partnering with ifc syndications

Partnering with IFC Syndications

IFC’S GLOBAL REACH

102 offices in 95 countries worldwide

3,940 staff (55% are based outside of

Washington, D.C.)

3

Overview of IFC

▪ Overview of IFC

▪ IFC Syndications▪ B Loans

▪ Parallel Loans

▪ Credit Insurance

▪ Managed Co-Lending Portfolio Program

▪ IFC/MIGA Business Development Partnership

▪ Portfolio Update

▪ Awards, Tombstones & Contacts

▪ A member of the World Bank Group

▪ Provides investment, advice, resource mobilization

▪ Triple-A credit rating; owned by 185 countries

▪ Present in nearly 100 countries

IFC is the largest global development institution focused on the

private sector in emerging markets.

Overview of IFC

IFC: A MEMBER OF THE WORLD BANK GROUP

Conciliation

and arbitration

of investment

disputes

Guarantees of

foreign direct

investment’s non-

commercial risks

Interest-free loans

and grants to

governments

of poorest

countries

Loans to

middle-income

and creditworthy

low-income country

governments

Solutions in

private sector

development

IBRD

International

Bank for

Reconstruction

and

Development

IDA

International

Development

Association

IFC

International

Finance

Corporation

MIGA

Multilateral

Investment

Guarantee

Agency

ICSID

International

Centre for

Settlement of

Investment

Disputes

5

Overview of IFC

DEVELOPMENT FINANCE TODAY

Create major opportunities for mobilizing private capital to:

6

End Poverty Boost Shared Prosperity

The World Bank Group’s Twin Goals

6

Overview of IFC

7

MEETING DEVELOPMENT GOALS

The World Bank Group is uniquely positioned to mobilize domestic

resources, attract private capital, and create markets.

IDA &IBRD

IFC & MIGA

▪ Create jobs in a sustainable manner

▪ Improve access to services,

innovation and technology

▪ Demonstrate commercial viability

of new markets

▪ Strengthen financial intermediation

and expand local capital markets

▪ Generate tax revenues

▪ Mobilize third-party capital

▪ Increase competition, set standards,

and improve sector performance

▪ Establish a supportive investment

climate to mobilize private capital

for investment in development

▪ Address market failures and

reduce risks.

▪ Improve domestic resource

mobilization, from tax revenues

to capital markets

▪ Enhance management of public

expenditures

Use of private sector solutions

helps to

Use of public sector solutions

helps to

The World Bank Group’s Unique Positioning

Overview of IFC

8

MEETING DEVELOPMENT GOALS

The WBG business model …

… maximizes development impact.

Public &

Private

Country-Led

Global Reach

Knowledge

Financing

Convening Power &

Partnership

The World Bank Group’s Unique Positioning

Overview of IFC

9

▪ Mobilizing private capital for

development

▪ More than $321 billion invested since

our founding in 1956

IFC: SIX DECADES OF

EXPERIENCE

▪ The world’s largest development finance

institution focused on the private sector

▪ Leveraging the full range of

World Bank Group capabilities

Experience Matters.

Tunisia

9

Overview of IFC

10

IFC’s $8 BILLION COVID 19 RESPONSE

In its initial package, IFC is providing $8 billion to help companies

continue operating and sustain jobs during the crisis.

Global Trade Liquidity and Critical Commodities Finance Programs: $2 billion

Working Capital Solutions: $2 billion

Global Trade Finance Program: $2 billion

Real Sector Envelope: $2 billion

PHASE 1: Relief

PHASE 2: Restructuring, Recovery

IFC is also launching a $4 billion Global Health Platform, helping expand access to medical supplies such as masks, ventilators, test kits and, eventually, a COVID-19 vaccine.

Overview of IFC

Broadening our

Scope – capital

market development

IFC’s HISTORY

Leading the Way in Private Sector Development

11

Putting PSD

on the Global

Agenda

Emphasizing Innovation

– coining ‘emerging

markets’ and increased

advisory services

1990s1980s1950s

1960s 2010s1970s 2000s

Rising Global Influence –

focus on privatization and

private infrastructure finance

Setting a Demonstration

Effect – Equator

Principles, AMC,

sustainability, financial

inclusion

Increasing Impact –

the recognized leader

in PSD

DECADE 1 DECADE 2 DECADE 3 DECADE 4 DECADE 5 DECADE 6

IFC Syndicated Loans & Management - Contacts Portfolio UpdateB LoansB LoansB LoansOverview of IFC

▪ Systematically develop markets

▪ Work more effectively through Upstream

engagement and deeper World Bank Group

collaboration

▪ Focus on the poorest countries and fragile and

conflict situations

IFC’S STRATEGY

Combined with IFC’s traditional approach to financing development projects through

▪ IFC 1.0: Attracting foreign private investments to developing countries

▪ IFC 2.0: Investing in local companies and banks with local private investors

CREATING MARKETS

▪ Crowd in much more patient private capital

than before.

▪ Expand use of private sector solutions.

▪ Leverage mobilization platforms.

