IFC IN MANUFACTURING, AGRIBUSINESS & SERVICES...Jordanian dinar Moroccan dirham Tunisian dinar Long-term loans available in the following Emerging Markets Africa: Botswana pula Ghanaian

IFC IN MANUFACTURING,

AGRIBUSINESS & SERVICES AICEP WEBINAR

September 2020

Investment: A One-Stop-Shop from Equity to Debt

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Type of investments Conditions

Loans / Debt Senior debt: corporate finance and project finance

On-lending through intermediary institutions

Fixed/floating rates, US$, Euro and local currencies

available

Commercial rates, repayment tailored to

project/company needs

Long maturities: 8-10 years, appropriate grace

periods

Range of security packages suited to project/country

Equity Direct equity investments / Private equity funds

Corporate and JV

Typically up to 20% of total equity

Long-term investor, average 6-8 year holding period

Not just financial investor, adding to shareholder

value

Trade and Supply

Chain Finance

Guarantee of trade-related payment obligations of

approved financial institutions

Warehouse Receipts

Supplier and Distributor Finance

Working Capital Facilities

Credit extension to underserved segments across

the value chain

Enables expansion into new regions with weak

banking infrastructure

Enables improved terms to smallholders (farmers,

distributors)

Syndications

Capital mobilization to serve developmental needs

Mobilization of funds from other lenders and

investors, through co-financings, syndications,

underwritings and guarantees

Better pricing/terms from preferred access to foreign

exchange & withholding tax exemptions

Over 60 co-financiers: banks, funds, DFIs

Derivatives and

Structured Finance Derivative products to hedge interest rate, currency, or commodity-price exposures of IFC clients

Blended Finance Using small amounts of concessional donor funds to mitigate risks, opening the door to much larger amounts

of private investment

Investment 1

Competitive Long-term Financing Solutions from Preferred Creditor Status Institution

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Advisory services

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

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

To

Governments

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

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Advice 2

Providing advice is a critical part of IFC’s strategy to create markets and mobilize private

investment. Through this work, we help establish the necessary conditions that will attract the most

private capital, enabling the private sector to grow.

IFC’s active Advisory Portfolio is US$ 1.5 bn, with more than 700 active projects in +100 countries

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Dakar

Nairobi

Johannesburg

Cairo

Washington

Mexico City

Bogota

Buenos Aires

São Paulo

Moscow

Hong Kong

New Dehli

Almaty

Istanbul

Santo Domingo

IFC HQ

IFC Hub Offices

IFC Country Offices

IFC is present in every region with 100+ offices with 4,000 staffs globally

IFC’s Global Footprint

IFC’s extensive European client portfolio

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Non-exhaustive

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IFC Case Studies: Portucel (Forestry in Mozambique)

FY2020

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IFC Case Studies: Jeronimo Martins (Retail in Colombia)

FY18-20

IFC’s value add

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A Long-term Partnership Perspective, Providing Clients Important Countercyclical Financing when

Commercial Banks Cut Back

Long-term & Patient

Fixed/Floating Rates, Local Currencies

Up to 15 year Loan Maturity

Flexible Amortization Profile

International Stamp of Approval,

catalyst for other Investors and Lenders

Equity Participation

Capital Mobilization

Regional Knowledge

Extensive Local Office Network

Local Transaction Experience

Strong bank partnerships through client

networks and B loan participants

World Bank Synergies

Joint Venture partnership management

Global Sector Expertise

40+ Years of Sector Expertise

Group of Industry Specialists in the

Agribusiness and Forestry sector

Greenfield

Expansion/Modernization

Corporate Strategy

Access to International Investors

Country Risk Mitigation

Government Relations

Preferred Creditor Status

Neutral Broker Role

Reduced Risk of Expropriation, Breach of

Contract, Convertibility

World Bank Synergies

Withholding Tax Benefit

Env. & Social Risk Management

Advice on Environmental & Social

Best Practices

Energy & Water Use Management

Cleaner Technologies

Equator Principles Modeled after IFC

Standards

Local Consultation and Disclosure

Sustainability Toolkit

Supply Chain strengthening:

supporting productivity & farmer income

Environmental/ Social Standards

Corporate Governance

Community Investment

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I. Annex

Agenda

IFC’s approval process: a 3 Step Process

Early Stage Appraisal Final

Negotiation

Portfolio

Supervision

Mandate Investment

Committee Disbursement

1 2 3

Discuss project

Agree on product(s)

and main terms

Early decision from

IFC management

Due diligence & site visit, assessment:

