Capital Markets Update

OCT 2015

Overview of Global USD

Sukuk Markets

$56Islamic

Takaful $33

2020 (Potential)

$2,610 Bn2014

$1346 Bn

How big is the current Islamic commercial banking assets?

3,5001,5001,000 2,5002,000500 3,0000

Islamic Finance Market Overview

Islamic finance segm ents current state (2014)

Islamic Banks

$1,346Islamic banking

assets (US$ bill)

(Insurance) Takaful / retakafulassets (US$ bill)

Sukuk (Bonds)

$295Value of Sukuk

outstanding (US$ bill)

Net asset value of Islamic funds (US$ bill)

Funds

Other Financial Institutions

2020 (Potential)

$3,247 Bn

2014

$1,814 Bn

3,5001,5001,000 2,5002,000500 3,0000

How big is the current Islamic finance market assets?

Emaar Malls

AHB Tier 1 Sharjah DOF

Mumta-lakat

Turkey FlyDubai DIB Tier 1 (New)

SIB 5 YR RAK 10 YR Noor 5 YR DIB Etihad

0

1000

2000

3000

4000

5000

6000

7000

8000

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

750500

750 6001000

5001000

5001000

500750 913

5,400

4,500

7,500

2,500

3,400 3,000

2,500

3,605 3,500

2,100 2,100

1,200

7.2

9.010.0

4.23.4

6.0

2.5

7.2

3.54.2

2.8

1.3

Amount USD (bn) Orderbook Size Oversubscription

Primary Sukuk Issuance 2015

USD Sukuk Issuances since 2008

GCC USD Primary Sukuk Issuances –Last 10 Months

23$13.1 bn

13

# USD Sukuk Issuances in 2015

Value of International Sukuk in 2015, YTD

# of Sukuk issued in GCC YTD

2015

$7.42 bnValue of GCC Sukuk in 2015 YTD

2008 2009 2010 2011 2012 2013 2014 2015 YTD

-

5,000

10,000

15,000

20,000

25,000

CAGR = 22%

Sukuk USD Market Overview 2015

Sovereign Issuances

2015 Sukuk Issuances by Structure

Industry Breakdown

Energy

Government

Consumer Discretionary

Financials

MalaysiaIndonesiaHong KongGCC

Sukuk Al Ijara

Sukuk Al Mudarabah & Musharakah

Sukuk Al Murabaha

SUKUK vs. BONDS

LIQUIDITY MANAGEMENT: Excellent tool for Islamic Financial Institutions to manage the liquidity

FUND RAISING: Provide a tool for corporates who are in need of cash for specific objectives such as financing long-term infrastructure projects.

SECURITIZATION: Can be used as a means to release the funds tied up in assets through securitization.

BALANCE SHEET MANAGEMENT: Achieve an optimal balance between debt and equity on a balance sheet.

PROTECTIBLE INCOME SOURCE: For investors, Sukuk can be used to receive a protectable rate of return through investment in sharia compliant assets.

TRADABILITY: These instruments are tradable and allow for easy liquidation.

What are benefits of Sukuk?

What differ Sukuk from Conventional Bonds?

CLOSE LINK BETWEEN FINANCIAL AND PRODUCTIVE FLOWS AND BETTERRISK PROFILESukuk is based on an underlying transaction which creates a close link between financial and productive flows. In contrast, conventional bonds generally separate such risks from the underlying assets and it comes mainly from the performance of the obligor.

TRANSPARENCYThe profit-sharing feature of Islamic financial transactions imposes a high level of disclosure in the financial contract.

A WIDER INVESTOR BASEIssuing sukuk also give access to a wider investor base as the instruments attract not only the Islamic investors but also conventional investors.

What differ Sukuk from Conventional Bonds?

• SUKUK• Sukuk represent ownership

stakes in existing and/or well defined assets;

• The underlying contract for a sukuk issuance is a permissible contract such as a lease or any of the other 14 categories defined by AAOIFI;

• The underlying assets monetized in a sukuk issuance must be Islamically permissible in both their nature and use e.g. a truck would always be an eligible asset but not its lease to a distillery;

• Notwithstanding an obligor’s creditworthiness, sukuk prices depend on the market value of the underlying asset;

• The sale of a sukuk represents a sale of a share of an asset;

• BONDS• Bonds represent pure debt

obligations due from the issuer;

• In a bond, the core relationship is a loan of money, which implies a contract whose subject is purely earning money on money (Riba);

• Bonds, can be issued to finance almost any purpose which is legal in its jurisdiction;

