Supporting Private Education in Emerging Markets September 2010.

Slides:



Advertisements
Similar presentations
Center for Emerging Market Enterprises
Advertisements

Международная финансовая корпорация Член Группы Всемирного банка Corporate Governance as Integral Part of Risk Assessment – The IFC Approach Yerevan May.
IFC 2009 Creating Opportunity. 2 Our Vision That people should have the opportunity to escape poverty and improve their lives We foster sustainable economic.
IFC Creating Opportunity Where It’s Needed Most. 2 IFC is the largest global development institution focused exclusively on the private sector – the global.
IFC Investing in Student Lending
Capital Markets and Resource Mobilization
International Finance Corporation May 2013 Istanbul
IFC: A MEMBER OF THE WORLD BANK GROUP
EBRD Financing for Rural Communication Infrastructure Tokyo August 2004   
Investing in Employment and Entrepreneurship
IFC in Serbia Creating Opportunity Where It’s Needed Most March,2011.
WHAT PERSPECTIVES FOR FUNDING ACP AGRICULTURE? Pressing challenges, Innovative Financing Mechanisms: the perspective of the African Development Bank.
Achieving Our Goals Through Partnerships Women’s World Banking Mary Ellen IskenderianSeptember 7,2010.
1 Supporting Private Health Care in Emerging Markets January 2011.
1 An Asian Investment Fund: What it will do and Why needed? Yung Chul Park Research Professor And Director Center for International Commerce and Finance.
Financing Agricultural Investments: Leasing as Credit Alternative Expert Meeting on Managing Risk in Financing Agriculture Johannesburg, 1-3 April, 2009.
Five Agencies – One Group World Bank Group Institutional Roles IBRD lends to governments of middle-income developing countries.IBRD lends to governments.
U.S. Private Equity Fundraising Hedge Funds.
IFC recent experience in FRY Roberto Albisetti – Chief of Mission IFC Belgrade 4 February, 2003 – European Movement, Belgrade Economic Forum.
Presentation of the Central America Small Enterprise Investment Fund´s experience Buenos Aires, Argentine Oct 21, 2005 Management company.
Africa Rail 2009 Workshop 23 June 2009 Different Types of Financing for Mobile Equipment Greg McKenzie Head of Asset Finance, Investment Banking Division,
Property Finance by EBRD
Inter-American Investment Corporation IDB Business Seminar: Education & Health Thursday, July 15, 2004 David Levy, Investment Officer Emilio Lozoya, Special.
Current experiences, opportunities and innovations of municipal financing in Ho Chi Minh City, Vietnam Presentation to International Conference on Financing.
Private Sector Operations The AfDB as a Development and Business Partner July 20, 2011.
Financing Solutions for Urban Infrastructure. IFC Approach to Financing 1.
Inter-American Development Bank June 4, Inter-American Development Bank Private Sector Department Kevin Corrigan Head-Syndications Tel.:
OVERVIEW OF CAPITAL MARKET DEVELOPMENT IN THE LAC REGION Carolin A. Crabbe Infrastructure and Financial Markets Division INTER-AMERICAN DEVELOPMENT BANK.
1 UN Group Meeting - “Rethinking the Role of National Development Banks” Demian Fiocca Vice President – BNDES December, BNDES:
ANNUAL REPORT THE WORLD BANK The International Bank for Reconstruction and Development Established Members Cumulative lending: $420.2 billion.
VIENNA ECONOMIC FORUM Go South East – Invest in Moldova – Invest in the Region Chisinau Meeting – 20/21 February 2008 Working with Black Sea Trade & Development.
IDB: Financing with the Private Sector Coverage:  Project Finance  Corporate Finance  Capital Markets  Trade Finance Presence in the Market:  Operations.
Financing Green Industries in Asia IFC Experience Manila, Philippines September, 2009.
Natural Resources & Related Industries Natexis Banques Populaires FINANCING THE INDEPENDENTS NOT AN OFFICIAL UNCTAD RECORD.
