Kelle Bevine – IDB/Private Sector Dept. October 26, 2006

Date of Creation:
 1995
Coverage:
 Project Finance
 Corporate Finance
 Capital Markets
 Trade Finance
Presence in the Market:
 Operations in 15 countries & a regional fund
 71 projects closed in financial markets
 US$17.8 billion of new investments
 US$2.7 billion of direct financing
 US$2.9 billion of commercial participations
 More than 80 banks and institutional investors

IDB Approved Amounts and Total Project Costs
(cumulative 1995-2006)
Total Project Costs
$26,183 million
IDB Approved amount
$4,935 million
Mobilization ratio of total project cost is 5.3 times amount of IDB participation

Building physical & financial infrastructure to increase the region’s competitiveness & job creation – examples of tangible results from IDB private sector portfolio
Sector
Subsector
# of projects
Output Outcome
Total project cost
Electricity generation 23 10,300 MW 60 million beneficiaries $6.60
transmission 13 114,000 km 98,000 MW increased capacity $3.70
Transportation tollroads 10
Water &
Sanitation distribution
Capital Markets housing
4
6
971 km
300,000 new connections up to1 million new mortgages
10% reduction in accidents over 1 million beneficiaries over 4 million beneficiaries
$2.70
$0.70
$1.50

:
 New clients: state-owned-enterprises, financial institutions, subnational /municipal entities, & PPPs are now eligible for IDB financing
 Expanded Sectors: all sectors now eligible for IDB financing
 New Products: refinancing and local currency guarantees
 Increased Lending Limits: up to US$200 million/US$400 million*
 Streamlined Procedures for improved response capacity

Financial Products:
 Syndicated A/B Loan Facilities
 Political Risk Guarantees
 Local Currency Financial Guarantees
 Local Currency Financing options
Financing Parameters:
 Project Finance, Corporate Finance, Structured Finance & Trade Finance solutions
 New projects, capital expansions and re-financing all eligible
 Financing up to 25-40% of total cost for Greenfield transactions
 Financing up to 50% in expansions and re-financing
 Project limits at US$200 million or US$400 million/exceptional basis
 Tenors up to 20+ years
 Market-based pricing

 Local Currency Financial Guarantees, typically without recourse to the originator, for:
 Mortgage-backed securitizations (MBS), for both residential and commercial mortgages
 Future flow securitizations for credit card receivables, trade receivables, etc.
 Warehousing facilities for accumulation of receivables (e.g. construction loans)
 Direct Credit and/or Local Currency Financial Guarantees for on-balance sheet financing via banking and/or bond markets by corporations, financial institutions, or utilities.
 Structures include issues of secured and unsecured senior and/or subordinated debt
 Direct Credit and/or Local Currency Financial Guarantees for limited recourse off-balance sheet financing via banking and/or bond markets by special purpose companies.
 Private, Public and Mixed Ownership (PPP) utility companies and project sponsors
 Debt Financing for private equity funds and real estate investment trusts (REITs)
 Debt Financing for investment funds for infrastructure, education, export-based businesses, etc.
 Unsecured loans to leading financial institutions, for on-lending to importers and exporters.
Facilities mobilize commercial bank funding through B-loan participation
 First generation of deals focused on largest banks in Brazil; second generation is expanding to smaller banks throughout the region
PRIVATE SECTOR DEPARTMENT

Questions Raised during July 13, 2006 meeting:
 Can IDB provide re-insurance to national development banks?
 Can IDB assist in attracting monoline insurers to companies in Latin America?
 Additional questions