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Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

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Presentation on theme: "Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean."— Presentation transcript:

1 Europe meets the Americas Aruba, May 2013

2 Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean since Country offices in the region; 48 member countries worldwide AAA/Aaa ratings by Standard & Poors and Moodys 2

3 Private Sector with Purpose We seek to create opportunities for current and future generations in Latin America and the Caribbean through sustainable private sector investments. Through the Structured and Corporate Finance Department (SCF), IDB partners with private sector stakeholders to achieve breakthrough financial results with high development impact. 3

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5 Structured and Corporate Finance (SCF) Our Clients Corporations, private utilities and infrastructure operators, financial institutions, and state- owned entities without a sovereign guarantee Our Products and Services Loans (syndications and parallel) Project Finance and Private Public Partnerships Guarantees Technical cooperation Climate change concessional finance Clean energy audits Shared value appraisals 5

6 6 Our expertise Infrastructure Social Infrastructure Industries and Services Financial Markets Syndications


8 Overarching Priorities 8 Renewable generation (Wind, Solar, Geothermal) Service improvements to energy transmission and distribution Focus on low access and supply areas Toll Roads Airports Ports Increase capacity & access International safety standards Water supply Water and waste treatment Energy efficiency Energy Transportation Water and Sanitation

9 9 Largest wind project in Latin America Project Overview La Mareña is a 396 MW wind farm located in Oaxaca, Mexico – one of the worlds best regions for wind energy IDB approved a loan of up to 1.1 billion Mexican pesos (US$72 million) to finance its construction First IDB transaction to use innovative back-to-back matching loan from NAFIN to IDB, to provide the loan in Mexican pesos Development Impact Approximately 900,000 tons of CO2 emissions are expected to be abated annually La Mareña will contribute to a 76% increase in installed wind power capacity in Mexico


11 Overarching Priorities 11 Private entities of elementary and high school, university and post graduate studies Educational funding programs sponsored by government or private entities, including non-profit Private providers of health services, including health centers, hospitals, clinics Insurance companies, leasing companies and equipment investment funds Companies that produce equipment, medical supply companies and laboratories Education Healthcare

12 Expanding access to higher education 12 Project Overview Universidad Politécnica Salesiana (UPS) is a socially inclusive university based in Ecuador With over 18,000 students – predominantly mid- to low- income – UPS also offers a dedicated program for indigenous communities UPS approached IDB for help in expanding its campus and financial aid offerings Development Impact Through IDBs $15 million loan, UPS will provide affordable high quality education to 5,000 additional lower income students in Quito, Guayaquil and Cuenca Proceeds of the loan will go toward setting up new $2 million student loan fund for lower income students

13 We work to change lives and create new possibilities.


15 Overarching Priorities 15 Industrial energy efficiency Clean fuel alternatives Logistics and sustainable cement Job creation through Industrial competitiveness Integrated agribusiness Agricultural inputs Small-farmer productivity Sustainable mining & forest products Sustainable tourism Transformational Investments Food Security Sustainable Natural Resources

16 16 Promoting renewable forestry practices Project Overview IDB is supporting Montes del Plata Group through a $200 million loan to build and operate a eucalyptus pulp plant and bio-mass electricity plant. The largest private sector investment in Uruguay history (approx. $2 billion), it follows IDBs strict environmental and social standards for renewable forestry Development Impact Create 5,800 and 5,350 jobs during construction and operations, respectively Produce 160 MW of renewable energy (approx. 70 MW exceed internal needs and will be supplied to the national grid and other industrial entities) Contribute $750 million annually to GDP and generate$700 million in exports per year


18 Overarching Priorities 18 Underserved markets SMEs Affordable housing Local capital market Microfinance Reducing the footprint of Financial Institutions (Fis) Mitigating climate change while generating financial returns Loans, guarantees and training to mitigate risk and increase liquidity Expand trade financing for SMEs Financing technical assistance: greening operations and buildings financial literacy corporate governance Funds for Infrastructure Financing Social Inclusion Valuing the Environment Fostering Trade and Integration Promoting Sustainable FIs

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20 Supporting clean energy through banks Project Overview IDB created a facility for up to $90 million to support environmentally friendly projects through banks and other financial intermediaries Using resources from the facility through a shared guarantee mechanism, the first of its kind in the region, Bancolombia will finance projects in energy efficiency, clean and renewable energy production Development Impact With this facility, IDB seeks to boost its commitment to climate change mitigation through banks in the region 20

21 Were inspired by what surrounds us


23 Mobilizing private capital We act as catalyst, leveraging our own investments (A loans) and mobilizing other sources for co-financing through our B loans and parallel loans B lenders include commercial banks, institutions and impact investors Other financing partners include development finance institutions and private equity investors 23 Historical Results Number of B-Loans Closed: 90 Amount of B-Loan mobilized: $8.19 billion Number of historical participants: 141 institutions

24 B Loan Program One loan agreement – IDB is lender of record and administers entire loan IDB fully shares project risk with participants Participation structure allows participants to benefit from IDBs privileges and immunities 24 Borrower Participants Loan Agreement A + B Loans B Loan Participation Agreement

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27 Our deal is with the future.


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