Financing Green Industries in Asia IFC Experience Manila, Philippines September, 2009

Brief Introduction to IFC  Member of the World Bank Group, owned by 181 countries, AAA rated by S&P and Moody’s  Local presence in more than 85 countries  Provides loans and equity in private sector projects  Is commercially oriented, driven by risk-reward  Market leader in social and environmental performance standards – Equator Principles  Total committed investment portfolio of US$31 billion

IFC Investment Products Several types of green investments  Infrastructure – wind farm, PV cell manufacture  Clean Technology  Greening of industry

Bottlenecks for Financing in Greening of Industry Clients  Top-line or revenue focus  Perceived risks  Lack of awareness  Often a “bolt-on” and not a new investment Lenders  Size  New business  Transaction costs  Difficult to collateralize or securitize investments

Overcoming Financing Hurdles  Client Commitment  Availability of Affordable Financing  Advisory Services ― Business Development Support ― Capacity Building ― Training

IFC Cleaner Production (CP) Experience Real Sector  CP Assessments  CP Financing Facility Financial Intermediaries  Risk-sharing Facilities  Advisory Services

Common Principles and Practices  CP is commercially viable  Concessionary funding may be justifiable for following ― Advisory Services ― Demonstration cases to overcome barriers  Risk-sharing facilities have proven effective with FIs

China Utility-Based Energy Efficiency Finance (CHUEE)

Sustainable Energy Finance Program in Philippines  Local partners: ― Bank of Philippine Islands ― Metropolitan Bank and Trust Company  Broad scope of technical assistance  IFC credit lines and partial guarantees ― up to 50% of loan principal ― for local banks and leasing companies