81790 Highlights from the IFC Annual Report 2013 v3 Our record investments and advice helped achieve significant impact for the poor. Nearly half our $1.7 $3.3 $25 BILLION Billion investment projects were Billion South Asia Europe and in the world’s poorest Central Asia countries. We helped our in investments, including $18.3 billion in $3.5 $2.9 clients support 2.7 million commitments for our own account Billion Billion East Asia and jobs and provide more than Sub-Saharan Africa the Pacific $265 billion in loans to $4.8 micro, small, and medium Billion Latin America and enterprises in 2012. Our the Caribbean advice helped governments in 43 countries adopt 76 reforms related to the $2.0 investment climate. Billion Middle East and North Africa IFC Operational Highlights 2013 2012 2011 2010 2009 Dollars in millions, for the year ended June 30 NEW INVESTMENT COMMITMENTS Number of projects 612 576 518 528 447 Number of countries 113 103 102 103 103 For IFC’s own account 1 8,349 $ $ 15,462 $ 12,186 $ 12,664 $ 10,547 CORE MOBILIZATION* Syndicated loans1 $ 3,098 $ 2,691 $ 4,680 $ 1,986 $ 1,858 Structured finance – – – $ 797 $ 169 IFC initiatives & other $ 1,696 $ 1,727 $ 1,340 $ 2,358 $ 1,927 Asset Management Company (AMC) Funds $ 768 $ 437 $ 454 $ 236 $ 8 Public-­ Private Partnership (PPP)2 $ 942 $ 41 – – – Total core mobilization $ 6,504 $ 4,896 $ 6,474 $ 5,377 $ 3,962 INVESTMENT DISBURSEMENTS For IFC’s own account $ 9,971 $ 7,981 $ 6,715 $ 6,793 $ 5,640 Syndicated loans 3 $ 2,142 $ 2,587 $ 2,029 $ 2,855 $ 1,958 COMMITTED PORTFOLIO Number of firms 1,948 1,825 1,737 1,656 1,579 For IFC’s own account 49,617 $ 45,279 $ $ 42,828 3 8,864 $ 3 4,502 $ Syndicated loans 4 13,633 $ $ 11,166 $ 12,387 $ 9,302 $ 8,299 ADVISORY SERVICES Advisory Services program expenditures $ 232.0 $ 197.0 $ 181.7 $ 166.4 $ 157.8 Share of program in IDA countries 5 65% 65% 64% 62% 52% *Financing from entities other than IFC that becomes available to client due to IFC’s direct involvement in raising resources. Loans, Parallel Loans and A-­ 1. Includes B-­ Loan Participation Sales (ALPS). 2.  party financing made available for public-private partnership projects due to IFC’s mandated lead advisor role to national, local, or other government entity. Third-­ 3. Includes B-­Loans and Agented Parallel Loans. 4. Includes B-­Loans, A-­ Loan Participation Sales (ALPS), Agented Parallel Loans, and Unfunded Risk Participations (URPs). affected areas exclude global projects. 5. All references in this report to percentages of advisory program expenditures in IDA countries and fragile and conflict-­ A Letter from IFC Executive Vice president and Chief executive officer Jin-­Yong Cai Across the world, the challenges of We focused strongly on In addition, IFC Asset ­ promoting prosperity in the world’s Management Company continued development are vast — a ​ nd growing. So poorest and most fragile regions. to grow, increasing its assets under are the needs of entrepreneurs, investors, In FY13, nearly half of management to $5.5 billion across our projects — t ​ otaling more than six investment funds, with a strong and businesses in developing countries, $6 billion — ​ were in the poorest mix of reputable investors. It has which struggle to overcome constraints in countries served by the World launched two new funds — i ​ ncluding Bank’s International Development the IFC Catalyst Fund, which focuses finance, infrastructure, employee skills, Association, most of them in Sub-­ on climate-­ smart investments, and and the regulatory environment. Saharan Africa. About two-­ t hirds the Global Infrastructure Fund, of our advisory program expendi- which will invest scarce equity risk For IFC, this represents a tremendous opportunity: to tures were in IDA countries. Our capital in the critically important engage the creativity and resources of the business com- investments in fragile and conflict-­ infrastructure sector. munity to change the world for the better. By helping affected regions climbed to nearly I am confident IFC can achieve companies overcome obstacles to sustainable growth, we $600 million. even greater impact going forward. help them create opportunity and improve lives. We enlist Our Advisory Services This year was my first as IFC’s CEO, them as partners in the global effort to end extreme pov- achieved significant results for our and I traveled to nearly three dozen erty and promote shared prosperity. clients — ​ businesses and governments countries — i ​ n every region of the We believe strongly in the power of partnerships alike. Development-­ effectiveness rat- world — ​ to meet with our clients and to make a transformational difference. As the world’s larg- ings for Advisory Services reached staff. I saw firsthand what we can est global development institution focused on the private a record of 75 percent while client-­ achieve