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					Supporting Private Education
        in Emerging Markets
                 September 2010
International Finance Corporation at a glance

      History, ownership and vision                                                   IFC Portfolio as of June 30, 2009, by Region
      • Founded in 1956 to foster private sector                                                                   Sub-Saharan
                                                                                                                               Global 1%
                                                                                                                                              Europe and
        investment in the developing world                                                        South Asia
                                                                                                                   Africa 11%                 Central Asia 26%

      • Part of the World Bank Group and owned by                                                 12%
        its 179 member countries                                                      Middle East and
      • Vision: That poor people have the opportunity                                 North Africa 11%

        to escape poverty and to improve their lives.                                                    East Asia and
                                                                                                                                        Latin America and the
                                                                                                         the Pacific 14%
                                                                                                                                        Caribbean 25%

      IFC Financing as of June 30, 2009                                                                          Total US$32.4 Billion
      Total Commitments: US$10.5 billion for own account,
      US$4.0 billion mobilized                                                        IFC Portfolio as of June 30, 2009, by Industry
                                                                                                                         Health and Education
                                                                                                      Private Equity and 2%
                                    IFC's own account*   Syndications
                                                                                                      Investment Funds 5%          Subnational Finance
                $16                                                                      Global ICT 4%                             1%
                $14                                                                                                                                Global Financial Markets
                $12                                                                      Agribusiness                                              Group 36%
                $10                                                                      7%
 US$ billions




                 $8                                                                    Oil, Gas, Mining, and
                 $6                                                                    Chemicals 10%
                 $4
                 $2
                 $0                                                                         Global Manufacturing                  Infrastructure 17%
                      2002   2003       2004     2005    2006    2007   2008   2009         and Services 18%

                   *Includes loans, equity, guarantees, risk management products
2                IFC FY09 Annual Report data                                                                       Total US$32.4 Billion
IFC has a well established franchise in Latin America

Historical Commitments                                                                 Fiscal Year 2009 Commitments
US$ millions                                                                           US$ millions
                 IFC syndications   IFC loans, equity, guarantees, risk mgt.
                                                                                                         Syndications
$5,000
                                                                                                           US$670                  Loans
$4,300
                                                                                                                                  US$ 1,648
$3,600                                                                                Guarantees and
$2,900                                                                                RM US$824
$2,200
$1,500
 $800
                                                                                          Equity US$250
 $100
 ($600)   FY02    FY03      FY04     FY05      FY06      FY07      FY08        FY09
                                                                                                              US$ 3,392 million
Regional Portfolio                                                                     IFC Portfolio by Country (largest exposure)
US$ millions                                                                           US$ millions
                                                                                                       Argentina                      Brazil
 Total Committed Portfolio                                    US$12,201                                US$1,054
                                                                                                                                    US$ 2,364

 Committed portfolio for IFC’s                                US$8,776
 account
 Committed portfolio held for others                          US$3,425                           Colombia
                                                                                                 US$873
 (loan and guarantee participants)
IFC FY09 Annual Report data
                                                                                                             US$ 12,201 million
3
IFC Investment Strategy: 3 Fundamental Principles


    •   Commercially viable investments
           ― Market based
           ― Must produce returns
    •   Value added beyond capital
            ― Opportunity to help clients achieve higher standards of
               management and social responsibility
    •   Strong development impact
            ― Support projects that will expand much needed services
                in a socially and environmentally responsible way



4
Summary of IFC Investments in Education

        The Education Sector is a pillar of IFC’s Strategy
        IFC has invested in 64 projects in 31 countries
        Total project value: US$1,577 million


       Education CHE Portfolio by Country*                              Education CHE Portfolio by Product
                                      Chile
                                      23%
       The rest                                                    Guarantees
         29%                                                          33%




                                                       Antigua &
                                                        Barbuda
                                                                      Equity                           Loan
 West Bank &                                              13%
                                                                       2%                              65%
    Gaza          Egypt                       Mexico
     7%                   Brazil               11%
                   7%
                          10%



      * Total education portfolio size US$316 million

                                                                                    5
Examples of IFC Investments in Education

      Education                 Education                 Education              Education                  Education




                                                      US$30mm Senior Loan    US$30mm in Senior Loans
 US$8mm Equity Investment                                                                              US$30mm Bond Guarantee
                            US$39mm in Senior Loans    US$50mm Guarantee
         Mexico                                                                  US$1mm Capital                Chile
                                   Brazil                    Chile                   Mexico




                                                      US$14mm Student Loan
 US$30mm Senior Loan                                       Guarantee         US$7.3mm Senior Loan        US$5mm Senior Loan
                             US$8mm Senior Loan
       Mexico                                                Brazil                Vietnam                    Uruguay
                                 Argentina




   US$5mm Senior Loan
     Trinidad Tobago        US$8mm Senior Loan        US$18.4mm Guarantee    US$12mm Senior Loan        US$2.5mm Senior Loan
                                 Lebanon                    Pakistan               Turkey                      Ghana
Global Trends in Education




                        Major Regional and International Players
           Anhanguera
           Educacional
         Participações S/A




                                                              7
IFC has a Full Range of Financing Capabilities

                  •   Up to 12 years final maturity and 2 to 3 years grace period for principal on average
                  •   Security package typical: physical assets, pledge of shares, leases, etc.
    Senior Loan   •   Market based pricing
                  •   Available in fixed / floating and, depending on market conditions, local or USD currency
                  •   IFC syndicates portions of loans in order to mobilize additional financing partners
     B Loan /     •   Commercial banks take comfort in IFC due diligence and structuring experience
    Syndication   •   Over 150 commercial banks and other institutions currently participate in IFC’s B loan program

                  •   Hybrid featuring characteristics of both debt and equity
    Mezzanine            – Subordinated, convertible, income participation, bullet repayment and others


                  •   Typically in the form of common or preferred stock
      Equity      •   Denominated in local currency


                  •   Securitizations: asset-backed securities, including future revenues, receivables, etc.
    Structured    •   Guarantees: partial credit guarantees enhancing credit worthiness of client's financing
     Products
                  •   Risk-sharing facilities: allowing for alternative risk allocation

                  •   IFC provides technical assistance / advisory services in support of its clients
     Advisory     •   Country and sector specific
     Services
                  •   Funded by donor governments and other multilateral institutions


8
IFC’s Teams Work Closely with Clients

                                                      Investment            Negotiation
Identification &                                                                                       Board
                              Appraisal                 Review                  &                                          Supervision
    Review                                                                                            Approval
                                                        Meeting            Documentation

 •   Identify project    •   In-depth             •   Obtain approval      •   Negotiate final   •   Final approval   •   IFC monitors the
       • Analyze and         business review          to negotiate final       investment        •   Sign legal           project closely
         discuss with    •   Senior                   transaction terms        terms                 documents              • Consults
         company             management                                    •   IFC lawyers       •   Disbursement             periodically with
         business plan       interview and site                                initiate draft                                 project managers
         and sources         visit                                             investment                                   • Field missions to
         and uses of                                                           documents                                      enterprise
         funds                                                                                                              • Requires
 •   Obtain                                                                                                                   progress reports,
     management                                                                                                               annual audited
     approval to                                                                                                              statements, and
     formally consider                                                                                                        other material
     investment                                                                                                               information


      2 – 4 weeks              2 – 4 weeks              1 – 2 weeks             3 – 5 weeks             4 weeks             As appropriate



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