Global Agribusiness

Creating opportunity in emerging markets

The IFC Difference

IFC, a member of the World Bank Group, focuses on the private sector to promote growth, reduce poverty, and improve peoples
lives in developing countries. IFC is the worlds largest multilateral financier for companies that do business in emerging markets.
We finance and advise clients to support profitable and sustainable business development in these markets.
Established more than 50 years ago and owned by 182 shareholder countries, IFC has unparalleled experience in helping private
companies succeed in emerging markets worldwidewe are global.
We are also localwith offices in more than 86 countries and active programs in many others.
We can work with clients anywhere in the developing world. Behind every IFC venture is a strong network that links people,
institutions, ideas, and capital. We are your connection to success in the emerging marketplace.
In fiscal year 2010, IFC committed $18 billion, of which $12.7 billion was for its own account and $5.3 billion was mobilized
through syndicated loans, structured and securitized products, and IFC new initiatives for 528 projects in 103 developing countries.
Our Advisory Services portfolio comprised 736 active projects valued at more than $850 million, with annual expenditures totaling
$268 million.

Committed Portfolio by Region

For IFCs own account as of June 30, 2010
Sub-Saharan Africa
13%

Global
1%
Europe and Central Asia
25%

Middle East and

North Africa
11%

Latin America and

the Caribbean
25%

Committed Portfolio by Industry

For IFCs own account as of June 30, 2010
Health and Education
3%
Global Information and
Communication Technologies
4%
Private Equity and Investment Funds
5%
Agribusiness 6%

Subnational Finance
2%

Global Financial Markets

37%

Oil, Gas, Mining,

and Chemicals
9%

Infrastructure
16%

Credit Rating: AAA (Moodys, Standard & Poors)

Portfolio: $48.8 billion, representing 1,656 investments
in more than 100 countries (as of June 30, 2010)
Total Staff: Approximately 3,400 (more than 50 percent
are based in country offices worldwide)

South Asia
11%

East Asia and

the Pacific
14%

IFC: Key Facts

Global Manufacturing
and Services
17%

Number of Investments Committed in FY10:

528 in 103 countries
Broad Industry Expertise: IFC can help companies address
potential risks and incorporate global best practices and
technologies into their operations
Broad Product Range: Corporate and project finance,
subnational finance, loans, equity, quasi-equity, structured
finance, syndications, and advisory services
Partnership Model: Emphasis on building long-term
partnerships with clients

IFC: A Global Partner

Moscow
London

Brussels

Minsk
Kyiv

Paris

Tbilisi

Istanbul
Washington, DC

Baku

Almaty

Beijing

Rabat

Cairo

New Delhi
Mumbai

Mexico City

Chengdu

Hong Kong

Dakar
Managua

Port-of-Spain
Lagos
Accra

Bogot

Nairobi
Jakarta
Lima

Rio de Janeiro
So Paulo

Johannesburg
Buenos Aires

= IFC Hub Offices

= IFC Field Offices (a partial list)
= IFC Headquarters
= Markets where IFC invests

Global Agribusiness
IFC has made agribusiness a priority because of its potential for
broad development impact and especially strong role in poverty reduction. We combine investments and advisory services to help the
private sector address higher demand and escalating food prices in
an environmentally sustainable and socially inclusive way. We also
support global initiatives for sustainable production of agricultural
commodities.
The food crisis is putting pressure on the global supply chain and
threatening progress in poverty reduction. To help clients prefinance
inventories, seeds, fertilizers, chemicals, and fuel for farmers, IFC
offers working capital facilities. In the medium term, we will scale
up financing for agribusiness and address critical constraints along
the agribusiness value chain. We aim to bring land into sustainable
production, improve productivity by transferring technologies and
practices, and make the best use of water and other resources. We
will also pursue investments, with both private and public sectors,

in physical infrastructure (ports, warehouses, cold storage, telecommunications) that can facilitate trade and lower cost. To reach small
farmers and rural enterprises, particularly in low-income countries,
IFC works with trading companies and financial intermediaries,
helping channel financing and advisory services effectively.
Agribusiness companies increasingly recognize that the sector
needs to make sustainable use of land, water, and other key natural
resources, while increasing supply to meet market demand. The
sector also faces social challenges, including the need to raise labor
standards. IFC seeks commercially viable solutions and helps
companies set benchmarks for responsible production in line with
industry best practices. In areas such as sequestering carbon, managing watersheds, preserving biodiversity, and producing renewable
energy resources, IFCs efforts can also help generate new income
through environmental services. IFC is also working with clients
to strengthen their supply chains by helping small farmers increase
productivity and apply appropriate environmental, social, and
quality standards.