by being ambitious, unafraid sector, we worked this year with nearly 2,000 private sec- satisfaction ratings climbed to an of risk, client-­focused, and open to tor clients and a wide array of governments, donors, and all-­ t ime high of 90 percent. The new ideas. We can tackle the big other stake­ holders. The result was another record year advice we provide is a crucial ele- problems that have long hindered for IFC — ​we invested and mobilized more money for pri- ment of the value we bring to our development — ​ such as access to vate sector development than ever before, helping s ­ ustain clients, and in FY13 we achieved finance, energy and climate change, development in more than 100 countries. notable progress in providing client and food security. Our new investments climbed to an all-­ time high solutions that integrate investment IFC is a unique organization, of nearly $25 billion in FY13, including funds mobilized and advice — w ​ e had active advisory one that has managed to combine a from other investors, providing capital to more than 600 ­ projects with 250 investment clients. businesslike commercial approach projects and companies across the world. We invested In FY13, our advice helped with a passionate, focused commit- $18.3 billion for our own account and mobilized $6.5 bil- mobilize almost $1 billion in private ment to achieving meaningful and lion from other investors. In a time of declining official aid investment through public-­ private measurable development impact. flows to developing countries, these investments had an partnerships, which are expected to Strong, profitable growth builds impact in every region of the world. improve infrastructure and health resources for greater development We now have an investment portfolio of nearly services for millions of people. In impact in the future. $50 billion in nearly 2,000 companies in 126 countries. addition, we helped more than 40,000 Developing countries need This diversification has contributed to our strong risk-­ small and medium enterprises obtain transformative solutions. Working adjusted returns — a​ nd to our development impact. $4.5 ­ billion in financing secured with our partners, IFC is well posi- At the end of 2012, our investments provided jobs with movable property, through tioned to provide them. for 2.7 million people in developing countries. With our our work with collateral registries. support, our clients treated 17.2 million patients, edu- We also provided training and cated 1 million students, and improved opportunities for capacity-­ building to about 350,000 3.1 million farmers. They generated power for 52.2 million people — ​­including farmers, entre- — customers, and distributed water to 42 million. preneurs, and managers of small and Jin-­Yong Cai IFC Executive Vice President medium enterprises. and Chief Executive Officer Development results FY13 Investment Services DOTS Score by Industry IFC Total 716 (29,674) 66% Funds 84 (1,199) 79% Infrastructure 101 (4,805) 73% Financial Markets 219 (11,813) 70% Agribusiness & Forestry 79 (3,215) 68% Oil, Gas & Mining 28 (2,200) 64% Consumer & Social Services 94 (2,045) 56% Telecommunications & Information Technology 31 (1,067) 55% Manufacturing 80 (3,329) 49% Numbers at the left end of each bar are the total number of companies rated. Numbers in parentheses represent total IFC investment ($ millions) in those projects. FY13 Investment Services DOTS Score by Region IFC Total 716 (29,674) 66% Latin America and the Caribbean 159 (8,007) 74% East Asia and the Pacific 98 (3,922) 70% Middle East and North Africa 80 (3,283) 65% Europe and Central Asia 168 (8,477) 64% Sub-Saharan Africa 121 (3,094) 61% South Asia 81 (2,707) 60% Numbers at the left end of each bar are the total number of companies rated. Numbers in parentheses represent total IFC investment ($ millions) in those projects. Development Reach by IFC’s Investment Clients Portfolio CY11 Portfolio CY12 Investments Employment (millions of jobs)1 2.5 2.7 Microfinance loans2 Number (million) 19.7 22.0 Amount ($ billions) 19.84 24.03 SME loans2 Number (million) 3.3 5.8 Amount ($ billions) 181.25 241.30 Customers reached with services Power generation (millions)3 47.0 52.2 Power distribution (millions) 49.2 45.7 Water distribution (millions) 4 38.7 42.1 Gas distribution (millions)5 22.4 33.8 Phone connections (millions) 6 172.2 192.0 Patients reached (millions)7 13.0 17.2 Students reached (millions) 0.9 1.0 Farmers reached (millions) 3.3 3.1 Payments to suppliers and governments Domestic purchases of goods and services ($ billions) 49.84 46.19 Contribution to government revenues or savings ($ billions) 21.73 27.00 These figures represent the reach of IFC clients as of the end of CY11 and CY12. CY11 and CY12 portfolio data are not strictly comparable, because they are based on a changed portfolio of IFC clients. In many cases, results reflect also contributions from Advisory Services. Portfolio figures for employment include jobs provided by Funds. 