IFC 2009 Creating Opportunity

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Our Vision

That people should have the opportunity to escape poverty and improve their lives

We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments.

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IFC’s Structure

• Owned by 181 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) and MIGA

• Global: Headquartered in Washington, D.C.

• Local: More than 100 offices worldwide in 81 countries

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 focused on private sector development, widely seen as an essential source of job creation, growth, and poverty reduction

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Bringing Solutions to Clients

• IFC is responding to rising demand for private sector financing and expertise

• IFC brings solutions to clients through investments and advisory services

• IFC helps fill unmet needs by directing capital and knowledge to areas not yet benefiting from growth in emerging markets

• To be close to clients, more than half of IFC’s 3,325 staff work in field offices

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IFC’s Global Reach100+ country and regional advisory services offices worldwide

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Strategic Priorities

• Strengthening the focus on frontier markets – IDA countries, poorer regions of middle-income countries and less developed industry sectors with brand potential

• Building long-term relationships with emerging market players

• Addressing climate change and promoting environmental and social sustainability

• Promoting private sector growth in infrastructure, health, and education

• Developing local financial markets

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IFC Business SolutionsInvestment Services

• Loans and intermediary services

• Equity and quasi-equity

• Syndications

• Structured and securitized products

• Risk management products

• Trade finance

• Subnational finance

• Treasury operations

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IFC Business SolutionsAdvisory Services

Five main business lines

• Business enabling environment

• Access to finance

• Corporate advice

• Environmental and social sustainability

• Infrastructure

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IFC Offers ClientsA Unique Role

• Emphasis on development impact World Bank affiliation

• Market discipline

• Risk-taking and risk management

• Preferred creditor status

• Political risk cover

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The Reach of IFC’s Projects

Last year our reach included:

• 5.5 million hospital patients

• 675,000 students

• 11.3 million electricity customers

• 18.1 million water customers

• 7 million microfinance loans

• 50 million new phone connections

IFC’s activities help raise living standards for people throughout the developing world

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Fiscal Year 2008 Highlights

• Investments: 372 new projects in 85 countries

• Advisory services: 299 new projects in 75 countries

• $16.2 billion in financing: $11.4 billion for IFC’s own account,$4.8 billion mobilized

• IDA countries accounted for 45 percent of IFC investments. Overall:

$1.4 billion invested in Sub-Saharan Africa

$1.4 billion invested in the Middle East and North Africa

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IFC’s Growing Role in IDA

• IFC’s strength, dynamism, and growth strategy encourage World Bank Group collaboration

• IFC can add more to the development goals of the group, particularly in IDA countries

• IFC has designated $1.75 billion for IDA’s current funding cycle, from net income over the next four years, equaling IBRD contribution

• A winning combination for the poor: IDA, IFC, and IBRD

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FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

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Net Income and Net Worth

Net Income ($ millions)

Net Worth ($ billions)

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FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

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IFC's own account Mobilization* Loan Participations

IFC Financing

* “Mobilization” for 2006 and 2007 includes structured finance, loan participations, and parallel loans.

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Investments by Region, FY08

Sub-Saharan Africa 12%

Commitments for IFC’s Account: $11.4 Billion

Europe and Central Asia 24%

Latin America and Caribbean 26%

Middle East and North Africa 13%

Global <1%

East Asia and Pacific 14%

South Asia 11%

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Investments by Industry, FY08

Global FinancialMarkets 40%

Commitments for IFC’s Account: $11.4 Billion

Global Information and Communication Technologies 3%

Global Manufacturing and Services 12%

Infrastructure 21%

SubnationalFinance <1%

Health and Education 3%

Oil, Gas, Miningand Chemicals 10%

Private Equity and Investment Funds 3% Agribusiness

7%

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Advisory Services by Region, FY08

Sub-SaharanAfrica 28%

Total Spending: $269 Million

East Asia and Pacific 13%South Asia

7%

Latin Americaand Caribbean 8%

Global 17%

Europe andCentral Asia 20%

Middle East and North Africa 7%

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Advisory Services by Business Line, FY08

Access toFinance 25%

Total Spending: $269 Million

Corporate Advice 27%

Environmentand Social Sustainability 12%

Business Enabling Environment 23%

Infrastructure 13%

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Doing Our Part

IFC contributes to the World Bank Group’s six broad priorities for an inclusive and sustainable globalization

• The poorest countries: helping overcome poverty and spurring sustainable growth, especially in Africa

• Middle-income countries: building a competitive menu of development solutions

• The Arab world: supporting those who are advancing development and opportunity

• Fragility and conflict: focus on countries emerging from conflict or seeking to avoid breakdown of the state

• Global public goods: climate change, HIV/AIDS, malaria and others

• Knowledge and learning: building the World Bank Group’s role as a brain trust of applied development expertise