IFC Creating Opportunity

Where It’s Needed Most

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• IFC is the largest global development institution focused exclusively on the private sector – the global leader in private sector development finance

• We create opportunity for people – to escape poverty and improve their lives

• Driven by our vision and purpose, we make a unique contributionto development

• We invest, advise, mobilize capital, and manage assets – providing solutions for an inclusive and sustainable world

Who We Are, What We Do

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IFC in the World Bank Group

• IBRD: The International Bank for Reconstruction and Development

• IDA: The International Development Association

• IFC: International Finance Corporation

• MIGA: The Multilateral Investment Guarantee Agency

• ICSID: The International Center for the Settlement of Investment Disputes

The World Bank Group consists of five closely related institutions:

Building Prosperity, Eradicating Poverty

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IFC’s Structure

• Owned by 184 member countries

• IFC is the main driver of private sector development in the World Bank Group

• Collaborates with other members of the group, including the World Bank (IBRD and IDA, MIGA and the International Centre for Settlement of Investment Disputes)

• Global: Headquartered in Washington, D.C.

• Local: More than 100 offices worldwide in 95 countries

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IFC’s History

• Launched in 1956: 12 years after the Bretton Woods Conference created the World Bank to finance post-WWII reconstruction and development by lending to governments

• Original mandate: supporting development by encouraging private investment (a new part of the global economic agenda)

• 1980s: IFC coins the term “emerging markets”

• 1990s: IFC increases in size, importance after fall of Berlin Wall

• Today: IFC is the world’s largest multilateral institution exclusively focused on private sector development, widely seen as an essential source of job creation, growth, and poverty reduction

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Our Purpose

• Promoting open and competitive markets indeveloping countries

• Supporting companies and other private sector partners where there is a gap

• Helping to generate productive jobs and deliver essential services to the underserved

• Catalyzing and mobilizing other sources of finance for private enterprise development

In order to achieve its purpose, IFC offers development impact solutions through firm-level interventions (direct investments,advisory services, and IFC Asset Management Company), standard-setting, and business enabling environment work.

IFC’s Purpose is to catalyze inclusive and sustainable growth through:

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Creating Opportunity Our Strategic Focus Areas

Frontier Markets

• Only 1/3 of the world's poorest live in low-income countries

• Most live in middle-income countries

• So IFC focuses on frontier markets: the poorest countries as well as less-developed regions of middle-income countries, and fragile and conflict-affected situations

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Creating Opportunity Our Strategic Focus Areas

Private Infrastructure

• Power, transport, water, telecommunications

• Health and education

• Building food security by strengthening the food supply chain

• Public-private partnerships are critical in all

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Creating Opportunity Our Strategic Focus Areas

Developing Local Financial Markets

• Focusing on the key drivers of job creation: micro, small, and medium enterprises

• Expanding role in trade finance

• Local currency transactions

• Financing women entrepreneurs

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Creating Opportunity Our Strategic Focus Areas

Climate Change

• Part of our broader commitment to ensuring environmental and social sustainability

• Renewable energy

• Sustainable energy finance

• Building clients' climate-smart business models

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Creating Opportunity Our Strategic Focus Areas

Long-Term Partnerships

• IFC builds long-term relationships with firms in emerging markets

• Using the full range of our products and services

• Assisting their cross-border growth

IFC’s Three Businesses

InvestmentServices

AdvisoryServices

IFC AssetManagement

Company

• Loans• Equity• Trade finance• Syndications• Securitized finance• Blended finance

• Access to finance• Sustainable Business• Investment Climate• Public-Private

Partnerships

• Wholly owned subsidiary of IFC

• Private equity fund manager

• Invests third-party capital alongside IFC

$4.5 b under mgmt

$56.5 b portfoli

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$200 m per year

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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

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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 million students with education

Last year our clients provided:

The Reach of IFC’s Projects

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IFC Jobs Study: Key Findings

Investment Climate, Infrastructure, Access to Finance and Skills & Training are critical factors for job creation in developing countries.

Job creation effects are often much larger in supply chains and distribution networks of IFC clients (“indirect‟ jobs) than “direct‟ jobs created in IFC client companies.

Company size matters. Higher labor productivity can be associated with faster

employment growth. Special attention must be paid to women and young

people

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Examples of IFC Investments

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Examples of IFC Investments

U-Com Burundi S.A. in Burundi (2011)• Expand mobile telephone coverage through

installation of 251 new base station sites and additional microwave backhaul links.

• Project Sponsor: U-Com and Telecel Globe of Malta• Project Cost: $66.3 m. • IFC up to $25 m. senior loan• Burundi's mobile penetration is lagging behind that

of the other countries in the region. The project will expand network coverage in previously underserved regions and improve the quality of service throughout the country.

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Examples of IFC Investments

PRAN Dairy – Bangladesh (2011)• Expansion of dairy operations – processing,

procurement, and related working capital needs• Project Sponsor: PRAN Group• Project Cost: $15 m.• IFC up to $7 m. loan • PRAN currently works with 17,000 dairy farmers.

Project will establish 60 new dairy hubs over ten years and increase reach to additional 90,000 farmers.

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Examples of IFC Investments

PRAN Natore Agro – Bangladesh (2012)• Expansion of food processing and manufacturing

capacity• Project Sponsor: PRAN Group• Project Cost: $25 m.• IFC up to $10 m. loan • Project will create over 1,200 new jobs and impact

several thousand farmers by ensuring consistent demand and fair pricing for their produce.

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Examples of IFC Investments

Laureate Education – World Region (2012)• Expansion of higher education programs in

developing countries• Project Sponsor: Laureate Education Inc.• Project Cost: $150 m.• IFC up to $100m. loan or equity • Project will expand access for middle- and lower-

income students to high quality post-secondary education, in many cases addressing demand unmet by public institutions

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Examples of IFC Investments

Reformador SME Loan – Guatemala (pipeline)• Support origination of SME and agribusiness sub-loans

plus a trade line to support general trade operations such as stand-by LCs, export/import finance and guarantees

• Project Sponsor: Banco Reformador• IFC up to $20 m. senior loan for up to 6.5 years and

$25 m. to support trade operations • Project will strengthen Banco’s participation in the

SME sector and deepen participation in agribusiness, both highly underserved sectors.

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Annex

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Investments by Region, FY12

Commitments for IFC’s Account: $15.4 Billion

Sub-Saharan Africa 18%

East Asia and Pacific 16%

South Asia 8%

Europe and Central Asia 19%

Latin America and the Caribbean 24%

Middle East and North Africa 14%

Global >1%

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Advisory Services by Region, FY12

Sub-SaharanAfrica 29%

Total Project Expenditures: $197 Million

East Asia and Pacific 14%

South Asia 14%

Latin Americaand Caribbean 11%

Global 5%

Europe andCentral Asia 17%

Middle East and North Africa 9%

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Investments by Industry, FY12

Consumer & Social Services9%

Commitments for IFC’s Account: $15.4 Billion

Infrastructure9%

Manufacturing 7%

Other Sectors1%

Telecommunications& Information Technology2%

Agribusiness & Forestry7%

Financial Markets21%

Funds3%

Oil, Gas & Mining3%

Trade Finance39%

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Advisory Services by Business Line, FY12

Access toFinance 32%

Total Project Expenditures: $197 Million

Investment Climate 29%

SustainableBusiness 24%

Public-PrivatePartnerships 15%