Europe meets the Americas

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• Europe meets the Americas
• Aruba, May 2013

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Leading regional development bank

• Largest source of multilateral financing for
  Latin America and the Caribbean since 1959
• 26 Country offices in the region 48 member
  countries worldwide
• AAA/Aaa ratings by Standard Poors and Moodys

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Private Sector with Purpose

• We seek to create opportunities for current and
  future generations in Latin America and the
  Caribbean through sustainable private sector
  investments.
• Through the Structured and Corporate Finance
  Department (SCF), IDB partners with private
  sector stakeholders to achieve breakthrough
  financial results with high development impact.

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Structured and Corporate Finance (SCF)

• Our Clients
• Corporations, private utilities and
  infrastructure operators, financial institutions,
  and state-owned entities without a sovereign
  guarantee
• Our Products and Services
• Loans (syndications and parallel)
• Project Finance and Private Public Partnerships
• Guarantees
• Technical cooperation
• Climate change concessional finance
• Clean energy audits
• Shared value appraisals

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Our expertise
Infrastructure
Industries and Services
Syndications
Financial Markets
Social Infrastructure
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Overarching Priorities

• Energy

• Water and Sanitation

• Transportation

• Renewable generation (Wind, Solar, Geothermal)
• Service improvements to energy transmission and
  distribution
• Focus on low access and supply areas

• Toll Roads
• Airports
• Ports
• Increase capacity access
• International safety standards

• Water supply
• Water and waste treatment
• Energy efficiency

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Largest wind project in Latin America

• Project Overview
• La Mareña is a 396 MW wind farm located in
  Oaxaca, Mexico one of the worlds best regions
  for wind energy
• IDB approved a loan of up to 1.1 billion Mexican
  pesos (US72 million) to finance its construction
• First IDB transaction to use innovative
  back-to-back matching loan from NAFIN to IDB, to
  provide the loan in Mexican pesos
• Development Impact
• Approximately 900,000 tons of CO2 emissions are
  expected to be abated annually
• La Mareña will contribute to a 76 increase in
  installed wind power capacity in Mexico

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Overarching Priorities

• Education

• Healthcare

• Private entities of elementary andhigh school,
  university and post graduate studies
• Educational funding programs sponsored by
  government orprivate entities, including
  non-profit

• Private providers of health services, including
  health centers, hospitals, clinics
• Insurance companies, leasing companies and
  equipment investment funds
• Companies that produce equipment, medical supply
  companies and laboratories

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Expanding access to higher education

• Project Overview
• Universidad Politécnica Salesiana (UPS) is a
  socially inclusive university based in Ecuador
• With over 18,000 students predominantly mid- to
  low-income UPS also offers a dedicated program
  for indigenous communities
• UPS approached IDB for help in expanding its
  campus and financial aid offerings
• Development Impact
• Through IDBs 15 million loan, UPS will provide
  affordable high quality education to 5,000
  additional lower income students in Quito,
  Guayaquil and Cuenca
• Proceeds of the loan will go toward setting up
  new 2 million student loan fund for lower income
  students

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• We work to changelives and create new
  possibilities.

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Overarching Priorities

• TransformationalInvestments

• Sustainable Natural Resources

• Food Security

• Industrial energy efficiency
• Clean fuel alternatives
• Logistics and sustainable cement
• Job creation through Industrial competitiveness

• Integrated agribusiness
• Agricultural inputs
• Small-farmer productivity

• Sustainable mining forest products
• Sustainable tourism

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Promoting renewable forestry practices

• Project Overview
• IDB is supporting Montes del Plata Group through
  a 200 million loan to build and operate a
  eucalyptus pulp plant and bio-mass electricity
  plant.
• The largest private sector investment in Uruguay
  history (approx. 2 billion), it follows IDBs
  strict environmental and social standards for
  renewable forestry
• Development Impact
• Create 5,800 and 5,350 jobs during construction
  and operations, respectively
• Produce 160 MW of renewable energy (approx. 70 MW
  exceed internal needs and will be supplied to the
  national grid and other industrial entities)
• Contribute 750 million annually to GDP and
  generate700 million in exports per year

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Overarching Priorities

• Valuing the Environment

• Promoting Sustainable FIs

• Financing Social Inclusion

• Fostering Trade and Integration

• Underserved markets
• SMEs
• Affordable housing
• Local capital market
• Microfinance

• Reducing the footprint of Financial Institutions
  (Fis)
• Mitigating climate change while generating
  financial returns

• Loans, guarantees and training to mitigate risk
  and increase liquidity
• Expand trade financing for SMEs

• Financing technical assistance
• greening operations and buildings
• financial literacy
• corporate governance
• Funds for Infrastructure

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Supporting clean energy through banks

• Project Overview
• IDB created a facility for up to 90 million to
  support environmentally friendly projects through
  banks and other financial intermediaries
• Using resources from the facility through a
  shared guarantee mechanism, the first of its kind
  in the region, Bancolombia will finance projects
  in energy efficiency, clean and renewable energy
  production
• Development Impact
• With this facility, IDB seeks to boost its
  commitment to climate change mitigation through
  banks in the region

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• Were inspired by what surrounds us

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Mobilizing private capital

• We act as catalyst, leveraging our own
  investments (A loans) and mobilizing other
  sources for co-financing through our B loans and
  parallel loans
• B lenders include commercial banks, institutions
  and impact investors
• Other financing partners include development
  finance institutions and private equity investors

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B Loan Program
Loan Agreement
Participation Agreement
Borrower
Participants
B Loan
A B Loans

• One loan agreement IDB is lender of record and
  administers entire loan
• IDB fully shares project risk with participants
• Participation structure allows participants to
  benefit from IDBs privileges and immunities

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• Our deal is with the future.

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