IFC and Italy
Partners in Private Sector Development
OVERVIEW
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging
markets. Working with 2,000 businesses worldwide, IFC’s long-term investments in developing countries rose to nearly $19 billion
in fiscal year (FY) 2016. IFC is an active partner of established Italian multinationals and mid-sized firms wishing to internationalize.
Of IFC’s long-term committed portfolio of $1.1 billion with Italian partners, over 48% is in the financial sector, followed by 33%
in manufacturing, agribusiness and services, and 19% infrastructure. In terms of sub-sectors, IFC’s investments are mainly focused
in finance and insurance and electric power. IFC’s investments with Italian sponsors are concentrated in three main regions, namely
47%Europe and Central Asia, 19% in Middle East and North Africa and 18% in Latin America and the Caribbean.
IFC’s Long-term Investment Portfolio with Italian Sponsors
As of FY16 (ending June 2016), IFC’s long-term investment portfolio with Italian sponsors amounted to $1.1 billion.
Italian private sector companies have benefited from co-investments with IFC while making notable contributions
to development.
IFC Long-term Investment Portfolio as of June 2016
by Industry with Italian Sponsors ($1.1 billion)
FinancialIns0tu0ons
Group
19%
48%
33%
IFC Long-term Investment Portfolio as of June 2016
by Region with Italian Sponsors ($1.1 billion)
4%
6%
Manufacturing,
Agribusiness,Services
Infrastructure
Europe&CentralAsia
3%3%
47%
18%
MiddleEast&North
Africa
La@nAmerica&the
Caribbean
Global
SouthAsia
19%
EastAsia&thePacific
Sub-SaharanAfrica
IFC Committed Exposure by Sector
as of June 2016 (Dollar Amounts in Millions)
Finance & Insurance
Electric Power
Other Medical
Nonmetallic Mineral Product Manufacturing
Chemicals
Solar Photovoltaic
Total
530
200
159
108
95
12
1105
•
Mobilization: IFC has a strong relationship with Italian
financial institutions (FIs) and an active engagement across
multiple sectors. As of June 2016, Italian FIs held approximately
$960 million in IFC Syndicated Loans, of which $168 million
was mobilized in FY16.
•
Global Trade Finance Program (GTFP): As of June 2016, IFC
has issued over 1,322 guarantees amounting to $1.8 billion
for Italian banks since the GTFP began in 2005. The most
active confirming banks have been Intesa Sanpaolo, Banca
Popolare di Sondrio, and UniCredit Group.
PARTNERSHIP WITH THE GOVERNMENT AND DEVELOPMENT FINANCE
INSTITUTION
IFC’s main counterpart and shareholder is the Ministry of Economy and Finance. IFC
also works closely with other ministries and government agencies.
In April 2015, Cassa Depositi e Prestiti (CDP) became the 25th signatory of IFC’s
Master Cooperation Agreement, which aims to streamline lending procedures for
joint investments that provide much-needed financing to private companies and boost
growth and jobs in emerging markets.
In FY12-16, Italy’s support for IFC’s advisory projects has amounted to $20 million, with $15 million received in FY16.
Examples of Successful Cooperation
UniCredit Bank, Bosnia and Herzegovina
In May 2016, IFC committed a €2.5 million straight senior loan for IFC’s own account and a
€2.5 million straight senior loan from the IFC-Canada Climate Change Program to UniCredit
Bank d.d. (UCI BiH) in Bosnia and Herzegovina, a subsidiary of UniCredit. The project will
provide much-needed long-term financing to support UCI BiH’s on-lending activities for
renewable energy projects. IFC’s investment will increase access to funding for the Bosnian and
Herzegovinian economy’s underserved renewable energy segment; and reduce greenhouse
gas emissions by 15,000 tons of CO2 annually. It will also create a demonstration effect
by providing continued support to one of the major banks in the country and building
confidence for BiH financial sector.
Falcon PV, Jordan
In September 2014, IFC committed a $13 million loan for IFC’s own account and mobilized
up to $20 million from other investors to support Falcon Ma’an, a 21 MW solar PV power
plant located in the south of Amman, Jordan. The project is financed by the Jordan-based
Catalyst Private Equity Fund, a regional fund specialized in the energy and water technology
sector; IFC, and the Italian companies Seci Energia and Enerray, which are subsidiaries of the
Italian Maccaferri Industrial Group (“Maccaferri”). The project is part of the government’s
Renewable Energy Program, which aims to increase renewable energy contribution to 10%
of the country’s generation mix by 2020.
Recordati Ilac, Turkey
In June 2014, IFC committed a $34 million local currency corporate A loan to Recordati
Ilaç, the Turkish subsidiary of Recordati S.p.A, a listed multinational company involved in
specialty pharmaceuticals. The loan will partially finance the construction of Recordati Ilaç’s
new production facility in the Istanbul region. The project will increase the availability of
quality pharmaceuticals produced locally and support the transfer of industry best practices.
Enel Wind, Brazil
In May 2014, IFC committed a $200 million A loan to Enel Brasil Participações (EBP), a
wholly-owned subsidiary of Enel Green Power, to support the development, construction
and operation of 12 wind power plants located in Brazil’s northeast region. The project will
help meet growing power demand by installing 342 MW of power generation capacity;
develop the poorer northeast region of Brazil; and contribute to climate change mitigation.
CONTACT
Paula Alayo
Principal Investment Officer
Country Manager for Italy
Tel: +44 20 7592 8416
E-mail: [email protected]
September 2016
BRUSSELS
17, Avenue Marnix
2nd Floor
1000 Brussels, Belgium
Tel: +32 2 522 00 39
FRANKFURT
Bockenheimer
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60325 Frankfurt am Main
Germany
Tel: +49 69 743 48230
PARIS
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75116 Paris
France
Tel: +33 1 4069 3060
LONDON
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21-24 Millbank SW1P4QP
London, UK
Tel: +44 207 592 8400