International Finance Corporation (IFC)

IFC
The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries.The IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States. It was established on July 20, 1956 as the private sector arm of the World Bank Group to advance economic development by investing in strictly for-profit and commercial projects that purport to reduce poverty and promote development.The IFC's stated aim is to create opportunities for people to escape poverty and achieve better living standards by mobilizing financial resources for private enterprise, promoting accessible and competitive markets, supporting businesses and other private sector entities, and creating jobs and delivering necessary services to those who are poverty-stricken or otherwise vulnerable. Since 2009, the IFC has focused on a set of development goals that its projects are expected to target. Its goals are to increase sustainable agriculture opportunities, improve health and education, increase access to financing for microfinance and business clients, advance infrastructure, help small businesses grow revenues, and invest in climate health.
The IFC is owned and governed by its member countries (184), but has its own executive leadership and staff that conduct its normal business operations. It is a corporation whose shareholders are member governments that provide paid-in capital and which have the right to vote on its matters.Originally more financially integrated with the World Bank Group, the IFC was established separately and eventually became authorized to operate as a financially autonomous entity and make independent investment decisions.It offers an array of debt and equity financing services and helps companies face their risk exposures, while refraining from participating in a management capacity. The corporation also offers advice to companies on making decisions, evaluating their impact on the environment and society, and being responsible.It advises governments on building infrastructure and partnerships to further support private sector development. The IFC is governed by its Board of Governors which meets annually and consists of one governor per member country.Each member typically appoints one governor and also one alternate.[ International Finance Corporation (2010). IFC Annual Report 2010: Where Innovation Meets Impact (Report). World Bank Group. Retrieved 2012-06-09.] Although corporate authority rests with the Board of Governors, the governors delegate most of their corporate powers and their authority over daily matters such as lending and business operations to the Board of Directors.The IFC's Board of Directors consists of 25 executive directors who meet regularly and work at the IFC's headquarters, and is chaired by the President of the World Bank Group.

