Capital Markets Update OCT 2015

Overview of Global USD Sukuk Markets

$ 56 Islamic Takaful $ (Potential) $2,610 Bn 2014 $1346 Bn How big is the current Islamic commercial banking assets? 3,5001,5001,0002,5002, ,0000 Islamic Finance Market Overview Islamic finance segments current state (2014) Islamic Banks $ 1,346 Islamic banking assets (US$ bill) (Insurance) Takaful / retakaful assets (US$ bill) Sukuk (Bonds) $ 295 Value of Sukuk outstanding (US$ bill) Net asset value of Islamic funds (US$ bill) Funds Other Financial Institutions 2020 (Potential) $3,247 Bn 2014 $1,814 Bn 3,5001,5001,0002,5002, ,0000 How big is the current Islamic finance market assets?

Primary Sukuk Issuance 2015 USD Sukuk Issuances since 2008 GCC USD Primary Sukuk Issuances –Last 10 Months 23 $13.1 bn # USD Sukuk Issuances in 2015 Value of International Sukuk in 2015, YTD # of Sukuk issued in GCC YTD $7.42 bn Value of GCC Sukuk in 2015 YTD

Sukuk USD Market Overview 2015 Sovereign Issuances 2015 Sukuk Issuances by Structure Industry Breakdown

SUKUK vs. BONDS

 LIQUIDITY MANAGEMENT: Excellent tool for Islamic Financial Institutions to manage the liquidity  FUND RAISING: Provide a tool for corporates who are in need of cash for specific objectives such as financing long- term infrastructure projects.  SECURITIZATION: Can be used as a means to release the funds tied up in assets through securitization.  BALANCE SHEET MANAGEMENT: Achieve an optimal balance between debt and equity on a balance sheet.  PROTECTIBLE INCOME SOURCE: For investors, Sukuk can be used to receive a protectable rate of return through investment in sharia compliant assets.  TRADABILITY: These instruments are tradable and allow for easy liquidation. What are benefits of Sukuk?

What differ Sukuk from Conventional Bonds?  CLOSE LINK BETWEEN FINANCIAL AND PRODUCTIVE FLOWS AND BETTER RISK PROFILE Sukuk is based on an underlying transaction which creates a close link between financial and productive flows. In contrast, conventional bonds generally separate such risks from the underlying assets and it comes mainly from the performance of the obligor.  TRANSPARENCY The profit-sharing feature of Islamic financial transactions imposes a high level of disclosure in the financial contract.  A WIDER INVESTOR BASE Issuing sukuk also give access to a wider investor base as the instruments attract not only the Islamic investors but also conventional investors.

What differ Sukuk from Conventional Bonds? SUKUK Sukuk represent ownership stakes in existing and/or well defined assets; The underlying contract for a sukuk issuance is a permissible contract such as a lease or any of the other 14 categories defined by AAOIFI; The underlying assets monetized in a sukuk issuance must be Islamically permissible in both their nature and use e.g. a truck would always be an eligible asset but not its lease to a distillery; Notwithstanding an obligor’s creditworthiness, sukuk prices depend on the market value of the underlying asset; The sale of a sukuk represents a sale of a share of an asset; BONDS Bonds represent pure debt obligations due from the issuer; In a bond, the core relationship is a loan of money, which implies a contract whose subject is purely earning money on money (Riba); Bonds, can be issued to finance almost any purpose which is legal in its jurisdiction; Bonds depend solely on the creditworthiness of the issuer. (In case of an Issuer’s failure, unsecured bondholders join the pool pf of general creditors seeking the assets of a bankrupt company); The sale of a bond is basically the sale of a debt;

