Financing A Cleaner Future in Thailand

Bangkok, Thailand

July 15, 2009

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Defining Characteristics of IFC

Owned by 179 member countries Provides loans and equities for private sector projects Does not accept government guarantees

Shares same risks as other investors

Is commercially oriented Driven by risk-reward considerations

Market leader in environmental & social performance standards Equator Principles

Rated AAA (S&P) and Aaa (Moody’s)

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HongKong

RiodeJaneiro

IstanbulNewDelhi

Johannesburg

Washington

Paris

Moscow

Cairo

IFCHubsIFCOffices

IFC has over 100 country and regional advisory services offices worldwide

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Senior Debt Structured Finance

Mezzanine Finance

•On-lending

•Liquidity management

•Acquisition financing

•Warehousing facilities

•Syndicated loans

•Partial credit guarantees

•Securitization

•Bond underwriting

•Global Trade Finance Program

•Convertible debt

•Subordinated debt

•Other Tier II instruments

Private Equity

•Common shares

•Preferred shares

Advisory Services

•Corporate governance

•Risk management

•Small and medium business banking

•Housing finance

•Energy efficiency finance

Sustainable Finance

•Carbon finance

•Renewable energy

•Supply chain financing

•Energy efficiency

•Cleaner production

IFC’s Products and Services

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South Asia, 10%

Middle East & North Africa, 10%

Sub-Saharan Africa, 11%

East Asia & the Pacific, 14%

Latin America & the Caribbean, 27%

Europe & Central Asia, 28%

Global, 1%

IFC has been successfully assessing and assuming risks in emerging markets for the last 50 years…

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Financial Markets, 37%

Agribusiness, 7%

Private Equity & Investment Funds, 4%

IT & Communications, 4%

Health & Education, 2%

Subnational Finance, 1%

Infrastructure, 15%

Oil, Gas, Mining & Chemicals, 11%

Global Manufacturing & Services, 21%

…spread across several sectors

3 Scenarios for ThailandGHG Emissions in 2005

(Million Tons of CO2 Equivalent)GDP Carbon Efficiency

(Tons of CO2 /$1000 GDP)

Per Capita Carbon Capacity

(Tons of CO2 / Person)

Thailand 226.67 1.36 3.34

World 27,136 0.50 4.22

2005 Emissions In million tons of CO2 equivalent greenhouse gases emissions

Unconstrained Growth

2030 Frozen Tech Scenario

Technologies and their penetration frozen at 2005 level

Policy Scenario Reduction

2030 Policy Scenario

Assume existing energy, energy efficiency and transportation policy

Abatement Potential

Increase renewable energy in total energy mix, improve energy efficiency in industrial, commercial and residential sectors, mass transportation and fuel efficiency

2030 Abatement Scenario

Full technical abatement potential realized, with support of CTF and other mechnisms

227M

11,741M

11,968M Tons of CO2

5,250M

300M

6,200M

6,500M

Sectors and Barriers

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Improving Access-to-Finance By Mobilizing Local Financing

Marketing Partners Utility companies

Equipment vendors

ESCOs / EMCs

NGOs

Government

Focused private equity & other FIs

Carbon funds

International supply chains

FI Partners Commercial Banks

Special investment entities

Private equity funds with climate change focus

Leasing companies

Other financial institutions

IFC Provide FI partners risk sharing facilities &

line of credit to encourage lending to projects of energy efficiency, renewable energy and cleaner production

Use on–the-ground and global advisory teams to support banks’ internal capacity building

Facilitate the establishment of cooperation between banks and marketing partners

Provide policy advices to local government to create better legal and regulatory environment

Promote lessons-learned sharing among FIs globally

Borrowers

ESCOs

End-users

Project developers

Investment

FI financingDeal pipeline

Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project N

Project implementation

Marketing partnership

Sample Financing Mobilization Schemes

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Seeking Partners…

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Calvin Q. XU

Senior Industrial SpecialistEnergy & Climate ChangeIFC East Asia & Pacific Department

14th Floor, One Pacific Place88 Queensway, Hong KongTel: +852-2508-8196 | Fax: +852-2509-9363cx1@ifc.org

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Jasper B. Virola

Investment OfficerInfrastructureIFC East Asia & Pacific

11th Floor, Tower OneAyala Triangle, Ayala AvenueMakati City, 1226 PhilippinesE-mail: jvirola@ifc.org