Looking for win-win cases:

Supporting U.S./developed world technology businesses

by Financing their Emerging Markets green projects

Emmanuel POULIQUEN

Principal Industry Specialist, Energy Efficient Machinery

National Alliance for Advanced Technologies Batteries

Louisville – 08 Sept 2011

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• IFC, part of the World Bank Group, is the largest global development

finance institution focused on the private sector – the global leader in

private sector development finance

• We create opportunity for people – to escape poverty and improve

their lives

• Driven by our vision and purpose, we make a unique contribution

to development

• We invest, advise, mobilize capital, and manage assets – providing

solutions for an inclusive and sustainable world

Who We Are, What We Do

Expertise: How we can help • Financial expertise

55+ years focused on sustainable projects financing in emerging markets

• Country expertise

Part of the World Bank - hands on experience in fast growth countries and

access to governments

• Industries expertise (Manufacturing, Infrastructure, Retail, VC )

Unique combination of manufacturing expertise with VC experience

A different VC model …

• Not just technology but scaling up operations

• Higher variable costs (hardware) and higher breakeven points

• Requirement for a global understanding of combined emerging and

developed market

Evolution of grids and automotive energy issues are closely monitored

• Renewables (Wind, Solar, Biomass, …)

• Batteries (Vehicles, Grid storage)

• Inverters, BMS, smart meters, RFID, Billing …

• H-EVs/EVs

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What we can do together (Feature) • Help grow your business overseas in Emerging Markets

• “Neutral Broker” with local partners

Joint-Ventures, Clients, Suppliers

Corporate Governance (JVs)

Transparency

Intellectual Property

Ethics and Social dimensions

• First range knowledge of policies – means to influence

Ex: World Bank report on China New Energy Vehicles program …

… triggering policy support project on EV deployment in WuHan and ShenZhen

Close follow-up from WB shareholders at board level - United States (15.85%),

Japan (6.84%), China. (4.42%), Germany (4%), Britain (3.75%) and France (3.75%).

• Look for win-win cases

Sustainable economic growth effects in emerging countries

Dividends in capital, experience and technology in developed countries

Climate change mitigation

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What can be expected (Benefits)

• Financing solutions not readily available

Long tenor, grace periods

Equity, Quasi Equity

Syndication

Local currency (when regulations allow)

Global facilities

• World Bank stamp of approval

Sustainable development

Corporate image

Credit enhancement

• Industry, Financial and Global expertise sharing

Cross-fertilization

VC / PE partnership approach on a global scale with ethics

Portfolio supervision / follow-up

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Virtuous partnership in the development cycle

A case study Example:

• Core technology and industrial practices from a U.S. company

Core system components from the best of U.S. technology

Patents combined with “secret sauces” in key areas

• Tap into huge potential emerging market (ex: China)

Localize labor intensive, bulky product processes, local deployment

Leverage lessons learned to better U.S. products and operations

Second financing round to expand in

• Other emerging countries (cheap, trimmed down solutions)

• Developed countries (upscale solutions)

• Raised VC (Mezzanine) Quasi-Equity financing from IFC

Co-investor joined IFC benefitting from due diligence and risk mitigation

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Our Vision

That people should have the opportunity

to escape poverty and improve their lives

We foster sustainable economic growth in developing

countries by supporting private sector development,

mobilizing private capital, and providing advisory and risk

mitigation services to businesses and governments.

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• IFC provides more than money

•We blend investment and advice, helping the private sector find solutions

•We spread innovative ideas, mobilizing money for clients from many sources

•As results come in, we influence the policy debate and share our learning for wider impact

Questions ?

Mr. Emmanuel POULIQUEN (普迈新)

Principal Industry Specialist

IFC – Manufacturing, Energy Efficient Machinery

Financing production and deployment of equipment that

efficiently generate, store, transport or transform energy

http://www.ifc.org/ifcext/gms.nsf/Content/EEM_Overview

2121 Pennsylvania Ave., NW

Washington, DC 20433

Tel: +1 (202) 473-9114 Fax: +1 (202) 974-4394

Email: EPouliquen@ifc.org

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Appendixes

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• IFC is the world’s largest multilateral private sector investor in the emerging markets

• AAA rating

• Profitable every year since it was established

• 2,600+ people in more than 100 offices worldwide

• In-house syndications department working with over 200 banks

• Global benchmarking - identifies and disseminates international best practice

• Advice on environmental and social issues

• Political risk mitigation

• IFC Performance Standards adopted through the Equator Principles

by over 50 global institutions.

