INTERNATIONAL FINANCE
CORPORATION
A long term partner for global oil and gas
Introduction to IFC
IFC: A MEMBER OF THE WORLD BANK GROUP
IBRD
IDA
IFC
MIGA
ICSID
International
Bank for
Reconstructio
n and
Development
International
Development
Association
International
Finance
Corporation
Multilateral
Investment
and
Guarantee
Agency
International
Centre for
Settlement of
Investment
Disputes
Loans to
middleincome and
credit-worthy
low-income
country
governments
Interest-free
loans and
grants to
governments
of poorest
countries
Solutions
in
private
sector
development
Guarantees
of foreign
direct
investment’s
noncommercial
risks
2
Conciliation
and
arbitration of
investment
disputes
IFC: INTEGRATED SOLUTIONS FOR INCREASED IMPACT
INVESTMENT
ADVISORY
 Loans
 Firm-level advice
 Equity
 PPP transaction
advice
 Trade finance
 Syndications
 Securitized finance
 Risk management
 Blended finance
$51.7 bn portfolio
(FY14)
3
 In partnership w/World
Bank, advice on
broader market
development and
enabling environment
for private sector
720 projects valued at
$1.1 bn (FY14)
IFC ASSET
MANAGEMENT
COMPANY
 Wholly owned
subsidiary of IFC
 Private equity fund
manager
 Invests third-party
capital alongside IFC
$6.4 bn under mgmt
(FY14)
IFC’S GLOBAL REACH