IFC 3.0

MOBILIZING THE PRIVATE SECTOR

12

Overview of IFC

IFC’S STRATEGY

13

Maximizing Development Impact, Maintaining Financial Sustainability

IFC FOCUS

Industries that contribute to

productivity and growth

Regionswith the greatest

poverty and fragility

Themeswith the largest risks

and opportunities

Overview of IFC

IFC’S STRATEGY

14

Key Focus Areas

Infrastructure

South Asia

Agribusiness MENA

Africa

CROSS CUTTING: Gender, Disruptive Technology, Developing Local Capital Markets,

Scaling up Mobilization

INDUSTRIES THEMES REGIONS

Financial Inclusion

Health and Education

Climate Finance

Fragility

Digital Economy

SUSTAINABILITY

Strong environmental, social, and governance standards are critical to IFC’s

business growth and development impact

Overview of IFC

WHAT CLIENTS VALUE ABOUT IFC

Results of IFC Client Survey

15

Long-Term

Partner Role

Specialized Expertise

and Knowledge

Environmental,

Social, and Corporate

Governance Expertise

World Bank Group

Stamp of Approval

Providing Financing

Not Readily Available

Elsewhere

Understanding

of Client Needs

Global PresenceLoan Maturities

Overview of IFC

WHAT WE DOIntegrated Solutions, Increased Impact

▪ Loans

▪ Equity

▪ Trade and Commodity

Finance

▪ Derivatives and Structured

Finance

▪ Blended Finance

▪ Help Create New Markets

▪ Unlock Investment

Opportunities

▪ Strengthen Clients’

Performance and Impact

▪ Improve Environmental,

Social, and Corporate

Governance Standards

▪ Syndications

▪ IFC Asset Management

Company

ADVICE

Innovative solutions combining

IFC’s expertise and tools

INVESTMENT

Financial products tailored to

client needs

MOBILIZATION

Mobilizing and managing

capital for investment

$21.9 billion committed in FY20

$58.7 billion committed portfolio

$274.4 million program in FY20 $28 billion syndicated in last

five years

$10.1 billion

under management at IFC AMC

16

Overview of IFC

INVESTMENT

17

LOANS▪ Project and corporate financing

▪ On-lending through intermediary institutions

EQUITY▪ Direct equity investments

▪ Private equity funds

TRADE AND

COMMODITY

FINANCE

Guarantee of trade-related payment obligations of

approved financial institutions

DERIVATIVES AND

STRUCTURED

FINANCE

Derivative products to hedge interest rate, currency, or

commodity-price exposures of IFC clients

BLENDED FINANCE Using donor funds to crowd in private financing

Overview of IFC

ADVICE

TO COMPANIES

▪ Attracting private investors and partners

▪ Entering new markets

▪ Increasing impact

▪ Improving operational performance and sustainability standards

▪ Advancing gender equality

TO FINANCIAL

INSTITUTIONS AND

FUNDS

TO

GOVERNMENTS

▪ Strengthening risk management, diversifying product offerings

▪ Promoting universal access to finance, strengthening capital markets, and establishing credit bureaus and collateral registries

▪ Developing the private equity industry in frontier markets

▪ Structuring public-private partnerships that improve people’s access to high-quality infrastructure and basic services

▪ Implementing reforms that encourage private investment, spur growth, and create jobs

18

Overview of IFC

19

SYNDICATIONS

▪ Mobilizes 3rd-party debt through a broad suite of products

▪ Capital mobilization to serve developmental needs

▪ Managed Co-Lending Portfolio Program (MCPP) assets under management of over $10 billion

IFC ASSET

MANAGEMENT

COMPANY

▪ Mobilizing and managing capital for businesses in emerging markets

▪ $10.1 billion in assets under management in 12 investment funds

MOBILIZATION

19

Overview of IFC

20

IFC’S TOOLS AND PLATFORMS

Reducing investment risks in countries, sectors, and projects

▪ The Managed Co-Lending Portfolio

Program: Crowds in billions in private

capital from insurance companies and

others for IFC projects.

▪ IFC Asset Management Company:

Manages billions in assets for

investment in IFC projects.

Mobilization Platforms Blended Finance

▪ Uses small amounts of concessional

donor funds to mitigate risks, opening

the door to much larger amounts of

private investment.

▪ IDA 18 IFC-MIGA Private Sector

Window: Mobilizes private investment

and contributes to creating markets in

the most challenging economic

environments.

Overview of IFC

SUSTAINABILITY

IFC’s commitment to environmental and social sustainability and

good corporate governance helps clients:

Critical to Client Success, Development Impact

21

Improve business

performance

Enhance transparency

Increase impactEngage with affected

communities

Protect the environment

Overview of IFC

IFC PERFORMANCE STANDARDSA Global Benchmark

22

2Treat workers fairly

and provide safe and

healthy working

conditions.

3Promote energy

efficiency, use

resources sustainably,

and cut greenhouse

emissions.

4Protect local

communities from

worksite accidents and

other project-related

dangers.

7Protect the rights,

dignity, and culture of

indigenous populations.

LABOR

RESOURCE

EFFICIENCY COMMUNITY

INDIGENOUS

PEOPLES

1Anticipate risks,

avoid, minimize and

compensate for any

impacts.

RISK

MANAGEMENT

5Avoid involuntary

resettlement and

minimize the impact on

those displaced.

LAND

RESETTLEMENT 6Protect biodiversity

and ecosystems.

BIODIVERSITY 8 CULTURAL

HERITAGE

Protect cultural

heritage and promote

equitable sharing of

related benefits.

Overview of IFC

23

2Board roles, composition,

committee structure,

procedures, director duties,

and overall

functioning

3Effectiveness of internal

controls, risk management,

internal/external

audit, and

compliance

functions

BOARD STRUCTURE

AND FUNCTION

CONTROL

ENVIRONMENT

GOVERNANCE OF STAKEHOLDER ENGAGEMENT

1Awareness and

formalization of sound

practices

COMMITMENT

Information disclosure to

shareholders and markets;

transparency of information

and financial

standards used

DISCLOSURE AND

TRANSPARENCY 5 6Treatment of investors,

shareholders rights and

protections, annual

meeting procedures,

conflict/related-party

transaction policies

MINORITY SHAREHOLDER TREATMENT

IFC CORPORATE GOVERNANCE (CG) METHODOLOGY

35 development finance institutions now follow IFC’s approach, covering

six key areas of risk assessment:

Sharing Best Practice

4Oversight over

stakeholder mapping,

stakeholder

engagement policy

and grievance

mechanisms

Overview of IFC

$21.9 billion in long-term investment:

▪ $11.1 billion for IFC’s own account

▪ $10.8 billion mobilized

$58.7 billion committed portfolio

Advice: 57% of program in IDA countries,

22% in fragile and conflict-affected areas,

34% in sub-Saharan Africa, 25% climate-

related.

