1. Russian Bank Capitalization Fund (RBCF)

2. AMC is a capital mobilization vehicle of IFC: ‘crowding in’ investment to emerging markets
Investment Services
Advisory Services
Asset Management
Loans and intermediary services
Equity and quasi-equity
Syndications
Structured and securitized products
Risk management products
Trade finance
Subnational finance
Treasury operations
Access to finance
Corporate advice
Environmental and social sustainability
Infrastructure Advice
Investment Climate
Invests third-party capital in a private equity format
Allows outside investors benefit from IFC’s expertise at achieving strong equity returns as well as development impact
Helps IFC fulfill its role and leverage its balance sheet by mobilizing third-party funds to increase investment

3. What is the Russian Bank Capitalization Fund?
Why?
Russian banking sector is promising, but with huge capital needs
Financial sector critical to development of economy
Bring new investors to Russian banking sector and set examples
Who?
Private equity fund managed by IFC Asset Management Co
Investors IFC, Russian Federation, VEB and international investors
Investments in bank equity
Target investment sizes US$20-$100 million
Shares of 10%-30% (with some exceptions)
RBCF investing to profit – need to exit
What?
When?
Fund established June 2012
Considering investments now
2-4 investments per year, maximum ~10
How?
IFC Moscow is primary point of contact
Prepare information in advance
Present IFRS financials and investment presentation
Be realistic: in equity investments, one in twenty-fifty projects make it through full process
Some very good banks will not meet fund criteria
RBCF is not a ‘bail-out fund’

4. RBCF legally established June 2012 Initial fund size US$275 First investments under consideration
Target investors
Target investments
Investor
Target Commitment (in $M)
IFC
$250
Russian Federation 50
VEB
250
Other institutional investors
Up to 1,000
Target bank profile
Bank size
# of projects
Avg. investment (in $M)
National consolidators
$4-$20 bln (Assets)
3-5
100 – 300
Medium-sized, high growth, niche and other
$500-$4000 mln (Assets)
8-10
20 – 200
Target Total Commitments:
$1-1.5 billion
Target Fund Size
10-15
$1-1.5 billion
RBOF established with first close of US$275m
One-half of committed amounts for IFC, RF and VEB
A few larger ticket investments combined with higher-growth mid-sized banks to benefit from consolidation ‘at both ends’
Combination of larger banks with smaller banks with funding fueled growth...

5. IFC Russia Bank Capitalization Fund
RBCF Legal Structure
Limited partnership managed by IFC Asset Management
Russian Federation &VEB investments through an IFC-managed trust fund
Investors: IFC, IFC Trusts 1 & 2
No RF & VEB involvement in management of Fund or investment decisions
IFC managed
IFC Russia Bank Capitalization Fund
Equity GP
Manager: IFC Asset Management Company, LLC.
LP interest
GP interest
LP 2
LP 3
IFC TRUST FUND
100% owned

6. The Russian banking market is highly fragmented5
The Russian banking market is highly fragmented
Fragmented market:~1000 banks, led by a few State banks
Lower cost efficiency in smaller banks of RBOF's target segment
27%
Top 5 banks (all state) account for over half of all banking assets
Cost1 / income ratio
12%
% (1H 2010) 6%
51%
80% 4%
60% 3%
Banks 6–10 7%
40%
74%
Banks 11–20
10%
52%
53%
20%
Banks 21–50
12%
RBOF's target segment accounts for a quarter of all banking assets
Banks 51–100
25% 8%
Banks 1-20
Banks 21-50
Banks
Banks 101–200 5%
Asset size
$6Bn+
$2-6Bn
$2Bn-$800M
Banks 201–500 5%
Banks 501-~1000 1%
Growth / consolidation will help achieve minimum efficient scale and market power
All banks
100%
Total assets (%)
Opportunity for value creation through
consolidation and improved efficiency