109 country and regional offices worldwide
4,015 staff (57% based outside Washington DC)
● Moscow
● Paris
● Washington
● Tbilisi
● Istanbul
● Cairo
● Mexico City ● Santo Domingo
● Almaty
● New Delhi
● Hong Kong
● Dakar
● Nairobi
● Sao Paulo
● Buenos Aires
4
● Johannesburg
● IFC HQ / Hub Offices
● IFC Country Offices
THE POWER OF PARTNERSHIPS
3,000 Employees
in 86 Countries
Host County
Governments
900 Financial
Institution Clients
IFC’S GLOBAL
NETWORK FOR
SOLUTIONS
30+ IFIs/DFIs
Sovereign
Wealth Funds/
Institutional
Investors
5
2,000 Private
Sector Clients
Civil Society
20+ Bilateral Donors/
15+ Private
Foundations
IFC Added Value in Oil & Gas
OVER 50 YEARS OF SECTOR EXPERTISE:
7
Greenfield projects
Expansion projects
Modernization
projects
Oil and gas corporate
strategy
Relationships with
international
stakeholders,
including investors
Technical advice and
support
OIL AND GAS EXPERTISE
IFC HAS EXPERIENCE THROUGHOUT THE VALUE CHAIN
UPSTREAM
MIDSTREAM
DOWNSTREAM
EXPLORATION
E&P
OIL PIPELINE
GAS PIPELINE
LNG
Paraguay
Egypt, Algeria,
Bulgaria
Chad,
Cameroon
Nigeria
Peru
Turkey
Peru
President Energy
Petroceltic
ExxonMobil
Seven Energy
Peru LNG
IZGAZ
Calidda
$24,000,000
$100,000,000
$200,000,000
$105,000,000
$300,000,000
$51,000,000
$50,000,000
Equity Investment
Senior Loan
Equity Investment
Syndicated Project
Financing
Senior Term Loan
Junior & Senior
Term Loans
Investor
Mandated Lead
Arranger
Senior Loan &
Syndication
Investor (with AMC)
Lender
Lender
Lender
December 2013
April 2013
April 2014
June 2007
June 2009
March 2010
8
June 2001
GAS DISTRIBUTION
LONG-TERM COMPETITIVE FINANCING
ONE STOP SHOP FOR FULL RANGE OF FINANCING INSTRUMENTS
› Private placement in listed equities
› Traditional private equity
› Asset level farm-ins
EQUITY
› Typically 5-20% shareholding
› Not just financial investor, adding to shareholder value
› Subordinated loans
MEZZANINE /
QUASI EQUITY
SENIOR DEBT
&
EQUIVALENTS
9
› Income participating loans
› Convertibles, preferred shares
› Corporate loans - Reserve based lending, Straight
corporate debt, Partial credit guarantees for bonds
› Long-term project finance - Greenfield, Expansion
› Mobilization of funds from other lenders and
investors, through financings, syndications,
underwritings and guarantees
› Fixed and
floating
rates
› Local
currencies
› Up to 20year
maturity
LONG-TERM COMPETITIVE FINANCING
IFC ENGAGES ACROSS THE E&P CYCLE
Exploration
New Area
Appraisal
Development
Mature Area
Production &
Maturity
Aerial surveys
2D, 3D seismic
3D seismic
Construction
Water, gas injection
Geochemical
Nearby wells
Additional wells
Data consolidation
Infill drilling
2D seismic
Drilling
Reserves
Horizontal wells
Drilling
Resources
Development plan
Resources
Wildcat well
10
Discovery well
Commerciality
First oil / gas
Joint Venture “Farm-in”
Corporate equity
Mezzanine (QD)
Reserve Based Loan
Corporate equity
Mezzanine (QE)
Reserve Based Loan
Senior Loan
LONG-TERM COMPETITIVE FINANCING
CAPITAL MOBILIZATION: IFC WORKS WITH CLIENTS TO FIND
FINANCING SOLUTIONS BEYOND ITS OWN ACCOUNT
IFC ASSET MANAGEMENT COMPANY
IFC AFRICAN, LATIN
AMERICAN &
CARIBBEAN FUND
IFC GLOBAL
INFRASTRUCTURE FUND
Co-invests with IFC in equity and equity-related investments across a range of sectors
in Sub-Saharan Africa, Latin America, and the Caribbean
Co-invests with IFC in equity-related investments in the infrastructure sector in
emerging markets
IFC‘S SYNDICATED LOANS & MANAGEMENT DEPARTMENT
SYNDICATED LOANS
MANAGEMENT
MANAGED CO-LENDING
PORTFOLIO PROGRAM
Mobilizes funds through: (i) Syndicated "B" Loans, mainly through commercial banks,
(ii)Coordinated and/or syndicated parallel loans, and (iii) A Loan Participations (ALPs)
Allows institutional investors, which provide capital on a portfolio basis, to passively
participate in IFC’s future loan portfolio. Through its State Administration for Foreign
Exchange, the People’s Bank of China has committed $3 billion in the next 6 years
OTHER FINANCING PARTNERS
SOVERIGN WEALTH
FUNDS / NATIONAL
INVESTMENT COMPANIES
11
IFC works closely with Temasek, a national investment company in Singapore, and
other investment funds globally to mobilize additional capital for our clients
ADVISORY SERVICES
IFC relies on 50+ years of experience of working in developing countries to
develop practical, sustainable business solutions for our clients
Local
economic
development
Corporate
governance
Resource
efficiency
12
•
•
•
•
•
•
Community investment strategies
Measuring the impact of community spending
Increasing participation of local businesses in supply chain
Business skills training for local entrepreneurs
Promoting female workforce
Helping local governments manage revenues (e.g. royalties) for economic development
• IFC works with the different governance priorities, including publicly listed companies,
founder and family-owned firms, financial institutions, and newly privatized and stateowned enterprises
• IFC Corporate Governance experts advise clients on (i) defining shareholder rights, (ii)
creating a solid control environment, (iii) ensuring high levels of transparency and
disclosure, and (iv) setting up an empowered board of directors
• Energy efficiency analysis to reduce water, energy and raw materials use
• Water risk/footprint assessment
INTEGRATED FINANCING & SUSTAINABILITY EXPERTISE
FINANCING
ADVISORY SERVICES
› Equity
› Supplier development (linkages)
› Quasi-equity
› Community Development
› Loans
› Municipal Capacity Building
› Capital markets access and mobilization
› World-class environmental and social advice
› Risk management
› Resettlement & Indigenous Peoples
› Political risk cover
› Access to Community Development Funding
IFC’s package deal brings together world-class talent, a global outlook and a social/environmental mandate
to deliver sustainable business solutions; IFC’s team includes financial professionals, petroleum engineers
and gas specialists, environmental specialists, development experts, and communications specialists
13
COUNTRY RISK MANAGEMENT CAPABILITIES
World Bank
synergies
Strong government
relations
Withholding tax
benefit
Country
Risk
Mitigation
Reduced risk of expropriation
14
Reduced risk of
breach of contract,
convertibility
BEST PRACTICE TOOLS IN E&S RISK MANAGEMENT
PERFORMANCE STANDARDS HELP TO IMPROVE THE BOTTOM LINE