IFC: Our Reputation and Value (Who we are)

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Investments by Industry, FY10

Global Financial

Markets 54%

Commitments for IFC’s Account: $12.7 Billion

Global Information and

Communication Technologies 4%

Infrastructure 12%

Subnational

Finance 1%

Health and

Education 3%

Oil, Gas, Mining

and Chemicals 8%

Private Equity and

Investment Funds 3%

Agribusiness 4%

• Global Manufacturing and

Services 11%

• Low emissions Cars, EVs

• Wind, Solar, Grids, Batteries

• Low Emissions Machines

• Other …

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Investments by Region, FY10

Commitments for IFC’s Account: $12.7 Billion

Sub-Saharan Africa 19%

East Asia and Pacific 13%

South Asia 8%

Europe and Central Asia 23%

Latin America and the

Caribbean 24%

Middle East and North Africa 12%

Global 1%

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IFC Financing

* “Mobilization” includes syndicated loans, structured finance, IFC initiatives and other, and IFC Asset Management Company.

IFC’s own account Mobilization* Loan Participants

$20bn

$15bn

$10bn

$5bn

$0

IFC’s Business (What we do) Investment Services

• Loans and intermediary services

• Equity and quasi-equity

• Syndications

• Structured and securitized products

• Risk management products

• Trade finance

• Subnational finance

• Treasury operations

• CleanTech Venture Capital

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Finance: manage in a wild world

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• Currency fluctuations (not-so-low cost sourcing)

• Market fluctuations

• Accelerate in emerging markets – with the right Banker

Bankers support (Knows east/west/south)

Hands on experience in your trade

Development AND investment banker

Present in all emerging countries

World class understanding of your industry

Long term view

• Promoting efficient products and processes

IFC Offers to Clients (What we bring) Unparalleled Expertise

• Knowledge of global industries and local markets

• Financial sector influence

• Long-term partnerships; countercyclical role

• Sustainable investments

• Leadership on corporate governance

• Value-adding expertise

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IFC Offers Clients A Unique Role

• Emphasis on development impact

World Bank affiliation

• Market discipline

• Risk-taking and risk management

• Preferred creditor status

• Political risk cover

• IFC can provide debt, equity, or a combination of both depending on the client’s needs

• IFC has a longer investment horizon (5-7 years) and is less cyclical than most financial investors

• With its equity investments, IFC can act as an “honest broker” in joint venture situations,

give additional comfort for minority shareholders, and be a catalyst for other investors.

• Leading multilateral source of development finance – IFC’s breadth of investment expertise

and years of experience in emerging markets add value to its clients

• IFC strong reputation adds credibility to investee companies that access international

capital markets

• Best practice know-how on corporate governance, environmental management, local communities,

and insurance requirements

How IFC differs from other Investors

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What IFC brings to an investment Multinational Regional Local

Quality stamp of approval

Country risk mitigation

Exposure to country risk volatility

Good contacts/knowledge

Competitive cost

Long tenors

Access to local currency funding

Complementary funding source

•What is important about IFC to a company, by size and location

•Always

•Often

•Sometimes

IFC Customer Profile: Multinationals, Regional and

Local

IFC Strategic Priorities

• Strengthening the focus on frontier markets – IDA countries,

poorer regions of middle-income countries, conflict affected

and fragile states, and industries with the broadest potential

for development impact

• Building enduring partnerships with emerging market players

• Addressing climate change and ensuring environmental and

social sustainability

• Promoting private sector growth in infrastructure, health,

education, and the food supply chain

• Developing local financial markets

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Combating Climate Change

• The developing world has great

demand for energy, but cannot

afford to increase emissions due

to climate change concerns.

• Solar, wind and other forms of

renewable energy pose great

opportunities for private

investors – if risks can be

overcome.

• IFC invested $1.6 billion in

renewables in fiscal 2010,

a 60 percent increase from

the previous year.

Fossil-fuel CO2 emissions, 2007

•World emissions: 30.7 billion tons CO2

Cars: Enough oil for the world ?

Oil prices will skyrocket

China can’t afford a petrol/diesel engine model for long term growth

China will be a key driving market for EVs

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How fast ? The E-Bikes model

• 2009, China's output of electric bikes (E2W) reached 22.2 M

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