7. Criteria for Bank Selection – Target Banks
IFC Standards
All IFC performance standards, financial reporting, financial covenants and others are unchanged
IFC is a demanding investor and will look for partners with track record, excellent reputations and good corporate governance
Investment Thesis
IFC is investing its own funds and those of investors
Value proposition (expected returns to investors) are critical
How are investors (including IFC) going to profit from the investment?
Meaningful role in economy (% of regional market, role in providing necessary financial services to SMEs, households, corporations
Innovative services and products welcome
Real Role in Economy
The Numbers
Size: Primarily top 250 banks by assets, with regional presence
Investment size: $ mln, for stake of 10% -30% (exceptions possible)
Co-investors: RBOF goal is to help attract additional foreign investment – hence structures with more investors get priority
IFC may co-invest and provide debt, risk management and other products

8. Simplified Investment Criteria
Transparency
IFRS financial statements by a high-quality auditor
Clear ownership, reputation of owners and institution critical
Quality of management
Problems: high related party, linked loans, unclear business
Clear answers to why invest? (ROE, NIM, COI, etc)
Profitability, stability, capital, growth, potential returns
Clear path to sale/exit in 5-10 years
What will market position be during investment period?
Investment
Meaningful role in regions
Both traditional and innovative banking products (non-speculative)
Strong risk management
Operations
Basic approach
Size: Primarily top 250 banks by assets, with regional presence
Investment size: $ mln, for stakes of 10% -30% (in most cases, some exceptions)
Largest banks / foreign / government mostly excluded
Smallest banks: more likely through acquisitions

9. Robust Sourcing Methodology
Russian Banks
~ 1000 banks
Identify eligible banks
Screening for key financial indicators (e.g., minimum scale)
Excluding reputational issues
Screening for private sector (or to be privatized)
Identify commercially viable candidates
Excluding “pocket banks”, “treasury banks” or “ captive banks”
Excluding subsidiaries of international banks
Excluding banks not having basic minimum financials (IFRS requirement)
~ 300 banks
Locally owned
Privately owned
Good reputation
Non captive
Eligible Banks
~ 100 potential targets
Meeting minimum financial requirements
Target Pool
Identify top target banks for focused business development efforts
Specific opportunities have been identified or are likely, based on IFC’s relationship (excluding recently exited investments), ranking by capital needs, likelihood of transaction, size, and systemic importance (in particular network banks)
IFC already in contact with many banks on regular basis
Six banks: equity investment
26 investee companies
+ High demand from non-client banks
Near-term Pipeline
10 target banks in months
$650M
Follow-on investments anticipated

10. RBOF able to identify opportunities and add value
Key issues of Russian market
How RBOF creates value
Bank selection
Operating phase
Structured exit
High growth opportunities
Banking market set to out-pace GDP as penetration catches up with Western levels 1
Target selection
Identifying banks with highest upside potential
Selecting best banks with basic risk mgmt
Strong deal flow based on IFC client base
Target selection 2
Reputation
IFC “stamp of approval” and involvement
Enforcing international standards of Corporate Governance
Funding
Equity funding combined with range of IFC debt instruments and increased market access 5
Sale preparation, execution
Structured exit preparation
Attracting potential acquirers
Opening investment opportunities for foreign investors
Attractive valuations
Market valuations currently a fraction of pre-crisis levels
Mid-sized banks lack funding and scale
Structural underfunding of economy and banking sector, concentration of large state banks
Many banks lack due to scale, credit, and transparency concerns 3
Improving bank fundamentals
Supporting active risk management and NPL recovery
Ensuring basic banking capabilities
High NPLs with low standards of professionalism
Need to introduce basic banking standards (e.g., proper risk management, principles of ALM)
Over-due loan levels in RBOF's target segment appear to have peaked, but are under-reported
Market Fragmentation with opportunity to increase efficiency
>1000 banks in total, led by a few state banks. with ~60% of banks either captive or subscale
Opportunity for value creation through consolidation 4
Efficiency and profitable growth
Sustained growth improving efficiency, profits and M&A opportunities

