International Finance Corporation World Bank

How the IFC differentiates…. investment partner with a long-term commitment in a project (equity up to 7 years and loans up to 12 years) primary objective is to stimulate development, achieve reasonable returns on equity invested and to exit within a 5 to 7 year timeframe, preferably via an IPO Euroglobal S.E.E. Audit Ltd

How the IFC differentiates…. ability to manage risks associated with long-term investments world-wide project appraisal experience and regional sector knowledge and expertise – ensures projects are technically and financially viable and economically competitive Euroglobal S.E.E. Audit Ltd

How the IFC differentiates…. intimate knowledge of country regulatory and sector requirements and needs can influence government authorities in the event of country political and economic instability, due to its special creditor status Euroglobal S.E.E. Audit Ltd

How the IFC differentiates…. strong position to participate in PPP’s due to its knowledge and special relationship with Governments and Municipal authorities prices its financing at market related terms – match pricing available from commercial banks and also prices on an all inclusive basis - includes all fees, interest, costs, in order to ensure that the costing of projects are always viable Euroglobal S.E.E. Audit Ltd

AAA rating and preferred creditor status allows it to mobilize a wide range of co-investors, including private corporations, commercial banks, institutional investors, development institutions and export credit agencies How the IFC differentiates…. Euroglobal S.E.E. Audit Ltd

IFC Corporate Finance Criteria Investment Criteria –Financing: IFC total financing participation (equity and/or debt) cannot be less than USD$10million (say €8million). –Investment Cost/Budget: IFC total investment participation (equity and/or debt) may not be greater than 50% of the total investment cost/budget. The IFC will only consider projects/investments where the total project/investment cost is greater than US$20m (€16m). –Capitalization: IFC total investment participation cannot be greater than 25% of the total capitalization (debt plus equity) –Equity: IFC equity participation cannot be greater than 20% of the total equity. Euroglobal S.E.E. Audit Ltd

IFC Corporate Finance Criteria Investment Criteria (continued…) –Collateral: mortgage over the physical assets of the investment and/or parent company guarantee of the investment. –Project Information: Business Plan, Feasibility Study, Financial Projections. –Sectors: all sectors, except those that include tobacco, alcohol, gambling and arms in their activities. –The preferred sectors are: agribusiness, food retail, private health, private education, construction materials, general manufacturing, real estate and financial services. –Countries: Albania, Azerbaijan, Bosnia, Bulgaria, Croatia, Kazakhstan, Kyrgyzstan, FYR Macedonia, Romania, Serbia and Montenegro, Turkey, Tajikistan, Uzbekistan. Euroglobal S.E.E. Audit Ltd

IFC Corporate Finance Criteria Corporate Criteria –Turnover: IFC prefers to focus on sponsor companies with annual turnovers greater than US$100million (say €80million). –Income: the sponsor company must demonstrate consistent positive growth in income for at least 3 years. –Financials: the sponsor company must provide audited financial statements(3 years) in accordance with International Financial Reporting Standards (IFRS). Euroglobal S.E.E. Audit Ltd

IFC – Project Appraisal Process 1st Step: Concept Approval 2nd Step: Credit Committee– In Principle Approval 3rd Step: Mandate Letter and Due Diligence 4th Step: Credit Committee – Formal Approval 5th Step: BOD Approval 6th Step: Negotiation and Signing of Financing Agreements 7th Step: Disbursement Note: total time-frame for a project approval can take on average 3 to 4 months Euroglobal S.E.E. Audit Ltd

IFC – Concept Approval Information on Sponsor/Project Description of Project –What is being built/acquired/modernized –Where will the project be located: country, city, etc. –Basic rationale/motivation: why the Sponsor believes the project is a good investment Euroglobal S.E.E. Audit Ltd

IFC – Concept Approval Sponsors(Owners) –Name, nature of business, history/background, experience/track-record –Shareholding and ownership structure –Key financial indicators (3 years): Capitalization (Debt plus Equity), Turnover, EBITDA, Total Assets Euroglobal S.E.E. Audit Ltd

IFC – Concept Approval Key Management –Name, background, experience, position, years of service, key accountabilities, special contracts etc. –Describe any outsourcing arrangements for technical, production, marketing, accounting/finance etc. –Describe any strategic partnership arrangements Euroglobal S.E.E. Audit Ltd

IFC – Concept Approval Market –Brief description of competitive environment, product and sector differentiation –Market orientation: local, national, regional or export Euroglobal S.E.E. Audit Ltd

IFC – Concept Approval Project Cost and Financing Plan –What will the financing be needed for including acquisition, plant and equipment etc. –Details of equity and debt needed to finance the project/acquisition and sources thereof –Key forecasted financial indicators of investee company/project i.e. capitalization, turnover, total assets, EBITDA, IRR etc.. Euroglobal S.E.E. Audit Ltd

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