FISCAL YEAR 2020

HIGHLIGHTSWest Bank & Gaza

24

Overview of IFC

FY20 IFC LONG-TERM INVESTMENT COMMITMENTS:

$21.9 BILLION

25 25

Overview of IFC

$17.7 bn$19.3 bn$18.8 bn

$23.3 bn

$19.1 bn

$21.9 bn

10.6 11.111.9 11.6

8.9

11.1

7.17.7 7.4

11.7

10.2

10.8

0

5

10

15

20

25

FY15 FY16 FY17 FY18 FY19 FY20

IFC's Own Account Mobilization

Fiscal year-end is June 30, 2020

26

Overview of IFC

▪ Overview of IFC


▪ Parallel Loans






Sabrina BorliniDIRECTOR

(WASHINGTON D.C.)

SYNDICATIONS OPERATIONS

LAC & Sub-Saharan Africa

(Washington D.C.)

ORGANIZATIONAL STRUCTURE

Overview of IFC Syndications

Juan Jose Garcia

Head

ECA-MENA(London)

ASIA(Singapore)

Investor Operations

(Washington D.C.)

MCPP (Washington D.C.)

John Groesbeek

Head

Michael Emery

Head

Petra Tojslova

Head

Anjali Varma

Head

Elona Krypa

Head

IFC-MIGA Partnership

(Washington D.C.)

INVESTOR ENGAGEMENT

Euan Marshall

Global Head

(Washington D.C.)

Meaghan McGrath

Global Head

(Washington D.C)

27

28

IFC’S SYNDICATED LENDING PROGRAM

▪ Oldest and largest syndicated lending program among multilateral development banks, established in 1957

▪ Over US$90 billion mobilized for over 1,500 projects

▪ Co-financiers include international commercial banks, local and regional banks in emerging markets, funds, insurance companies, development finance institutions (DFIs) & an emerging market central bank

▪ IFC’s syndicated loan portfolio under management totals US$16 billion

IFC SyndicationsB LoansB LoansB LoansB LoansOverview of IFC Syndications

28

29

IFC SyndicationsB LoansB LoansB LoansB LoansOverview of IFC Syndications

29

Types of IFC Syndicated Lending

B Loans Parallel Loans Credit Insurance

Managed Co-Lending

Portfolio Programs

(MCPPs)

Type of

Investor

Commercial

Banks

Development

Finance Institutions

& Sovereign Entities

Insurance Companies Institutional Investors

(public and private)

Investment

Approach

Active Deal by

Deal Selection

Active Deal by Deal

Selection

Active Deal by Deal

Selection

Passive Portfolio

Participation in Eligible

Projects

Investor’s

Strategy

Follow their own

client strategy

Developmental

Mandate (DFIs)

Follow their own

credit strategy

Follow IFC’s Strategy

Investment

Process

Investor makes

credit approval

Investor makes

credit approval

Investor makes credit

approval

Full delegation to IFC post

mandate

Tenor Generally

shorter than A

Loan

Generally matching

A Loan

Matching IFC A Loan

Tenors

Matching IFC’s A Loan

Tenors

Portfolio

Rights

Voting Voting Limited voting and

consultation

Follow IFC’s Decisions

Documentation Participation in

an IFC Loan

Agreement

Parallel Loan with a

Common Terms

Agreement

Unfunded Risk

Participation

Agreement or Credit

Insurance Policy

Administration

Agreement/Common Service

Agreement

Different Products Target Different Investors

30

Fiscal year-end is June 30, 2020

FY2018 FY2019 FY2020

B Loans ParallelMCPP

Loans

B

LoansParallel

MCPP

Loans

B

LoansParallel

MCPP

Loans

Volume (US$m): 1,794 5,319 878 1,699 3,472 566 1,062 2,892 1,036

Number of Deals: 32 34 26 22 29 16 19 32 29

Average Loan Size

(US$m):56 156 34 77 119 35 56 90 36

Average Final Maturity

(yrs):8 11 - 6 11 - 7 11 -

Average Margin (bps): 368 453 - 390 399 - 319 337 -

B LoansB LoansB LoansB Loans

30

STATISTICS

Overview of IFC Syndications

31

Borrower

Participants

Loan Agreement

A + B Loans

Participation

AgreementB Loan ▪ One loan agreement – IFC is lender of

record and administers entire loan

▪ IFC fully shares project risks with participants

▪ Participation structure allows participants to benefit from IFC’s privileges and immunities

B LOAN STRUCTURE

B LoansB LoansB Loans

31

32

IFC AND RISK MITIGATION

Credit RiskCountry Risk Reputational Risk

✓ First-class due diligence and analysis

✓ IFC’s global presence and knowledge

✓ IFC’s structuring and restructuring skills

✓ Strong security packages

✓ Long-term funding, avoiding refinancing risks

✓ IFC’s Environmental & Social Standards

✓ Extensive governance due diligence

✓ World-class in-house specialists

✓ IFC’s Preferred Creditor Status

✓ IFC’s effective mitigation of transfer and convertibility risk

✓ IFC access / relationships to national governments


32

33

PREFERRED CREDITOR STATUS (PCS)

▪ Preferred access to foreign exchange in the event of country foreign exchange shortage

▪ Excluded from general country debt reschedulings

▪ Not subject to mandatory new money obligations under general country debt rescheduling

▪ Consistent universal recognition - Pakistan, Russia, Argentina

▪ Bank regulators exempt B Loans from mandatory country risk provisioning

▪ Allows rated transactions to pierce sovereign ceiling

▪ Recognized mitigant of country risk under Basel II


33

34

Standardized approach:

