Financing cement in emerging markets, Eric Siew, IFC (Hong Kong)

Filmed at Cemtech Asia 2015, 21-24 June, Grand Hyatt, Bangkok, Thailand

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So my presentation would comprise essentially four parts. First I will try to introduce you to IFC, and what is our approach and experience in investing in cement. And then I will briefly share with you our sector view in a couple of slides and then the third part would be, again it's a brief kind of overview of the cement outlook. I think a number of presenters have already shared a number of figures on the cement consumption in 2014 and beyond. So, I will just share with you a few key points. And then finally I will conclude and I think that kind of links very well to where the previous presentations that were made, what is the IFC climate change approach to this sector?

Given as I think we all understand, given the importance of the carbon footprint of this industry. So let me try to quickly introduce you to IFC. IFC is part of the World Bank Group, as probably many of you would know. In the World Bank Group, we have essentially five institutions. The two main institutions, and the first one is the World Bank, which provides advice and financing to governments of emerging markets, and the second one is IFC. IFC stands for International Finance Corporation. It's the private sector almost essentially of the World Bank Group. It was established in 1956, and it provides advice, and also finances to private companies in emerging markets. IFC has quite a global reach today. We've about 108 offices in 98 countries, so we are kind of well we've a strong presence in most markets that we serve.

59 over 60% of our staff now are in the countries where we invest, and Hong Kong where I am based, is the middle hub for Asia not only for East Asia, but also South Asia. In terms of our business essentially we have three business lines - our core business is about investing, investments in companies that are investing in emerging markets. We do provide equity and also debt and different instruments between the two type of products, but increasingly we're also providing advice. Not only to small and medium sized companies but also a new initiative that actually we have been doing that in the past now we launched that a bit is to provide advice to a bit like MNE type of advice - helping our clients to find targets in countries where they want to enter. introduce them to partners evaluate proposals etc. Given the presence that we have in most countries where we invest, we do have a network of relationships in all these markets. And last but not least the third part is this is an increasingly important component in IFC's business is that we mobilize, we leverage also of our own resources. We have been doing that a lot on the debt side and now we're increasingly do that also on the equity side so we manage funds for some investors, sovereigns and pensions funds for example.

In terms of our volume of business we have been investing as I mentioned to you since 1956 in all the emerging countries that we serve. IFC and the World Bank Group, the IMF the same we have like, we have 184 member countries, we have been investing more than 125 billion today in the margin markets over the years. Approximately per year, we would be investing between 20 to 25 billion of which we would mobilize as I mentioned clear this is increasing an important component for us between 15% and 25%. And as you would see in this slide, about 20, I think it's about almost 28% our business, 25% in Asia, including southern East Asia, and just quickly on the slide, what I would like to really emphasize here we take the same risk that the our client, private sector clients will take. We take the same market risk, we're not looking for government guarantees, we promote obviouslt environment and in social and corporate government standard we do have our own standards especially on the

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