INTER-AMERICAN
DEVELOPMENT BANK
Introduction to the IDB and to ConnectAmericas October 6th, 2015, Oporto, Portugal
CHAPTERS
1. WHO WE ARE AND WHAT WE DO 2. PORTUGAL A KEY STAKEHOLDER 3. HOW DO WE ENGAGE WITH
THE PRIVATE SECTOR?
Leading regional development bank
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• The first and largest regional development bank
• Mission: improve the lives of the people in Latin
America and the Caribbean
• Largest source of long- term developmental financing in Latin America and the Caribbean, since 1959
• 48 member countries worldwide, 26 country
offices in the region
• Clients: Central governments, provinces,
municipalities, private firms and non-governmental organizations.
• 2014: 168 new projects approved (U$13.8bn)
IDB strategic priorities to achieve its institutional
mandate
Why consider Latin America & Caribbean ?
• Unprecedented macroeconomic and
political stability and..
• Growing private consumption with emerging
middle class – c. 500 million people by 2030
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Opportunities for the private sector…
• Vast natural resources
– Raw materials and renewable energy sources
– 40% of the world's biodiversity is concentrated in LAC
• 177 million people in the region still live in
poverty
– Highest inequality worldwide
• Pressure on urban centers and ecosystems – close to 90% by 2030 of the region’s
population lives in cities – Deforestation
• Deficit in human capital and low productivity
• 80 million people in LAC still need access
to water and sanitation (US$20bn investment)
• LAC is environmentally vulnerable
• 183 million of new vehicles in LAC between 2013 and 2030
• Huge infrastructure needs: • Need US$170 – 250 B p.a. until 2020
• Demand for electricity is expected to double by 2030
Portfolio focus on green infrastructure
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Approvals by Sector, 2014
• Focus on infrastructure and environment
building institutional capacity in the region • Infrastructure and Environment: Between
one third and 50% of the portfolio historically dedicated to infrastructure
• Increased focus on Climate Change, both Adaptation and Mitigation with 25% of portfolio commitment
• Special emphasis on Renewable Energy
Volumes Number of operations
2014* Approvals by Sector Group
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Sector Number of projects
The active portfolio concentrates on infrastructure and environment sector
Amount %
* Figures 2014 are preliminary and subject to review and audit
How is Portugal represented at the IDB?
•26 Borrowers •22 Non-Borrowers
50.02%
Latin America & the Caribbean
5
%Japan, China & Rep. of Korea
30%
United States
4
%Canada Europe & Israel
11%
• Portugal is representedin a multi-country
constituency currently headed by Japan
• The six countries in the Constituency are
Croatia, Japan, Korea, Portugal, Slovenia and United Kingdom. • Portugal’s shareholding is 0.05%. • The constituency’s percentage of voting power 6.11%
The IDB Office in Europe
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• Represent the Bank vis-à-vis 16 European member countries and Israel
• Part of the IDB’s Outreach and Partnership Team: as such, act as point of contact for companies and partners
• A bridge to Washington D.C. and the
operational teams to enable partnerships that foster sustainable development in LAC
IDB office in Europe
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How does the IDB engage with the private sector?
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Financing private investments in LAC
Informing about IDB procurement opportunities
Non-financial support: ConnectAmericas
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Financing private investments in LAC
Informing about IDB procurement opportunities
Non-financial support: ConnectAmericas
Developing partnerships
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Why do we support the private sector?
• A healthy private sector
is
essential for economic
development and poverty
reduction
• Generates
90% of our region’s
employment
• Drives
innovation
and
sustainability
• Provides
knowledge transfer
and
capacity building
Conditions under which the IDB can support private sector projects
•The project will contribute to addressing some of the region’s sustainable development needs
•IDB complements (never substitutes) commercial banks, only when private sources of financing insufficient for specific project
•Support is needed to invest in innovative solutions •Special technical skills are required:
– Potential social or environment impact that should be addressed with help from a partner with expertise in those fields
– Need some technical assistance to get project started in LAC
IDB supports only private sector projects that bring
specific additional value to development
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How does the IDB work with the private sector?