1. IFC
INTERNATIONAL FINANCE
CORPORATION
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2. INTRODUCTION
·Six decades of creating opportunity – Created on 20 July
1956.
·IFC is the largest organization of its kind.
·184 countries are members of IFC.
·Holds $48.8 billion portfolio touching almost every major
industry.
·Reach millions of people in over 100 countries.
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3. The IFC is a member of the World Bank Group and is
headquartered in Washington, D.C., United States.
The International Finance Corporation (IFC) is an
international financial institution that offers investment,
advisory, and asset management services to encourage
private sector development in developing
countries(MEMBER).
Since 2009, Its goals are to increase
1.sustainable agriculture opportunities,
2.improve health and education,
3.increase access to financing for microfinance and
business clients,
4.advance infrastructure,
5.help small businesses grow revenues,
6.and invest in climate health.
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4. WORLD BANK GROUP
IBRD: International Bank for Reconstruction and
Development
IFC : International Finance Corporation
IDA : International Development Association
MIGA : Multilateral Investment Gurantee Agency
ICSID : International Centre for Settlement of Investment
disputes
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5. PLACES WHERE IFC WORKS
IFC OPERATES IN MORE THAN 100 COUNTRIES.
East Asia & Pacific
Europe & Central Asia
Latin America & Caribbean
Middle East & North Africa
South Asia
Sub Saharan Africa
Western Europe
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6. PLACES WHERE IFC
WORKS
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7. SERVICES
1. Loans
2. Equity
3. Trade and Supply Chain Finance
4. Syndications
5. Treasury Client Solutions
6. Venture Capital
7. Advisory
8. Asset Management
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8. EXPERTISE
1. Agribusiness and Forestry
2. Financial Institutions
3. Funds
4. Health and Education
5. Infrastructure
6. Manufacturing
7. Oil, Gas, and Mining
8. Public-Private Partnerships
9. Telecommunications, Media and Technology
10. Tourism, Retail and Property
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9. PURPOSE OF FORMING
IFC
The Purpose of forming IFC is
1.create opportunities for people to escape poverty
and achieve better living standards by mobilizing
financial resources for private enterprise,
2.promoting accessible and competitive markets,
3.supporting businesses and other private sector
entities,
4.and creating jobs and delivering necessary
services to those who are poverty-stricken or
otherwise vulnerable.
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10. OBJECTIVES
1.To invest in productive private enterprises, in
association with private investors, and without
government guarantee of repayment, in cases where
sufficient private capital is not available on
reasonable terms.
2.To serve as a clearing house to bring together
investment opportunities, private capital (both
foreign and domestic) and experienced management.
3.To help in stimulating the productive investment of
private capital, both domestic and foreign.
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11. GOVERNANCE
The IFC is owned and governed by its member
countries (184), but has its own executive leadership
and staff that conduct its normal business
operations.
It is a corporation whose shareholders are member
governments that provide paid-in capital and which
have the right to vote on its matters.
The IFC is governed by its Board of Governors
which meets annually and consists of one governor
per member country (most often the country's
finance minister or treasury secretary).
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12. Each member typically appoints one governor and also one
alternate. Although corporate authority rests with the Board
of Governors, the governors delegate most of their
corporate powers and their authority over daily matters
such as lending and business operations to the Board of
Directors.
The IFC's Board of Directors consists of 25 executive
directors who meet regularly and work at the IFC's
headquarters, and is chaired by the President of the World
Bank Group.
The executive directors collectively represent all 184
member countries. When the IFC's Board of Directors
votes on matters brought before it, each executive
director's vote is weighted according to the total share
capital of the member countries represented by that
director.
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13. The IFC's Executive Vice President and CEO oversees its
overall direction and daily operations.
As of October 2012, Jin-Yong Cai serves as the Executive
Vice President and CEO of the IFC.
President of the World Bank Group Jim Yong Kim
appointed Jin-Yong Cai to serve as the new Executive Vice
President and CEO of the IFC.
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14. INDIA’S ROLE IN IFC
1.India is one of the founder members of IBRD, IDA and
IFC.
2.First investment of IFC in India took place in 1959 with
US$ 1.5 million. India became a member of MIGA in
January 1994.
3.India has an Executive Director, in the Board of
Directors of IBRD / IFC / IDA/ MIGA. The Executive
Director from India represents a constituency
comprising of four countries: India, Bangladesh,
Bhutan and Sri Lanka. Mr. M. N. Prasad represents
India in the Board of Directors w. e. f. 30th September
2011. Mr. Kazi M. Aminul Islam from Bangladesh is
currently the Alternate Executive Director for this
constituency.
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15. FUND MOBILIZATION
IFC mobilizes its funds through either Central Banks
(or other Banks which they consider eligible) present
in within the country or in another country.
Examples of such banks,
AKA Export Finance Bank, DHB Bank (Nederland)
N.V., ING Bank N.V., Intesa Sanpaolo S.p.A.,
RosEvroBank JSCB, and Sumitomo Mitsui Banking
Corporation
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16. INVESTMENTS &
PROJECTS
1.The corporation is assessed by an independent evaluator
each year. In 2011, its evaluation report recognized that its
investments performed well and reduced poverty, but
recommended that the corporation define poverty and
expected outcomes more explicitly to better-understand its
effectiveness and approach poverty reduction more
strategically.
2.The corporation's total investments in 2011 amounted to
$18.66 billion.
3.It committed $820 million to advisory services for 642 projects
in 2011, and held $24.5 billion worth of liquid assets.
4.The IFC is in good financial standing and received the highest
ratings from two independent credit rating agencies in 2010
and 2011. 16

