the ifc

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The IFC. . Founded in 1956 to meet the needs of the private sectorPart of the World Bank Group with a shared Board and President, but separate development mandate, staff, capital base and operating/financial policiesLargest multilateral source of debt and equity financing for private enterprise in developing countriesConsistent AAA / Aaa credit ratings.

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3: IFC’s Role In Structured Finance Acting as a structuring investor Developing domestic markets Introducing new asset classes and new borrowers to the market Using structured finance as a tool to provide clients with cost effective financing Demonstration effect

4: RISK Asset and Liability Mismatch You would like to finance the expansion of your Asian subsidiary, but sales are in local currency whereas your balance sheet is in U.S. dollars.

5: Possible Mitigants The subsidiary issues a domestic bond with a partial credit guarantee from IFC The subsidiary receives a local currency loan from domestic banks credit-enhanced by IFC The subsidiary issues a cross-border bond with a partial credit guarantee from IFC with proceeds swapped into local currency (if swap is available) The subsidiary receives a local currency loan directly from IFC (if a swap market is available) The subsidiary receives a U.S. dollar syndicated loan from IFC (B-loan) swapped into local currency (if swap is available)

6: RISK Reaching Concentration Limits You have been providing vendor financing to your distributors throughout the emerging markets. The financing business has been successful in terms of increasing your distribution, but you are reaching your limit in terms of exposure you wish to retain on your balance sheet.

7: Possible Mitigants Set-up a risk-sharing facility with IFC Securitize the existing portfolio with mezzanine credit enhancement from IFC

8: RISK High Cost for Infrastructure Financing You are financing a large infrastructure project in Latin America and wish to avoid high financing costs as well as a currency mismatch.

9: Possible Mitigants Securitize the future flow receipts from the project with mezzanine credit enhancement from IFC Have the project company borrow from the domestic bank market and/or capital market with credit enhancement from IFC Have the project company borrow internationally with an IFC B-Loan and swap the proceeds into local currency with IFC (if swap is available) Secure local currency financing either with an IFC partial credit guarantee or local currency loan for the tenor available, with the option to convert to U.S. dollar financing at a fixed spread if rates in local currency are not deemed attractive at the time of refinancing

10: IFC Structured Finance Achievements First mortgage-backed securities (MBS) issuances in Colombia, Latvia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and United Arab Emirates First securitization of non-performing loans (NPLs) in Latin America First partial credit guarantees for bond issuance in countries including India, Russia, Saudi Arabia, and Thailand First-ever future flow securitization of student tuition payments First risk-sharing facilities for the education sector in Chile, Ghana, Indonesia, and Kenya First risk-sharing facilities for energy efficiency in China and Hungary Credit enhancement for sub-sovereign bond issuance in Guatemala, Mexico, Russia and South Africa Credit enhancement for microfinance in The Balkans, Eastern Europe (regional), Jordan, Mexico, Morocco, and Tunisia

11: Structured Finance at IFC This focus and strategy on Local Currency market development has been highly successful as shown by our global track record (39 deals mobilizing more than US$3.7 thousand million – that’s how they say billion in Colombia/Peru) of which 29 deals have been domestic/local currency. We have done more than any other multilateral and likely more than all other multilats combined. In the case of [Colombia/Peru], you have been priority or focus countries for our structured finance initiatives because the bond market is developed, investors are more sophisticated and there is a large pool of credit worthy issuers. Our strategy has been: (i) get IFC's credit/name known in the market place by issuing a bond (in addition to providing a good investment alternative to investors) and (ii) aggressively promote our structured products and bring new issuers to the market. [ In the case of Colombia we have completed 10 deals in the infrastructure, MBS and financial sectors // In the case of Peru, we have just completed our first 2 deals (USMP and Drokasa)]. Our purpose today is to build on this success and that's why we are here today. ] For the last 3 bullets only present facts for the relevant countryThis focus and strategy on Local Currency market development has been highly successful as shown by our global track record (39 deals mobilizing more than US$3.7 thousand million – that’s how they say billion in Colombia/Peru) of which 29 deals have been domestic/local currency. We have done more than any other multilateral and likely more than all other multilats combined. In the case of [Colombia/Peru], you have been priority or focus countries for our structured finance initiatives because the bond market is developed, investors are more sophisticated and there is a large pool of credit worthy issuers. Our strategy has been: (i) get IFC's credit/name known in the market place by issuing a bond (in addition to providing a good investment alternative to investors) and (ii) aggressively promote our structured products and bring new issuers to the market. [ In the case of Colombia we have completed 10 deals in the infrastructure, MBS and financial sectors // In the case of Peru, we have just completed our first 2 deals (USMP and Drokasa)]. Our purpose today is to build on this success and that's why we are here today. ] For the last 3 bullets only present facts for the relevant country

12: Derivatives Products at IFC This focus and strategy on Local Currency market development has been highly successful as shown by our global track record (39 deals mobilizing more than US$3.7 thousand million – that’s how they say billion in Colombia/Peru) of which 29 deals have been domestic/local currency. We have done more than any other multilateral and likely more than all other multilats combined. In the case of [Colombia/Peru], you have been priority or focus countries for our structured finance initiatives because the bond market is developed, investors are more sophisticated and there is a large pool of credit worthy issuers. Our strategy has been: (i) get IFC's credit/name known in the market place by issuing a bond (in addition to providing a good investment alternative to investors) and (ii) aggressively promote our structured products and bring new issuers to the market. [ In the case of Colombia we have completed 10 deals in the infrastructure, MBS and financial sectors // In the case of Peru, we have just completed our first 2 deals (USMP and Drokasa)]. Our purpose today is to build on this success and that's why we are here today. ] For the last 3 bullets only present facts for the relevant countryThis focus and strategy on Local Currency market development has been highly successful as shown by our global track record (39 deals mobilizing more than US$3.7 thousand million – that’s how they say billion in Colombia/Peru) of which 29 deals have been domestic/local currency. We have done more than any other multilateral and likely more than all other multilats combined. In the case of [Colombia/Peru], you have been priority or focus countries for our structured finance initiatives because the bond market is developed, investors are more sophisticated and there is a large pool of credit worthy issuers. Our strategy has been: (i) get IFC's credit/name known in the market place by issuing a bond (in addition to providing a good investment alternative to investors) and (ii) aggressively promote our structured products and bring new issuers to the market. [ In the case of Colombia we have completed 10 deals in the infrastructure, MBS and financial sectors // In the case of Peru, we have just completed our first 2 deals (USMP and Drokasa)]. Our purpose today is to build on this success and that's why we are here today. ] For the last 3 bullets only present facts for the relevant country

13: Contacts Structured Finance Products Nathalie Louat ([email protected]) East Asia South Asia Sub-Saharan Africa Laila Nordine ([email protected]) Latin America Eastern Europe Southern Europe Middle East North Africa Lee Meddin ([email protected]) Derivative Products Shanker Krishnan ([email protected]) Syndicated Loans Stefania Berla ([email protected])

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