International Finance Corporation We promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s.
Inter-American Development Bank Private Sector Financing and the IDB Presentation by the IDB Private Sector Department February 2004.
Financing Energy Projects in Developing & Transition Economies APEC EGNRET Workshop on Financing New and Renewable Projects May 2004, Hawaii Yonghun.
Mission To expand the economic assets, participation, and power of low-income women and their households by helping them.
IFC’s Financing Instruments. IFC’s Mission To promote sustainable private sector investment in developing countries, helping to reduce poverty and improve.
The Role of Investment Banks in the Securitization Process Russian Securitization Forum New York, September 2007.
IFC in Agribusiness Funds October 14, IFC has invested over $100 billion in Emerging Markets since 1956 Largest multilateral source of loan/equity.
INTERNATIONAL FINANCE Lecture 6. Balance of Payment (Accounting of transactions) – Current Account – Capital Account Current Account (Purchase Summary)
Country Partnership Strategy FY12-16 Consultations with Civil Society The World Bank Group June 2, 2011.
International Finance Corporation World Bank. How the IFC differentiates…. investment partner with a long-term commitment in a project (equity up to 7.
IFC AT A GLANCE FINANCE OPPORTUNITIES FOR THE PRIVATE SECTOR.
MEDEF MEETING March 7, 2012 A.T. Shaukat Chief Engineer Global Infrastructure & Natural Resources.
IFC Crisis Response in Corporate Governance May 13, 2009 Santiago de Chile.
THE WORLD BANK History Since inception in 1944, the World Bank has expanded from a single institution to a closely associated.
FINANCE FORUM 2002 Policy and Transactions - Synergies between the Bank and the IFC - Experience of IFC’s Investments in Korea’s Financial Sector between.
Access to Sustainable Energy for LAC: Solutions to Regional Challenges Structured and Corporate Finance Department Rachel Robboy Pr. Investment Officer.
European Bank for Reconstruction and Development Financing Renewable Energy Projects in Bulgaria Anton Kobakov Senior Banker RO Sofia, Bulgaria.
Private sector development financing, microfinance and Naisten Pankki (Women’s Bank) Helena Arlander January 2010.
The IDB Group Instruments and Services for Non-Sovereign Clients Private Sector Coordination Office January 2007.
International Finance Corporation (IFC) World Bank Group Financing Infrastructure Projects in Central Asia Kazakhstan Spain Multilateral Partnership
OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) OPIC’s capability, efficiency and effectiveness in promoting ICT related projects and mobilizing America’s.
Financing Healthcare Infrastructure – Perspective of the Islamic Corporation for the Development of the Private Sector (ICD) Saeed Jaweed Ahmad October.
Funding private projects in challenging markets March 2010.
Clean Energy Finance Raising and Placing Capital in Energy SMEs World Bank Energy Week March 2006 Christine Eibs Singer
THE WORLD BANK - INTERNATIONAL FINANCE CORPORATION - MULTILATERAL INVESTMENT GUARANTEE AGENCY.
USAID’s Development Credit Authority seeks to mitigate market imperfections. DCA is USAID’s legal authority to issue partial credit guarantees to private.
The World Bank Group Annual Report
“Agribusiness Financing: Innovative Financial Solutions”
IFC 2008 Creating Opportunity.
The World Bank Group -Special Lecture at Incheon National University
EBRD in Greece October 2016 Financing Growth
Elena Petkova Yasen Andreev 76324
Working with the European Bank for Reconstruction and Development
The New Bank and Private Sector Activities
Investment, Trade & Transport Facilitation
Yoichiro Ishihara Resident Representative
Presentation transcript:

