1. A Study
on
International Finance
Corporation
Presented To:- Presented By:-
Dr. Y.C.Joshi Ankit Rathva (11M48)
Ashish Rathod (11F49)
Nilesh Makwana (11F69)

2. Introduction Of IFC
• IFC is the largest global development finance institution
focused on the private sector – the global leader in private
sector development finance
• Driven by IFC’s vision and purpose, they make a unique
contribution to development
• they invest, advise, mobilize capital, and manage assets –
providing solutions for an inclusive and sustainable world
• It was established in 1956.
Vision of IFC is that people should have
the opportunity to escape poverty and
improve their lives.
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3. Objectives of IFC
• Strengthening the focus on frontier markets
• Addressing climate change and ensuring environmental and
social sustainability
• Addressing constraints to private sector growth in
infrastructure, health, education, and the food-supply chain
• Developing local financial markets
• Building long-term client relationships in emerging markets
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4. Review of Literature
• Allen Blackman and Geoffrey J. Bannister (1998) in many developing
countries the informal sector, comprised of low-technology unlicensed
micro-enterprises, is a major source of pollution.
• Environmental management in this sector is exceptionally challenging.
Though clean technologies offer a means of mitigating the problem, to
our knowledge there has been no rigorous empirical research on why
informal (or even small-scale) firms do and do not adopt them.
• As a first step toward filling this gap, this paper presents the results of
an econometric analysis of the diffusion of propane among informal
“traditional” brick makers in Cd. Juárez, Mexico—a leading source of
air pollution owing to their reliance on cheap, highly polluting fuels
such as used tires and scrap wood.
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5. Objectives of the study
• To study the functions of the IFC
• To study how IFC categorized the business activities
• To study how IFC promotes the growth of the private sector
in less developed member countries
• To study investment policies and activities developed by
IFC
• To study contribution of IFC in India
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6. IFC's Vision, Values, & Purpose
vision is that people should have the opportunity to escape poverty and improve their
lives.
values are excellence, commitment, integrity, teamwork, and diversity.
purpose is to create opportunity for people to escape poverty and improve their lives
by:
• Mobilizing other sources of finance for private enterprise development
• Promoting open and competitive markets in developing countries
• Supporting companies and other private sector partners where there is a gap
• Helping generate productive jobs and deliver essential services to the poor and the
vulnerable
• To achieve our purpose, IFC offers development-impact solutions through firm-
level interventions (direct investments, advisory services, and the IFC Asset
Management Company); by promoting global collective action; by strengthening
governance and standard-setting; and through business-enabling-environment
work.
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7. IFC: Reputation and Value
• IFC is the world’s largest multilateral private sector investor in the emerging
markets
• AAA rating
• Profitable every year since it was established
• 2,600+ people in our 80 offices worldwide
• In-house syndications department working with over 200 banks
• Global benchmarking – identifies and disseminates international best practice
• Advice on environmental and social issues
• Political risk mitigation
• Preferred creditor status
• IFC Performance Standards adopted through the Equator Principles by over 50
global institutions
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8. What IFC Do
• Investment Services
- In FY11, IFC invested $12.2 billion and 518 projects
- Mobilized an additional $6.5 billion to support private sector in development
countries.
• IFC Financial & Investment Projects
- Loans
- Syndication Loans
- Equity Finance
- Structured Finance
- Risk management Projects
- Local Currency & Financing
- Trade Finance
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9. • IFC Asset Management Company
- Mobilizes and manages funds on behalf of institutional investors including
sovereign funds, pension funds, and development finance institution.
- As of June 30, 2011 had approximately $4.1 billion in assets under
management.
• Funds include
- IFC Capitalization Fund
- IFC Africa, Latin America and Caribbean Fund
- The African Capitalization Fund
• Advisory Services
Business Lines:
- Access to Finance
- Investment Climate
- Sustainable Business
- Public-Private Partnerships
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10. Functions Of IFC
• It promotes sustainable private sector development
• Providing financial assistance to the private sector projects and companies
located in the developing world.
• Helping private companies based in the developing world mobilize
financing in the international financial markets.