11. IFC has a proven track record in financial services and Russia
IFC has demonstrated strong performance in Russia and financial services investments
IFC has a proven track record in financial services and Russia
Over past ten years, 3 of 4 of IFC exits from Russian banking investments were highly successful
Globally, financial services is one of IFC's most profitable sectors with average IRR of ~30%
IRR since inception at 40% for all sectors in Russia
IRR was 62.1% for all sectors...
...and 67% for financial services
Milestone transactions executed successfully
First mortgage securitization
Ruble bond issues (partial guarantees)
Close to $1 billion in ruble financing
$500M syndication in 2008
Investments in over six regional banks
Currently no NPLs and none incurred during financial crisis
IRR
Bank 1
103%
Bank 2
47%
Bank 3
46%
Bank 4
-5%
Sold at same price as purchased in ruble terms

12. Target banks will be in a position to benefit from the Fund’s resources at a crucial time.
Key Benefits for Investee Banks
Credible Investors
Fund will be comprised of sophisticated international investors
Investees will continue to receive the same level of services and benefits as if they were transacting directly with IFC, with added oversight from AMC staff
During times of financial crisis, foreign investments in emerging markets diminish further as portfolio investments decline rapidly
Fund will act to stabilize banks in order to speed up economic recovery and increase lending to productive sectors of local economies
By directly providing emerging market banks with much needed capital, as well as catalyzing additional capital for those banks in a time of severe crisis, the Fund will:
Support economic growth in Russian economies through financial intermediation
Be well positioned to capture upside via countercyclical investment
Counter-Cyclical Strategy
Senior AMC and IFC investment professionals with extensive experience originating, executing and supervising investments in Russian commercial banks
Investment teams have the full support of IFC’s entire investment infrastructure, including dedicated portfolio, risk, corporate governance and equity sales departments
Experienced Team
Advisory Services
Benefit from advisory services to portfolio banks
Strengthening private sector development and improving banks’ economic and financial performance, and their social and environmental sustainability

13. Rigorous Investment Process
AMC leverages IFC’s proven origination, execution and supervision resources while conducting rigorous independent investment evaluation approved by independent Investment Committees.
Origination
Evaluation
Execution
Supervision
Exit
IFC infrastructure, network and name leads to steady pipeline of potential deals
Deep and broad analysis of local markets, regulatory regimes and sector fundamentals
Negotiation leverage due to limited competition and institutional credibility
Dedicated, locally based portfolio supervision teams in frequent contact with clients
Frequent use of structural exit mechanisms
Locally-based business developers supported by AMC and IFC Management
Due diligence conducted by industry experts and appropriately staffed teams of investment professionals
Flexibility to offer tailored investment products across the full capital structure
Strict social and environmental compliance requirements
Multiple scenarios:
- Sale to strategic
- IPO
- Put to sponsor
Unique access to challenging markets facilitates deal flow
Deep knowledge of local legal environment drives efficient deal structuring
Unique relationship with and access to local regulators
Experience in less developed capital markets
Largest emerging market deal flow
Deep industry/ regional knowledge
Capability to develop innovative structures
Dedicated teams with relevant experience
Defined strategies

14. Proven Strategy Deal Sourcing Fund Management Investment Selection
AMC enhances the time tested IFC investment process that has evolved over the past 50+ years.
Deal Sourcing
IFC’s unmatched access to emerging market investment opportunities
AMC Funds enhance the IFC product offering by enabling additional/larger deals
Fund Management
Experienced operations staff with long private equity experience at leading fund managers
Use of first class third party firms for audit and ancillary back-office functions
Investment Selection
Thorough review of all eligible IFC investment proposals
Independent decision-making
Alignment with fund objectives
Clear exit strategies
Value-Add
Experienced professionals with extensive principal investment experience
Tax and legal structuring with Fund specific focus
Review and mitigation of conflicts of interest