international finance corporation (ifc)

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IFC INTERNATIONAL FINANCE CORPORATION 1

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Page 1: International Finance Corporation (IFC)

IFCINTERNATIONAL FINANCE CORPORATION

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Page 2: International Finance Corporation (IFC)

INTRODUCTIONSix decades of creating opportunity – Created on 20 July 1956.

IFC is the largest organization of its kind.

184 countries are members of IFC.

Holds $48.8 billion portfolio touching almost every major industry.

Reach millions of people in over 100 countries.2

Page 3: International Finance Corporation (IFC)

The IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States.

The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries(MEMBER).

Since 2009, Its goals are to increase 1.sustainable agriculture opportunities, 2.improve health and education, 3.increase access to financing for microfinance and business clients, 4.advance infrastructure, 5.help small businesses grow revenues, 6.and invest in climate health.

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Page 4: International Finance Corporation (IFC)

WORLD BANK GROUP

IBRD: International Bank for Reconstruction and Development IFC : International Finance Corporation IDA : International Development Association MIGA : Multilateral Investment Gurantee Agency ICSID : International Centre for Settlement of Investment disputes

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PLACES WHERE IFC WORKS IFC OPERATES IN MORE THAN 100 COUNTRIES.

East Asia & Pacific Europe & Central Asia Latin America & Caribbean Middle East & North Africa South Asia Sub Saharan Africa Western Europe

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PLACES WHERE IFC WORKS

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SERVICES1. Loans2. Equity3. Trade and Supply Chain Finance4. Syndications5. Treasury Client Solutions6. Venture Capital7. Advisory8. Asset Management

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Page 8: International Finance Corporation (IFC)

EXPERTISE 1. Agribusiness and Forestry2. Financial Institutions3. Funds4. Health and Education5. Infrastructure6. Manufacturing7. Oil, Gas, and Mining8. Public-Private Partnerships9. Telecommunications, Media and Technology10. Tourism, Retail and Property

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PURPOSE OF FORMING IFCThe Purpose of forming IFC is

1.create opportunities for people to escape poverty and achieve better living standards by mobilizing financial resources for private enterprise, 2.promoting accessible and competitive markets, 3.supporting businesses and other private sector entities, 4.and creating jobs and delivering necessary services to those who are poverty-stricken or otherwise vulnerable.

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Page 10: International Finance Corporation (IFC)

OBJECTIVES1. To invest in productive private enterprises, in

association with private investors, and without government guarantee of repayment, in cases where sufficient private capital is not available on reasonable terms.

2. To serve as a clearing house to bring together investment opportunities, private capital (both foreign and domestic) and experienced management.

3. To help in stimulating the productive investment of private capital, both domestic and foreign.

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GOVERNANCE The IFC is owned and governed by its member countries (184), but has its own executive leadership and staff that conduct its normal business operations. It is a corporation whose shareholders are member governments that provide paid-in capital and which have the right to vote on its matters. The IFC is governed by its Board of Governors which meets annually and consists of one governor per member country (most often the country's finance minister or treasury secretary).

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Page 12: International Finance Corporation (IFC)

Each member typically appoints one governor and also one alternate. Although corporate authority rests with the Board of Governors, the governors delegate most of their corporate powers and their authority over daily matters such as lending and business operations to the Board of Directors. The IFC's Board of Directors consists of 25 executive directors who meet regularly and work at the IFC's headquarters, and is chaired by the President of the World Bank Group. The executive directors collectively represent all 184 member countries. When the IFC's Board of Directors votes on matters brought before it, each executive director's vote is weighted according to the total share capital of the member countries represented by that director.

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Page 13: International Finance Corporation (IFC)

The IFC's Executive Vice President and CEO oversees its overall direction and daily operations.

As of October 2012, Jin-Yong Cai serves as the Executive Vice President and CEO of the IFC.

President of the World Bank Group Jim Yong Kim appointed Jin-Yong Cai to serve as the new Executive Vice President and CEO of the IFC.

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Page 14: International Finance Corporation (IFC)

INDIA’S ROLE IN IFC1. India is one of the founder members of IBRD, IDA

and IFC. 2. First investment of IFC in India took place in 1959

with US$ 1.5 million. India became a member of MIGA in January 1994.

3. India has an Executive Director, in the Board of Directors of IBRD / IFC / IDA/ MIGA. The Executive Director from India represents a constituency comprising of four countries: India, Bangladesh, Bhutan and Sri Lanka. Mr. M. N. Prasad represents India in the Board of Directors w. e. f. 30th September 2011. Mr. Kazi M. Aminul Islam from Bangladesh is currently the Alternate Executive Director for this constituency.

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Page 15: International Finance Corporation (IFC)

FUND MOBILIZATION IFC mobilizes its funds through either Central Banks (or other Banks which they consider eligible) present in within the country or in another country.