• Market-based prices
• Longer tenors
• Partial funding: IDB seeks to act
as a
catalyst
to leverage
additional funding sources
• High environmental, labor, ethical
and health
requirements and
standards
IIC
Structured and Corporate Finance Department (SCF) Inter-American Investment Corporation (IIC) Multilateral Investment Fund (MIF) Opportunities for the Majority Initiative (OMJ)
Medium and large scale investments
SMEs Business models that
serve the Base of the Pyramid
Access to finance, markets and basic services Contact: SCF@iadb.org Contact: financing@iic.org Contact: OM-IDB@iadb.org Contact: mifcontact@iadb.org
Tickets: US$10 – 200M Tickets: US$100k – 40M Tickets: US$5 – 10M Tickets: US$100k– 5M
Structured and Corporate Finance Department (SCF):
medium and large scale infrastructure projects
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• Medium and large scale private sector sustainable investments
• 10M$ to 200M$
• Loans (syndicated and parallel)
• Project finance and public private partnerships
• Partial credit guarantees and Political risk guarantees • Support of international trade
• Technical Cooperation
• Climate change concessional finance • Clean Energy Assessments
Inter-American Investment Corporation (IIC): SME
financing
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Support the growth of SMEs
Products
• Loans (also syndicated) for investments and working capital – Loans: US$100K to US$40M
– Payment terms from 1 to 15 years
– In local currency lending in Mexico and Colombia in support of capital market issues
• Equity: from US$2M to US$10M
– Investments with terms of 4 to 10 years
• Technical Assistance for SMEs
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Opportunities for the Majority Initiative (OMJ)
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• Engaging with private sector companies, local governments, and
communities in the development of innovative market- based solutions that serve the “base of the pyramid”
– Support innovative and financially sustainable approaches that • Provide higher quality and lower prices goods and services
• Build local value chains
• Adapt product, services and distribution channels to increase access and enhance product value
- Products and services
• Loans US$5M to US$10M with up to 15 year maturity
• Partial credit guarantees
Multilateral Investment Fund (MIF)
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• Expanding access to finance, markets and basic services
• Support the development of microfinance industry
• Support the Venture Capital industry
• Develop producer cooperatives and exporters’ competitiveness
• Alliances with business community networks to transfer technical skills
• Expand access to cleaner and more efficient energy for MSMEs and lower income populations
• Promote the entry of 1 M vulnerable young people into the labor market
- Instruments
• 70% of the resources are grants for non-profit organizations
• Loans (from US$100K to US$5M)
• Technical assistance • Equity
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How does the IDB engage with the private sector?
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Financing private investments in LAC
Informing about IDB procurement opportunities
Non-financial support: ConnectAmericas
3 BARREIRAS
ACESSO A
CLIENTES
CONFIÁVEIS
ACESSO A
INFORMAÇÃO
ACESSO A
FONTES DE
FINANCIAMENTO
A principal comunidade online de empresas da América
Latina e do Caribe dedicada a promover o comércio e
investimentos internacionais
Find suppliers
Find clients
Connect with them
Learn about their profile
Read about their reputation
See their product offering
Requirements to export
and import
Foreign trade processes
Custom duties
Transactions in different
currencies
ConnecAmericas Academy
Find opportunities to
finance your project
Credit lines for international
trade transaction
Financial assistance for
exports
Access to commercial and development banks
across the region
MATERIAL PARA DISCUSSÃO
PLATAFORMA CONNECTAMERICAS – PILAR FINANCIERO
Solicitação de produtos e serviços financieros - Perfil econômico da empresa
Para solicitar um de nossos produtos e serviços financeiros, por favor providencie a seguinte informação acerca de sua companhia. Esta informação nos ajudará a entender o caráter de seu negócio, avaliar seu perfil de risco e identificar que produtos e serviços se adaptam melhor às suas necessidades. Apesar de toda a informação solicitada ser importante para poder realizar uma correta avaliação de sua solicitação, se desejar pode deixar em branco toda aquela informação que prefira não proporcionar por este meio.
A. Informação geral sobre o financiamiento ou serviço
Produtos e serviços financeiros que deseja solicitar Produtos financeiros
☐ Empréstimo de importação ☐ Garantia de cumprimento ☐ Carta de crédito de exportação ☐ Empréstimo de exportação ☐ Garantia de participação ☐ Carta de crédito de importação ☐ Empréstimo para inverstimento no
exterior
☐ Outros (Especificar): __________________________________________________
Serviços financeiros
☐ Transferências internacionais ☐ Seguro de câmbio ☐ Outros (Especificar):
☐ Ordens de pagamento ☐ Seguro de transporte _______________________________ ☐ Cobranças ☐ Abertura de conta em moeda extrangeira
Descrição dos produtos e serviços financeiros solicitados Produtos financeiros
Montante Moeda País
Empréstimo de importação: Empréstimo de exportação:
Empréstimo para investimento no exterior: Garantia de cumprimento:
Garantia de participação: Carta de crédito de exportação: Carta de crédito importação: Outros (Especificar):_________________
Garantia oferecida: O Depósito O Avalista O Hipoteca O Caução O Nenhuma O Outra Qual?____________________
Serviços financeiros
Montante Moeda País
Transferências/ Ordens de pagamento Cobrança
Montante Moeda
Seguro de câmbio: Seguro de transporte:
Abertura de conta em moeda extrangeira:
B. Informação geral da sociedade
Dados de sua empresa
Razão social: Nome comercial ou sigla: Número de registro empresarial: Endereço: Cidade: País: Telefone: Página web:
Dados para contato
First phase: Colombia, Costa Rica, Trinidad y Tobago and Uruguay In 2015, extension to other countries
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How does the IDB engage with the private sector?
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Financing private investments in LAC
Informing about IDB procurement opportunities
Non-financial support: ConnectAmericas
Partnerships
Why?
• Shared value, CSR and triple bottom line
strategy for companies
• Growth strategy supporting market entry
in LAC region
How?
• Financial and non-financial means such as
in-kind donations, knowledge sharing and
professional secondments for IDB projects
THANK YOU!
Contacts:
IDB office in Europe: IDBEurope@iadb.org
http://www.iadb.org
The Inter-American Development Bank Discussion Papers and Presentations are documents prepared by both Bank and non-Bank personnel as supporting materials for events and are often produced on an expedited publication schedule without formal editing or review. The
information and opinions presented in these publications are entirely those of the author(s), and no endorsement by the Inter-American Development Bank, its Board of Executive Directors, or the countries they represent is expressed or implied.