• Bonds depend solely on the creditworthiness of the issuer. (In case of an Issuer’s failure, unsecured bondholders join the pool pf of general creditors seeking the assets of a bankrupt company);The sale of a bond is basically the sale of a debt;

•

165%

Banks18%

17%

Middle East

Asia

Europe

Distribution by Geography (Allocation)

International Finance Facility for Immunisation Company (“IFFIm”)US$200mn RegS Sukuk Issue due 2018

78%

18%

4%

Central Banks /Official Institutions

Fund Managers

Distribution by Investor Type (Allocation)

Second “Vaccine Sukuk” by IFFImAttracted a

unique investor base with an

ESG focusFirst socially-

responsible Sukuk this year, after the

debut Sukuk by IFFIm last

year

US$ 200millionSenior Sukuk

Floating Rate Trust Certificates due 2018

Joint BookrunnerSeptember 2015

Transactions Highlights• On the 17th of September, 2015, The International

Finance Facility for Immunisation Company (“IFFIm”), for whom the World Bank acts as Treasury Manager, successfully priced a 3-year floating rate US$200mn Sukuk. This marks IFFIm’s second “Vaccine Sukuk”, post the success of its debut issuance in 2014.

• The transaction was announced on Wednesday, 16th

September with a price guidance of US$ 3m Libor + 14bps. The books were kept open overnight to allow time for the Islamic investors to get their approvals.

• On the 17th September, the book was c.1.6 times oversubscribed and US$ 200mn Sukuk was launched at 3m LIBOR + 14bps.

• IFFIm’s unique life-saving purpose attracted interest from both traditional Sukuk investors and conventional investors with a strong Environmental, Social and Governance (“ESG”) focus, some of which invested in a Sukuk for the first time.

• IFFIm has so far raised US$5.2bn in the capital markets to support Gavi, the Vaccine Alliance, whose mission is to save children’s lives in poor countries through providing access to immunisation.

Issuer IFFIm Sukuk Company II Limited

Obligor International Finance Facility for Immunisation Company (“IFFIm”)

Obligor Ratings Aa1/AA/AA (Moody’s, S&P, Fitch)

(Exp.) Issue Rating

Aa1 by Moody’s

Format Regulation S only

Status/ Structure

Senior Unsecured/ Sukuk Murabaha

Issue Size USD 200 million

Pricing Date 17th September 2015

Tenor (Maturity) 3 years (29th September 2018)

Profit Rate US$ 3m LIBOR + 14bps p.a. (quarterly payments )

Issue Price 100%

Listing Unlisted

2

52.5%

42.5%

Distribution by Geography (Allocation)

5.0%

Middle East EuropeAfrica

International Finance Corporation (“IFC”)USD 100mn Amortising RegS Sukuk due 2020

75.0%

20.0%

5.0%

Banks

Official Institutions

Fund Managers

Distribution by Investor Type (Allocation)

The tightest priced ever 5 year Sukuk

The first-ever amortising Sukuk by a

supranationalSuccessfully

reopened the Islamic capital

markets post the summer

recess

USD 100 millionSenior Floating Rate

Sukuk due 2020

Joint Lead Manager

September 2015

• On the 9th September, 2015, International Finance Corporation (“IFC), a member of the World Bank Group and the largest global development institution focused exclusively on the private sector in developing countries, successfully priced a USD 100mn floating rate, amortising Sukuk and reopened Islamic capital markets post the summer recess

• Following a series of investor meetings in the Middle East commencing on the 31st August, orderbooks were opened on the 8h September at Middle East open, with initial price guidance at US 6m Libor – 10bps. The books were kept open overnight to allow time for the Islamic investors to get their approvals.

• On the 9th September, the book was c.1.25 times oversubscribed and the USD100m Sukuk was launched at US 6m LIBOR – 10bps.

• This issuance marks the tightest priced 5 year Sukuk as well as the first amortising Sukuk by a supranational. This also marks IFC’s first foray in the Islamic capital markets since its debut USD Sukuk in 2009.

Transactions Highlights

Issuer IFC Sukuk Company

Obligor International Finance Corporation (IFC)

Issue Rating AAA by S&P

Issue Size USD 100 million

Format Regulation S only

Status/ Structure

Senior Unsecured/ Sukuk Wakala

Pricing Date 9th September 2015

Tenor (Maturity)

5yrs amortising (15th September 2020)

Weighted Average Life

3.75 Years

Repayment USD 50 million on March 15th 2018 and USD 50 million on September 15th 2020

Profit Rate US 6m LIBOR - 10bps (p.a. , payable semi- annually)

Launch Spread US 6m LIBOR - 10bps

Issue Price 100%

Listing Nasdaq Dubai and London Stock Exchange