Introduction to IFCBilbao, October 2013

THE POWER OF PARTNERSHIPS

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Overview of IFC within World Bank Group

IFC: Part of the World Bank Group

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Conciliation and arbitration of investment disputes

Guarantees of private sector investment’s non-commercial risks

Interest-free loans and grants to governments of poorestcountries

Loans to middle-income and credit-worthy low-income country governments

Solutions in

private sector

development

IBRD

International Bank for Reconstruction and Development

IDA

International Development Association

IFC

International Finance Corporation

MIGA

Multilateral Investment and Guarantee Agency

ICSID

International Center for Settlement of Investment Disputes

IDA$16.3 b

IBRD$15.2 b

MIGA$2.8 b

IFC*$18.3 b

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World Bank Group Commitments, FY13

Loans, grants,

equity investments,

guarantees, and

advisory services

to support

development

Total Commitments: $52.6 Billion

*Excluding mobilization ($6.5b)

Twin Goals of the World Bank Group

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EndingExtremePoverty

Boosting Shared Prosperity

From 18% to 3% of world population by 2030

Increased incomes for bottom 40% of every developing country

An Unprecedented Opportunity: Ending Extreme Poverty in One Generation

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Meeting the Twin Goals: IFC’s Commitment

Ending Extreme Poverty, Boosting Shared Prosperity

Increasing cooperation across World Bank Group

Strengthening long-term relationships with partners (clients, donors, investors, others)

Building the Private

Sector’s Role

IFC’s History

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IFC Launch

PSD added to the global economic agenda

IFC coins term “emerging markets”

IFC scales up investments

The global leader in private sector development finance

1990-2000s

19801956 Today

A global institution, now owned by 184 member countries

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IFC’s Priorities

Frontier markets

Climate change and environmental & social sustainability

Local financial markets

Long-term client relationships in emerging markets

Strategic Focus Areas

Constraints to private sector growth in infrastructure, health, education, & the food supply chain

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IFC’s Three Business Lines

Our Three Businesses

IFC Asset Management

Company

• Wholly owned subsidiaryof IFC

• Private equity fund manager

• Invests third-party capital alongside IFC

$5.5 b under mgmt (FY13)

Investment Services

• Loans

• Equity

• Trade finance

• Syndications

• Securitized finance

• Risk management

• Blended finance

$49.6 b portfolio (FY13)

Advisory Services

• Access to finance

• Investment Climate

• Sustainable Business

• Public-Private Partnerships

$232 m (FY13)

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Integrated Solutions, Increased Impact

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Investment Services

Loans

Equity

Trade Finance

Syndications

Structured Finance

Risk Management

Blended Finance

- Project and corporate financing - On-lending through intermediary institutions

- Direct equity investments (up to 20% of company’s e quity)- Private equity funds

- Guarantee of trade-related payment obligations of a pproved financial institutions

- Capital mobilization to serve developmental needs- Over 60 co-financiers: commercial banks, fund, and DFIs

- Products including credit guarantees, liquidity fac ilities, portfolio risk transfer, securitizations, and Islamic finance

- Derivative products to hedge interest rate, currenc y, or commodity-price exposures of IFC clients

- Combination of concessional funds with IFC resources to finance initiatives & achieve impact that would otherwise b e unattainable

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FY13 Investment Commitments: $24.8 Billion

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6,8 8,211,0 10,5

12,7 12,215,4

18,31,4

3,8

5,03,5

5,3 6,5

4,9

6,5

0,0

5,0

10,0

15,0

20,0

25,0

30,0

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

New commitments are growing($ Billions)

IFC's own account Mobilization

22% growth from FY12 to FY13

Investments by Industry, FY13

Financial Markets20%

Infrastructure12%

Consumer & Social Services

9%

Manufacturing7%

Agribusiness & Forestry

7%Funds

5%

Telecom & IT3%

Oil, Gas, & Mining2%

Trade Finance35%

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Commitments for IFC’s Account: $18.3 Billion

Investments by Region, FY13

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Commitments for IFC’s Account: $18.3 Billion

Latin America & the Caribbean

26%

Sub-Saharan Africa19%

Europe & Central Asia18%

East Asia & the Pacific16%

Middle East & North Africa11%

South Asia9%

Global1%

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Advisory Services

Access to Finance

- Increases availability and affordability of financi al services for individuals and micro, small, and medium enterprise s

Investment Climate

- Helps governments implement reforms that improve bu siness environment and retain investments

Public-Private Partnerships

- Helps governments design and implement PPPs in infrastructure and other basic public services (ele ctricity, water, health and education)

Sustainable Business

- Helps clients promote sound environmental, social, governance, and industry standards; catalyze investment in clea n energy/resource efficiency; and support sustainable supply chains and community investment

Advisory Services by Business Line, FY13

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Total Program Expenditures: $231.9 Million

Investment Climate

32%

Access to Finance27%

Sustainable Business

24%

Public-Private Partnerships

17%

Advisory Services by Region, FY13

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Total Program Expenditures: $231.9 Million

Latin America & the Caribbean

11%

Sub-Saharan Africa28%

Europe & Central Asia16%

East Asia & the Pacific17%

Middle East & North Africa

9%

South Asia14%

Global5%

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IFC Asset Management Company

IFC Capitalization Fund- Helps strengthen systemically important banks in

emerging markets, bolstering their ability to cope with financial and economic downturns

IFC African, Latin American, & Caribbean Fund

- Co-invests with IFC in equity and equity-related investments across a range of sectors in Sub-Sahara n Africa, Latin America, and Caribbean

Africa Capitalization Fund- Invests in systemically important commercial bankin g

institutions in Africa

IFC Russian Bank Capitalization Fund

- Invests in commercial banking institutions in Russi a

IFC Catalyst Fund- Invests in funds that provide growth capital to

companies developing innovative ways to address climate change in emerging markets

IFC Global Infrastructure Fund

- Co-invests with IFC and equity-related investments i n the infrastructure sector in emerging markets

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IFC: A Valuable Partner

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We help clients in good times and bad by offering:

IFC: A Valuable Partner

A strong financial position, strategy, staff

Low leverage ratios, prudent risk management policies

A long-term partnership perspective, providing clients important countercyclical financing when commercial banks cut back

The expertise and experience needed to make a difference, focusing on innovative transactions where our development impact is the highest

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What Clients Value About IFC

Long-Term Partner

Role

WBG Stamp of Approval

Financing Not Readily

Available Elsewhere

Worldwide Presence

Broad Range of Products

Global/ Local

Knowledge of Industries & Markets

Ability to Mobilize

Additional Funds

Perceived Risk

Mitigation

2013 IFC Client Survey

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Our Performance Standards

Standard Setting

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

Cultural heritage

Indigenous peoples

5

6

7

8

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IFC’s Global Reach

• 109 country and regional offices worldwide, AAA credit rating

• 4,015 staff (57% are based outside Washington DC)

Investment clients provided:

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• 2.7 million jobs

• Health services to 17.2 million patients

• Education to 1 million students

• Improved opportunities for 3.1 million

farmers

• Electric power to 52.2 million

• Water distribution to 42 million people

The Reach of IFC’s Projects—2013