From Farm to Factory to Fork

IFC provides investment and advisory services to the agribusiness sector along the full value chain directly to companies and
indirectly through intermediaries.

Direct Financing
Inputs

Jain Irrigation (India): $45 million loan and $14 million equity to Indias largest provider of micro irrigation
systems to increase efficient water delivery and reach more than 2,000 farmers.

Farm
Production

Wadi (Egypt): $40 million in loans to expand poultry operations, feed-milling and pelleting capacity, plant olive
groves, and grape farms, as well as to establish a celpad plant and expand the companys glass containers capacity.

Sourcing

Salala Rubber (Liberia): $10 million loan to finance rehabilitation of post-conflict rubber plantations and further
export of semi-processed natural rubber to tire manufacturers worldwide.

Processing

Wings (Indonesia): $92 million in loans to expand and finance working capital of Wings Groups operating
companies producing instant noodles.

Trade/
Distribution

Finatrade (West Africa): $20 million loan to support regional expansion of a leading distribution company that
specializes in soft commodities (rice, sugar, and vegetable oils) and fast-moving consumer goods.

Wholesale/
Retail

ADA-Ticaret (Azerbaijan): $18 million loan and equity to support direct purchases from suppliers and wholesalers, efficient handling, storage, and distribution by the state-of-the-art grocery retail chain.

Infrastructure/
Logistics

Snowman Frozen Foods Limited (India): $5 million equity to expand temperature-controlled transportation
and storage infrastructure.

Indirect Financing
Pre-Harvest
Finance

Ecom (Latin America, West Africa, Asia): $80 million corporate loan facility to a commodity trader for
onlending to farmers for capital expenditures and crop financing and to improve supply-chain standards, social
and environmental practices, and key performance indicators of coffee suppliers.

IFCs Added Value in Agribusiness

Country risk mitigation

Competitive long-term financing

Environmental and social risk management

Regional knowledge

Sustainability toolkit

Global sector expertise

Advisory services

IFCS Approach to Financing Agribusiness

Investment Services

Equity and long-term loans

Partial credit guarantees and risk-sharing facilities

Syndications

Direct Financing:
Corporate and Project Financing

Indirect Financing:
Traders and Financial Institutions

Direct financing of agribusiness firms

Expand reach to small farms and businesses, which are

Build long-term partnerships with emerging industry

leaders

Promote best practices in corporate governance and

environment and social sustainability

Implement programs to support individual farmers

and distribution companies

Provide advisory services that add value in IFCs

financing package

essential to the sector but too small for IFC to finance

directly

Build on local market knowledge of intermediaries

(regulations, business customs, and client/ supplier

reputations)

Channel investment and advisory services to end users

via intermediaries

Develop and promote sustainability best practices

through intermediaries

Advisory Services

Strengthen farmers, small businesses, supply chain linkages, and infrastructure

Facilitate market development of local supply through helping farms meet quality and quantity requirements

Raise standards of corporate governance and business transparency

Support the development and uptake of eco-standards

IFCs Agribusiness Investments

IFC significantly scaled up its investments in agribusiness in
the last few years. During FY10, IFC invested nearly $2 billion
across the agribusiness supply chainfrom farm to retailto
help boost production, increase liquidity, improve logistics and
distribution, and expand access to credit for small farmers. At the
end of FY10 IFCs agribusiness portfolio stood at $3.9 billion.

IFCs Agribusiness Portfolio by Region

Africa
6%
Europe and Central Asia
25%

Middle East / North Africa

2%
South Asia
11%

East Asia
11%

IFCs Commitments in Agribusiness by Fiscal Year

Latin America
45%

2500

2000

$ Millions

IFCs Agribusiness Portfolio by Subsector

1500

Agribusiness Production
and Processing 75%

1000

Animal Processing

500

FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06

FY 07 FY 08 FY 09 FY 10

Agribusiness Production & Processing

Food Retail

Equity Funds

Fertilizers

Agri Infrastructure

Rural and Trade Finance

Note: All portfolio data include syndications

14%

Beverages

5%

Grains & Milling

7%

Dairy Products

4%

Fruits & Vegetables

6%

Veg Fats & Oils

15%

Sugar

17%

Other Foods

22%

Other

10%

Equity Funds
3%

Food Retail
12%
Fertilizers
6%
Agri
Infrastructure
4%

Correspondence to:
IFC Agribusiness
2121 Pennsylvania Ave., NW, MSN 8P-807
Washington, DC 20433, USA
Fax: +1 (202) 974-4338
ifc.org/agribusiness
2011