Title: Subtitle
1Title of Presentation
Date
Client Logo
2Presentation to Client
Agenda
- IFC at a Glance
- IFCs Global Reach
- IFC in Europe, Central Asia, and North Africa
- IFCs Products and Services
- Summary of IFCs Proposed Transaction Terms
- Examples of Successful Relationships
- Next Steps
3IFC at a Glance
4IFCs Global Reach
IFC has more than 100 country and regional
advisory services offices.
5IFC in Europe, Central Asia, and North Africa
Presentation Title 5
6IFC in Eastern Europe and Russia
Presentation Title 6
7IFC in Latin America
Caribbean Sea
Presentation Title 7
8IFC in Asia and the Pacific
Presentation Title 8
9IFC in Sub-Saharan Africa
Presentation Title 9
10IFC Headquarters and Country Offices
- Headquarters2121 Pennsylvania Avenue,
N.W.Washington, D.C. 20433 USATel (202)
473-3800Fax (202) 974-4384 - Western EuropeIFC Paris66, avenue dIena75116
Paris, FranceTel (33-1) 4069-3060Fax (33-1)
4720-7771 - Sub-Saharan Africa14 Fricker RoadIllovo
2196JohannesburgSouth AfricaTel (27-11)
731-3000Fax (27-11) 325-0582
Southern Europe and Central AsiaBuyukdere Cad.
No 185Kanyon Ofis Blogu Kat 10,Levent,
34394Istanbul, TurkeyTel (90-212)
385-3000Fax (90-212) 385-3001 Middle East and
North AfricaNile City Towers2005 Corniche El
Nil, North Tower,24th FloorBoulac, Cairo,
EgyptTel (20-2) 2461-9161/65Fax (20-2)
2461-9130/60 Central and Eastern Europe36, Bldg.
1 Bolshaya Molchanovka Street,3rd FloorMoscow
121069, Russian FederationTel (7-495)
411-7555Fax (7-495) 411-7556
East Asia and the PacificSuite 7903, Two
International Finance Centre8 Finance Street,
CentralHong KongTel (852) 2509 8100Fax (852)
2509 9363 South Asia50 M, Shanti Path, Gate
No. 3Niti Marg, ChanakyapuriNew Delhi 1 10
021IndiaTel (91-11) 4111-1000Fax (91-11)
4111-1001/02 Latin America and the CaribbeanRua
Redentor, 14-IpanemaRio de Janeiro
22421-030BrazilTel (5521) 2525-5850Fax
(5521) 2525-5879
11Contact Information
- IFC Paris66, avenue dIena75116 Paris, France
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Wolfgang BertelsmeierSpecial Representative
EuropeTelephone (331) 40 69 30 60E-mail
Wbertelsmeier_at_ifc.org
Paula AlayoInvestment OfficerTelephone (331)
40 69 33 64E-mail palayo_at_ifc.org
Jean-Marie MasseHead of Business
Development,Financial InstitutionsTelephone
(331) 40 69 33 69E-mail Jmasse_at_ifc.org
12IFCs Products and Services
Senior Debt
Structured Finance
Mezzanine Finance
Private Equity
- Partial credit guarantees
- Securitization
- Bond underwriting
- Convertible debt
- Subordinated debt
- Other Tier II instruments
- On-lending
- Liquidity management
- Acquisition financing
- Warehousing facilities
- Syndicated loans
- Common shares
- Preferred shares
Global Trade Finance Program
Advisory Services
Sustainable Finance
- 1 billion program
- Guarantees to issuing banks
- 46 issuing banks in 24 countries
- 92 confirming banks in 62 countries
- 579 million of issued guarantees in first 12
months
- Corporate governance
- Risk management
- Small and medium business banking
- Housing finance
- Energy efficiency finance
- Carbon finance
- Renewable energy
- Supply chain financing
- Corporate governance financing
13Summary of IFCs Proposed Transaction
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14Disclaimer This summary has been prepared to
facilitate the discussion of certain basic terms
and conditions of IFCs proposal. All figures,
terms, and conditions are subject to change. Only
the legal documents as finally executed will
contain binding terms and conditions. The summary
of indicative terms does not constitute a
contract or an offer or a commitment by IFC.
IFCs decision to invest in the project is
contigent on approval by IFCs management and
Board of Directors and execution of final
documentation in form and substance satisfactory
to IFC.