Banks may apply the local currency rating of the borrower (as opposed to the foreign currency rating), recognizing the effective mitigation of transfer and convertibility risk

Advanced Internal Ratings-Based (IRB) approach:

Banks may reflect the country risk mitigation afforded by the B Loan structure through lower country risk weighting

PCS: CAPITAL TREATMENT OF B LOANS

UNDER BASEL II


34

35

PCS: CAPITAL TREATMENT OF B LOANS UNDER BASEL II


35

36

▪ Enables loans with longer tenors & no withholding tax

▪ Completes financial package

▪ Introduces new banking relationships

▪ IFC’s “stamp of approval”

▪ IFC’s environmental and social leadership

BENEFITS TO BORROWERS


36

37

▪ Preferred Creditor Status (PCS)

▪ Recognition of IFC’s risk mitigation by

➢ Regulators

➢ Rating agencies

➢ Basel II

▪ Private PRI providers

▪ IFC’s environmental and social leadership

▪ IFC’s structuring and restructuring skills

BENEFITS TO PARTICIPANTS


37

38

TOP 20 B LOAN PARTICIPANTS

New Signings

July 1, 2019 – June 30, 2020


1 FMO

2 KFW IPEX-Bank

3 Societe Generale

4 Banco Santander

5 SMBC

6 BNP Paribas

7 Bank of China

8 Natixis

9 ING Bank

10 Industrial and Commercial Bank of China (ICBC)

11 Unicredit Bank

11 Finance in Motion

13 Rabobank

14 RMB International (Mauritius) LTD

15 HSBC Bank

16 Erste Group Bank

17 Raiffeisen Bank

18 Commerzbank

19 EFSE

20 DBS Bank

38

39

PARTICIPANT’S VOTING RIGHTS

B Loans

39

▪ 100%: Change in money terms

▪ 100%: Waive or amend conditions precedent

▪ 67%: Acceleration following payment default

▪ 67%: Release security

▪ 67%: Waive or amend guarantees or support arrangements

▪ 51%: Change in ownership control provision

▪ 51%: Waive or amend financial covenants

▪ Consult: Waive or amend non-financial covenants

(Percentages reflect consent level required, based on total B Loan amount)

40

IFC shares with Participants all information received from Borrowers

under the Loan Agreement, including regular financial reporting &

knowledge of key credit events

INFORMATION SHARING

B Loans

40

41

PARTICIPANT ELIGIBILITY

▪ Objective participant eligibility criteria

▪ “Eligible Financial Institution”

➢ Not incorporated or residing in the country of the borrower or the project

➢ Not an export credit, governmental, or multilateral agency

➢ International investment-grade rating from Fitch, Moody’s or S&P

▪ Non-investment grade and unrated financial institutions may be considered on a case-by-case basis


41

42

PCS + PRI = Additional Risk Mitigation

▪ Participants may obtain political risk insurance (PRI) on B

Loans from eligible financial institutions to further mitigate

country risk

▪ IFC B Loans may also benefit from war and civil disturbance

insurance provided by the World Bank Group’s Multilateral

Investment Guarantee Agency (MIGA)


42

43

SYNDICATED PARALLEL LOANS

▪ Partnership with financial institutions which are not eligible B Loan

participants such as Development Financial Institutions (“DFIs”) or

local commercial banks

▪ To improve cooperation with DFIs, IFC developed a Master

Cooperation Agreement (MCA) that streamlines how IFC works

with DFIs to co-finance projects when IFC is the mandated lead

arranger

▪ The MCA now has 34 signatories

B LoansB LoansParallel Loans

43

44

MCA SIGNATORIES

Parallel LoansB LoansB LoansParallel Loans

44

45

TOP 20 PARALLEL LENDERS

New Signings

July 1, 2019 – June 30, 2020


1 Overseas Private Investment Corporation (OPIC)

2 DEG

3 U.S. Development Finance Corporation (USDFC)

4 OPEC Fund for International Development (OFID)

5 Japanese International Cooperation Agency (JICA)

6 KFW IPEX-Bank

7 Bank of Communications

8 African Development Bank (AfDB)

9 Emerging Africa Infrastructure Fund (EAIF)

10 Barclays

11 Korea Eximbank (KEXIM)

12 North American Development Bank (NADB)

13 Asian Development Bank (ADB)

14 Export Development Canada (EDC)

15 Bank AL Habib

16 Proparco

16 Inter-American Development Bank (IDB)

18 OEEB

19 Meezan Bank

20 First Abu Dhabi Bank

45

46

SYNDICATED PARALLEL LOAN STRUCTURE

Borrower

Lender 5

Lender 4

Lender 6

Lender 2

Lender 3

IFC as Arranger

and/or Administrative

Agent


46

47

Pre-Signing:

IFC approaches parallel lenders as if syndicating a B Loan

▪ Early contact for preliminary interest and feedback

▪ Assist due diligence process by sharing information memorandum

and managing project appraisals

▪ Negotiate documentation among all parallel lenders

▪ All lenders sign a single Common Terms Agreement and short form

individual loan agreements covering money terms (IFC does not act

as Lender of Record for parallel lenders)

SYNDICATED PARALLEL LOANS


47

48

BENEFITS

For Borrowers:

▪ Enhanced access to financing from DFIs and other ineligible B

Loan participants, particularly for longer tenors and in frontier

countries and sectors

▪ Time and cost savings throughout the life of the facility


48

49

BENEFITS

For Lenders:

▪ Increased deal flow through IFC’s global origination capacity

▪ Access to IFC’s due diligence, structuring and restructuring skills

and global presence

▪ Time and cost savings

▪ All lenders, including IFC, share the same rights and obligations


49

50

Borrower

Insurance

Counterparty

Loan Agreement

A Loan

Unfunded Risk

Participation

Agreement

Or Credit

Insurance Policy

▪ One loan agreement – IFC is lender of record and administers entire loan

▪ IFC fully shares project risks with insurance counterparty

▪ Typically executed on a silent participation basis

CREDIT INSURANCE STRUCTURE

50

B LoansB LoansB LoansB LoansCredit Insurance

51

B Loan

Packaged Loan

Portfolio (MCPP)

