April, 2019

CDP and the International Development

Cooperation

2

A unique Group in the Italian landscape

Loans2

101 EUR Bn

Equity investments2

33 EURBn

Non-Postal funding2

87 EURBn

Postal funding2

254 EURBn

Total assets1

420 EURBn

Equity1

35 EURBn

16%Bank

Foundations

State and private shareholders3

83%Ministry of

Economy and

Finance

OUR MISSION

We foster the development of the Country, using responsibly national

savings in order to support growth and boost employment, leveraging on

innovation, business competitiveness, infrastructure and local development

1. CDP consolidated balance sheet as of 30th June2018

2. CDP S.p.A. balance sheet as of 30th June2018

3. 1% of CDP own stakes

3

Strategic guidelines

• Reorganization/refocusing of businesses and equity investment portfolio

• Change in the business operating model

• Evolution of operational approach maintaining a sound capital base

Key transformational elements

CDP

Corporate

CDP

Public

Sector &

Infrastructures

Large

Strategic

Equity

Investments

CDP

International

Cooperation

Promoting

sustainable

development

Reorganization based on four areas of activity, promoting sustainable growth through the evolution of the operating model

The evolution of CDP as Development Financial Institution

4

2014 2016

CDP is authorized to

use its resources up

to a maximum of € 1

billion per annum,

subject to certain

regulatory limits

IT Law n. 125/2014 assigns

to CDP the role of

International Financial

Institution (IFI) for

Development Cooperation(efficace dal 1° gennaio 2016)

CDP manages the

Revolving Fund for

Development

Cooperation (FRCS) of

the Italian Republic

New mandate as

IFI

5.4

20142009

Export banca New resources

Since 2009, CDP has

mobilized around € 15

billion in the Export Bank

System

2017

Objectives: (i) to combat poverty, promote growth and reduce inequalities (ii) to protect human rights and

democracies (iii) to prevent conflicts and support peace processes

MAECI

The Italian system of Development Cooperation The governance

5

Establishes the political

priorities

Carries out technical, design

and monitoring activities on site

AICS

Technical-

Operative

Responsibility

Manages the Revolving Fund and

other third-party funds and provides

financing from its own resources

Financial

Responsibility

Political

Responsibility

MEF

Economic

Responsibility

Supervises the use of the resources of

the Revolving Fund for Development

Cooperation

6

Where we work

22 countries are priority for

MAECI – AICS

CDP OPERATES IN ALL 143 DAC-OECD

MAECI also sets 22 countries as priorities

Egitto

Tunisia

Etiopia

Kenya

Somalia

Sudan

Sud Sudan

Sudan

Burkina Faso

Niger

Senegal

Mozambico

Albania

Bosnia

Afghanistan

Myanmar

Pakistan

Cuba

El Salvador

Giordania

Iraq

Libano

Palestina

The Geographies of Development Cooperation

Main products offered by CDP

7

a. Direct lending to:

Sovereign and Multilateral entities

Private Sector in co-financing with Multilateral Development Banks

and other partners

b. Investing equity intermediated

c. Blending by combining CDP resources with grants or concessional

resources from the Italian Government, the European Commission

and other public and private donors

Technical-financial advisory to the Ministry of Foreign Affairs and

International Cooperation, to the Ministry of the Environment and to the

Protection of the Territory and the Sea, to the Italian Agency for

Development Cooperation and to the beneficiaries of the interventions

Management of the Revolving Fund for Cooperation and Development

(FRCS) on behalf of the Italian Government

Use of CDP’s own resources in emerging marketsManagement

of public

funds

Technical-

financial

Advisory

Both public

and private

counterparts

Lending,

Investing and

Blending

1

2

3

1

2

3

Three lines of intervention and support

8

Products, beneficiaries and sectors

Senior and subordinated

loans

Guarantes

Quasi-equity

and Equity

Energy

Transport

Water and Sanitation

Health

Education

Micro-finance

LARGE, SMALL,

MEDIUM, MICRO

ENTERPRISES

BANKS AND FUNDS

MULTILATERAL AND

INTERNATIONAL

FINANCIAL

INSTITUTIONS

GOVERNMENTS AND STATE-

OWNED COMPANIES

Agribusiness

9

Blending with the Revolving FundPilot case Tunisia

• The project provides financing to local

intermediaries for access to finance by

small and medium enterprises in Tunisia

• Blended finance with a mix of 60% FRCS and

40% CDP resources to reach the target

concessional rate

• CDP assumes the sovereign risk of Tunisia

Target price

1,5%

UNICO

FINANZIAMENTO

Credito d’aiuto

(pricing FRCS)