1.  Portfolio reach figures represent SME and microfinance outstanding loan portfolio of IFC clients as of end of CY11 and CY12, for MSME-oriented financial 2.  institutions/projects. 268 and 285 clients were required to report their end-of-year SME and microfinance portfolios in CY11 and CY12, respectively. 252 and 269 clients did so for CY11 and CY12, respectively. The missing data were extrapolated. C Y11 total Power Generation customers revised due to the restatement of one client value in East Asia and the Pacific. 3.  C Y11 total Water Distribution customers revised due to the restatement of one client value in Sub-Saharan Africa. 4.  O ne client in East Asia and the Pacific contributed 31.14 million of Gas Distribution customers in CY12. 5.  O ne client in South Asia contributed 112.7 million of phone connection customers in CY12. 6.  C Y11 total Patients Reached revised due to the restatement of one client value in Europe and Central Asia. 7.  fy13 commitments OUR VISION Dollar amounts in millions That people should have the Total $18,349 (100%) opportunity to escape poverty and By Industry improve their lives Trade Finance $6,477 (35.3%) OUR VALUES Financial Markets $3,647 (19.9%) Infrastructure $2,247 (12.2%) Excellence, Commitment, Integrity, Consumer & Social Services $1,635 (8.9%) Teamwork, and Diversity Manufacturing $1,314 (7.2%) Agribusiness & Forestry $1,278 (7.0%) OUR PURPOSE Funds $890 (4.9%) To create opportunity for people to Telecommunications & Information Technology $472 (2.6%) escape poverty and improve their lives Oil, Gas & Mining $389 (2.1%) by catalyzing the means for inclusive By Region and sustainable growth, through: Latin America and the Caribbean $4,822 (26.28%) »» Mobilizing other sources of finance Sub-Saharan Africa $3,501 (19.08%) for private enterprise development Europe and Central Asia $3,261 (17.77%) »» Promoting open and competitive East Asia and the Pacific $2,873 (15.66%) markets in developing countries Middle East and North Africa $2,038 (11.11%) »» Supporting companies and other South Asia $1,697 (9.25%) Global $156 (0.85%) private sector partners where there Some amounts include regional shares of investments that are officially classified is a gap »» Helping generate productive jobs as global projects. by Product and deliver essential services to the Loans1 $8,519 (46.43%) poor and vulnerable Guarantees2 $6,959 (37.93%) To achieve our purpose, IFC offers Equity3 $2,732 (14.89%) development-­ impact solutions through Risk-management products $138 (0.75%) firm-­ level interventions (Investment 1. Includes loan-type, quasi-equity products. 2. Includes trade finance. Services, Advisory Services, and the 3. Includes equity-type, quasi-equity products. IFC Asset Management Company); promoting global collective action; Committed Portfolio For IFC’s own account as of June 30, 2013 strengthening governance and standard-­ setting; and business-­ Total $49,617 (100%) enabling-environment work. by Industry THE WAY WE WORK Financial Markets $14,563 (29%) Infrastructure $9,358 (19%) »» We help our clients succeed in a Manufacturing $6,385 (13%) changing world Agribusiness & Forestry $4,251 (9%) »» Good business is sustainable, and Consumer & Social Services $4,215 (8%) sustainability is good business Funds $3,733 (8%) »» One IFC, one team, one goal Trade Finance $3,081 (6%) Oil, Gas & Mining $2,359 (5%) »» Diversity creates value Telecommunications & Information Technology $1,667 (3%) »» Creating opportunity Other $5 (0%) requires partnership »» Global knowledge, local know-­ how by Region »» Innovation is worth the risk Europe and Central Asia $10,994 (22%) »» We learn from experience Latin America and the Caribbean $10,993 (22%) Sub-Saharan Africa $7,833 (16%) »» Work smart and have fun East Asia and the Pacific $7,726 (16%) »» No frontier is too far or too difficult Middle East and North Africa $5,793 (12%) South Asia $5,582 (11%) Stay Connected Global $696 (1%) »» IFC website Amounts include regional shares of investments that are officially classified as global projects. ifc.org »» Facebook FY13 Advisory Services Program Expenditures Dollar amounts in millions facebook.com/IFCwbg »» Twitter Total 231.9 (100%) twitter.com/IFC_org BY REGION »» YouTube Sub-Saharan Africa 65.4 (28%) youtube.com/IFCvideocasts East Asia and the Pacific 38.5 (17%) Europe and Central Asia 36.4 (16%) South Asia 33.6 (14%) Latin America and the Caribbean 25.5 (11%) Middle East and North Africa 20.4 (9%) Global 12.2 (5%) BY BUSINESS LINE Investment Climate 74.8 (32%) 2121 Pennsylvania Avenue, NW Access to Finance 62.6 (27%) Washington, DC 20433 USA Sustainable Business 55.0 (24%) 202.473.3800 Public-Private Partnerships 39.5 (17%) ifc.org