• Providing advisory and technical assistance to the businesses and
governments
• While the World Bank finances projects with sovereign guarantees only,
the IFC finances projects without sovereign guarantees also. This means
IFC is primarily active in private sector projects
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11. Cont…
• Like a bank, IFC lends or invests its funds to its customers and expects
to make a sufficient risk-adjusted return on its global portfolio of
projects.
• IFC supports projects with positive developmental outcomes, and to
improve the outcome of such projects by various means.
• IFC provides both investment as well as advisory services.
• IFC's Advisory Services focus basically on five core areas: Access to
Finance, Business Enabling Environment, Environmental & Social
Sustainability, Infrastructure Advisory, and Corporate Advice.
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12. IFC’s Operation
• Financing services
• Protection of interest
• Applicability of Certain Foreign Exchange
Restrictions
• Valuation of Currencies
• Warning to be Placed on Securities
• Political Activity Prohibited
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13. IFC Investment Guidelines
 Private sector, with strong sponsor commitment
 Financially, economically, environmentally, and socially sound
 Maximum IFC share (excluding syndications)
 • 25% of project cost over $50 million
 • 35% of project cost under $50 million
 • 40% of project costs for expansion projects
 Investment size
 • Typically $5 million to over $100 million
 Projects and IFC’s investment are expected to earn competitive and commercial
rates of return:
 • Comprehensive security package required for loans
 • Reasonable exits are expected for IFC equity and quasi-equity
investments
 Expert IFC teams work closely with the client to finalize the investment
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14. Partners & Stakeholders
As a global financier with operations in many regions and sectors, IFC
works with a wide range of groups that have a stake in our projects, are
affected by our work, or help us strengthen our impact on sustainable
private sector development.
Our partners, stakeholders, and outreach include:
• Civil society
• Development institutions
• Donors
• Foundations & companies
• IFC member countries
• Media
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15. Sustainable Development at IFC
• IFC has well established and rigorous standards for
environmental, social, and positive economic
impact
• IFC works with clients to maximize the positive
impact of projects we finance
• In many cases, this leads to reduced risks and long
run financial benefits
• Particularly important in African context
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16. Global Infrastructure Department
• Power
• Renewable Energy
• Transport
• Water
• Infraventures
• Telecoms
• Oil, Gas & Mining
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17. A Valuable Partner
they are well-positioned to help clients in good times and
bad they offer:
• A strong financial position
• Low leverage ratios, prudent risk management policies
• A long-term partnership perspective, providing clients
important countercyclical financing when commercial banks
cut back
• The expertise and experience needed to make a difference,
focusing on innovative transactions where our development
impact is the highest – creating opportunity where it is
needed most
• Affiliation with the World Bank
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18. IFC’s Global Reach
100+ country and regional offices worldwide
3,500 staff, of which 55% are outside of Washington
Moscow
Almaty
Washington
Istanbul
Cairo New Delhi
Mexico City
Hong Kong
Dakar
Port-of-Spain
Bogota
Nairobi
São Paulo Johannesburg
Buenos Aires
IFC HQ/Hub Offices
IFC Operational Center
IFC Country Offices
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19. Their Core Businesses
Asset
Investment Advisory
Management
Services Services
Company
• Loans • Access to finance • Wholly owned
• Equity • Sustainable subsidiary of IFC
• Trade finance Business • Private equity fund
• Investment manager
• Syndications
Climate • Invests third-party
• Securitized finance capital alongside IFC
• Public-Private
• Other financial products
Partnerships
$55.2 b $4.1b
$200m
portfolio under
per year
mgmt
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20. The Reach of IFC’s Projects
IFC’s activities help raise living standards
for people throughout the developing world
Last year their clients provided:
• 2.2 million jobs
• $112 billion in micro, small, and medium enterprise loans
• 8 million patients with health care treatment
• 35 million people with clean water
• 1.4 million students with education services
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21. Financing Criteria
• Located in a developing country that is a member of IFC
• Be in the private sector
• Be technically sound
• Have good prospects of being profitable
• Benefit the local economy
• Be environmentally and socially sound, satisfying IFC
environmental and social standards as theyll as those of the
host country
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22. IFC Financing
$20bn
IFC’s own account Mobilization*
20
15
$15bn
10
$10bn
5
$5bn
0
$0
FY07 FY08 FY09 FY10 FY11 FY12
* Mobilization includes syndicated loans, structured finance, IFC initiatives and other,
and IFC Asset Management Company.
