Investing for Impact

Investing for Impact

FY 22

Investing for Impact

Investing for Impact

Contents

3 IFC Overview

14 Financial Strength

21 Core

Business Portfolio

25 Funding Program

43 Annex

48 Contacts

2

Investing for Impact

IFC Overview

3

IFC Overview

Who We Are

• A member of the World Bank Group with a mission to promote development through investment in the private sector

•  Owned by 185 member countries

•  Providing debt (loans, bonds and other fixed income instruments) and equity investments to the private sector in emerging markets for over 60 years • Global presence in almost 100 countries , working with over 1,800 private sector clients

4

IFC Overview

Uniquely Positioned Issuer

•  Consistently rated AAA/Aaa

• 0% risk weighting under Basel framework

• Well capitalized: net worth exceeds a quarter of $105.3 billion balance sheet

•  Annual funding program of up to $14 billion for FY22 – excluding a $5 billion discount note program

• Diverse business portfolio with geographic exposure to 119 countries

Aaa Long-term rating (December 2020) Outlook: Stable

AAA Long-term rating (February 2021) Outlook: Stable

5

IFC Overview

Five Institutions, One World Bank Group

The World Bank Group is a unique global partnership: five institutions working towards sustainable solutions that reduce poverty and build shared prosperity in developing countries. The World Bank Group has adopted two ambitious goals: • Ending extreme poverty: the percentage of people living with less than $1.90 a day to fall to no more than 3% globally by 2030 • Promoting shared prosperity: foster income growth for the bottom 40% of the population in developing countries

International Development Association

International Bank for Reconstruction and Development

International Finance Corporation

Multilateral Investment Guarantee Agency

International Centre for Settlement of Investment Disputes

Loans and grants to governments of developing countries

Loans to governments of middle-income countries

Debt and equity investments and advisory services to private sector in developing countries

Guarantees of foreign direct investment’s non-commercial risks

Conciliation and arbitration of investment disputes

Issues bonds under: IDA

Issues bonds under: World Bank

Issues bonds under: IFC

6

IFC Overview

Strong Shareholder Support

• IFC is a legally distinct entity of the World Bank Group with its own Articles of Agreement, balance sheet and staff • Owned by 185 shareholders: governments of member countries

23% 162 other countries

1% Nigeria 1% Sweden 1% Korea

20% United States

8% Japan

1% Mexico 1% Indonesia 1% Spain 2% Argentina 2% Switzerland 2% Australia 2% Belgium 2% Saudi Arabia 2% Brazil 2% Netherlands 2% China

• 5 0% of capital is held by AAA/AA sovereigns

5% Germany 4% France 4% United Kingdom 4% India

• IFC does not pay dividends or taxes; profits are channeled back into investments in developing member countries • In FY18, the shareholders endorsed a historic increase of $5.5 billion in paid-in capital for IFC

4% Russia 3% Canada

3% Italy

The additional capital is to strengthen IFC’s ability to take on greater risks and bring innovative private sector solutions at scale, particularly in FCS and IDA-eligible countries, given the WBG’s increased focus in these areas.

The stable outlook reflects our view that IFC will maintain its solid capital adequacy, liquidity and shareholder support, thereby keeping its credit profile in line with the Aaa rating.

Standard & Poor’s 25 February 2021

Moody’s 11 December 2020

7

IFC Overview

What We Do

Investment

Advice

Mobilization

• Debt (loans, bonds and other fixed income instruments)

Providing solutions and technical assistance to

• Mobilization of third party investment in debt and equity format

• Equity

• Companies

• Syndications

• Trade and commodity finance

• Financial Institutions and Funds

• IFC Asset Management Company (AMC)**

• Derivatives and structured finance

• Governments

• Blended finance

• $31.5 billion committed in FY21*

• $ 237 million in advisory services income in FY21

• $ 25.7 billion syndicated over the last 5 years

• $ 62.5 billion outstanding portfolio

• 13 funds with $10.1 billion under AMC’s management

Figures as of 30 June 2021 * $23.3 billion of long-term finance commitments (including mobilization) and $8.2 billion of short-term finance commitments. ** Effective January 31, 2020, IFC Asset Management Company (AMC) was merged into IFC.

8

IFC Overview

Investment Project Cycle

IFC invests in productive private enterprises targeting satisfactory economic returns and development impact

Strategic Fit & Early Review Fit with IFC’s strategy and mandate

Financial & ESG Appraisal Comprehensive due diligence to ensure financial viability and ESG standards

Investment Review Key financial evaluation

Public Disclosure Public disclosure of all projects before submission to the Board

Board Review & Approval Approval subject to economic, financial and development value

Commitment & Disbursement Legal arrangements and disbursement of funds

Project Supervision Ongoing monitoring of a project and its development impact using the Anticipated Impact Measurement and Monitoring (AIMM) system

9

IFC Overview

Sustainability: Alignment with United Nations’ SDGs

IFC Sector Impacts

IFC Cross-Sector Impacts

World Bank Group Twin Goals

Promote Investments & Advisory Services for strategic sectors including: > Infrastructure > Agriculture > Financial inclusion > Health and education

IFC has two overarching goals: Decreasing extreme poverty to 3% by 2030 and boosting shared prosperity

Across sectors and regions, IFC seeks to promote: > Employment creation and economic growth > Gender equality in business and life > Environmental and social sustainability > Climate change adaptation and mitigation > Partnership with private investors to mobilize new sources of finance

10

The above is not an exhaustive mapping but represents an overview of IFC’s approach to support the achievement of the SDGs. Given that cross-sectoral impact is delivered through investments and advisory operations in the strategic sectors, some overlaps exist in this mapping.

