IFC in Agribusiness Funds October 14, 2010

2 IFC has invested over $100 billion in Emerging Markets since 1956 Largest multilateral source of loan/equity financing for the emerging markets private sector Founded in 1956 with 182 member countries AAA rated by S&P and Moody’s Equity, quasi-equity, loans, risk management and local currency products Takes market risk with no sovereign guarantees Promoter of environmental, social, and corporate governance standards Resources and know-how of a global development bank + flexibility of a merchant bank Holds equity in over 800 companies worldwide IFC FY10 Highlights Portfolio*$48.8 billion Committed *$18.0 billion Mobilized $ 5.3 billion # of companies1776 # of countries (portfolio)129 # of countries (committed)104 * Includes for IFC’s own account and mobilization Composition of FY10 Transaction Volume

IFC’s Goal: Deliver development impact along the global agri-supply chain, through investments and advisory services with the private sector, to create opportunities and improve peoples’ lives Financial Institutions Market Infrastructure Farm Production Inputs Collection Processing Marketing Distribution Risk Sharing Facilities Pre-Harvest FinanceTrade Finance Fertilizers and other Chemicals Land Project/Corporate Finance Retail Infrastructure/Logistics CIT – Access to Markets IFC invests across the Agribusiness Value Chain - US$2.0 billion in FY

IFC has significantly increased its agri-financing in recent years.. The active portfolio of agri-related investments was $3.9 billion at FYE09 (excludes Trade Finance) 4

… and developed a strategic response to food crisis 5 Short Term Response Short Term Response Medium Term Response Medium Term Response Long Term Response Long Term Response Provide liquidity throughout the value chain Trade finance Working capital Wholesaling finance Supply side response through global agricommodity players Emphasize productive land investments and productivity gains Improve supply chain infrastructure Trade finance Technical programs on the ground: access to finance, access to markets-linkages, productivity support Improve logistics, product-to-market efficiencies Reform agenda: regulatory / land / trade policy Drive integration of small farmers into global agrisupply chain … which also entails to increase productivity in agriculture through investments in funds!

SE Europe IFC`s recent experience in Productive Land Projects Global Land Agri Fund Global Land Agri Fund Land Real Estate Investment Trust (REIT) Business Model: Acquire small agri-land plots within the same municipality Rent out to modern farming company Realize value through higher land productivity translating into higher land prices for REIT IFC to invest equity to scale up operations EUR 15 millionUSD 75 million Land Development - South America - Large-Scale Farm Operator Business Model: Farms large tracts of purchased or leased land, creating economies of productive scale. Provides technical expertise, including use of best-in-class techniques and inputs Intent on rapidly increasing size of managed areas USD 50 million Agri-Land Focused Fund Manager Business Model: Identify and invest in regional agricultural farming and production companies. Build companies into scalable platforms by providing growth capital, increasing productivity and yields Geographic and product diversification in strategic areas. Regional Land Fund - South America - Regional Land Fund - South America - USD 50 million Regional Fund for Land Consolidation & Farm Development Business Model: Consolidates large tracts of land (primarily grazing land) and develops for farming purposes. Provides technical expertise, including use of best-in-class techniques and inputs 6

Investment Rational IFC`s Rational and Role in Investing in Funds Why is IFC considering investments in funds? Reach smaller agribusiness companies which IFC is not able to target directly; Support funds who aim to increase land productivity, improve agricultural practices and have a demonstration effect in agriculture sector; and Support emerging fund managers to secure the targeted fund size at closing. 7 IFC Value Added What value does IFC add to the funds in agriculture? Provide stamp of approval by assisting the fund manager in structuring the Fund according to international best practices; Disseminating of Corporate Governance and E&S best practices; and Provide industry and regional expertise to assist the funds. IFC does not invest in funds with (i) an objective of land speculation, (ii) a narrow focus (biofuel or single crop), and (iii) no relevant experience or management team.