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23. Investments by Region, FY11
Commitments for IFC’s Account: $12.2 Billion
Global >1% Sub-Saharan Africa 18%
Middle East and North Africa 13%
East Asia and Pacific 16%
Latin America and the
Caribbean 25%
South Asia 6%
Europe and Central Asia 22%
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24. Investments by Industry, FY11
Commitments for IFC’s Account: $12.2 Billion
Agribusiness & Forestry
Other Sectors 4%
>1% Consumer & Social Services
Trade Finance 4%
38%
Financial Markets
25%
Telecommunications
& Information Technology Funds
3% 4%
Oil, Gas & Mining Infrastructure
2% Manufacturing 13%
7%
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25. IFC and India
(Reducing poverty together)
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26. • Long term partner-first investment in India in 1958
• Regional hub of south Africa (including Bangladesh, Bhutan, Maldives,
Nepal, Sri lanka)
• Office in India Delhi, Mumbai, Chennai, and Kolkata.
• Cumulative IFC investments, India-march 2012 ($6.8bn)
• IFC committed portfolio , India- December 2012 ($3.6bn)
• IFC against AIDS
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27. IFC In India
• Since 1956, IFC has invested in 264 companies in
India, providing over $7 billion in financing for its
own account and $2.1 billion in mobilization from
external resources.
• portfolio of $3.7 billion (as of June 2012) makes
India IFC's largest country of operations
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28. IFC investment in India
 1950-60: Kirloskar Oil Engines
 1970: HDFC, Zauri Industries etc.
 1980: Ashok Leyland, mahendra & Mahindra, Tata steel, etc
 1990: Moser baer, IDFC, Jet Airways,
 2000: Apollo tyres, Dabur Pharma, ING vysya, TVS motors, Cairn India etc.
 28
2010: Central bank of india, Auro mira and Utkarsh Microfinance

29. What does IFC look for in its people?
• Technical expertise
• Diverse nationalities and experience
• Strong interpersonal and teamwork skills
• Commitment to the IFC mission
• Leadership potential
• Language proficiency
• Enthusiasm for working in a multicultural environment
• Interest to live in emerging markets
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30. Global Recognition
Best Overall
Development Finance Multilateral of
Institution and Best the Year Award
DFI in Africa
Project Finance
Trade Finance International
Deal of the
Magazine
Decade Award January 2011
July 2011 (BTC Pipeline)
Infrastructure
Journal
Renewable Deal of the April 2011 Multilateral
Year for Asia Pacific Agency of the
(China WindPotheyr Year
Group)
Infrastructure
Project Finance Journal
International
April 2011
June 2011
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31. Who they Are, What they Do
• IFC is the largest global development finance institution focused on
the private sector – the global leader in private sector development
finance
• they create opportunity for people – to escape poverty and improve
their lives
• Driven by our vision and purpose, they make a unique contribution
to development
• they invest, advise, mobilize capital, and manage assets – providing
solutions for an inclusive and sustainable world
31

32. Conclusion
• IFC, a member of the World Bank Group, is the largest
global development institution focused exclusively on the
private sector in developing countries.
• IFC Industries (Sectors) are in charge of processing IFC
transactions. They also provide the Regional Departments
with the expertise and knowledge needed to process new
projects.
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33. The most sensitive needs for energy, water, roads, phone
connections, healthcare, education, sanitation, waste management,
access to financial services, are among those who live in low-
income, rural and semi-urban parts of the country. For this IFC
works for following sectors.
• Building infrastructure and assisting public-private-partnerships;
• Facilitating renewable energy generation; promoting cleaner production,
energy and water efficiency;
• Supporting agriculture for improved food security;
• Creating growth opportunities for small businesses;
• Reforming investment climate;
• Developing public-private partnerships;
• Encouraging low-income housing; and
• Making affordable healthcare efficient and accessible.
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34. THANK YOU
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