IFC Overview

Sustainability: Key to IFC’s Mission, Critical to Client Success

All projects financed must adhere to IFC’s stringent environmental and social requirements focusing on transparency and accountability

Specific performance standards cover

Assessment and management of environmental and social risks and impacts

Community, health, safety and security

Labor and working conditions

Land acquisition and involuntary resettlement

Biodiversity conservation and sustainable management of living natural resources

Cultural heritage

Resource efficiency and pollution prevention

Indigenous peoples

11

IFC Overview

IFC’s Development Impact

Development impact indicators are measured on an annual basis

In 2020, IFC’s 1,800 private sector clients provided overall:

13.7 million customers Power, water and gas distribution to more than

Health services to

Education to

2.6 million jobs

45 million patients

7.9 million students

12

IFC Overview

IFC’s COVID-19 Response

In March 2020, IFC launched the $8 billion Fast-Track COVID-19 Facility to provide liquidity to existing clients, helping to keep companies in business and preserve jobs. In July 2020, IFC launched the $4 billion Global Health Platform (GHP) , which is investing in companies to increase the supply of critical medical equipment and services in developing countries.

In February 2021, IFC extended the $8 billion COVID-19 Facility by dedicating $400 million of its own account investment to the Base of the Pyramid Program . This program focuses on helping small businesses, informal enterprises and low-income households hit hardest by the pandemic. In FY21, IFC committed an additional $8.5 billion in financing outside of the COVID-19 Facility to support clients in response to the crisis.

IFC’s Fast-Track COVID-19 Facility (as of August 2021)

$5.8 bn committed

94 Projects

43 Countries/ Regions

13

Investing for Impact

Financial Strength

14

Financial Strength

Conservative Balance Sheet

Assets (in USD billions)

Liabilities and Capital (in USD billions)

Liquid Assets (net)

41.7

Borrowings

55.7

Debt and Equity Investments (net of $1.2 in reserves) Net Loans Equity Investments Debt Securities

45.0

Other Liabilities

18.3

Net Worth

31.3 20.8 10.5

25.7 12.0 7.3

Paid-in Capital* Retained Earnings and Other

Other Assets

18.6

Total Assets

105.3

Total Liabilities and Capital

105.3

* As part of the capital increase process, $17 billion of retained earnings were converted into paid-in-capital in April 2020

15

As of 30 June 2021

Financial Strength

IFC AAA-rated Peer Group Comparison

IFC International Finance Corporation

Provides loans to public sector in developing countries IBRD International Bank for Reconstruction and Development

IADB Inter-American Development Bank

ADB Asian Development Bank

AfDB African Development Bank

Invests in infrastructure and other productive sectors in Asia AIIB Asian Infrastructure Investment Bank 103 members, of which 50 are regional and 53 non-regional members

Lends to and invests in private enterprises in Eastern and Central European economies EBRD European Bank for Reconstruction and Development

EIB European Investment Bank

Lends to and invests in private enterprises in developing countries

Provides financing to Latin American and Caribbean economies

Provides financing to countries in the Asia Pacific region

Lends to and invests in development projects in Africa

Provides financing to EU Member States and countries around the world

Business

185 member countries

189 member countries

48 member countries, consisting of Latin American

68 member countries, of which 23 are OECD countries

54 African member countries and 27 non-African member countries

71 members – 69 countries, the EU and the EIB

27 member states of the EU

Ownership

and OECD countries

Total Assets (USD billions)

$105

$317

$152

$272

$51

$32

$85

$677

Liquidity Liquid Assets / Total Assets

40%

26%

20%

16%

32%

50%

45%

15%

Leverage Total Liabilities / Total Liabilities + Shareholders’ Equity (excluding callable capital)

70%

85%

78%

81%

78%

37%

74%

87%

$4,209

$2,039

$610

$1,372

$198

$175

$341

$2,012

Net Income (USD millions)

$31

$48

$34

$53

$11

$20

$22

$90

Total Shareholders’ Equity

16 Source: Crédit Agricole CIB. Audited financial statements of each institution as of 31 December 2020, except for IFC and IBRD, where audited financial statements as of 30 June 2021 were used. Figures for AfDB (in UA) were translated into US dollars using year-end exchange rate of 1UA= $1.44 and average exchange rate of 1UA=$1.39; Figures for EBRD and EIB (reported in EUR) were translated into US dollars using year-end exchange rate of €1 = $1.22 and average exchange rate of €1 = $1.14.

Financial Strength

Strong Fundamentals

IFC exercises prudent financial discipline

The stable outlook reflects S&P Global Ratings’ expectation that International Finance Corp. (IFC) will maintain an extremely strong financial risk profile, underpinned by high capital, strong liquidity, and expected continuity of its robust risk management policies.