1 65% Banks 18% 17% Middle East AsiaAsia Europe Distribution by Geography (Allocation) International Finance Facility for Immunisation Company (“IFFIm”) US$200mn RegS Sukuk Issue due % 18% 4% Central Banks /Official Institutions Fund Managers Distribution by Investor Type (Allocation ) Second “Vaccine Sukuk” by IFFIm Attracted a unique investor base with an ESG focus First socially- responsible Sukuk this year, after the debut Sukuk by IFFIm last year US$ 200million Senior Sukuk Floating Rate Trust Certificates due 2018 Joint Bookrunner September 2015 Transactions Highlights On the 17 th of September, 2015, The International Finance Facility for Immunisation Company (“IFFIm”), for whom the World Bank acts as Treasury Manager, successfully priced a 3-year floating rate US$200mn Sukuk. This marks IFFIm’s second “Vaccine Sukuk”, post the success of its debut issuance in The transaction was announced on Wednesday, 16 th September with a price guidance of US$ 3m Libor + 14bps. The books were kept open overnight to allow time for the Islamic investors to get their approvals. On the 17 th September, the book was c.1.6 times oversubscribed and US$ 200mn Sukuk was launched at 3m LIBOR + 14bps. IFFIm’s unique life-saving purpose attracted interest from both traditional Sukuk investors and conventional investors with a strong Environmental, Social and Governance (“ESG”) focus, some of which invested in a Sukuk for the first time. IFFIm has so far raised US$5.2bn in the capital markets to support Gavi, the Vaccine Alliance, whose mission is to save children’s lives in poor countries through providing access to immunisation. IssuerIFFIm Sukuk Company II Limited ObligorInternational Finance Facility for Immunisation Company (“IFFIm”) Obligor RatingsAa1/AA/AA (Moody’s, S&P, Fitch) (Exp.) Issue RatingAa1 by Moody’s FormatRegulation S only Status/ StructureSenior Unsecured/ Sukuk Murabaha Issue SizeUSD 200 million Pricing Date17 th September 2015 Tenor (Maturity)3 years (29 th September 2018) Profit RateUS$ 3m LIBOR + 14bps p.a. (quarterly payments ) Issue Price100% ListingUnlisted

2 52.5% 42.5% Distribution by Geography (Allocation) 5.0% Middle East Europe Africa International Finance Corporation (“IFC”) USD 100mn Amortising RegS Sukuk due % 20.0% 5.0%5.0% Banks Official Institutions Fund Managers Distribution by Investor Type (Allocation) The tightest priced ever 5 year Sukuk The first-ever amortising Sukuk by a supranational Successfully reopened the Islamic capital markets post the summer recess USD 100 million Senior Floating Rate Sukuk due 2020 Joint Lead Manager September 2015 On the 9 th September, 2015, International Finance Corporation (“IFC), a member of the World Bank Group and the largest global development institution focused exclusively on the private sector in developing countries, successfully priced a USD 100mn floating rate, amortising Sukuk and reopened Islamic capital markets post the summer recess Following a series of investor meetings in the Middle East commencing on the 31 st August, orderbooks were opened on the 8 h September at Middle East open, with initial price guidance at US 6m Libor – 10bps. The books were kept open overnight to allow time for the Islamic investors to get their approvals. On the 9 th September, the book was c.1.25 times oversubscribed and the USD100m Sukuk was launched at US 6m LIBOR – 10bps. This issuance marks the tightest priced 5 year Sukuk as well as the first amortising Sukuk by a supranational. This also marks IFC’s first foray in the Islamic capital markets since its debut USD Sukuk in Transactions Highlights IssuerIssuerIFC Sukuk Company ObligorInternational Finance Corporation (IFC) Issue RatingAAA by S&P Issue SizeUSD 100 million FormatRegulation S only Status/ StructureSenior Unsecured/ Sukuk Wakala Pricing Date9th September 2015 Tenor (Maturity)5yrs amortising (15th September 2020) Weighted Average Life 3.75 Years Repayment USD 50 million on March 15th 2018 and USD 50 million on September 15th 2020 Profit Rate US 6m LIBOR - 10bps (p.a., payable semi- annually) Launch SpreadUS 6m LIBOR - 10bps Issue Price100% ListingNasdaq Dubai and London Stock Exchange