Ensure smooth and continuous operations

Maximize local development benefits fosters good neighborly relations

Raise project’s acceptance locally and with governments through good corporate citizenship

Optimize resource management (water, energy, etc.)

Create reliable and cost effective supply chains

Attract top talent both locally and internationally

Enhance company brand value to investors
IFC’S IN-HOUSE ENVIRONMENTAL AND SOCIAL SPECIALISTS ASSIST
CLIENTS WITH:
15

Pollution prevention

Community development & consultation

Cleaner production

Cultural property

Socioeconomic / workplace / labor issues

Impact assessments

Land acquisition / resettlement /
compensation

E&S management systems

Health & safety

Indigenous people

HIV / AIDS

Biodiversity

Gender empowerment
Select IFC Oil & Gas
Investments
KUWAIT ENERGY
IFC’S TRUSTED BRAND ATTRACTS CAPITAL IN RISKY MARKETS
Kuwait Energy is the largest privatelyowned E&P company in Kuwait with assets
in Egypt, Yemen, Oman and Iraq
In 2009, IFC provided Kuwait Energy (KEC)
with an innovative Sharia compliant US$50
million financing package at a time when
commercial banks had limited liquidity. The
package consisted of a US$35 million reservebased loan and a US$15 million income
participation loan. IFC also actively assisted
KEC with corporate governance and
environmental and social issues.
IFC’s ability to deliver results led KEC to seek
IFC’s further partnership.
In 2010, KEC invited IFC to participate in a
pre-IPO private placement as an anchor
investor. KEC was expecting to raise US$50
million equity from IFC and an additional
US$50 million from other investors. IFC’s
participation was seen by potential new
investors as key in demonstrating confidence
in the company’s growth potential.
In 2012, following the Arab Spring and with
limited appetite from international commercial
banks for Middle Eastern risk, IFC again
provided the company a US$165 million
reserve based loan alongside Deutsche Bank.
17
Selected Key Investment Risks:
 Commodity price risk: Following the sharp decline in oil prices in the second half of 2008,
oil prices in 2009 experienced high volatility. Given that backdrop, uncertainty around the
near-term behavior of oil prices led to investor discomfort, leading IFC to step in to fill the
vacuum.
 Country and political risk: Due to the volatility of the political regimes in some countries in
which KEC operates, there is risk that a change in government may result in losing
licenses issued by previous governments or the enactment of other obstacles of doing
business. This was highlighted during the Arab Spring events. IFC continued to fund the
company during these times.
Due to the risks above, among others, investors were relying on IFC participation to provide
confidence and comfort in the company and the investment.
Summary of IFC Engagement with KEC:
Net Production
 4,630 boepd

2008 – First engagement with IFC. IFC
provides Corporate Governance advice

2009 – Following the global financial crisis,
IFC provides KEC the first ever Shariah
compliant RBL and income participation
facility

2010 – IFC’s participation in equity round as
anchor investor allows KEC to raise
US$100 million in midst of Arab Spring
 12,798 boepd

2012 – IFC and Deutsche Bank’s US$165
million RBL for KEC wins Project Finance’s
Middle East Upstream Deal of the Year
 15,018 boepd