• IFC has one of the highest liquidity ratios of any supranational

•  Equity investments are funded by IFC’s net worth , not its borrowings

Standard & Poor’s 25 February 2021

Liquidity coverage ratio

Leverage

Risk-adjusted capital

In USD billions

Percentage of estimated net cash requirements for the next 3 years

Debt to equity (times)

actual 114%

actual $30.7

max 4.0x

$30 –

4 –

100% –

min $20.1

$25 –

3 –

75% –

actual 2.1X

$20 –

min 45%

$15 –

2 –

50% –

$10 –

1 –

25% –

$5 –

$0 –

0 –

0% –

17

Actual level figures as of 30 June 2021 Minimum and maximum thresholds based on triple-A rating methodology guidelines as agreed with rating agencies

Financial Strength

Consistent Asset Growth

IFC’s growth has been financed predominantly by retained earnings

IFC’s total disbursed debt, equity and net liquid assets at fiscal year-end

Loans and Other Debt Equity Investments Net Liquid Assets

45 –

40 –

35 –

30 –

25 –

20 –

15 –

10 –

5 –

0 –

| FY 05

| FY 06

| FY 07

| FY 08

| FY 09

| FY 10

| FY 11

| FY 12

| FY 13

| FY 14

| FY 15

| FY 16

| FY 17

| FY 18

| FY 19

| FY 20

| FY 21

18

IFC’s fiscal year-end is June 30

Financial Strength

High Liquidity

$41.7 billion of net liquid assets

Proactive investment approach

High quality liquid assets

Market risk is hedged

Diversification

equivalent to 40% of total assets

focused on capital preservation

issued by, or unconditionally guaranteed by, governments, government instrumentalities, supranationals, and high quality corporate issuers. Includes instruments like ABS/ MBS and deposits

mainly through the use of derivatives, principally currency and interest rate swaps and financial futures

across multiple markets ensures a favorable risk return profile

IFC liquidity ratios – which support IFC’s extremely strong financial risk profile – indicate that it would be able to fulfill its mandate as planned for at least one year, even under stressed market conditions, without access to the capital markets.

Standard & Poor’s 25 February 2021

19

Financial Strength

Financial Performance

•  IFC’s positive financial performance in FY21 is mainly driven by the rebound of equity valuations post the immediate effect of COVID-19

• IFC continues to be highly capitalized and holds significant capital against its equity portfolio to protect against equity losses

Fiscal Year *

2021

2020

2019

2018

2017

2016

Income from loans and guarantees, net of provisions for losses

1,317

872

1,687

1,287

1,212

767

(Loss) income from equity investments

3,201

(1,067)

(253)

853

707

518

Income from debt securities

340

231

126

363

282

129

Income from liquid asset trading activities

327

1,039

1,291

771

917

504

Charges on borrowings

(326)

(1,181)

(1,575)

(1,041)

(712)

(409)

Other income

595

559

622

578

528

501

Other expenses

(1,687)

(1,628)

(1,746)

(1,662)

(1,621)

(1,463)

Unrealized gains (losses) on non-trading activities and foreign currency transaction gains (losses)

658

(497)

(59)

211

206

(250)

Grants to IDA

(213)

-

-

(80)

(101)

(330)

Operating income

3,616

(1,031)

311

1,272

1,129

500

Net income

4,209

(1,672)

93

1,280

1,418

(33)

In USD millions for the year ended June 30

20

* IFC effected a change in accounting standard (ASU 2016-01), effective July 1, 2018 all equity investments are measured at fair value, with unrealized gains and losses reported in net income

Investing for Impact

Core Business Portfolio

21

Core Business Portfolio

Portfolio Risk Management

• Risk-based loan pricing

• Matched funding policy to manage currency, interest rate and maturity risks

• Strict debt and equity portfolio diversification guidelines to reduce concentration risks

By company

By sector

By country

Risk-based limits for clients and groups of connected clients are set based on individual credit rating

Limits on aggregated finance and insurance sectors exposure, which restrict economic capital to these sectors to 50% of a country limit

Economic capital-based limits on country exposure as a percentage of total resources available

IFC’s portfolio is widely diversified, which partly compensates for the generally low credit quality of its borrowers. More specifically IFC’s portfolio is widely diversified across countries, a result of its global mandate and reach. In fact, the country concentration of its portfolio is the lowest in our rated MDB universe.

Moody’s 11 December 2020

22

Core Business Portfolio

Highly Diversified Global Portfolio

Committed portfolio diversification – Region

•  IFC has debt and equity exposure in 119 countries and over 1,800 companies •  Five largest country exposures account for 33% of total committed portfolio •  Top ten country exposures comprise 46% of total committed portfolio •  IFC’s portfolio is highly diversified across a wide range of industries and sectors

7% Middle East and North Africa

20% Latin America and the Caribbean

9% Multi Region

14% Europe and Central Asia

18% Sub-Saharan Africa

15% South Asia

17% East Asia and the Pacific

Committed portfolio diversification – Industry

2% Telecom, Media, Technology 2% Funds 3% Oil, Gas & Mining 5% Trade Finance 6% Health, Education, Life Sciences 6% Tourism, Retail, Construction & Real Estates 6% Manufacturing 7% Collective Investment Vehicles 7% Agribusiness & Forestry

3% Other

Borrower concentration is very low, with IFC’s ten largest exposures accounting for just 8% of DRAs (development-related assets), significantly below most other MDBs. Its largest individual loan amounts to only 1% of DRAs, a figure dwarfed by other Aaa-rated MDBs.

38% Financial Markets

Moody’s 11 December 2020

15% Infrastructure

23

Figures as of 30 June 2021

Core Business Portfolio

Quality Loan Portfolio

•  Low non-performing loans (NPLs) 60 days past due classified as non-accruing

IFC has been exempt from exchange controls, whereas some commercial debtors have not, such as in Ukraine.