Supporting Private Education in Emerging Markets September 2010

2 International Finance Corporation at a glance 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. IFC Financing as of June 30, 2009 Total Commitments: US$10.5 billion for own account, US$4.0 billion mobilized *Includes loans, equity, guarantees, risk management products Infrastructure 17%Global Manufacturing and Services 18% Subnational Finance 1% Private Equity and Investment Funds 5% Health and Education 2% Global Financial Markets Group 36% Oil, Gas, Mining, and Chemicals 10% Agribusiness 7% Global ICT 4% IFC Portfolio as of June 30, 2009, by Industry Total US$32.4 Billion IFC Portfolio as of June 30, 2009, by Region Total US$32.4 Billion Middle East and North Africa 11% Europe and Central Asia 26% East Asia and the Pacific 14% Sub-Saharan Africa 11% South Asia 12% Global 1% Latin America and the Caribbean 25% IFC FY09 Annual Report data

3 IFC has a well established franchise in Latin America Historical Commitments US$ millions Fiscal Year 2009 Commitments US$ millions Loans US$ 1,648 Syndications US$670 Guarantees and RM US$824 Equity US$250 US$ 3,392 million IFC Portfolio by Country (largest exposure) US$ millions Brazil US$ 2,364 Argentina US$1,054 Colombia US$873 US$ 12,201 million Total Committed PortfolioUS$12,201 Committed portfolio for IFC’s account US$8,776 Committed portfolio held for others (loan and guarantee participants) US$3,425 Regional Portfolio US$ millions IFC FY09 Annual Report data

4 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

 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 5 Summary of IFC Investments in Education * Total education portfolio size US$316 million

Examples of IFC Investments in Education Education US$30mm Bond Guarantee Chile US$30mm Senior Loan Mexico US$8mm Senior Loan Argentina US$39mm in Senior Loans Brazil US$30mm Senior Loan US$50mm Guarantee Chile US$18.4mm Guarantee Pakistan US$30mm in Senior Loans US$1mm Capital Mexico US$5mm Senior Loan Trinidad Tobago US$8mm Senior Loan Lebanon US$7.3mm Senior Loan Vietnam US$12mm Senior Loan Turkey US$5mm Senior Loan Uruguay US$2.5mm Senior Loan Ghana US$8mm Equity Investment Mexico US$14mm Student Loan Guarantee Brazil

7 Global Trends in Education Demand Side: Demographic Factors : <25 year old -- over 2 bln in emerging markets 0,7% annual growth Rising income levels and increasing expectations Economic growth fueling need for educated labor force Increasing demand for secondary, technical and vocational education and training (TVET) Supply Side: Significant growth in primary/secondary education (Education for All) Highly fragmented industry Franchise model gaining traction esp. in tertiary education Governments unable to meet demand and keen to pursue PPPs Technology aiding distance learning Major Regional and International Players Anhanguera Educacional Participações S/A

8 Up to 12 years final maturity and 2 to 3 years grace period for principal on average Security package typical: physical assets, pledge of shares, leases, etc. Market based pricing Available in fixed / floating and, depending on market conditions, local or USD currency IFC syndicates portions of loans in order to mobilize additional financing partners Commercial banks take comfort in IFC due diligence and structuring experience Over 150 commercial banks and other institutions currently participate in IFC’s B loan program Hybrid featuring characteristics of both debt and equity –Subordinated, convertible, income participation, bullet repayment and others Typically in the form of common or preferred stock Denominated in local currency Securitizations: asset-backed securities, including future revenues, receivables, etc. Guarantees: partial credit guarantees enhancing credit worthiness of client's financing Risk-sharing facilities: allowing for alternative risk allocation IFC provides technical assistance / advisory services in support of its clients Country and sector specific Funded by donor governments and other multilateral institutions IFC has a Full Range of Financing Capabilities Senior Loan B Loan / Syndication Mezzanine Equity Structured Products Advisory Services

9 IFC’s Teams Work Closely with Clients Identify project Analyze and discuss with company business plan and sources and uses of funds Obtain management approval to formally consider investment In-depth business review Senior management interview and site visit Obtain approval to negotiate final transaction terms Negotiate final investment terms IFC lawyers initiate draft investment documents Final approval Sign legal documents Disbursement IFC monitors the project closely Consults periodically with project managers Field missions to enterprise Requires progress reports, annual audited statements, and other material information 2 – 4 weeks 1 – 2 weeks3 – 5 weeks4 weeksAs appropriate Supervision Board Approval Negotiation & Documentation Investment Review Meeting Appraisal Identification & Review