2014 – IFC continues to provide corporate
governance advice ahead of potential IPO
 24,921 boepd
First ever
Shariah
compliant
RBL
 9,364 boepd
KOSMOS ENERGY AND THE JUBILEE OIL FIELD
IFC STRUCTURES INNOVATIVE SOLUTIONS TO FIT CLIENT NEEDS
Kosmos Group is privately held and owns growing oil and gas exploration companies focused on West Africa. Kosmos is the
partner with the second largest share in the Jubilee project.
In 2009, IFC provided Kosmos Energy with US$100 million loan as part of a US$750 million reserve-based lending facility. The proceeds of
the RBL were used for the first phase of development of the Jubilee oil field, Ghana’s first oil production project.
IFC took on an important leadership role in negotiating and structuring the transaction. IFC was essential in converting the financing into a
multi-tranche (bridge / senior / junior stand-by / junior overrun) facility that closely met the needs of the borrower.
Additionally, IFC made a key contribution to the investment, facilitating discussions with the Government of Ghana, allowing the company to
obtain requisite consents to put the loan facility in place.
When Kosmos took on a second RBL, IFC was happy to continue its support of the company and the Jubilee project by participating in the
new US$2.0 billion facility. This second IFC investment, a US$100 million senior loan in 2011, supported an expansion of the Jubilee field as
well as the development of new fields in Ghana.
The Kosmos
financing was
awarded Deal of the
Year 2009 by Project
Finance Magazine
and Project Finance
International
Magazine in the
African Oil and gas
category.
IFC further supported the Jubilee project, investing in the partner with the
largest share in the field: Tullow Oil.
In 2009, Tullow raised a US$2.0 billion reserve-based lending facility to refinance
outstanding commercial bank debt with the remaining proceeds going towards its
portion of Phase 1 of the Jubilee project. IFC invested US$115 million in the facility.
IFC invested an additional US$50 million in 2011 when Tullow increased its RBL to
US$3.5 billion to fund continued capital expenditure needs.
In 2012, Tullow refinanced its existing RBL facility, requesting IFC to refinance its
US$165 million investment as both the company and the other investors valued IFC’s
involvement.
18
GEOPARK LIMITED
IFC FORMS LONG-TERM PARTNERSHIPS WITH ITS CLIENTS
GeoPark is a growing Latin American oil and gas company with
operations in Chile, Colombia, Brazil, Peru, and Argentina.
February 2006: IFC invested US$10 million in early-stage equity (preIPO) in GeoPark Limited, a junior independent exploration and production
company with limited production focused on development of marginal oil
and gas reserves in Argentina and Chile.
2008: IFC helped facilitate a gas pre-sale financing agreement for US$40
million with Methanex, a methanol producer in Chile. Methanex was
looking to pre-order stable gas off-take, which enabled GeoPark to
accelerate its Fell Block debt.
2008-9: IFC participated in 3 additional equity rights issues, the proceeds
of which helped GeoPark to further expand operations.
2011: IFC acquired 12.5% working interest in the GeoPark-operated
unincorporated joint venture in the Otway exploration block in Chile (has
since been divested).
February 2014: GeoPark was listed on the New York Stock Exchange
under ‘GPRK’.
Although GeoPark has now achieved financial independence, the
company continues to seek IFC’s advice on topics ranging from
expansion into challenging markets to how to devise a environmental and
social action plan for maximum development impact.
19
$338
Net
Revenue
(US$
million)
By year-end 2006, GeoPark had established itself as the first private oil
and gas operator in Chile.