•  Entire portfolio reviewed at least on a quarterly basis

Standard & Poor’s 25 February 2021

•  Total reserves against losses equaled 4.9% ($1.32 billion) of the total disbursed loan portfolio as of 30 June 2021

As % of disbursed loan portfolio

NPL Reserves

25% –

20% –

15% –

10% –

5% –

0% –

| FY00

| FY01

| FY02

| FY03

| FY04

| FY05

| FY06

| FY07

| FY08

| FY09

| FY10

| FY11

| FY12

| FY13

| FY14

| FY15

| FY16

| FY17

| FY18

| FY19

| FY20

| FY21

24

IFC’s fiscal year-end is 30 June

Investing for Impact

Funding Program

25

Funding Program

Growth of IFC’s Funding Program

IFC’s funding program is subject to lending needs and has grown steadily over the last 10+ years in line with the expansion of IFC’s balance sheet

IFC’s annual funding volume* (in USD billions)

Current funding programs of IFC and peers (in USD billions) $90 –

$82

$80 –

$70 –

$20 –

$60

$60 –

15.8

$15 –

$50 –

14.0

14.0*

14.0

11.8

13.5

13.4

$40 –

12.7

$36

9.7

9.8

11.3

11.2

$10 –

8.8

$30 –

9.1

$25

$20 –

$16

$14

$5 –

$10

$10

5.0

$10 –

1.7

2.8

$0 – |

$0 –

| 07

| 08

| 09

| 10

| 11

| 12

| 13

| 14

| 15

| 16

| 17

| 18

| 19

| 20

| 21

| 22

| EIB

| IBRD

| ADB

| IADB

| EBRD

| IFC

| AIIB

| AFDB

06

*Targeted volume for FY22

26

Figures in USD billions unless otherwise noted * Numbers exclude volumes from IFC’s Discount Note Program

Funding Program

Funding in Various Markets and Currencies

Borrowings by currency in FY21

•  IFC has issued global US dollar benchmark bonds each year since 2000 •  IFC complements its public issuance by accessing a variety of different markets such as green/social bonds, Uridashi, private placements and discount notes • First non-domestic issuer in China, India, Dominican Republic, Nigeria, Peru, Zambia, Rwanda, Namibia and many others •  As a US dollar-based institution , most borrowings are swapped into US dollar variable-rate

2% EUR 2% RUB 2% BRL 3% CNY 3% CAD 2% MXN 1% NOK

6% Other*

48% USD

4% NZD

5% JPY

10% AUD

12% GBP

Borrowings by market in FY21

1% Local currency 2% Retail 5% Uridashi 8% FRN

52% Core Public

32% MTN

27

Includes on-shore local currency transactions * Other currencies are: ZAR, GEL, RON, COP, HKD, UZS, PEN, GHS, UYU, SEK, KZT, CLP, AZN, RSD

Funding Program

USD Global Benchmark Market

Top tier global credit • IFC has issued US dollar benchmarks in global format since 2000 • Currently nine USD global benchmark transactions outstanding, totaling over $12.2 billion, of which three are green bonds and one is a social bond

Recent USD sustainable bonds:

Recent USD global issuances:

• 10Y – IFC 0.75% Aug 2030, USD 1 billion, launched at m/s + 18, T+17

• Green – IFC 2% Oct 2022, USD 1 billion, launched at m/s + 3, T+11.8

• 5Y – IFC 0.75% Oct 2026, USD 2 billion, launched at SOFR m/s+ 19, T+8.65

• Social – IFC 0.50% March 2023, USD 1 billion, launched at m/s + 13, T+4.4

• 5Y – IFC 0.375% Jul 2025, USD 2 billion, launched at m/s + 10, T+13

• Green – IFC 2.125% Apr 2026, USD 700 million, launched in March 2016 at m/s + 44, T+29.5; increased in July 2016 for USD 500 million, at m/s + 31, T+22.25

• 5Y – IFC 1.375% Oct 2024, USD 2 billion, launched at m/s + 11, T+8.9

28

Funding Program

USD Global Benchmark Distribution

USD2.0 billion October 2026 (issued August 2021)

USD2.0 billion July 2025 (issued July 2020)

USD1.0 billion August 2030 (issued August 2020)

17% Americas

14% Americas

27% Americas

40% APAC

54% APAC

50% APAC

29% EMEA

36% EMEA

33% EMEA

3% Other

1% Other

18% Asset

Manager/ Pension/ Insurance

26% Banks

24% Banks

44% Central banks/ Official institutions

63% Central banks/ Official institutions

41% Central banks/ Official institutions

8% Asset

Manager/ Pension/ Insurance

38% Banks

34% Asset

Manager/ Pension/ Insurance

29

Funding Program

USD Global Benchmark: Performance vs. Treasuries

Spreads of IFC’s and peers’ 5-year benchmark issues vs. US Treasuries

200 –

150 –

100 –

50 –

0

| Jul 2008

| Jul 2009

| Jul 2010

| Jul 2011

| Jul 2012

| Jul 2013

| Jul 2014

| Jul 2015

| Jul 2016

| Jul 2017

| Jul 2018

| Jul 2019

| Jul 2020

| Jul 2021

IFC IBRD IADB EIB US Agency

-50 –

30

Funding Program

USD Global Benchmark: Performance vs. Swaps

Spreads of IFC’s and peers’ 5-year benchmark issues vs. Libor mid-swaps

50 –

40 –

30 –

20 –

10 –

0

-10 –

IFC IBRD IADB EIB US Agency

-20 –

| Jul 2008

| Jul 2009

| Jul 2010

| Jul 2011

| Jul 2012

| Jul 2013

| Jul 2014

| Jul 2015

| Jul 2016

| Jul 2017

| Jul 2018

| Jul 2019

| Jul 2020

| Jul 2021

31

Funding Program

Issuance in domestic AUD market (Kangaroo)