Examples of such banks,

AKA Export Finance Bank, DHB Bank (Nederland) N.V., ING Bank N.V., Intesa Sanpaolo S.p.A., RosEvroBank JSCB, and Sumitomo Mitsui Banking Corporation

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INVESTMENTS & PROJECTS

1. The corporation is assessed by an independent evaluator each year. In 2011, its evaluation report recognized that its investments performed well and reduced poverty, but recommended that the corporation define poverty and expected outcomes more explicitly to better-understand its effectiveness and approach poverty reduction more strategically.

2. The corporation's total investments in 2011 amounted to $18.66 billion.

3. It committed $820 million to advisory services for 642 projects in 2011, and held $24.5 billion worth of liquid assets.

4. The IFC is in good financial standing and received the highest ratings from two independent credit rating agencies in 2010 and 2011.

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LIST OF RECENT PROJECTS

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S. NO. COMPANY DATE COUNTRY

1 Canvest Environmental Protection Group Company Limited

JANUARY 20, 2016 CHINA

2 UNITED BANK FOR AFRICA PLC

JANUARY 20, 2016 NIGERIA

3 ACL ASEAN Tower Holdco Limited

JANUARY 19, 2016 VIETNAM

4 FOTOWATIO RENEWABLE

VENTURES BV

JANUARY 14, 2016 JORDON

5 OLAM INTERNATIONAL

LIMITED

JANUARY 6, 2016 SINGAPORE, INDIA, NIGERIA

6 NOBLE AGRI DECEMBER 29, 2016 CHINA

Page 18: International Finance Corporation (IFC)

RECENT PROJECTSCompany name: OLAM INTERNATIONAL LTD. Date: January 6, 2016

IFC is considering an up to US$100 million loan facility and up to US$75 million mobilization to Olam International Limited (“Olam” or the “Borrower”), a global agri-business group headquartered in Singapore and listed on the Singapore Stock Exchange (SGX: Olam). The proceeds of the loan provided by IFC shall be used for financing permanent working capital and capital expenditure requirements in respect of Approved Projects. Approved Projects are projects of Olam’s subsidiaries that are pre-agreed between Olam and IFC in the Loan Agreement. Currently, approved projects are expected to consist of the following:

India – Hemarus Industries Limited - Sugar and Cogeneration Facility India – SVI Spices Processing Facility Nigeria – Crown Flour Mill Factory Nigeria – Greenfield Sesame Hulling Unit

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Page 19: International Finance Corporation (IFC)

Company name: NOBLE AGRI LTD. Date: December 29, 2015

Noble Agri, recently spun out of Noble Group, is a global agri commodities company, involved in the origination, processing and distribution of grains and oilseeds, sugar and ethanol, and other soft commodities (coffee and cotton). It operates through 60 major offices around the world, including Brazil, China, Argentina, Eastern Europe, India and South Africa and has over 13,000 employees. IFC is considering an investment to participate its pro-rata share to buy out the 49% minority stake of Noble Group in Noble Agri, together with COFCO Corporation (“COFCO”), the leading agribusiness group in China, and an international consortium of investors (IC, including IFC, HOPU Fund and other investors). This is a follow-on investment (project no. 34738) in which COFCO and the IC bought a 51% shareholding in Noble Agri through a subsidiary and created a joint-venture trading platform to capitalize on potential synergies across the supply chain with COFCO. IFC’s investment transferred into an indirect ownership of 4.6 percent in Noble Agri.

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Page 20: International Finance Corporation (IFC)

RECENT NEWS (IFC PRESS RELEASE) Bhopal, India, January 16, 2016 IFC, a member of the World Bank Group, is working with the Indian government to assist in meeting its large-scale solar energy generation goals. IFC is supporting the government of Madhya Pradesh to set up the 750-MW Rewa ultra-mega solar power project. This will be the largest single-site solar power project in the world.Kyiv, Ukraine, October 7, 2015 IFC and Raiffeisen Bank Aval are launching a new risk-sharing facility that will enable farmers to buy crop protection products on credit from industry leader Bayer, with the purchases to be paid in full once the year’s crops are sold. It will cover up to $60 million of seasonal payment obligations to Bayer, of which IFC will guarantee up to half the value.

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GLOBAL GDP GROWTH

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PERFORMANCE LEVEL OF IFC

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YEAR COMMITMENTSIn Million USD

DISTRIBUTEDIn Million USD

PERFORMANCE LEVEL

2010 12664 6793 53.60%

2011 12186 6715 55.10%

2012 15462 7981 51.61%

2013 18349 9971 54.34%

2014 17261 9904 57.37%

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PERFORMANCE LEVEL OF IFC

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CONCLUSION The graph in previous slide tells us that the IFC is showing increasing trend in its performance but still there is a lot to acheive for IFC.

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ANY DOUBTS OR QUESTIONSYOU ARE MOST WELCOME

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