Production
(thousand
boepd)
December 2006: IFC disbursed a US$20 million loan to GeoPark. This
capital was used to expand operations.
2006: Operations in
Chile and Argentina.
IFC first invests.
$6
$45
2006
2009
2013
13.5
6.3
1.4
2006
2P
Reserves
(mmboe)
May 2006: GeoPark was listed on the AIM market of the London Stock
Exchange.
2008-9: Additional
IFC investments.
Quadrupled
production and
increased acres
under license 500%
in 2 years, adding
over 3 million acres
in Chile, via 2 new
blocks.
2014: Through a
series of
acquisitions, now
has operations in
Chile, Brazil,
Colombia,
Argentina, and most
recently Peru.
Revenues have
grown at ~180%
CAGR since initial
investment.
2009
2013
61.6
29.2
2006
42.2
2009
2013
Delonex Energy Limited
WITH ITS KNOWLEDGE AND RESOURCES, IFC SUPPORTS ITS
CLIENTS AT EVERY CRITICAL JUNCTURE
Delonex Energy Limited is an early-stage E&P company that seeks to build a portfolio of East and Central African oil and gas
assets. The portfolio will be built up through acquisitions, farm-ins, and direct awards from host governments.
In January 2013, IFC approved an equity investment of up to US$60 million in Delonex. IFC’s investment is part of a US$600 million equity
line that will be disbursed as needed based on the company’s achievements.
As a start-up company, Delonex has no producing assets, and as such, needed to offer a unique investment product to raise capital at
favorable terms. IFC played a key role in structuring such a product.
In addition to helping structure a tailor-made product,
IFC provides additional added value to Delonex as well.
Because Delonex is new E&P company in the frontier East
and Central Africa region, IFC’s participation provides
political risk mitigation comfort to the company to its
investors. Delonex intends to enter countries including
Ethiopia, South Sudan, Madagascar, Mozambique,
Tanzania, Kenya, Uganda, and Chad. With IFC as its partner,
Delonex is able to tap IFC’s knowledge of and experience in
investing in these risky countries.
Rift Basins:
Permo-Triassic (PT)
Cretaceous
Tertiary
African – Indian
Passive Margin Basins
20
Additionally, a long-term partnership with IFC will provide
support for Delonex’s future growth plans through additional
equity and/or debt.
Delonex views IFC as a key resource in its efforts to
implement robust environmental and social standards and
corporate governance policies in its operations.
IFC Oil & Gas Track Record
DIVERSIFIED COMMITTED $2.2 BILLION OIL & GAS PORTFOLIO
52 projects in over 30 countries (June 30, 2014)
BY PRODUCT
BY REGION
SENIOR DEBT
&
EQUIVALENTS
69%
EQUITY*
31%
SOUTHERN &
EASTERN EUROPE
10%
WORLD
1%
SUB-SAHARAN
AFRICA
22%
ASIA
17%
LATIN AMERICA
35%
22
*Equity at market value
MIDDLE EAST &
NORTH AFRICA
15%
SELECTED INVESTMENTS: LATIN AMERICA
Colombia
EXMAR LNG
Colombia
Paraguay
Pacific Midstream President Energy
Colombia
Colombia
Argentina
Pacific
Infrastructure
PetroNova
Medanito
$240,000,000
$380,000,000
$24,000,000
$150,000,000
$30,000,000
$48,000,000
Syndicated Project
Financing
Equity Investment and
AMC Mobilization
Equity Investment
Equity Investment
Equity Investment
Equity Investment
Mandated Lead Arranger
Lead Equity Investor
Investor
Investor (with AMC)
Investor (with AMC)
Investor (with AMC)
Ongoing
December 2014
December 2013
December 2013
September 2012
July 2011
Brazil
Argentina
Peru
Peru
Peru
Argentina
Peru LNG
Pan American
Energy
Constellation
Overseas
23
CAPSA
BPZ Energy
Maple Energy
$103,000,000
$60,000,000
$75,900,000
$10,000,000
$300,000,000
$550,000,000
Equity Investment
Corporate Facility
Convertible Notes, ReserveBased Facility & Equity
Equity Investment
Syndicated Project Financing
Syndicated Corporate Loan
Investor
Lender
Investor & Lender