Business operations & potential

Financial & economic soundness

Environmental & Social (E&S) aspects

Risks & opportunities

Public disclosure

Finalize term sheet

with client

Board consideration

and approval

Drafting and signing

legal documents

Annual reporting on

financial, E&S, and

development impact

indicators

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Long term project/subsidiary financing not available in local financial market

Local currency financing to provide natural FX hedge

Comfort to penetrate new markets

Client Needs

IFC Solution:

Long term financing at project/subsidiary level

Main Features

Financing up to 25% (greenfield)

or 50% (brownfield) of total

project cost

Possibility to include working

capital financing

Sponsor support at least until

project completion

Possibility of equity investment if

there is strong growth strategy

and clear exit

Long term funding -

maturity and grace

period tailor to project

needs

Financing in US$, €, and

30+ local currencies

Diversified source of

funding available across

economic cycles

Possibility to mobilize

additional financing

(syndicated debt, equity

funds, etc)

No withholding tax

World Bank Group

reputation

Parent

Country

Subsidiary Financing

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IFC Benefits to Clients

Project / Subsidiary Finance

World Bank Group

reputation

IFC has appetite for

emerging market risk

sharing

IFC stamp of approval

IFC provides own capital

and mobilize from other

investors through the

AMC

Share knowledge of new

markets given our global

team/expertise/experienc

e

Introduce to key players

in the market?/other IFC

clients

Reputable partner to enter and expand in new markets

Sharing risk of emerging market expansion

Additional capital

IFC Solution:

Debt, equity and/or quasi-equity financing in holding

for country or regional operations

Main Features

Equity: IFC can invest up to 20%

equity (up to 49% with IFC

subsidiary fund), with exit

identified (IFC to be minority

investor)

Quasi-equity: high return

mezzanine/high yield debt

Corporate debt facility dedicated

to emerging markets

Client needs to keep at least

30% of equity

Company

Country/Regional

Holding

Mexico

Debt, Equity &

Quasi Equity

Nigeria Other

EMs

Corporate Debt

Facility

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Client Needs IFC Benefits to Clients

Corporate / Holding Finance

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EMENA*:

▪ Kazakh tenge ▪ Polish zloty ▪ Romanian leu ▪ Russian ruble ▪ Turkish lira ▪ Armenian dram ▪ Azerbaijani manat ▪ Czech Republic

koruna

▪ Georgian lari ▪ Tajikistani somoni ▪ Kyrgyzstani som ▪ Jordanian dinar ▪ Moroccan dirham ▪ Tunisian dinar

Long-term loans available in the following Emerging Markets

Africa:

▪ Botswana pula ▪ Ghanaian cedi ▪ Kenyan shilling ▪ Nigerian naira ▪ Rwandan franc ▪ South African rand ▪ Tanzanian shilling ▪ Ugandan shillings ▪ Zambian kwacha

Asia:

▪ Chinese renminbi ▪ Hong Kong dollar ▪ Indian rupee ▪ Indonesian rupiah ▪ Korean won ▪ Philippine peso ▪ Thai baht ▪ Vietnamese dong ▪ Nepalese rupee ▪ Pakistani rupee ▪ Sri Lankan rupee

Latin America:

▪ Argentine peso ▪ Brazilian real ▪ Chilean peso ▪ Colombian peso ▪ Costa Rica colones ▪ Mexican peso ▪ Peruvian soles ▪ Paraguay guarani ▪ Uruguay peso ▪ Dominican peso ▪ Guatemalan quetzal

IFC can provide multi-currency products that can be drawn down in various emerging market

currencies to support clients’ financing needs in different markets

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Local Currency Financing

Notes: * EMENA: Europe Middle East and North Africa

This summary has been prepared to facilitate the discussion of certain basic terms and

conditions of IFC’s 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. IFC’s decision to invest in the project is contingent on approval by IFC’s management

and Board of Directors and execution of final documentation in form and substance

satisfactory to IFC.

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Disclaimer