Finanziamento

Cooperazione Cdp

(pricing Cdp)

Fondo Rotativo

PAESE PARTNER

Sovereign e

Multilaterali

Risorse

proprie

Cdp

Credito d’aiuto

FRCS

• Importo: € 20 mln (40% importo TOT)

• Durata: 9,5 anni (5 di grazia e 4,5 di

ammortamento regolare semestrale)

• TIT: 1,72%*

• Credit spread running (10 anni): 221 bps*

• Tasso all-in CDP: 3,93%*

TRANCHE CDP

• Importo: € 30 mln (60% importo TOT)

• Durata: 17 anni (9,5 di grazia e 8,5 di

ammortamento regolare semestrale)

• Tasso all-in FRCS: 0,77% (tbc)

TRANCHE FRCS

• Importo TOT: € 50 mln

• Durata: 17 anni (5 di grazia e 12 di

ammortamento regolare semestrale)

• Tasso all-in Credito Misto: 1,50%

• Grant Element: 38%

CREDITO MISTO CDP-FRCS

ACCORDO G2G: siglato MoU 2017-2020

Italia/Tunisia: Italia disponibile a concedere risorse

per un totale di € 165,5 mln, di cui € 100 mln a

credito (tramite il FRCS, € 30 mln per

l’operazione in esame) e € 65,5 mln a dono

(gestiti da AICS). Il MoU prevede, inoltre, che CDP

possa concedere risorse a credito aggiuntive in

blending con le risorse del FRCS.

+ =

€ 20 mio

pricing CDP

€ 30 mio

pricing FRCS

G2G

Agreement

Revolving Fund of the Italian Republic

Tunisian

Governement

(Central Bank)

Local Financial

Intermediaries

MSMEs

MSMEs

MSMEs

MSMEs

10

Purpose

Leverage CDP resources for

development

Participate initiatives of strategic

interest for the Italian Cooperation

Contribute to Italian Official

Development Aid (ODA)

Intervention

modalities

1. Direct Financing to MDBs/IFIs

2. Co-Financing with MDBs and IFIs

CDP in Blending with public and private

resources to ensure consistent

economic conditions

Financing with-and-to MDBs, IFIs and DFIsSovereigns and SOEs

ProjectsProject

Governement

or SOE

ProjectsProjectsProjects

MDBs, IFIs

and DFIs

MDBs, IFIs

and DFIs

11

Development FinanceEquity

Purpose

Intervention

modalities

Sustainable project in a

developing country

Financial Intermediary

Own resources

Local Funds

Corporate partnering in sustainable

investments in developing countries/

emerging markets

Create entrepreneurship, growth,

jobs and prosperity

Indirect equity investments

Equity investments in local funds

(equity, quasi-equity and private debt

funds)

CDP, or – potentially - its vehicle,

share up to 50% of the investment

Possible

blending

Italian Republic/

European Union

12

Purpose

Project financing in the developing world for

enterprises and development/growth

projects

Create entrepreneurship, growth, jobs

and prosperity on themes of interest for

the Italian Cooperation

Modalities of

intervention

Financing to enterprises investing in

countries of interest for the Italian

Cooperation

Co-financing of Multilateral Financial

Institutions and DFIs

CDP share up to 50% of the financing

Development FinanceProject finance

Enterprise

Project with

development/growth

purposes

Other

Multilateral/DFIs

resources

Own resources

13

Pilot case CLN S.p.A. with IFC South-Africa, 2018

CDP and IFC have signed an agreement for the

periodic sharing of the pipeline for the identification

of projects of common interest

The operation is co-financing to the Italian CLN

S.p.A., for the development of an automotive

components plant in South Africa

Total funding: € 134 million (63% IFC share and 37%

CDP share), with a duration of 7 years

Positive impact quantified as 500 new jobs and a

positive impact on the supply chain estimated at

more than € 600 M

CLN Coils Lamiere Nastri

S.p.A.

Development of automotive

components plant in South

Africa

World Bank Group

€ 84 mio € 50 mio

CLN S.p.A.

CDP and IFC

14

Themes

SMEs and MSMEs

Climate and energy

Agriculture

Urban development

Digitalization

Intervention

modalities

Financing or guarantees by CDP for projects

in the areas identified by the European

External Investment Plan (EIP)

Co-financing CDP resources and Multilateral

Financial Institutions, IFIs and DFIs

EU Guarantee for de-risking

Financing with EU guaranteesCDP is Seven Pillar Accredited

Thematic project

CDP’s own

resourcesGuarantee

European Union

Financing (funded) or

guarantee (unfunded)

Other

Multilateral/DFIs

resources