, and corporate governance standards. Tailored Solutions: We provide flexible financial structures and a full suite of products. Managing Third-Party Capital: Our wholly owned subsidiary IFC Asset Management Company (AMC) serves as a fund manager of other investors capital mobilized under various IFC initiatives. Coordination Capacity: IFC leads joint due-diligence efforts with commercial banks, other development institutions, and others. 5
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Client Solutions IFC provides comprehensive solutions to clients in developing countries to address today s greatest development challenges. Our offerings are designed to meet the specific needs of our clients in different industries, with a special focus on infrastructure, manufacturing, agribusiness, services, and financial markets. Investment Advice Loans: IFC offers fixed and variable rate loans for its own account to private sector projects. We help financial institutions tailor products for individuals and micro, small, and medium enterprises, thus expanding access to critical finance and encouraging entrepreneurship. IFC s financial products enable companies to grow, manage risks, and broaden their access to foreign and domestic capital markets. We operate on a commercial basis, investing in profitable and sustainable projects. Our product lines include: Syndications: IFC mobilizes financing for private sector projects, acting as catalyst in raising capital from foreign and domestic sources. Equity: We provide long-term growth capital, investing directly and through private-equity funds. IFC usually maintains equity investments for a period of 8 to 15 years. Structured Finance: IFC utilizes structured finance products to provide cost-effective forms of financing with an emphasis on providing long-term local currency solutions and access to local capital markets. Local Currency Financing: Companies with revenues in local currency should generally borrow in their local currency, instead of borrowing in a foreign currency which leads to currency risk. Trade Finance: IFC issues credit guarantees where others won t, providing essential liquidity for trade flows through its global network of more than 500 bank partners. IFC s advice, which is integrated into our investment operations, helps build sustainable businessesadvising our clients on a wide range of issues, including environmental, social and governance standards, energy and efficiency, and supply chains. IFC s advice in public-private partnerships (PPPs) helps national and municipal governments to partner with the private sector to improve basic services such as education, electricity, health, sanitation, and roads. IFC s advisory services are provided with the financial support of donor institutions. Asset Management IFC Asset Management Company (AMC), a wholly owned subsidiary of IFC, mobilizes and manages third-party funds for investment in developing and frontier markets. With over $6 billion in assets under management, AMC manages funds on behalf of a wide variety of institutional investors, including sovereign funds, pension funds, and development finance institutions. 7 9214_IFC-LAC.indd 7 4/20/15 3:11 PM
INF R A S T RUC T UR E : BR IDGING T HE G A P IFC s global expertise and innovative approach supports private sector financing for some of the region s most critical projects. We provided $150 million for the construction of Puerto Bahia, a state-ofthe-art port facility for oil and natural gas exports from Colombia that will begin operations in 2015. In Mexico we mobilized institutional investors to devote $200 million to the region s first automated container terminal constructed by APM Terminals Lázaro Cárdenas. Through an $82 million investment in Equatorial Energia, we supported the acquisition and turnaround of CELPA, a power distributor that serves 1.9 million people in the Brazilian Amazon. 8 9214_IFC-LAC.indd 8 4/20/15 3:11 PM
renewable energy IFC is a leading global financier of solar and wind energy. Renewable energy represents two-thirds of our power business. We helped Honduras diversify its energy mix by financing the development of three solarp owe r p l a n t s f r o m SunEdison Inc. with an 82MW combined capacity. We structured a $300 million financing package for the construction of the Penonome wind farm in Panama, which is expected to generate 5 percent of the country s energy demands. IFC backed BMR Jamaica Wind Ltd. to build a 36.3 MW capacity wind farm that will be the largest renewable energy project by the private sector in Jamaica. Public-Private Partnerships IFC is a pioneer in supporting publicprivate partnerships across Latin America to help meet the demands of a growing urban middle class. In Colombia, we structured a PPP for Ruta del Sol, a $2.6 billion, 1,000-kilometer highway connecting Bogotá with Colombia s Caribbean coast. We h e l p e d H a i t i s g ove r n m e n t tu r n a state-owned telephone company that was losing $1 million a month into a thriving PPP. NATCOM now provides phone service for 1.7 million customers. In Brazil, we helped create the Hospital do Subúrbio, the country s first PPP in health, which has dramatically improved emergency hospital ser vices in Salvador, Bahia. 9 9214_IFC-LAC.indd 9 4/20/15 3:11 PM
