Transcript IFC ASSET MANAGEMENT COMPANY

EXPERIENCE MATTERS
Six Decades of Experience in Emerging Markets
September 22, 2016
PROVIDING DEVELOPMENT SOLUTIONS …
Customized To Meet Client Needs
 A member of the World Bank Group
 Provides investment, advice,
resource mobilization
 AAA credit rating; owned by
184 countries
 Present in nearly 100 countries
IFC is the largest global development institution focused exclusively
on the private sector in developing countries.
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IFC: A MEMBER OF THE WORLD BANK GROUP
IBRD
IDA
IFC
MIGA
ICSID
International
Bank for
Reconstruction
and
Development
International
Development
Association
International
Finance
Corporation
Multilateral
Investment
and
Guarantee
Agency
International
Centre for
Settlement of
Investment
Disputes
Loans to
middleincome and
credit-worthy
low-income
country
governments
Interest-free
loans and
grants to
governments
of poorest
countries
Solutions
in
private
sector
development
Guarantees
of foreign
direct
investment’s
noncommercial
risks
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Conciliation
and
arbitration of
investment
disputes
IFC’S HISTORY
Six Decades of Experience
The First Institution of Its Kind
1956: Founded on a bold idea – that the private sector
is essential to development
The Largest Institution of Its Kind
2016: More than $245 billion in cumulative financing
delivered to businesses in emerging markets
Experience Matters
Shaping the agenda, providing solutions, sharing knowledge
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IFC’S HISTORY
A global institution, now owned by 184 member countries
1956
1980
IFC Launch
PSD added to
the global
economic
agenda
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IFC coins
term
“emerging
markets”
19902000s
IFC scales up
Investments
and builds
global
advisory
footprint
Today
The global
leader in
private
sector
development
THE WORLD BANK GROUP’S TWIN GOALS
Ending
Extreme
Poverty
Increased incomes
for bottom 40% of
every country
From 18%
to 3% of world
population by
2030
Boosting
Shared
Prosperity
Private sector investment is ESSENTIAL
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WHAT CLIENTS VALUE ABOUT IFC
RESULTS OF IFC Client Survey
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Long-Term
Partner Role
Stamp of
Approval
Financing
Not Readily
Available
Elsewhere
Worldwide
Presence
Global
Expertise and
Knowledge
Affiliation
with the
World Bank
Group
Ability to
Mobilize
Additional
Funds
Pricing
WHAT WE DO
Integrated Solutions, Increased Impact
3 Focus
Industries:
MANUFACTURING
AGRIBUSINESS &
SERVICES
FINANCIAL INSTITUTIONS
INFRASTRUCTURE AND
NATURAL RESOURCES
INVESTMENT
3 Product
Areas:
(Loans, Equity, Trade Finance, Syndications,
Derivative and Structured Finance, Blended Finance)
ADVICE
(Integrated with IFC Investment)
IFC ASSET MANAGEMENT COMPANY
(Mobilizing and Managing Capital for Investment)
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INVESTMENT
Loans
 Project and corporate financing
 On-lending through intermediary institutions
Equity
 Direct equity investments
 Private equity funds
Trade Finance
And Supply
Chain
Syndications
Derivative and
Structured
Finance
Blended Finance
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Guarantee of trade-related payment obligations of
approved financial institutions
 Capital mobilization to serve developmental needs
 Over 60 co-financiers: banks, funds, DFIs
Derivative products to hedge interest rate, currency, or
commodity-price exposures of IFC clients
Augmenting IFC resources with donor funds
ACTIVE ADVISORY PORTFOLIO BY REGION, END OF FY15
BUSINESS
LINES
Financial Sector*
425
Investment Climate*
151
Public-Private Partnerships
102
Agribusiness
102
Energy & Resource Efficiency
102
Cross-Industry
102
*Delivered through integrated WBG global practices
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CLIENT
ENGAGEMENTS
IFC ASSET MANAGEMENT COMPANY
AMC FUNDS

IFC Capitalization Fund

IFC African, Latin American

Africa Capitalization Fund

IFC Russian Bank Capitalization Fund
$8.5 BILLION

IFC Catalyst Fund
in assets under
management in FY15

IFC Global Infrastructure Fund

China-Mexico Fund

IFC Financial Institutions Growth Fund

IFC Global Emerging Markets Fund Of Funds
IFC Asset
Management
Company had about
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IFC’S GLOBAL REACH
108 regional offices present in 100
countries worldwide, AAA credit rating
3,358 staff (59% are based outside
Washington DC)
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FISCAL YEAR 2016
HIGHLIGHTS
$18.8 billion in long-term investment:


