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?
4. IDB PROCUREMENT PROCESS
WHO WE ARE AND WHAT WE DO
Leading regional development bank
• 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)
• AAA/Aaa ratings by Standard & Poor’s and Moody’s
IDB strategic priorities to achieve its institutional
mandate
What sectors do we work on?
Why consider Latin America & Caribbean ?
Opportunities for the private sector…
•
•
Unprecedented macroeconomic and
political stability and..
•
Vast natural resources
– Raw materials and renewable energy
sources
Growing private consumption with emerging
middle class – c. 500 million people by 2030
– 40% of the world's biodiversity is
concentrated in LAC
…to address LAC challenges
•
•
80 million people in LAC still need access
to water and sanitation (US$20bn investment)
•
LAC is environmentally vulnerable
Pressure on urban centers and ecosystems
•
– close to 90% by 2030 of the region’s
population lives in cities
183 million of new vehicles in LAC between
2013 and 2030
•
Huge infrastructure needs:
•
Need US$170 – 250 B p.a.
177 million people in the region still live in
poverty
– Highest inequality worldwide
•
– Deforestation
•
Deficit in human capital and low productivity
until 2020
•
Demand for electricity is
expected to double by 2030
Portfolio focus on green infrastructure
Approvals by Sector, 2014
Number of operations
Volumes
•
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
2014* Approvals by Sector Group
Sector
Number of projects
Amount
%
The active portfolio
concentrates on
infrastructure and
environment sector
* Figures 2014 are preliminary and subject to
review and audit
PORTUGAL AS A KEY STAKEHOLDER
How is Portugal represented at the IDB?
4%
Canada
11%
Europe & Israel
5%
Japan, China &
Rep. of Korea
30%
United States
• Portugal is represented
in a multi-country
constituency currently
headed by Japan
Caribbean
• The six countries in the
Constituency are
Croatia, Japan, Korea,
Portugal, Slovenia and
United Kingdom.
•26 Borrowers
•22 Non-Borrowers
• Portugal’s shareholding
is 0.05%.
50.02%
Latin America & the
• The constituency’s
percentage of voting
power 6.11%
The IDB Office in Europe
• 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
[email protected]
IDB Europe Office in Madrid
12 12
IDB and the private sector
How does the IDB engage with the private sector?
Financing private investments in LAC
Non-financial support: ConnectAmericas
Developing partnerships
Informing about IDB procurement opportunities
How does the IDB engage with the private sector?
Financing private investments in LAC
Non-financial support: ConnectAmericas
Developing partnerships
Informing about IDB procurement opportunities
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
• Increases productivity
IDB supports only private sector projects that bring
specific additional value to development
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
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
IDB Group Private Sector Merge-out
IIC
Structured and Corporate
Finance Department (SCF)
Inter-American
Investment
Corporation (IIC)
Opportunities for
the Majority
Initiative (OMJ)
Multilateral
Investment Fund
(MIF)
Medium and large scale
investments
SMEs
Business models that
serve the Base of the
Pyramid
Access to finance,
markets and basic
services
Tickets: US$10 – 200M
Tickets: US$100k – 40M
Tickets: US$5 – 10M
Tickets: US$100k– 5M
Contact:
Contact:
Contact:
Contact:
[email protected]
[email protected]
[email protected]
[email protected]
Structured and Corporate Finance Department (SCF):
medium and large scale infrastructure projects
•
Medium and large scale private sector sustainable
investments
•
10M$ 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
20
www.iadb.org/scf [email protected]
Inter-American Investment Corporation (IIC): SME
financing
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
21 21
[email protected] www.iic.int
Opportunities for the Majority Initiative (OMJ)
• 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
•
Technical Assistance (US$100K to US$500K)
22 22
Multilateral Investment Fund (MIF)
•
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
How does the IDB engage with the private sector?
Financing private investments in LAC
Non-financial support: ConnectAmericas
Developing partnerships
Informing about IDB procurement opportunities
3 BARREIRAS
ACESSO A
CLIENTES
CONFIÁVEIS
ACESSO A
INFORMAÇÃO
ACESSO A
FONTES DE
FINANCIAMENTO
http://www.connectamericas.com/pt
A principal comunidade online de empresas da América
Latina e do Caribe dedicada a promover o comércio e
investimentos internacionais
Connect

Find suppliers

Find clients

Connect with them

Learn about their profile

Read about their reputation

See their product offering
Learn

Requirements to export
and import

Foreign trade processes

Custom duties

Transactions in different
currencies

ConnecAmericas Academy
Finance

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
☐ Outros (Especificar): __________________________________________________
exterior
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:
Serviços financeiros
O Depósito
O Avalista
O Hipoteca
O Caução
O Nenhuma O Outra Qual?____________________
Montante
Moeda
País
Transferências/ Ordens de pagamento
Cobrança
Montante
Moeda
Seguro de câmbio:
Seguro de transporte:
Abertura de conta em moeda extrangeira:
B.
Dados de sua empresa
Nome comercial ou sigla:
Razão social:
Endereço:
Pessoa de contato:
Informação geral da sociedade
Cidade:
País:
Dados para contato
Correio eletrônico:
Número de registro empresarial:
Telefone:
Página web:
Telefone:
First phase: Colombia, Costa Rica, Trinidad y Tobago and Uruguay
In 2015, extension to other countries
How does the IDB engage with the private sector?
Financing private investments in LAC
Non-financial support: ConnectAmericas
Developing partnerships
Informing about IDB procurement opportunities
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
56
THANK YOU!
Contacts:
IDB office in Europe: [email protected]
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
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