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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 (most often the country's finance minister or treasury secretary).[ Ottenhoff, Jenny (2011). International Finance Corporation (Report). Center for Global Development. Retrieved 2012-06-05.] 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.[ International Finance Corporation (2011). IFC Annual Report 2011: I Am Opportunity (Report). World Bank Group. Retrieved 2012-06-09.] 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.[ International Finance Corporation (2011). IFC Annual Report 2011: I Am Opportunity (Report). World Bank Group. Retrieved 2012-06-09.] The IFC's Executive Vice President and CEO oversees its overall direction and daily operations.[ Ottenhoff, Jenny (2011). International Finance Corporation (Report). Center for Global Development. Retrieved 2012-06-05.]As of October 2012, Jin-Yong Cai serves as the Executive Vice President and CEO of the IFC.[ International Finance Corporation (2012). IFC Organizational Structure (PDF) (Report). World Bank Group. Retrieved 2012-09-27] 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.[ "UPDATE 1-World Bank taps Jin-Yong Cai to head private sector lender". Reuters. 2012-08-10. Retrieved 2012-08-12.] Cai is a Chinese citizen who formerly served as a managing director for Goldman Sachs and has over 20 years of financial sector experience.[ "Chinese national to head World Bank arm". The Indian Express. 2012-08-12. Retrieved 2012-08-12] 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. The corporation's total investments in 2011 amounted to $18.66 billion. It committed $820 million to advisory services for 642 projects in 2011, and held $24.5 billion worth of liquid assets. The IFC is in good financial standing and received the highest ratings from two independent credit rating agencies in 2010 and 2011.[ https://en.wikipedia.org/wiki/International_Finance_Corporation] Recent Projects undertaken by IFC[ IFC Project Database in IFC main website. ] 1.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 2.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. 18 http://finmin.nic.in/the_ministry/dept_eco_affairs/MI/India_WB.pdf RECENT NEWS 1)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. 2)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. IFC OBJECTIVE[http://www.yourarticlelibrary.com/organization/international-finance-corporation-i-f-c-objectives-and-working/26265/ 18 http://finmin.nic.in/the_ministry/dept_eco_affairs/MI/India_WB.pdf] 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. 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
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IFC INTERNATIONAL FINANCE CORPORATION
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.
The IFC is a member of the World Bank Group and is headquartered inWashington, 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 • 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.
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
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
SERVICES • Loans • Equity • Trade and Supply Chain Finance • Syndications • Treasury Client Solutions • Venture Capital • Advisory • Asset Management
EXPERTISE • Agribusiness and Forestry • Financial Institutions • Funds • Health and Education • Infrastructure • Manufacturing • Oil, Gas, and Mining • Public-Private Partnerships • Telecommunications, Media and Technology • Tourism, Retail and Property
PURPOSE OF FORMING IFC The Purpose of forming IFC is • 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.
OBJECTIVES • 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. • To serve as a clearing house to bring together investment opportunities, private capital (both foreign and domestic) and experienced management. • To help in stimulating the productive investment of private capital, both domestic and foreign.
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).
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.
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.
INDIA’S ROLE IN IFC • India is one of the founder members of IBRD, IDA and IFC. • First investment of IFC in India took place in 1959 with US$ 1.5 million. India became a member of MIGA in January 1994. • 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. AminulIslam from Bangladesh is currently the Alternate Executive Director for this constituency.
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
INVESTMENTS & PROJECTS 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. • The corporation's total investments in 2011 amounted to $18.66 billion. • It committed $820 million to advisory services for 642 projects in 2011, and held $24.5 billion worth of liquid assets. • The IFC is in good financial standing and received the highest ratings from two independent credit rating agencies in 2010 and 2011.
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
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.
RECENT NEWS (IFC PRESS RELEASE) • Bhopal, India, January 16, 2016 IFC, a member of the World Bank Group, is working withthe 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.
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.
THANK YOU BY M V S SAI HEMANT BBA FT 2ND YR 500035767 R122214014
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