AUD is a key market for IFC • Attractive term funding through a growing domestic and international investor base IFC’s commitment to AUD market reflected in: • Establishment of a stand-alone AUD Domestic Debt Issuance Program in 2007 • Kangaroo bonds outstanding: over AUD 11 billion as of August 2021 • Well-developed IFC Kangaroo yield curve  IFC bonds offer an attractive yield pickup vs. Australian and semi-government bonds IFC’s AUD domestic issues are repo-eligible with Reserve Bank of Australia Two outstanding AUD social bond lines maturing in March 2023 and April 2035 respectively

Outstanding IFC Kangaroo issuance

1.6 – 1.4 – 1.2 – 1.0 – 0.8 – 0.6 – 0.4 – 0.2 – 0.0 –

Maturities *Orange bars depict social bond lines

32

Updated as of August 2021

Funding Program

Kangaroo Distribution

AUD800 million May 2028 (issued November 2010)

AUD475 million June 2031 (issued July 2020)

AUD1 billion April 2035 (Social Bond) (issued April 2020)

1% Americas

2% Americas

10% EMEA

14% Americas

5% Australia

17% Australia

48% Australia

69% Asia

93% Asia

41% Asia

1% Banks

15% Central banks/ Official institutions

13% Central banks/ Official institutions

24% Central banks/ Official institutions

43% Banks

58% Fund managers/ Insurers

86% Fund managers/ Insurers

27% Banks

33% Fund managers/ Insurers

33

Funding Program

Sustainable Bond Programs

IFC is a sustainable bond issuer with two focused thematic bond programs fully aligned with the Green and Social Bond Principles

Green Bonds

Social Bonds

Program established: 2010

Program Established: 2017

Use of Proceeds: Climate friendly projects including renewable energy, energy efficiency, green banking, etc.

Use of Proceeds: Projects that aim to address access to essential services and income generation to underserved target populations in developing countries

To learn more about our Green Bonds and to access our impact report, visit www.ifc.org/greenbonds

To learn more about our Social Bonds and to access our impact report, visit www.ifc.org/socialbonds

IFC at the Forefront of Sustainable Bond Market Development In June 2020, IFC was elected as Chair of the Executive Committee of the Green, Social and Sustainability-Linked Bond Principles hosted under the International Capital Market Association (ICMA) after six years of active membership and chairing the Social Bond Working Group.

34

Funding Program

Green Bonds

FY21 green bond issuance by currency

 IFC’s Green Bond program celebrated its ten-year anniversary in 2020 It has raised over $10.5 billion as of FY21-end through 178 bonds in 20 currencies including: • the market’s first benchmark-sized green bonds issued in February and November 2013 • the first US-focused retail green bond program • tenors up to 30 years

33% SEK

67% USD

FY21 Highlights

6 Green Bonds totalling $165.8 million in 2 currencies

Cumulative green bond issuance by volume and number

15 new projects committed across 7 sectors:

2,000 – 1,800 – 1,600 – 1,400 – 1,200 – 1,000 –

– 40

Biomass Green Banking Circular Economy Green Buildings

– 35

– 30

– 25

– 20

Solar Energy Wind Energy Transport

800 – 600 – 400 – 200 – 0 –

– 15

– 10

– 5

– 0

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1 6 3 5 3 182419323724 6 FY21

35

Funding Program

Social Bonds

FY21 social bond issuance by currency

IFC’s Social Bond program has raised $3.8 billion as of FY21-end through 63 bonds in 11 currencies • In March 2017, IFC issued a $500 million social bond – the first ever USD labelled social bond benchmark, meeting the demand of institutional investors with interest in ESG • Following the announcement of IFC’s COVID-19 response package in March 2020, IFC issued a $1 billion social bond – its largest to date

0.66% CNY

8% BRL 3% RUB 2% ZAR

21% USD

66% AUD

FY21 Highlights

24 Social Bonds totalling $762 million in 6 currencies

Cumulative social bond issuance by volume and number

2,000 – 1,800 – 1,600 – 1,400 – 1,200 – 1,000 –

– 40

Agribusiness Foods Health Information and Communication Gender Finance Microfinance

financing projects in the following sectors:

– 35

– 30

– 25

– 20

800 – 600 – 400 – 200 – 0 –

– 15

– 10

– 5

– 0

1

14

13

11

FY21 24

FY17

FY18

FY19

FY20

36

Funding Program

MTNs and Structured Notes

FY21 structures 2% Step Up

IFC aims to maintain its position as an active and flexible issuer of plain vanilla and structured notes IFC currently offers: • Interest rate linked, FX linked, equity index linked, FRNs, Bermudan and European callables and hybrids • Minimum size $2 million equivalent with maturities ranging from 1 to 30 years

0.28% Other*

3% Zero Bullet

5% Dual currency

12% Zero coupon callable

65% Fixed rate

12% Fixed rate callable

Total MTN volume in FY21 was $4 billion across 23 currencies

IFC has an active buyback program , serving as a liquidity back-stop for its issuances

FY21 currencies

11% Other

3% ZAR 3% HKD 2% SEK 4% NOK

46% USD

5% MXN

6% EUR 6% BRL 6% RUB 8% CNY

37

IFC’s fiscal year-end is June 30 * Other consitutes Equity Index Linked, PRDC Callable, Capped PRDC