Access TO FINANCE IFC works with nearly 200 financial intermediaries in Latin America and the Caribbean to close the credit gap for micro, small, and medium entrepreneurs. In Latin America and the Caribbean, IFC s financial intermediary clients provided 13 million loans for micro, small, and medium entrepreneurs in 2013, for a total value of $72 billion. IFC provided $470 million and advisory services to help Itaú Unibanco fill a critical financing gap for women entrepreneurs in Brazil. We are working in various countries to help establish the legal frameworks that enable borrowers to use assets such as machinery, livestock or crops as collateral to gain credit. supporting jobs In Haiti, IFC has financed some of the private sector s landmark projects to support jobs and an inclusive economy. In partnership with local financial institution SOFIHDES, IFC s Business Edge management training has helped 3,400 small and medium entrepreneurs rebuild their businesses after the 2010 earthquake. Our investments in the CODEVI free trade zone support 7,000 jobs; another 2,000 jobs are expected to be created in the next three years. IFC helped provide access to affordable insurance by joining forces with MiCRO to help 70,000 Haitian micro entrepreneurs protect their livelihoods against uninsured losses. 10
AgribusINEss By scaling up investments across the agribusiness supply chainfrom farm to retailwe are helping boost production, and improve logistics and distribution. We provided up to $30 million to Sudameris Bank in Paraguay to support financing for farmers and agricultural exporterskey drivers of the country s economic growth. IFC s $80 million financing package helped a Brazilian meatpacker, Minerva, expand operations, strengthen environmental and social standards, and enhance the traceability of its supply chain. In Colombia, IFC s equity and debt investments in dairy company Alqueria SA helped increase its production capacity, sourcing milk from 5,500 independent farmers. expanding AFFORdabLE education IFC is the largest multilateral investor in tertiary private education in emerging markets. Access to education creates opportunities for high quality jobs. IFC financed Brazil s Grupo Ser Educacionala leading post-secondary education company in the country s northeastto expand and bring quality education to underserved areas. In Peru, IFC has been supporting Universidad Peruana de Ciencias Aplicadas, to help build new campuses and expand access to education for undergraduates and working adults. In Colombia, IFC has supported Uniminuto, which combines lowcost tuition and highquality programs in computer science, business, engineering, and other fields that create opportunities in the job market. 11
Contact us Washington, D.C., usa IFC Headquarters Tel: (202) 458-0261 Argentina Buenos Aires Hub for Argentina, Chile, Paraguay and Uruguay Tel: (5411) 4114-7200 Brazil Sao Paulo Main office for Brazil Tel: (5511) 5185-6888 Brazil Rio de Janeiro Tel: (5521) 2525-5850 Colombia Bogota Hub for Colombia, Bolivia, ecuador, Peru, and Venezuela Tel: (571) 319-2330 Bolivia La Paz Tel: (5912) 211-5400 Peru Lima Tel: (511) 611-2500 Dominican Republic Santo Domingo Tel: (809) 872-7301 Haiti Petionville, Port-au-Prince Tel: (509) 2812-2200 Jamaica Kingston Tel: (876) 960-0459 Trinidad and Tobago Port of Spain Tel: (868) 628-5074 Mexico Mexico City Tel: (5255) 3098-0130 El Salvador San Salvador Tel: (503) 2526-5900 Guatemala Guatemala City Tel: (502) 2329-8000 Honduras Tegucigalpa Tel: (504) 2264-0200 Nicaragua Managua Tel: (505) 2270-0000 Panama Panama City Hub for the caribbean and central america Tel: (507)831-2020 IFC has offices in 99 countries around the world.
Stay Connected IFC Web And Social Media Resources Web www.ifc.org/lac Facebook www.facebook.com/ifcwbg LinkedIn http://on.ifc.org/ifclinkedin Scribd www.scribd.com/ifcpublications YouTube www.youtube.com/ifcvideocasts Twitter www.twitter.com/ifc_lac Hashtag: #IFC, #endpoverty Front Cover: Mauricio Lima/AFP/Getty Images Photo Credits: John McNally/IFC (page 2) Governo do Estado da Bahia (page 6) Gerardo Pesantez/World Bank (page 8) Vaner Casaes/Governo do Estado da Bahia (page 9) John McNally/IFC (page 9) La Huayca (page 10) MiCRO (page 10) Nahuel Berger/World Bank (page 11) Anima Group (page 11) produced by: IFC Latin America and Caribbean Dept., Communications Team
ifc s PURPOSE To create opportunity for people to escape poverty and improve their lives by catalyzing the means for inclusive and sustainable growth, through: Mobilizing other sources of finance for private enterprise development Promoting open and competitive markets in developing countries Supporting companies and other private sector partners where there is a gap Helping generate productive jobs and deliver essential services to the poor and vulnerable To achieve its purpose, IFC offers development-impact solutions through firm-level interventions (direct investments, advisory services, and the IFC Asset Management Company); promoting global collective action, strengthening governance and standardsetting; and business enabling environment work. Creating Opportunity Where It s Needed Most ifc.org April 2015