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					                        IFC in Central America
                                 2010
    Managua Nicaragua




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              IFC – Presence in Latin America
    •   Global Presence in more than 80 countries
    •   Decentralization strategy through the establishment of regional and local
        offices closer to our clients in the region

                                              Guatemala
                                               Honduras
                                                          Santo Domingo

                                                                   Port of Spain
              Mexico City


                      Nicaragua

                              Bogota




                                       Lima
                                                                              Sao Paulo - Rio de Janeiro




                                                             Buenos Aires



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                          Covered Industries

    I. Manufacturing Services     Light Manufacturing, Housing,
                                  Real Estate, Retail Sector.
    II. Agroindustry              Sugar & Ethanol, Bottling, Dairy,
                                  Food & Beverage.
    III. Infrastructure           Power, Transport, Water

                                  Banks, Insurance Companies,
    IV. Financial Markets         Cooperatives and Microfinance
                                  Institutions

    V. Telecom, Technology        Telecom and Technology
       and Media


    VI. Health and Education      Hospitals and Universities


    VII. Funds                    Infrastructure and Medium Enterprise
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           CENTRAL AMERICA STRATEGY
                        GROWING PORTFOLIO IN   OTHER SECTORS
     BASE BUSINESS
                             MANUFACTURING ,          HEALTH,
    FINANCIAL MARKETS    AGRIBUSINESS AND        EDUCATION,
                          INFRASTRUCTURE       TECH, TELECOM




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                        FINANCIAL PRODUCTS

                                      PRODUCTS


       LOANS      SINDICATIONS          QUASI           EQUITY           OTHERS
                                       EQUITY


    • Long Term   • A/B loan        • Subordinated   • Common        • Derivatives
                                                        Equity
    • Foreign       structure          Debt                          • Partial Credit
      Currency    • Complete        • Mezzanine      • Preferred        Guarantees
                                                        Equity
                    solution           Finance                       • Structured
    • Local                                          • Put Options
      Currency    • Advantages      • Convertible                       Finance
                    of B loan to       Structures/                   • Advisory
                    participating      Hybrids                          Services
                    banks




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                      Investment Criteria

    Similar to those of traditional financial institutions, with the
      following exceptions:
        • IFC operates only in Emerging Markets
        • The projects have to be from the private sector
        • Strict requirements for Sponsors of projects(transparency, good
          reputation)
        • Development impact of the project:
            - Positive economic returns
            - Mitigation of social and environmental effects.


    Average IFC participation in the financing of a project:


    US$10-100 million (could be less, depending on the sector)



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                       Investment process


      Seen by the Client                               IFC internal process


    Discussion with Investment                   Internal Review prior to proceed
      Officers and Specialists                            to Due Diligence


          Mandate Letter,                                     IFC
          Due Diligence,                               Management Approval
           Negotiations

           IFC approval
       Legal documentation,                              IFC Board Approval
          Disbursement


                                   Supervision
                              Strategic Relationship

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    Our clients in Central America




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                                  Loans

     Tenor and grace period structured according to the project’s cash
      flow needs
     Currency: Local Currency or USD
     Interest Rate: Fixed or Variable
     Other features:
        • Rate is set based on LIBOR plus a spread
        • The spread depends on the risk profile of the country and the
          project
        • No withholding tax on our credits
        • For start-up companies, our financing can’t exceed 25% of the
          total project cost.
        • For expansion projects, our financing can’t exceed 50% of the
          expansion cost.



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                                  Equity


      Investment Horizon: 5 a 15 years
      Exit Mechanism: Ideally through    an IPO, but exit mechanism
       through sale to the sponsors would also work (put option)
      Investment: 5%-19% of total shares
      Minimum Returns: IFC does not require      a minimum guaranteed
       return, nevertheless the expected return is set on a case by case
       basis.
      IFC is a minority and passive investor: sometimes we have a board
       seat, but would not be an IFC employee.




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                              Quasi - Equity



      Type: Sub Debt, Convertible Bonds, Income participation loans,
       etc


      Tenor: 5 to 15 years

      Benefits:Attractive rates vs. equity cost, risk can be shared
       between the client and IFC.




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