$11.1 billion for IFC’s own account
$7.7 billion mobilized
$52 billion committed portfolio
$5.4 billion invested in IDA Countries
Advice: 62% of program in IDA
countries, 21% in fragile and conflictaffected areas
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FY16 LONG-TERM INVESTMENT COMMITMENTS BY INDUSTRY
COMMITMENTS FOR IFC’S ACCOUNT: $11.1 BILLION
Financial Markets
Infrastructure
4.9%
7.4%
Agribusiness & Forestry
Consumer & Social
Services
4.8%
40.2%
7.4%
Oil, Gas, & Mining
9.4%
Funds
9.6%
Manufacturing
Telecommunications &
Information Technology
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16.3%
FY16 LONG-TERM INVESTMENT COMMITMENTS BY REGION
COMMITMENTS FOR IFC’S ACCOUNT: $11.1 BILLION
Latin America and the Caribbean
8.6%
East Asia and the Pacific
1.9%
24.2%
Sub-Saharan Africa
12.9%
Europe and Central Asia
South Asia
19.2%
20.8%
Middle East and North Africa
12.6%
Global
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STANDARD SETTING
Our Performance Standards
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1
Assessment and management of environmental and social risks and
impacts
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Labor and working conditions
3
Resource efficiency and pollution prevention
4
Community, health, safety and security
5
Land acquisition and involuntary resettlement
6
Biodiversity conservation and sustainable management of living natural
resources
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Indigenous peoples
8
Cultural heritage
IFC in Europe, Central Asia, Middle East
and North Africa (EMENA)
Barents
Sea
IFC Hub Offices
IFC Operation Center
IFC Offices
North
Sea
Moscow
Minsk
London
Brussels
Frankfurt
Paris
ATLANTIC
OCEAN
Warsaw
Kiev
Vienna
Aral
Sea
Belgrade
Bucharest
Pristina Black Sea
Tbilisi
Sofia
Tirana
Istanbul
Yerevan Baku
Zagreb
Sarajevo
Almaty
Bishkek
Tashkent
Dushanbe
Tunis
Rabat
Mediterranean
Sea
Beirut
Jerusalem
Cairo
Baghdad
Amman
Dubai
Sana’a
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Kabul
Islamabad
Karachi
FY15 IFC EMENA
ECA:
•
IFC ECA invested $2.4 billion, including $878 billion in funds mobilized from our partners.
•
IFC’s work in ECA helped create new, sustainable energy resources, expand regional food
production and trade, finance infrastructure projects and advise governments on public-private
partnerships (PPPs), adoption of new legislations, cut red tape and combat climate change.
MENA:
•
IFC MENA committed a total of $1.3 billion in long-term finance packages across MENA and
delivered a wide-ranging advisory program to drive growth.
•
IFC’s work in MENA helped grow smaller businesses, create new, sustainable energy sources,
develop vital infrastructure projects, cut red tape, combat climate change, champion intraregional investments, and support fragile and conflict-affected states.
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Common Themes in the Western Balkans
• The crisis which started in 2008 has never ended. States are bloated and
over indebted, for the most part failing to make the tough structural
reforms needed to spur growth, including privatizations. Domestic industry
uncompetitive. Unemployment 18%.
• Financial sector has high levels of NPLs, averaging between 15 to 20%.
Resolution requires better legal framework. Several countries have Swiss
Franc mortgages and systemically important presence of Greek banks.
• Migration: a) part of region was a major conduit of refugees headed north.
Boarders now closed, leaving thousands stranded. b) W. Balkans also a
source of out migration because of low economic prospects.
• Every country has EU membership as a clear policy target. Renewed
interest in the region by the EU with the Berlin process. Relative political
stability in the region (Serbia and Kosovo talking to each other).
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SERBIA
Serbia became a shareholder and member of IFC in 2001. Since then,
IFC's long term finance investment in Serbia totaled $2.13 billion, including
$794.7 million mobilized from our partners, in 52 projects across a variety
of sectors. In addition, IFC has supported trade flows of $175.4 million
through its trade finance program.
IFC Committed Portfolio in Serbia by Sector
as of June 30, 2016 (285$, m)
1.8, 0%
Our committed investment portfolio in Serbia as of 30 June 2016 is $285
million. In fiscal year 2016, IFC invested $69 million in Serbia.
136.8, 41%
196.1, 59%
IFC works with private sector clients, government, and civil society to bring
the benefit of global expertise to the country through its advisory services
and investment projects. IFC’s priorities in Serbia include agribusiness,
climate change, and improvements in the investment climate. IFC is also
focusing its investment services on increasing access to finance by
supporting the development of local financial institutions, especially those
that concentrate on SMEs. Through the joint GPs and independently, IFC’s
advisory services aim to improve the investment climate and the
performance of private sector companies, and to attract private sector
participation in the development of infrastructure projects.
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FM
MAS
INFRA
IFC STRATEGY IN SERBIA
Through investment and advisory services we will continue to partner with clients in strategic sectors crucial
for Serbia’s long-term sustainable development, with a particular focus on:
• The financial sector, with a special emphasis on small and medium enterprises and energy efficiency
lending (Komercijalna banka, UniCredit, Eurobank, Banca Intesa)
• Climate change, including investments in infrastructure and energy sectors (wind projects)
• Agribusiness, with an emphasis on food retail and manufacturing (MK Group, Victoria Group)
• Value-added manufacturing (Johnson Electric, PMC Automotive, Kronospan)
• Business infrastructure, with a focus on logistics and distribution (Atlantic Group, Nelt)
• Sub-national finance, with a focus on municipal infrastructure and waste management (Vinca advisory)
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THANK YOU
Magdalena Soljakova
Senior Country Officer
[email protected]
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