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Learn about the International Finance Corporation's (IFC) investment strategy in the education sector, with examples of their investments and their commitment to social responsibility.
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Supporting Private Education in Emerging Markets September 2010
International Finance Corporation at a glance IFC Portfolio as of June 30, 2009, by Region Sub-Saharan Africa 11% Europe and Central Asia 26% History, ownership and vision • Founded in 1956 to foster private sector investment in the developing world • Part of the World Bank Group and owned by its 179 member countries • Vision: That poor people have the opportunity to escape poverty and to improve their lives. Global 1% South Asia 12% Middle East and North Africa 11% East Asia and the Pacific 14% Latin America and the Caribbean 25% Total US$32.4 Billion IFC Financing as of June 30, 2009Total Commitments: US$10.5 billion for own account, US$4.0 billion mobilized IFC Portfolio as of June 30, 2009, by Industry Health and Education 2% Private Equity and Investment Funds 5% Subnational Finance 1% Global ICT 4% Global Financial Markets Group 36% Agribusiness 7% Oil, Gas, Mining, andChemicals 10% Global Manufacturingand Services 18% Infrastructure 17% *Includes loans, equity, guarantees, risk management products Total US$32.4 Billion IFC FY09 Annual Report data
IFC has a well established franchise in Latin America Historical Commitments Fiscal Year 2009 Commitments US$ millions US$ millions Syndications US$670 Loans US$ 1,648 Guarantees and RM US$824 Equity US$250 US$ 3,392 million Regional Portfolio IFC Portfolio by Country (largest exposure) US$ millions US$ millions Argentina US$1,054 Brazil US$ 2,364 Colombia US$873 US$ 12,201 million IFC FY09 Annual Report data
IFC Investment Strategy: 3 Fundamental Principles • Commercially viable investments • Market based • Must produce returns • Value added beyond capital • Opportunity to help clients achieve higher standards of management and social responsibility • Strong development impact • Support projects that will expand much needed services in a socially and environmentally responsible way
Summary of IFC Investments in Education • The Education Sector is a pillar of IFC’s Strategy • IFC has invested in 64 projects in 31 countries • Total project value: US$1,577 million * Total education portfolio size US$316 million
Examples of IFC Investments in Education Education Education Education Education Education US$8mm Equity Investment Mexico US$30mm Bond Guarantee Chile US$30mm Senior Loan US$50mm Guarantee Chile US$39mm in Senior Loans Brazil US$30mm in Senior Loans US$1mm Capital Mexico US$14mm Student Loan Guarantee Brazil US$30mm Senior Loan Mexico US$7.3mm Senior Loan Vietnam US$5mm Senior Loan Uruguay US$8mm Senior Loan Argentina US$5mm Senior Loan Trinidad Tobago US$8mm Senior Loan Lebanon US$18.4mm Guarantee Pakistan US$2.5mm Senior Loan Ghana US$12mm Senior Loan Turkey
Global Trends in Education Anhanguera Educacional Participações S/A Major Regional and International Players
IFC has a Full Range of Financing Capabilities Senior Loan B Loan / Syndication Mezzanine Equity StructuredProducts Advisory Services
IFC’s Teams Work Closely with Clients Identification & Review Appraisal Investment Review Meeting Negotiation & Documentation BoardApproval Supervision