Funding Program

Uridashi

FY21 structures

• Asia presence allows IFC’s Funding team to focus on retail investors in Japan

1% Fixed rate

• IFC has sold thematic bonds (green and social) into Japan

6% Zero-coupon

• IFC issued 50 individual Uridashi transactions in FY21 totaling $642 million equivalent • IFC has an active Uridashi buyback program with a minimum buyback size of JPY100 million equivalent

41% FX-linked

52% Equity index-linked

FY21 currencies

0.40% USD 0.78% CNY 6% BRL 0.15% AUD

93% JPY

38

IFC’s fiscal year-end is June 30

Funding Program

US Retail Market Bond Programs

Impact Notes Program

Accelerated Return Notes Program

• In March 2014, IFC launched the Impact Notes program, offering notes to the US retail market

• In October 2016, IFC launched the Accelerated Return Notes program, offering equity index-linked notes to the US retail market • Issuances are inked to major US equity indices: 3-to-1 upside exposure, 1-to-1 downside exposure to the index with 14 months maturity

• To meet investor interest, the program offers notes in Green and Social format through InspereX Legacy Platform

• IFC’s Impact Notes are an alternative to GSEs, while offering more attractive yields than US Treasuries

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Funding Program

Discount Note Program

• Launched in June 2009 to complement IFC’s GMTN Program

• Denominated in USD and CNH • Maturities range from overnight to 360 days • Minimum order of $100,000 • Uncertified book-entry form • IFC’s Fiscal Agent: Federal Reserve Bank of New York • Settlement via Fedwire for USD discount notes • Bloomberg Ticker: IFC2 and ADN8 • Offered through 13 dealers: Barclays Capital CastleOak

• Offers a high-quality short-term investment opportunity in USD and CNH

• During FY21, IFC issued a total of $9.05 billion under its global discount note program

• $ 5 billion authorized outstanding limit for FY22

Credit Agricole Goldman Sachs HSBC Jefferies JP Morgan Securities Merrill Lynch

Mizuho Nomura Standard Chartered Bank UBS Wells Fargo

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Funding Program

Issuing in Local Markets

IFC local bond issuance has grown significantly over the last decade

Middle East

Europe and Central Asia

Gulf Cooperation Council – Hilal Sukuk 2009 – USD 100 million due 2014 Sukuk al Wakala 2015 – USD 100 million due 2020

Armenia – Sevan Bond 2013 – AMD 2 billion due 2016 Georgia – Iveria Bond 2015 – GEL 30 million due 2017 2017 – GEL 108 million due 2020 2020 – GEL 100 million due 2024 2020 – GEL 100 million due 2025 Romania 2018 – RON 70 million due 2019 2017 – RON 70 million due 2018 2019 – RON 70 million due 2020 2019 – RON 50 million due 2021 2021 – RON 80.3 million due 2025 2021 – RON 293.4 million due 2026 Russia – Volga Bond 2012 – RUB 13 billion due 2017 Turkey 2018 – TRY 100 million due 2022 2017 – TRY 150 million due 2022 2011 – TRY 202 million due 2015 (Green)* Kazakhstan Bond

India

Masala Green Bond 2015 – INR 3 billion due 2020 Masala Bond 2018 – INR 7.349 billion due 2021 2018 – INR 8.7 billion due 2024 2017 – INR 53.5 billion due 2022, 2024 2016 – INR 8.6 billion due 2024, 2031 2015 – INR 33 billion due 2018, 2019 2013, 2014 – INR 72 billion due 2016, 2019, 2021, 2024 2016 – INR 300 million due 2019 Masala Uridashi Bond 2016 – INR 300 million due 2019

Africa

Central CFA Franc – Moabi Bond 2009 – XAF 20 billion due 2014 West CFA Franc – Kola Bond 2006 – XOF 22 billion due 2011 Morocco – Atlas Bond 2005 – MAD 1 billion due 2012 Namibia – Namib Bond 2016 – NAD 180 million due 2021 Nigeria – Naija Bond 2013 – NGN 12 billion due 2018 Rwanda – Twigire Bond 2015 – RWF 3.5 billion due 2018 Rwanda – Umuganda Bond 2014 – RWF 15 billion due 2019 South Africa – ZAR Green Bond 2015 - ZAR 1 billion due 2024 Zambia – Zambezi Bond 2013 – ZMW 150 million due 2017 Botswana – Kgalagadi Bond 2018 – BWP 260 million due 2024

Latin America

Brazil – Amazonian Bond 2007 – BRL 200 million due 2011 Brazil 2013 – BRL 439 million due 2016 (Green)* Colombia – El Dorado Bond 2017 – COP 33.7 billion due 2022 Costa Rica – Irazu Bond 2014 – CRC 5 million due 2019 2018 – CRC 5.7 billion due 2023 Dominican Republic – Taino Bond 2016 – DOP 180 million due 2023 2012 – DOP 390 million due 2017 Mexico 2018 – MXN 233 million due 2021 (Social)* 2016 – MXN 500 million due 2021 (Green)* Peru – Inca Bond 2004 – PEN 50 million due 2007 Peru – Green Bond 2014 – PEN 118 million due 2034 (Green)*