B LoansB Loans

51

B LoansB LoansMCPP

Loans (73%)

IFC DEBT PROJECTS PRIMARY DEBT MOBILIZATION

PRODUCTSINVESTORS

IFC Syndications has a 60-year track record of mobilizing third-party investors into our emerging market debt

investments. MCPP builds on this success using a pioneering portfolio approach, enabling IFC to

mobilize new institutional investors and harness billions of dollars of capital for development

% based on FY13-17

Single

Project

Single

Project

Single

Project

Single

Project

Banks

Since 1959, IFC has mobilized over $50bn from

banks and DFIs/IFIs to complete more than 1,000

debt financing packages for clients in 115

countries

The MCPP packages loans into

diversified portfolios, allowing IFC to go

beyond banks and mobilize institutional

investors

AN INNOVATIVE SOLUTION

Institutional

Investors

DFIs/IFIs

Facility Agreement

Parallel Loan

Single

Project

Participation Agreement

Master Cooperation

Agreement (MCA)

Bonds and Other (27%)

52

ACTIVE MCPP FACILITIES UNDER MANAGEMENT

Facility Focus Investor(s) Amount

MCPP SAFE

Cross-sectoral $3 billion

MCPP HKMA

Cross-sectoral $2 billion

MCPP Infra

Infrastructure $1.6 million

MCPP URP

Infrastructure $500 million

MCPP FIG I

FIG $1 billion

MCPP FIG II

FIG $2 billion

Total $10.1 billion

▪ The Managed Co-Lending

Portfolio Program (MCPP)

leverages IFC’s global

origination capacity, market

knowledge and syndications

expertise to build emerging

market loan portfolios for

investors.

▪ The MCPP platform has grown

from an initial investment from

the People’s Bank of China in

2013 to a $10.1 billion platform

with 11 global investors.

▪ The MCPP participants are

both public and private

investors making available both

funded and unfunded financing

for IFC projects.

MANAGED CO-LENDING PORTFOLIO PROGRAM

MCPP leverages IFC’s origination capacity, market knowledge and track record to build

emerging market debt portfolios for investors. To date, the platform has raised more than

$10 billion of co-financing to support IFC clients.

B LoansB LoansB LoansB LoansMCPP

53

B LoansB LoansB LoansB LoansMCPP

53

•

•

•

•

•

•

IFC has adapted the MCPP to meet the needs of different investor classes. MCPP now

employs a variety of product structures that address investors’ business and regulatory

requirements and connect them to our pipeline of emerging-market projects.

•

•

•

•

•

•

•

•

•

A FLEXIBLE APPROACH

54

MCPP follows a “blind pool” approach with investors committing to take exposure for a set of future IFC loans.

Standing agreements with MCPP investors improve investment process efficiency and allow IFC to offer

larger financing packages to clients

Portfolio design

is customized to

meet investor’s

strategy, with

eligibility criteria

and

concentration

limits

MCPP identifies

eligible

transactions and

builds a portfolio

that mimics IFC’s

own portfolio

Investors

participate in IFC-

originated

projects

alongside IFC and

on the same

terms as IFC

IFC manages

investor’s

exposure in line

with decisions

taken for IFC’s

own account for

the life of the loan

MCPP PROCESS

Diversified portfolio of

emerging market loans

IFC and investor

sign administration

agreement

IFC signs loan

agreement

with borrower

MCPP

HOW IT WORKS

54

55

25%

24%20%

10%

10%

7%4%

Sub-Saharan Africa East Asia & Pacific

LatAm & Caribbean Europe & Central Asia

Mid. East & N. Africa South Asia

World

47%

28%

24%

1%

Infrastructure Financial institutions

Real sector Telecoms & IT

Through the MCPP, investors join IFC to invest for impact. MCPP provides investors a platform for

participation in emerging market projects that address development needs and reduce poverty

MCPP connects to IFC 3.0 strategic priorities

35%

26%

MCPPSAFE

B Loans

Mobilization Share in IDA Countries

40%

27%

MCPPSAFE

B Loans

Mobilization Share in Climate Change Projects

MCPP funding follows IFC’s own-account strategy to

reach priority areas under IFC 3.0. Through MCPP, IFC

is mobilizing more financing in IDA countries and for

climate change-related projects

MCPP offers reach into all regions and industries

Distribution of

funds approved to date

Data based on U.S. dollar volumes since FY13

Region

(outer pie)

INCREASING REACH IN PRIORITY SECTORS

MCPP

MCPP

55

Sector

(inner pie)

MCPP

56

In certain situations, MCPP structures may include credit enhancement. IFC and partners can provide first-

loss coverage on the portfolio by taking a junior tranche so that investor exposure reaches a target

