Europe meets the AmericasAruba, May 2013
Leading regional development bank Largest source of multilateral
financing for Latin America and the Caribbean since 1959
26 Country offices in the region; 48 member countries worldwide
AAA/Aaa ratings by Standard & Poor’s and Moody’s
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Private Sector with Purpose We seek to create opportunities for
current and future generations in Latin America and the Caribbean through sustainable private sector investments.
Through the Structured and Corporate Finance Department (SCF), IDB partners with private sector stakeholders to achieve breakthrough financial results with high development impact.
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Structured and Corporate Finance (SCF)Our Clients Corporations, private utilities and infrastructure
operators, financial institutions, and state-owned entities without a sovereign guarantee
Our Products and Services Loans (syndications and parallel) Project Finance and Private Public Partnerships Guarantees Technical cooperation Climate change concessional finance Clean energy audits Shared value appraisals
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Our expertise
Infrastructure
Social Infrastructure
Industries and Services
Financial Markets
Syndications
Overarching Priorities
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• Renewable generation (Wind, Solar, Geothermal)
• Service improvements to energy transmission and distribution
• Focus on low access and supply areas
• Toll Roads
• Airports
• Ports
• Increase capacity& access
• International safety standards
• Water supply
• Water and waste treatment
• Energy efficiency
Energy Transportation Water and Sanitation
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Largest wind project in Latin AmericaProject Overview La Mareña is a 396 MW wind farm located in Oaxaca,
Mexico – one of the world’s best regions for wind energy IDB approved a loan of up to 1.1 billion Mexican pesos
(US$72 million) to finance its construction First IDB transaction to use innovative back-to-back
matching loan from NAFIN to IDB, to provide the loan in Mexican pesos
Development Impact Approximately 900,000 tons of CO2 emissions are
expected to be abated annually La Mareña will contribute to a 76% increase in installed
wind power capacity in Mexico
Overarching Priorities
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• Private entities of elementary andhigh school, university and post graduate studies
• Educational funding programs sponsored by government orprivate entities, including non-profit
• Private providers of health services, including health centers, hospitals, clinics
• Insurance companies, leasing companies and equipment investment funds
• Companies that produce equipment, medical supply companies and laboratories
Education Healthcare
Expanding access to higher education
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Project OverviewUniversidad Politécnica Salesiana (UPS) is a socially inclusive university based in Ecuador With over 18,000 students – predominantly mid- to low-income – UPS also offers a dedicated program for indigenous communitiesUPS approached IDB for help in expanding its campus and financial aid offerings
Development ImpactThrough IDB’s $15 million loan, UPS will provide affordable high quality education to 5,000 additional lower income students in Quito, Guayaquil and CuencaProceeds of the loan will go toward setting up new $2 million student loan fund for lower income students
We work to changelives and create new possibilities.
Overarching Priorities
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• Industrial energy efficiency
• Clean fuel alternatives
• Logistics and sustainable cement
• Job creation through Industrial competitiveness
• Integrated agribusiness
• Agricultural inputs
• Small-farmer productivity
• Sustainable mining & forest products
• Sustainable tourism
TransformationalInvestments
Food Security Sustainable Natural Resources
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Promoting renewable forestry practicesProject OverviewIDB is supporting Montes del Plata Group through a $200 million loan to build and operate a eucalyptus pulp plant and bio-mass electricity plant.The largest private sector investment in Uruguay history (approx. $2 billion), it follows IDB’s strict environmental and social standards for renewable forestry
Development ImpactCreate 5,800 and 5,350 jobs during construction and operations, respectivelyProduce 160 MW of renewable energy (approx. 70 MW exceed internal needs and will be supplied to the national grid and other industrial entities)Contribute $750 million annually to GDP and generate$700 million in exports per year
Overarching Priorities
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• Underserved markets
• SMEs
• Affordable housing
• Local capital market
• Microfinance
• Reducing the footprint of Financial Institutions (Fis)
• Mitigating climate change while generating financial returns
• Loans, guarantees and training to mitigate risk and increase liquidity
• Expand trade financing for SMEs
Financing technical assistance:
•greening operations and buildings
•financial literacy
•corporate governance
•Funds for Infrastructure
Financing Social Inclusion
Valuing the Environment
Fostering Trade and Integration
Promoting Sustainable FIs
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Supporting clean energy through banksProject OverviewIDB created a facility for up to $90 million to support environmentally friendly projects through banks and other financial intermediariesUsing resources from the facility through a shared guarantee mechanism, the first of its kind in the region, Bancolombia will finance projects in energy efficiency, clean and renewable energy production
Development ImpactWith this facility, IDB seeks to boost its commitment to climate change mitigation through banks in the region
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We’re inspired by what surrounds us
Mobilizing private capital We act as catalyst, leveraging our own investments (A loans) and mobilizing
other sources for co-financing through our B loans and parallel loans B lenders include commercial banks, institutions and impact investors Other financing partners include development finance institutions and
private equity investors
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B Loan Program
One loan agreement – IDB is lender of record and administers entire loan IDB fully shares project risk with participants Participation structure allows participants to benefit from IDB’s privileges
and immunities
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BorrowerBorrowerParticipantsParticipants
Loan Loan AgreementAgreement
A + B A + B LoansLoans
B LoanB Loan
Participation Participation AgreementAgreement
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Our deal is with the future.
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