Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of...

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Europe meets the Americas Aruba, May 2013

Transcript of Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of...

Page 1: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Europe meets the AmericasAruba, May 2013

Page 2: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Leading regional development bank Largest source of multilateral

financing for Latin America and the Caribbean since 1959

26 Country offices in the region; 48 member countries worldwide

AAA/Aaa ratings by Standard & Poor’s and Moody’s

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Page 3: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

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.

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Page 4: 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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Page 5: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

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

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Page 6: 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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Our expertise

Infrastructure

Social Infrastructure

Industries and Services

Financial Markets

Syndications

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Page 8: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Overarching Priorities

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• 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

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Largest wind project in Latin AmericaProject Overview La Mareña is a 396 MW wind farm located in Oaxaca,

Mexico – one of the world’s 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

Page 10: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.
Page 11: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Overarching Priorities

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• Private entities of elementary andhigh school, university and post graduate studies

• Educational funding programs sponsored by government orprivate 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

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Expanding access to higher education

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Project OverviewUniversidad 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 communitiesUPS approached IDB for help in expanding its campus and financial aid offerings

Development ImpactThrough IDB’s $15 million loan, UPS will provide affordable high quality education to 5,000 additional lower income students in Quito, Guayaquil and CuencaProceeds of the loan will go toward setting up new $2 million student loan fund for lower income students

Page 13: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

We work to changelives and create new possibilities.

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Page 15: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Overarching Priorities

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• 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

TransformationalInvestments

Food Security Sustainable Natural Resources

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Promoting renewable forestry practicesProject OverviewIDB 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 IDB’s strict environmental and social standards for renewable forestry

Development ImpactCreate 5,800 and 5,350 jobs during construction and operations, respectivelyProduce 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

Page 17: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.
Page 18: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Overarching Priorities

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• 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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Page 20: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Supporting clean energy through banksProject OverviewIDB created a facility for up to $90 million to support environmentally friendly projects through banks and other financial intermediariesUsing 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 ImpactWith this facility, IDB seeks to boost its commitment to climate change mitigation through banks in the region

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Page 21: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

We’re inspired by what surrounds us

Page 22: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.
Page 23: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

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

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Page 24: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

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 IDB’s privileges

and immunities

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BorrowerBorrowerParticipantsParticipants

Loan Loan AgreementAgreement

A + B A + B LoansLoans

B LoanB Loan

Participation Participation AgreementAgreement

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Page 26: 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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Page 27: Europe meets the Americas Aruba, May 2013. Leading regional development bank Largest source of multilateral financing for Latin America and the Caribbean.

Our deal is with the future.

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