15Successful Relationship Example 1Russian
Standard Bank
- November 2001 Partial credit guarantee on 500
million ruble bond issue - December 2002 Partial credit guarantee on 300
million ruble veksel issue - February 2003 Equity investment of 10 million
for 6.42 - December 2003 Ruble-linked loan of 40 million
- December 2004 Ruble-linked loan of 20 million
- December 2005 100 million syndicated A/B loan
- April 2006 Credit enhancement of 300 million
securitization of consumer loans - November 2006 Credit enhancement of 220 million
securitization of car loans - November 2006 Credit enhancement of 220 million
securitization of car loans
During the time of IFCs involvement, RSBs
assets increased 78 times, and capital markets
funding increased from 0 in mid-2001 to 3.2
billionin mid-2006.
16Next Steps
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17Structured Finance
IFC has developed products that provide clients
with forms of cost-effective financing not
otherwise available to them. Products include
credit enhancement structures for bonds and loans
through partial credit guarantees, risk-sharing
facilities, and participations in securitizations
- Partial credit guaranteees allow IFC to use its
triple-A credit rating to help clients diversify
their funding sources, extend maturities, and
obtain financing in their currency of choice,
including local currency. - Risk-sharing facilities allow clients to transfer
credit risk to IFC from their own portfolio or
from a new portfolio they originate. The assests
typically remain on the clients balance sheet,
and the risk transfer comes from a partial
guarantee provided by IFC. - Securitizations help IFCs clients obtain
financing that would otherwise be unavailable or
unsuitable to them because of perceived credit
risk. This form of financing involves the pooling
and actual sale of financial assets and issuance
of securities that are repaid from the cash flows
generated. Securitizations are commonly done for
mortgages, credit cards, auto and consumer loans,
corporate debt, and other assets with relatively
predictable cash flows.
18Local Currency Financing
- To avoid risks from exchange-rate volatility,
companies with revenues in local currency should
generally borrow in the same currency. IFC loans
are provided in major currencies and in an
increasing number of emerging market currencies. - IFC can provide direct local currency financing
through direct loans or swaps in over 30
countries. - IFC provides local currency debt financing in
three ways - Loans from IFC denominated in local currency
- Risk management swaps that allow clients to hedge
foreign currency-denominated liabilities back
into local currency - Credit enhancement structures that allow clients
to borrow in local currency from other sources
19Equity and Quasi-Equity
IFC takes equity stakes in private sector
companies, including financial institutions and
investment funds in developing and transition
countries. IFC is a long-term investor. When the
time comes to sell, IFC prefers to exit by
selling its shares through the domestic stock
market in a way that will benefit the enterprise,
often in a public offering.
- IFC operates on a commercial basis. It invests
exclusively in for-profit projects and charges
market rates for its products and services. - To ensure the participation of other private
investors, IFC generally subscribes to between 5
percent and 15 percent of the equity in a
project. It is never the largest shareholder and
will normally not hold more than a 35 percent
stake. - Through a long-term relationship as a
shareholder, IFC brings its market and sector
knowledge to the client and works with government
entities to maximize development impact and the
clients corporate value. - IFCs presence as a shareholder contributes to
raising the clients international reputation and
reassures the stakeholders. - IFC risks its own capital and does not accept
government guarantees. However, to meet national
ownership requirements, IFC shareholdings can be
treated as domestic capital or local shares.
20IFCs Project Cycle
Internal Approvals and Commitment
Early Review
Due Diligence
Negotiation
Disclosure
Disbursement
- Client needs determined
- Contribution of project to development assessed
- Project screened for potential problems
- Site visit
- Mandate letter
- Assessment of business potential, risks,
opportunities - Evaluation of financial and economic soundness
- Compliance with IFCs social and environmental
performance standards reviewed
- Conditions of disbursement and covenants,
performance and monitoring requirements, and
action plan agreed
- Loan disbursed on agreed schedule, according to
negotiated terms and conditions
- Environmental and social information disclosed
- Opportunity for public comment
- Board consideration
- Board approval
- Legal review
- Signing of legal documents
21Representative Transactions
SubordinatedTier II Loans
Deal Type or Region
Deal Type or Region
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22Client Opportunity/ChallengeIFC
Proposal/Solution
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