Southeast Asia

Cambodia 2019 – KHR 48.6 billion due 2021 Indonesia – Komodo Green Bond 2018 – IDR 2 trillion due 2023 Malaysia Wawasan-Islamic Bond 2004 – MYR 500 million due 2007 Philippines - Mabuhay Bond 2018 – PHP 4.8 billion due 2033 Myanmar 2018 – MMK 7.5 billion due 2023 2018 – MMK 7.5 billion due 2023 2019 – MMK 7.5 billion due 2023 2019 – MMK 7.5 billion due 2023 Bangladesh - BDT Bond 2020 – BDT 800 Million due 2022 2020 – BDT 800 Million due 2025

2017 – KZT 1.3 billion due 2018 2018 – KZT 2 billion due 2022 2018 – KZT 8.6 billion due 2026 Serbia 2017 – RSD 507 million due 2020 Uzbekistan – Samarkand Bond 2018 – UZS 240 billion due 2020 2018 – UZS 123 billion due 2020 2018 – UZS 113 billion due 2020 2020 – UZS 15 billion due 2020 2021 – UZS 363.3 billion due 2021

China

Panda Bonds 2006 – CNY 870 million due 2013 Dim Sum Bonds 2014 – CNH 1 billion due 2019 2014 – CNH 500 million due 2017 (Green) 2014-2015 – CNH 4.7 billion due 2017 2012 – CNH 500 million due 2014 2011 – CNH 150 million due 2016

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* Thematic Funding issuance

Funding Program

Recognized Funding Program

2021

2021

2021

2021

2021

Top Deal Winner: First SSA to price debt offering using SOFR

Outstanding Leadership in Sustainable Finance

SRI Deal of the Year, SSA Deal of the Year and Local Currency Deal of the Year: SEK3bn Social Bond

Impact Report of the Year

SSA Social Bond of the Year: USD1bn social bond and social bond issuances in SEK

2020

2021

2021

2020

2020

Best Debt Capital Market Investor Relations Team Award

Deal of the Year: AUD200m 1.5% Kangaroo Social Bond due 2035

Editor’s Award: IFC’s Collaboration with GPIF

Initiative of the Year

Deal of the Year: EUR 20m Green NSV Bond

2019

2019

2020

2019

2019

APAC Editor’s Award: GPIF and WBG’s ESG Contribution

Impact Report of the Year

Best Supranational Dollar Deal of the Year

Deal of the Year: USD 19m Currency-Linked Social Notes due 2021

Deal of the Year: USD 12m 7.5% Synthetic Notes due 2021 Linked to KHR

2019

2018

2017

2017

2018

Green Bond Development Bank of the Year

Power Performer: Uridashi

Most Innovative SSA MTN Issuer

Investor Solutions: Triple-A Accelerated Return Notes

MTN Issuer of the Year

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Investing for Impact

Annex

43

Annex

Romania: A Laboratory for Green Growth

With the advent of new techniques and building technologies, green buildings can revolutionize the industry including existing buildings to the point of being an effective tool for reaching net zero emissions across the logistics and manufacturing chain. Green buildings can spur low-carbon economic growth, generating more than nine million skilled jobs in both the renewables and construction sectors by 2030. The Stefanestii de Jos warehouse is one of the greenest buildings in Europe. It uses at least 20 percent less energy and water than other buildings, makes use of efficient, sustainable lighting and takes care of waste reduction. The warehouse is developed, owned and rented out by WDP, a logistics real estate company. In April 2020, IFC provided a green financing package of approximately €205 million for the project. IFC’s first green loan to the property sector in the Eastern Europe and Central Asia region, the financing is expected to save 12,083 tons of carbon dioxide every year. WDP has now achieved EDGE certification for 48 of their logistics buildings in Romania. Short for Excellence in Design for Greater Efficiencies, IFC created the program as a blueprint to democratize the use of green residences and business properties across the world. There’s another industry that will rapidly benefit from EDGE: the information technology sector. Romania happens to be one of the global hotspots in terms of computer skills, help desk functions and developer communities. IFC supported the construction of an eco- friendly information technology and communications complex in an underdeveloped area of the city center of Iasi.

Stefanestii de Jos warehouse, a green building in Bucharest, Romania Photo: Courtesy of WDP

The €73-million financing will allow Palas Campus, a wholly owned subsidiary of Iulius Holding, to attract and retain foreign investors and businesses. Apart from driving economic growth, the project will reduce energy consumption by 41 percent compared with a regular office building in Iasi. It will further help reduce emissions by 1577 tons of carbon dioxide equivalent annually. Green buildings are all set to spark a major shift in Europe and Central Asia’s real estate sector and contribute to a resilient and inclusive growth trajectory.

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Annex

More Resilient Water Systems in Brazil

Brazil has 12 percent of the surface freshwater available globally and is one of the wealthiest in water resources. Yet, due to decades of underinvestment and sub-optimal water and sewage management in many places, access to services is limited: 84 percent of the population has access to potable water and only half of it has access to sewerage. The main water and sanitation utility in Rio Grande do Sul state, Companhia Riograndense de Saneamento (Corsan), plans to invest at least 10 billion reais ($1.8 billion) through 2033 to improve water and sewage services, after the recent approval of a new federal legal framework for sanitation in Brazil. Priorities include increasing sewerage coverage and boosting efficiency and resilience. Corsan joined IFC’s Utilities for Climate (U4C) initiative as one of the founding partners and was the first subnational water utility to do so in Latin America. U4C develops solutions for public sector utilities to address mounting challenges and boost commercial water infrastructure investment opportunities in emerging markets. The U4C initiative combines IFC Upstream, donor-funded advisory, and investments to enhance the impact of each dollar invested and establish long-term partnerships. It also helps identify and design bankable investment opportunities to facilitate commercial investments, while providing technical support to improve efficiency and introduce sustainable management practices. IFC is supporting Corsan by providing advisory work and a first tranche of 300 million reais ($56 million) green and sustainability-linked loan (SLL) in a project of up to 450 million reais ($83 million). The advisory work, which is being delivered through support from the Government of Japan, is helping Corsan diagnose and plan priority locations and interventions to reduce water losses.

