The New Bank and Private Sector Activities
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Transcript of The New Bank and Private Sector Activities
The New Bank and Private Sector Activities
The New Bank and Private Sector Activities
Lori KerrAdvisor, Vice Presidency for Private Sector and Non-Sovereign Guaranteed Operations
Washington, DC October 15, 2008
AgendaAgenda
Background on IDBBackground on IDB
Private Sector OperationsPrivate Sector Operations
New Business ModelNew Business Model
Products for Private Sector ClientsProducts for Private Sector Clients
IDB’s Competitive AdvantagesIDB’s Competitive Advantages
Consulting OpportunitiesConsulting Opportunities
Contact InformationContact Information
Inter-American Development BankInter-American Development Bank
Oldest and largest multilateral lender to Latin America and the Caribbean dedicated to accelerate economic and social development
Regional institution with 47 member countries, including 26 borrowing member countries
Established in 1959 Provides US$10 billion annually in lending and technical
assistance Public sector operations Private sector operations
IDB: New Business ModelIDB: New Business Model
New corporate structure Strengthened private sector operations Broader client base Expanded sectors More agile and responsive
IDB: New Business ModelIDB: New Business Model
Public Public Private*Private*PPPPPP
MixedMixed
BasicInfrastructure:
TransportEnergy
Water & SanTelecom
State Owned State Owned EnterprisesEnterprises
withoutwithoutSovereign Sovereign GuaranteeGuarantee
(Federal, State, (Federal, State, Municipal Municipal
Sovereign- Sovereign-
Guaranteed Guaranteed
OperationsOperations
*Authorized up to 10% of IDB Outstanding Balance
Extractive Industries:
Gas Oil
Mining
Basic .Industries:
PulpPaper
ChemicalSteel
ManufacturingTourism
AgribusinessServices
Private Sector Operations: IDB Group
Private Sector Operations: IDB Group
The IDB Group, comprising the Inter-American Development Bank, the Inter-American Investment Corporation and the Multilateral Investment Fund, provides a wide range of financial and non-financial products and services to non-sovereign clients
Large projects, enterprises and financial institutions
SMEs and financial institutions focused on
SMEs
Micro, small and medium enterprises
Inter-American Development BankStructured and Corporate Finance Department
Opportunities for the Opportunities for the MajorityMajority
IDB’s Competitive Advantages IDB’s Competitive Advantages
Deep Knowledge and Excellent Relations with Latin America and the Caribbean– Oldest and largest multilateral lender to the Region– Cooperative, long-term relationship with member
countries– Help mitigate political risks– Exemption from withholding taxes and de facto
preferred creditor status Solid Financial Position
– AAA/Aaa Rating (S&P, Moody’s)– Authorized capital of US$101 billion– Ability to extend tenors at market pricing
IDB’s Competitive Advantages IDB’s Competitive Advantages
IDB Value-Added– “Umbrella Effect” helps to attract other lenders – Catalytic role: IDB financing mobilizes private
investment– Internationally recognized environmental, social,
labor and health standards provide comfort to governments, communities, lenders and sponsors
– Flexible risk sharing arrangements
Products for Private Sector ClientsProducts for Private Sector Clients
A/B Loans Political Risk Guarantees Partial Credit Guarantees Direct equity and quasi-equity investments Investment funds Technical assistance:
– Renewable Energy (SECCI)– Infrastructure (InfraFund)– Water & Sanitation (Aquafund)– Other trust funds
Consulting OpportunitiesConsulting Opportunities
Phases in transaction cycle:– Upstream feasibility– Detailed due diligence– Ongoing administration
and monitoring
Process of engagement:– Request for proposals– Proposal evaluation– Consultant selection– Consultant Services
Agreement
Areas of expertise:– Technical– Market– Financial
– Economic– Environmental and Social– Insurance
Contact InformationContact Information
Structured and Corporate Finance Department (SCF) Structured and Corporate Finance Department (SCF) Large projects, enterprises and financial institutions
– Phone: +1 (202) 623-3702Phone: +1 (202) 623-3702– www.iadb.org/scf
Opportunities for the Majority (OMJ) Opportunities for the Majority (OMJ) Market-based strategies to bring economic and social development to low-income populations
– Phone: +1 (202) 623-2676Phone: +1 (202) 623-2676– www.iadb.org/OM
Inter-American Investment Corporation (CII)Inter-American Investment Corporation (CII) SMEs and financial institutions focused on SMEs
– Phone: +1 (202) 623-3900– www.iic.int
Multilateral Investment Found (MIF)Multilateral Investment Found (MIF)Micro, small and medium enterprises
– Phone: +1 (202) 942-8124– www.iadb.org/mif