Municipal Fund. Global Finance for Local Needs October 1, 2004. Table of Contents. The World Bank Group and Municipal Finance The Municipal Fund Background Investment Criteria The City of Johannesburg Bond TMWC Mexico Our Pipeline. The World Bank Group and Municipal Finance.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Global Finance for Local Needs
October 1, 2004
Thus, the Bank Group has a gap for investment in well run sub-sovereign operations without sovereign guarantees
The Municipal Fund
The Municipal Fund, a joint World Bank/IFC initiative seeks to help fill this gap by structuring and investing in sub-sovereign projects in emerging markets.
Financial situation of borrowing entity.
Predictability of cash flows to repay debt.
Tariff reform for utility projects.
Supplementary to the World Bank.
Degree of decentralization in the country.
Degree of municipal/state level control.
Essentiality of investments.
Degree of commercialization.
independence of operations.
Capital market component.
Absence of direct or implied liability for the sovereign.
Potential for local currency financing.Municipal Fund Investment Criteria
Of the YearExample: TMWC Mexico
Bond of the Year
2) Trustee issues loan to
Municipality and water
Company and then transferred
the net funds to water company.
3) Pledges proceeds from
Water fees for the payment
of the loan granted by the
Beneficiary of the
4) Issue guarantee to
cover P + I .
The Trustee issues
certificates to investors.
5) Domestic investors buy certificates;
Debt service funded from water fees.
Certificates are enhanced by cash
reserves and guarantee.
Of the trust