risk level

Borrower

Borrower

Borrower

Investor

Investor

IFC

originates

eligible deals

for loan fund

Senior Tranche

Junior Tranche

IFC invests in junior tranche to

credit enhance the vehicle

Investors

participate in

senior tranche

Partners may support IFC in

providing credit enhancement

IFC

IFC

In the MCPP Infrastructure facility, the Swedish International Development

Cooperation Agency (Sida) joined IFC to provide first-loss coverage

First-Loss

Partner

MCPP

OPTION FOR CREDIT ENHANCEMENT

56

57

IFC

▪ Enables IFC to do more through bigger

ticket sizes on transactions

▪ Lowers the cost and time to complete

financing packages by simplifying the

syndication process

▪ Allows IFC to spread mobilization across

portfolio into difficult areas, including

greater reach sectors with limited

mobilization history

▪ Creates a market demonstration effect

as a proven solution for mobilizing new

sources of financing for development

Investors

▪ Offers first-time entry into emerging

markets for entire classes of investors

▪ Provides diversification benefits due to

institutional investors’ extremely limited

current exposure to direct lending in

emerging markets

▪ Includes capacity to create global

portfolios or to tailor by sector

▪ Creates a cost-effective delivery process

that directly leverages IFC’s inbuilt

capacity

▪ Negates the need to build origination

capacity in global markets

Borrowers

▪ Provides larger volumes at reduced

transaction costs and time to complete

the financing package process

▪ Allows borrowers to have certainty of

financing at mandate

▪ Makes investor money available on

same terms as IFC, including longer

tenors

▪ Reduces complexity, as IFC is the sole

interface for the borrower on all MCPP

loans

MCPP

The MCPP creates value for all participants. The program has demonstrated proof

of concept and can be used as a reference point to support the standardization of

portfolio loan syndication platforms by other DFIs/IFIs

PROGRAM BENEFITS

57

▪ IFC and MIGA has a formalized relationship for IFC to provide marketing support to

MIGA through a Joint Business Development Agreement.

▪ The strategic partnership between IFC and MIGA is a great example of intra-WBG

collaboration which proves that synergies between WBG entities wherever feasible

can strengthen the overall effectiveness and maximize impact for poverty

alleviation.

▪ IFC/MIGA Partnership presents a strong global business development model

consistently delivering results in strategic priority areas, generating $6.6 billion since

the partnership’s inception, and $1.1 billion in the 2019 fiscal year.

▪ The IFC and MIGA collaboration also helps clients to:

➢ Unlock investment opportunities in joint strategic priority areas.

➢ Make an impact through de-risking and innovation. MIGA products are a great

risk mitigating tool.

➢ Create new markets that influence development outcomes.

IFC/MIGA Business Development Partnership

PROGRAM HIGHLIGHTS

58

Political RiskInsurance

Transfer and Convertibility

Breach of Contract

Expropriation

Non-honoringof FinancialObligations

Sovereign

Sub-sovereign

War and Civil Disturbance

State-owned Enterprise

Private Sector

Projects & PPPs

Public Sector

Projects

Equity

Lenders

Lenders

Project Investor Product Cover


MIGA’S PRODUCT LINE

59

Strong pre-claim management

Highly rated

Financially stable

Strong risk appetite

Environmental and social risk mitigation

• Manages risks in pre-claims (100+ pre-claims managed among 830+ projects. Two claims paid for expropriation, eight for war and civil disturbance.)

• Leverages World Bank network

• Recognized as highly rated multilateral institution by Basel Committee

• Efficient economic capital consumption

• Operates in challenging markets (lower income, conflict affected, and fragile states)

• Longer tenors (15 years)

• Best practices in environmental and social standards


MIGA’S VALUE ADDED

60

61

Overview of IFC

▪ Overview of IFC


▪ Parallel Loans





SYNDICATIONS PORTFOLIO*as of June 30, 2020 – by Region

TOTAL COMMITTED PORTFOLIO: US$16.26 BILLION

B LoansB LoansPortfolio Update

*Includes B Loans, Parallel Loans, MCPP Loans, A Loan Participations (ALPs) & Unfunded Risk Participations (URPs)

62

23%

20%

14%

30%

7%4%

2%

Sub-Saharan Africa

East Asia and the Pacific

Europe and Central Asia

Latin America and the Caribbean

Middle East and North Africa

South Asia

World

B LoansB Loans

SYNDICATIONS PORTFOLIO*as of June 30, 2020 – by Industry Group


63

*Includes B Loans, Parallel Loans, MCPP Loans, A Loan Participations (ALPs) & Unfunded Risk Participations (URPs)

TOTAL COMMITTED PORTFOLIO: US$16.26 BILLION

20%

47%

33% Financial Markets

Infrastructure & Natural Resources

Manufacturing, Agriculture & Services

64

▪ Instrument seniority and

security structuring

increase likely magnitude of

recoveries on loans relative

to bonds

▪ IFC has a demonstrated

ability to manage troubled

loans

▪ Global Special Operations

Team

▪ Longer term approach than

most commercial banks,

leading to greater recovery

▪ IFC benefits from standing

as an International

Organization


LOSS GIVEN DEFAULT (LGD)

Comparison of IFC LGD to Other Asset Classes

Note: IFC Straight Senior Loans (FY87 –FY18); S&P for US Senior Unsecured Bonds (Private Sector) (1987-

2013); Moody’s for Emerging Market Bonds (~80% Private Sector) (1995-2008)

28%

43%

64%

0%

10%

20%

30%

40%

50%

60%

70%

IFC US Senior Secured Bonds Emerging Market Bonds

64

65

NON PERFORMING LOANS (NPLs)

Non-Performing A Loans as a % of all A Loans

with a B Loan/MCPP Loan attached

Fiscal year-end is June 30

NPLs = 60 days past due


65

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

66

Overview of IFC

▪ Overview of IFC

▪ IFC Syndications

▪ B Loans

▪ Parallel Loans






67

B LoansB Loans

67

Power Deal of the Year

Myingyan IPP Myanmar

2017

Innovative Lawyers North America

Managed Co-Lending Portfolio Program

2017

Middle East & Africa Logistics Deal

of the Year

Nacala Mozambique

2017

MENADFI of the Year

International Finance Corporation

2017

MENA Infrastructure

Programme Award

Solar FIT ProgramEgypt

2017

Asia Pacific Wind Deal Award

TriconBoston Sapphire Wind

Pakistan

2017

Global Multilateral Deal of the Year

Solar FIT ProgramEgypt

2017

Midstream Oil & Gas Deal of the Year

Bangla LNG (Excelerate)Bangladesh

2017

Awards

68

B LoansB LoansAwards

68

African Refinancing Deal of the Year

Bujagali Hydro Uganda

MENA DFI of the Year

Baynouna, XENEL, Daehan Wind Projects

Jordan

20182018

African Petrochemical Deal

of the Year

Eleme Nigeria

2018

African Power Deal of the Year

NachtigalCameroon

2018


Sirajganj 4 Dual FuelBangladesh

2018

MENA DFI of the Year

Baynouna, XENEL, Daehan Wind Projects

Jordan

2018

Latin America Natural Resources

Finance Dealof the Year

Renova Argentina

2018


NachtigalCameroon

2018

69

B LoansB Loans

European Onshore Wind Deal of the Year

Tesla Wind (Dolovo Wind Farm)