IFC’s investment will support the company’s water loss program and energy efficiency improvements by installing water meters and replacing obsolete electric pumps and hydrometers. IFC’s investment leverages advisory support to help Corsan reduce NRW from 44 percent currently to less than 35 percent by 2024. The investment in Corsan is aligned with IFC’s water and sanitation services sector strategy, which makes it a priority to engage with creditworthy utilities, including private and subnational utilities, to achieve scale and impact. Water and sanitation are essential to human health and a prerequisite for economic growth. By tapping into private sector finance, Rio Grande do Sul is opening new avenues of development impact that will make a measurable difference for its people and communities, particularly in the face of ongoing climate change.

The Corsan project may be used as a framework for future water infrastructure projects in Brazil Photo: Courtesy of Corsan

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Annex

Helping Africa Secure Essential Medical Equipment

To respond to Africa’s growing need for top-notch medical equipment, IFC launched the Africa Medical Equipment Facility in partnership with equipment manufacturers and financial institutions. The goal is to help potentially hundreds of healthcare providers in seven African countries to start – Cameroon, Côte d’Ivoire, Kenya, Rwanda, Senegal, Tanzania and Uganda – secure loans to buy or lease the equipment they need to deliver the highest-quality care from lab equipment to MRI machines. In the longer run, the facility should help build more resilient health systems in the countries it supports. The new facility is part of IFC’s $4 billion Global Health Platform , which is helping to increase the availability of COVID-related medical supplies and services so the world’s poorest nations don’t get squeezed in the global scramble to buy supplies. It’s also supported by the International Development Association Private Sector Window (IDA-PSW) Blended Finance Facility and the Global Financing Facility for Women, Children and Adolescents (GFF) . The Africa Medical Equipment Facility bridges the financing gap by providing risk-sharing facilities that will help small businesses access up to $300 million in loans to purchase or lease equipment. Risk- sharing is an effective instrument to encourage financial institutions to lend to smaller businesses. The loan size to small businesses is expected to range from $5,000 to $2 million. The Co-operative Bank of Kenya is the first financial institution participating in the facility and Philips is the first medical equipment manufacturer. IFC expects to expand the financing to more countries and invites interested financial institutions and equipment manufacturers to reach out to their local IFC contact to explore partnerships under the Africa Medical Equipment Facility.

Governments around the world are counting on vaccines to protect populations and turn the tide against COVID-19. Meanwhile, African healthcare providers are also in desperate need of essential – but often costly – medical equipment to deliver quality care to those already suffering. In many sub-Saharan African countries, private healthcare providers are an important part of the health system, serving millions of patients. Amid COVID-19, however, many smaller healthcare providers are lacking the funds to acquire specialized medical equipment to boost their response and care efforts, and access to finance to buy or lease equipment is proving a challenge.

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Annex

New Financing Tools Empower Turkey’s Women Entrepreneurs

Being a woman entrepreneur in Turkey poses challenges and getting financing to fund growth for a small enterprise tops that list. Women represent only 10 percent of the total number of entrepreneurs in the country, and they face an array of challenges – starting with the narrow role women play in traditional Turkish society. Often, an absence of relevant education, lack of access to finance, and limited options for childcare pose additional obstacles for women who try to start a business. IFC’s 2018 investment of $75 million in Garanti BBVA, one of Turkey’s largest private banks, will help address the working capital needs of women-owned businesses like Atabey’s. This investment was in the form of a gender bond under IFC’s social bonds program. This is the first emerging-market, private-sector bond dedicated to financing enterprises and companies owned or managed by women. The investment was conducted in partnership with the Women Entrepreneurs Opportunity Facility, launched by IFC through its Banking on Women program, and Goldman Sachs’ 10,000 Women initiative. By expanding financial access to Turkey’s women-owned SMEs, the IFC financing is expected to promote greater opportunities for other underserved groups as well, especially in terms of employment. Proceeds of the bond will strengthen the financial sector through diversifying and deepening capital markets and products. Ultimately, it is also expected to increase the presence and participation of women in the Turkish economy. This is especially important in the context of the Turkish economy – where banks are inclined to channel their limited resources to larger, better rated customers, causing the financing to women-owned SMEs to be even more restricted.

Even in better times, women entrepreneurs in Turkey have not had equal access to financing. Women are under-represented in entrepreneurship and business ownership as well as in management due to significant sociocultural and economic barriers. Turkey has one of the lowest female workforce participation rates among countries with similar income levels: only a third of Turkish women are economically active, compared with an average of 62 percent in upper-middle income countries. Women here also have lower levels of financial inclusion. As recently as a few years ago, 70 percent of Turkish men had formal accounts compared with only 44 percent of women, according to a Global Findex Survey. The proceeds from IFC’s Gender Bond are intended to address these concerns. The funds are strictly earmarked to finance small, women- owned enterprises. Part of IFC’s work with Garanti BBVA also included helping the bank establish an environmental and social management system to be applied to the portfolio of women-owned small businesses.

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