Investor
Lender
Mandated Lead Arranger
April 2010
December 2009
2006 - 2009
July 2007
June 2007
June 2007
SELECTED INVESTMENTS: AFRICA
Nigeria
Nigeria
Gabon
Africa Region
Cote d’Ivoire
Seven Energy
Seven Energy
VAALCO
Delonex Energy
Rialto Energy
$50,000,000
$105,000,000
$65,000,000
$60,000,000
$20,000,000
High Yield Bond
Equity Investment
Reserve-Based Loan Facility
Equity Investment
Equity Investment
Investor
Investor (with AMC)
Lender
Investor
Investor (with AMC)
October 2014
April 2014
January 2014
November 2013
January 2012
Ghana
Ghana
Gabon
Africa Region
Mozambique
Kosmos Energy
Tullow Oil
VAALCO
Afren
ENH Mozambique
$100,000,000
$165,000,000
$40,000,000
$1,000,000
$18,500,000
Senior Loan
Senior Loan
Revolving Credit Facility
Equity Investment
Equity Investment
Mandated Lead Arranger
Mandated Lead Arranger
Lender
Investor
Investor
2009, 2012
2009, 2011
January 2005
April 2005
February 2004
24
SELECTED INVESTMENTS: EUROPE / MENA
25
Turkey
Egypt, Algeria,
Bulgaria
Albania
Tunisia
TransAtlantic
Petroceltic
Bankers Petroleum
Candax Energy
$80,000,000
$100,000,000
$67,000,000
$10,000,000
Reserve-Based Lending
Senior Loan
Senior Loan & Equity
Equity Investment
Mandated Lead Arranger
Mandated Lead Arranger
Investor & Lender
Investor & Lender
May 2014
April 2013
2009, 2012, 2013
January 2012
Kuwait
Tunisia
Egypt
Kuwait Energy
Topic
Melrose Resources
$165,000,000
$40,000,000
$1,000,000
Senior Loan
Revolving Credit Facility
Seed Equity Investment
Investor
Investor & Lender
Investor
2009, 2011, 2012
October 2008
November 2006
SELECTED INVESTMENTS: ASIA
26
China
Thailand & Indonesia
India
Thailand & Indonesia
ENN Energy
Salamander Energy
Cairn Energy
Salamander Farm-In
$75,000,000
$117,500,000
$271,000,000
$25,000,000
Senior Loan
Senior Revolving Credit Facility &
Junior Term Loan
Credit Facility & Equity Investment
Equity Investment
Mandated Lead Arranger
Lender
Mandated Lead Arranger &
Investor
Investor
2013
2008, 2009, 2011
2007, 2009
January 2009
India
Vietnam
Punj Upstream
SOCO
$30,000,000
$45,000,000
Debt / Equity Financing
Credit Facility
Investor & Lender
Lender
September 2008
September 2005
SELECTED INVESTMENTS: GAS / LNG
China
Dom. Republic
Peru
Turkey
India
ENN Energy
Linea Clave
Calidda
IZGAZ
GSPC Gas
$75,000,000
$5,000,000
$50,000,000
$51,000,000
$15,000,000
Senior Loan
Junior Term Loan
Junior & Senior Term Loans
Senior Term Loan
Equity Investment
Mandated Lead Arranger
Lender
Lender
Lender
Investor
2013
January 2010
March 2010
June 2009
September 2008
India
Peru
India
Romania
Colombia
GSPL
Peru LNG
Petronet LNG
DistrigazSud
Promigas
$89,000,000
$300,000,000
$150,000,000
€49,000,000
$50,000,000
Equity Investment & Term Loan
Syndicated Project Financing
Syndicated Corporate Loan
Equity Investment
Credit Facility
27
Investor & Lender
Lender
Lender
Investor
Lender
October 2007
January 2007
April 2007
February 2006
December 2005
IFC OIL & GAS: GLOBAL COVERAGE
GLOBAL OIL & GAS
Lance Crist
Global Head
Washington, DC
+1 202 473 0773
lcrist@ifc.org
Olivier Mussat
Chief Investment Officer
Washington, DC
+1 202 458 0244
omussat@ifc.org
Haran Sivam
Principal Investment Officer
Washington, DC
+1 202 473 4591
hsivam@ifc.org
Jorge Bongiovanni
Principal Engineer
Washington, DC
+1 202 458 1796
kolsen@ifc.org
Didier Savary
Principal Engineer
London, UK
+1 202 580 8410
dsavary@ifc.org
Ignacio de Calonje
Principal Investment Officer
London, UK
+44 207 542 8400
idecalonje@ifc.org
Karsten Fuelster
Principal Investment Officer
Istanbul, Turkey
+90 212 385 2550
kfuelster@ifc.org
Senior Investment Officer
Lima, Peru
+51 1611 2568
amalpartida@ifc.org
Principal Investment Officer
Washington, DC
+1 202 473 3679
msheng@ifc.org
EUROPE / MENA / AFRICA
LATIN AMERICA
Aldo Malpartida
ASIA
Michael Sheng
28