Serbia

20192019

Best Refinancing Deal Africa

EFC Egypt IIEgypt

2019

European Airports Deal of the Year

Belgrade AirportSerbia

2019

Best Multilateral Deal of the Year

India REWA and HK Canvest

India

2020


Guinea Alumina Corp Guinea

69

Awards

2020

European Waste Deal of the Year

Belgrade Energy from Waste Serbia

2020


Upper Trishuli-1Nepal

2020

Asia Pacific Onshore Wind Deal of the Year

Super Six Wind Programme

Pakistan

70

B LoansB LoansSelected Transactions

70

November 2019

$229 million

MCPP / USD Parallel Loan / PKR

Parallel Loan

12–15.5 years

Pakistan

Mandated Lead Arranger

PakistanSuper 6

Guinea Alumina Corp

$753 million

B Loan / Parallel Loan /

MIGA / Credit Insurance

12–14 years

Guinea


April 2019

Belgrade Waste to Energy

$182 million

B Loan / Parallel Loan /

MIGA

15–18 years

Serbia


October 2019

June 2020

$441 million

Parallel Loan

15 years

Mexico


October 2020

$111 million

MCPP / Credit Insurance

8 years

MENA Region


June 2020

$300 million

B Loan / MCPP

9–11 years

Brazil


CO-INVESTOR PARTNERSHIPS Selected Transactions

Portfolio UpdateB LoansB LoansB LoansSelected Transactions in Asia

71

May 2018

US$ 130,000,000

Parallel Loan

5 years

Corporate Finance

China


US$ 355,000,000

Parallel Loan

16 years

Project Finance

India


June 2018

US$ 55,000,000

IFC B Loan

US$ 33,750,000

MCPP Loan

7 years

Corporate Finance

China


August 2018

July 2019

US$ 15,000,000

IFC B Loan

US$ 20,000,000

Parallel Loan

7 years

Corporate Finance

Cambodia


US$ 285,000,000

Parallel Loan

17 years

Project Finance

Bangladesh


June 2019

US$ 125,000,000

IFC B Loan

US$ 90,000,000

MCPP Loan

6.5 years and 5 years

Corporate Finance

Indonesia


December 2018

US$ 86,000,000

Parallel Loan

US$ 10,000,000

HALP Loan

2 years and 3 years

Corporate Finance

China


January 2019

US$ 180,000,000

Parallel Loan

5 years and 3 years

Corporate Finance

India


May 2019

Meghnaghat II Power Station

Orient InvIT

Portfolio UpdateB LoansB LoansB LoansSelected Transactions in Europe, Central Asia, Middle East & North Africa

August 2018 May 2019

US$ 121,910,000

MCPP / Parallel Loan

15 years

Project Finance

Armenia


EUR 110,000,000

IFC B Loan

15 - 17 years

Project Finance

Serbia


December 2018

US$ 61,200,000

IFC B / MCPP / Parallel Loan

18 years

Project Finance

Jordan


72

Local Currency - TRL equivalent of:

US$ 130,000,000

Parallel Loan

12 years

Project Finance

Turkey


August 2019

US$ 40,000,000

IFC HALP Loan

3 years

Financial Institution

Kazakhstan


EUR 70,000,000

IFC B / Parallel Loan

15 -18 years

Project Finance

Serbia


October 2019

US$ 60,000,000

MCPP Loan

5 years


Turkey


May 2019

US$ 57,620,000

MCPP Loan

19 years

Project Finance

Egypt


July 2019

Daehan Wind

September 2018

November 2018

Nachtigal Hydro Power Company

EUR 806,000,000

Parallel Loan

18-21 years

Project Finance

Cameroon


Selected Transactions in Sub-Saharan Africa

EUR 11,000,000

Parallel Loan

7-8 years

Project Finance

Cote D'Ivoire,

Guinea &

Mali


August 2018 November 2018

US$ 100,000,000


7 years

Corporate Finance

South Africa


73

Mbiza

US$ 20,000,000


6 years

Project Finance

South Africa


February 2019

Gaselia Group

July 2018

Bangweulu Power

EUR 4,000,000

Parallel Loan

8 years

Corporate Finance

Senegal


US$ 73,000,000


10 years

Project Finance

Kenya &

Uganda


February 2019

NCCL IIGuinea Alumina Corp

US$ 625,000,000

IFC B / Parallel Loan & MIGA

14 years

Project Finance

Guinea


April 2019June 2019

US$ 4,700,000

PSW / NA Parallel Loan

3 years

Project Finance

Rwanda


3B Hotels

Portfolio UpdateB LoansB LoansB Loans

October 2018 March 2019

US$ 25,000,000

IFC B Loan

7 years


Ecuador


US$ 200,000,000

IFC B Loan

5-6 years

Corporate Finance

Argentina


March 2019

US$ 15,000,000

IFC B Loan

2 years


Bolivia


74

BRL 268,900,000


6 years

Corporate Finance

Brazil


June 2019

US$ 38,000,000

IFC B Loan Loan

5 years

Corporate Finance

Nicaragua


US$ 95,730,000

IFC B / MCPP / Parallel Loan

12 years

Corporate Finance

Mexico


June 2019

US$ 1,500,000

IFC B Loan

3 years


Haiti


May 2019

US$ 365,000,000

IFC B / MCPP Loan

5-8 years

Corporate Finance

Argentina


June 2019

July 2018

Selected Transactions in Latin America & Caribbean

75

Director’s Office

Sabrina Borlini Director Washington DC +1 202 458 4115 [email protected]

