Financing A Cleaner Future in Thailand Bangkok, Thailand July 15, 2009

2 Defining Characteristics of IFC  Owned by 179 member countries  Provides loans and equities for private sector projects  Does not accept government guarantees  Shares same risks as other investors  Is commercially oriented  Driven by risk-reward considerations  Market leader in environmental & social performance standards  Equator Principles  Rated AAA (S&P) and Aaa (Moody’s)

3 IFC has over 100 country and regional advisory services offices worldwide

4 Senior DebtStructured Finance Mezzanine Finance On-lending Liquidity management Acquisition financing Warehousing facilities Syndicated loans Partial credit guarantees Securitization Bond underwriting Global Trade Finance Program Convertible debt Subordinated debt Other Tier II instruments Private Equity Common shares Preferred shares Advisory Services Corporate governance Risk management Small and medium business banking Housing finance Energy efficiency finance Sustainable Finance Carbon finance Renewable energy Supply chain financing Energy efficiency Cleaner production IFC’s Products and Services

5 IFC has been successfully assessing and assuming risks in emerging markets for the last 50 years…

6 …spread across several sectors

3 Scenarios for Thailand GHG Emissions in 2005 (Million Tons of CO2 Equivalent) GDP Carbon Efficiency (Tons of CO2 /$1000 GDP) Per Capita Carbon Capacity (Tons of CO2 / Person) Thailand World27, EmissionsIn million tons of CO2 equivalent greenhouse gases emissions Unconstrained Growth 2030 Frozen Tech Scenario Technologies and their penetration frozen at 2005 level Policy Scenario Reduction 2030 Policy Scenario Assume existing energy, energy efficiency and transportation policy Abatement Potential Increase renewable energy in total energy mix, improve energy efficiency in industrial, commercial and residential sectors, mass transportation and fuel efficiency 2030 Abatement Scenario Full technical abatement potential realized, with support of CTF and other mechnisms 227M 11,741M 11,968M Tons of CO2 5,250M 300M 6,200M 6,500M

Sectors and Barriers 8 Technical Technical feasibility Projects using such technologies Commercial Laws and regulations Private sector players’ willingness Economic viability Financial Equity Structured finance: mezzanine, bridge loans, construction loans, etc. Bank loans Energy Geothermal Wind Biomass Hydro Solar Energy Efficiency Waste-to-energy Industrial, commercial and residential Green lighting Building energy efficiency Transportation Public transportation Fuel efficiency Fuel switching

Improving Access-to-Finance By Mobilizing Local Financing Marketing Partners  Utility companies  Equipment vendors  ESCOs / EMCs  NGOs  Government  Focused private equity & other FIs  Carbon funds  International supply chains FI Partners  Commercial Banks  Special investment entities  Private equity funds with climate change focus  Leasing companies  Other financial institutions IFC  Provide FI partners risk sharing facilities & line of credit to encourage lending to projects of energy efficiency, renewable energy and cleaner production  Use on–the-ground and global advisory teams to support banks’ internal capacity building  Facilitate the establishment of cooperation between banks and marketing partners  Provide policy advices to local government to create better legal and regulatory environment  Promote lessons-learned sharing among FIs globally Borrowers  ESCOs  End-users  Project developers Investment FI financing Deal pipeline Project 1Project 2Project 3Project 4Project 5Project 6Project N Project implementation Marketing partnership

Sample Financing Mobilization Schemes 10 Energy Efficiency Financing Risk Sharing Facility Term: Up to 5 years Size of loans: Up to $5 million Eligible Projects: Industrial, commercial and residential EE improvements; Green lighting; Waste treatment, etc. Small Renewable Energy Project Financing Term: Up to 10 years Size of Loans: Up to $10 million Hydro Wind Geothermal Distributed generation utilizing renewable energy Biomass ESCO Financing Facility Term: Up to 5 years Size of loans: Up to $5 million Credit-worthy end-users Revenues: Fixed + variable (fixed portion sufficient to cover debt service) RE/EE/CP Mezzanine Financing Facility Term: Up to 10 years Size of loans: Up to $5 million Borrowers: Developers of small to medium- sized renewable projects Cleantech Private Equity Participation: IFC as an LP Up to 20% contribution Fund has to be have clearly- defined focus in cleantech project Energy Efficiency Leasing Term: Up to 5 years Size of loans: Up to $5 million Eligible Projects: Industrial, commercial and residential EE improvements; Green lighting; Waste treatment, etc.

Seeking Partners… 11 Financial institutions (banks, leasing companies, funds, etc.) Line of credits, risk sharing facilities, mezzanine facilities Renewable energy, energy efficiency, cleaner production Developers of renewable energy projects Equity, structured finance, mezzanine finance Renewable energy, energy efficiency, cleaner production ESCOs & companies implementing EE/CP projects Equity, structured finance, mezzanine finance Renewable energy, energy efficiency, cleaner production

Calvin Q. XU Senior Industrial Specialist Energy & Climate Change IFC East Asia & Pacific Department 14 th Floor, One Pacific Place 88 Queensway, Hong Kong Tel: | Fax: Jasper B. Virola Investment Officer Infrastructure IFC East Asia & Pacific 11th Floor, Tower One Ayala Triangle, Ayala Avenue Makati City, 1226 Philippines