17. LIST OF RECENT
PROJECTS
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S. NO. COMPANY DATE COUNTRY
1 Canvest Environmental
Protection Group
Company Limited
JANUARY 20, 2016 CHINA
2 UNITED BANK FOR
AFRICA PLC
JANUARY 20, 2016 NIGERIA
3 ACL ASEAN Tower
Holdco Limited
JANUARY 19, 2016 VIETNAM
4 FOTOWATIO
RENEWABLE
VENTURES BV
JANUARY 14, 2016 JORDON
5 OLAM
INTERNATIONAL
LIMITED
JANUARY 6, 2016 SINGAPORE,
INDIA, NIGERIA
6 NOBLE AGRI DECEMBER 29, 2016 CHINA

18. RECENT PROJECTS
Company name: OLAM INTERNATIONAL LTD.
Date: January 6, 2016
IFC is considering an up to US$100 million loan facility and up to US$75
million mobilization to Olam International Limited (“Olam” or the
“Borrower”), a global agri-business group headquartered in Singapore and
listed on the Singapore Stock Exchange (SGX: Olam). The proceeds of the
loan provided by IFC shall be used for financing permanent working capital
and capital expenditure requirements in respect of Approved Projects.
Approved Projects are projects of Olam’s subsidiaries that are pre-agreed
between Olam and IFC in the Loan Agreement. Currently, approved
projects are expected to consist of the following:
India – Hemarus Industries Limited - Sugar and Cogeneration Facility
India – SVI Spices Processing Facility
Nigeria – Crown Flour Mill Factory
Nigeria – Greenfield Sesame Hulling Unit
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19. Company name: NOBLE AGRI LTD.
Date: December 29, 2015
Noble Agri, recently spun out of Noble Group, is a global agri
commodities company, involved in the origination, processing
and distribution of grains and oilseeds, sugar and ethanol, and
other soft commodities (coffee and cotton). It operates through
60 major offices around the world, including Brazil, China,
Argentina, Eastern Europe, India and South Africa and has over
13,000 employees. IFC is considering an investment to
participate its pro-rata share to buy out the 49% minority stake of
Noble Group in Noble Agri, together with COFCO Corporation
(“COFCO”), the leading agribusiness group in China, and an
international consortium of investors (IC, including IFC, HOPU
Fund and other investors). This is a follow-on investment (project
no. 34738) in which COFCO and the IC bought a 51%
shareholding in Noble Agri through a subsidiary and created a
joint-venture trading platform to capitalize on potential synergies
across the supply chain with COFCO. IFC’s investment
transferred into an indirect ownership of 4.6 percent in Noble
Agri.
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20. RECENT NEWS (IFC PRESS
RELEASE)
Bhopal, India, January 16, 2016
IFC, a member of the World Bank Group, is working with
the Indian government to assist in meeting its large-scale
solar energy generation goals. IFC is supporting the
government of Madhya Pradesh to set up the 750-MW
Rewa ultra-mega solar power project. This will be the
largest single-site solar power project in the world.
Kyiv, Ukraine, October 7, 2015
IFC and Raiffeisen Bank Aval are launching a new risk-
sharing facility that will enable farmers to buy crop
protection products on credit from industry leader Bayer,
with the purchases to be paid in full once the year’s crops
are sold. It will cover up to $60 million of seasonal
payment obligations to Bayer, of which IFC will
guarantee up to half the value.
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21. GLOBAL GDP GROWTH
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23. PERFORMANCE LEVEL OF IFC
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YEAR COMMITMENTS
In Million USD
DISTRIBUTED
In Million USD
PERFORMANCE
LEVEL
2010 12664 6793 53.60%
2011 12186 6715 55.10%
2012 15462 7981 51.61%
2013 18349 9971 54.34%
2014 17261 9904 57.37%

24. PERFORMANCE LEVEL
OF IFC
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25. CONCLUSION
The graph in previous slide tells us that the IFC is showing
increasing trend in its performance but still there is a lot to
acheive for IFC.
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26. ANY DOUBTS OR
QUESTIONS
YOU ARE MOST
WELCOME
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