Christine Chan Chor Program Assistant Washington DC +1 202 458 0134 [email protected]

Investor Engagement Group

Euan Marshall Global Head Washington DC +1 202 458 0349 [email protected]

Anjali Varma Head Washington DC +1 202 458 8721 [email protected]

Mahfuza Afroz Senior Syndications Officer Washington DC +1 202 458 1118 [email protected]

Carl Chastenay Senior Syndications Officer Washington DC +1 202 458 9622 [email protected]

Michael Kurdyla Syndications Officer Washington DC +1 202 458 0033 [email protected]

Joshua McCann Associate Syndications Officer London +44 20 7592 8025 [email protected]

Liang Chen Associate Syndications Officer Washington DC +1 202 458 1502 [email protected]

Ergun Ertekin Syndications Analyst Washington DC +1 202 473 3891 [email protected]

Ning Li Syndications Analyst Washington DC +1 202 458 9611 [email protected]

Paul Rukundo Consultant Washington DC +1 202 473 4985 [email protected]

Samatar Yonis Consultant Washington DC +1 202 458 0485 [email protected]

Tho Nhu Hoang Program Assistant Washington DC +1 202 473 7989 [email protected]


Elona Krypa Head Washington DC +1 202 473 5891 [email protected]

Vera Sevrouk Senior Operations Officer Washington DC +1 202 458 1522 [email protected]

Fadima Savadogo Associate Knowledge Management Officer Washington DC +1 202 473 2563 [email protected]

75

Syndications’ Contacts

76

Syndications Operations

Meaghan McGrath Global Head Washington DC +1 202 473 0463 [email protected]

Asia

John Groesbeek Head Singapore +65 6501 3605 [email protected]

Claudia Scheuerl Senior Syndications Officer Singapore +65 6501 3683 [email protected]

Gary Wilmer Senior Syndications Officer Singapore +65 6501 3607 [email protected]

Nitesh Kumar Agrawal Syndications Officer Singapore +65 6501 3606 [email protected]

Huaixue Sherry Fu Syndications Officer Singapore +65 9182 3771 [email protected]

Radhika Gupta Associate Syndications Officer Singapore +65 6501 3720 [email protected]

Zhen Yu Peh Associate Syndications Officer Singapore +65 6501 3762 [email protected]

Joowon Lee Associate Financial Officer Singapore +65 6501 3719 [email protected]

Aditi Jain Syndications Analyst Singapore +65 9248 7003 [email protected]

Ning Theekhamongkhon Team Assistant Singapore +65 6501 3714 [email protected]

Europe, Central Asia, Middle East & North Africa

Michael Emery Head London +44 20 7592 8421 [email protected]

Burak Egemen Senior Syndications Officer London +44 20 7592 8032 [email protected]

Pars Ayaz Syndications Officer London +44 20 7592 8031 [email protected]

Cem Karadayi Syndications Officer London +44 20 7592 8413 [email protected]

Ilaria Trifogli Syndications Officer London +44 20 7592 8424 [email protected]

Hannah Joy Yi Associate Syndications Officer London +44 20 7592 8035 [email protected]

Jayesh Thawrani Syndications Analyst London +44 20 7592 8431 [email protected]

Asli Deniz Torunoglu Program Assistant London +44 20 7592 8012 [email protected]

76


77

Syndications Operations

Latin America, Caribbean & Sub-Saharan Africa

Juan Jose Garcia Head Washington DC +1 202 473 6702 [email protected]

Yan Jin Principal Syndications Officer Washington DC +1 202 473 9088 [email protected]

Angela Cuesta Senior Syndications Officer Washington DC +1 202 458 0658 [email protected]

Olimpia Gjino Senior Syndications Officer Washington DC +1 202 458 8296 [email protected]

Paul Adams Syndications Officer Washington DC +1 202 458 2798 [email protected]

Sekou Calliste Syndications Officer Washington DC +1 202 473 0682 [email protected]

Rashed Shoaib Sultan Syndications Officer Washington DC +1 202 458 5777 [email protected]

Enrique Carlos Tizon Syndications Officer London +44 20 7592 8406 [email protected]

Helen Berhe Associate Syndications Officer Washington DC +1 202 473 5644 [email protected]

Ozlem Onerci Associate Syndications Officer Washington DC +1 202-458-7231 [email protected]

Fernando Ventura Associate Syndications Officer Washington DC +1 2020 428 9252 [email protected]

Olivia Djina Syndications Analyst Washington DC +1 202 458 1553 [email protected]

Neelam Chowdhary Program Assistant Washington DC +1 202 458 4384 [email protected]

Investor Operations Group

Petra Tojslova Head Washington DC +1 202 473 8516 [email protected]

Fiona Chen Operations Officer Washington DC +1 202 458 2545 [email protected]

Chafik Belaaziz Associate Syndications Officer Washington DC +1 202 458 1527 [email protected]

Evelina Stanoeva Syndications Analyst Washington DC +1 202 473 7493 [email protected]

Ayse Samli Syndications Analyst Washington DC +1 202 473 4158 [email protected]

Yue Chen Syndications Analyst Washington DC +1 202 458 1107 [email protected]

Robin Bryant Program Assistant Washington DC +1 202 458 0109 [email protected]

Florence Makokha Program Assistant Washington DC +1 202 473 9052 [email protected]


78

www.ifc.org/syndications

September 2008

B LoansB LoansB LoansSyndications’ Contacts

78

http://www.ifc.org/syndications

partnering with ifc syndications

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