#1IDB Invest INVESTOR PRESENTATION OCTOBER 2019#2CONTENTS 1. About IDB Invest 2. Our Business & Our Impact 3. Our Risk Management Framework 4. Our Financial Profile#3ABOUT US Three Institutions, one IDB Group We are IDB Invest, the private sector institution of the IDB Group, a multilateral development bank committed to strengthening Latin American and the Caribbean businesses. We combine the speed and agility of the private sector with the strength and stability of the IDB Group, we're driving business to revolutionize markets. IDB IDB | Invest Governments Civil society Loans Guarantees Grants Policy advice Technical Assistance Knowledge Common shareholders Private Sector IDB LAB The Innovation Laboratory Loans Guarantees Equity & Mezzanine Loans, Seed and Venture Capital Grants Advisory Services Aligned governance & We manage the IDB's private sector strategy portfolio Knowledge Networks Open Innovation IDB provides us administrative services 3#44 OUR BUSINESS & IMPACT#5AT A GLANCE $13.1B ASSETS UNDER MANAGEMENT* $3.1B TOTAL ASSETS 400 EMPLOYEES 47 SHAREHOLDERS 60 YEARS OF EXPERIENCE IN THE REGION AS IDB GROUP 29 OFFICES IN LATIN AMERICA AND THE CARIBBEAN, ASIA AND EUROPE AAA FITCH AA S&P (Pos) Aa1 MOODY'S * Figures are as of June 2019 5#66 SHAREHOLDER OVERVIEW REGIONAL MEMBER OTHER MEMBER COUNTRIES Argentina Bahamas Barbados Belize Bolivia Brazil Chile COUNTRIES Austria Belgium Canada Croatia China Denmark Finland France Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Suriname Trinidad and Tobago Uruguay Venezuela Germany Israel Italy Japan Korea Netherlands Norway Portugal Slovenia Spain Sweden Switzerland United States#7• • • WHAT WE OFFER We support our clients by providing finance solutions, advisory services and knowledge that meet the evolving demands of the regions private sector. Financial Products and Services Loans Guarantees Equity and mezzanine Resource mobilization Blended finance OUR SECTORS Advisory Services Knowledge Climate change Gender, diversity and inclusion Sustainability and MSMEs Public-private partnerships Publications Conferences and workshops Market trends Feasibility studies Regional/sectorial expertise Financial Intermediaries Infrastructure Corporates Banks and other financial intermediaries Energy Agribusiness ΠΕ Transport Manufacturing Financial Inclusion H Water and sanitation Funds Social infrastructure Tourism Telecommunications, media and technology 7#88 HOW WE MEASURE DEVELOPMENT Adding value beyond financing Impact Management Framework supports IDB Invest's dual objective of achieving the highest development impact while maintaining long-term financial sustainability. It allows us to standardize how we score the potential development impact of each project upfront and track the actual impact achieved across the investment lifecycle. ORIGINATION PREPARATION SUPERVISION COMPLETION Strategic Selectivity Toolkit Financial Contribution Rate (FCR) Annual Supervision Report (ASR) Innovation testing Impact and other evaluations DELTA We help our clients optimize the social returns of their business, in turn making them more competitive, resilient, and sustainable. * Development effective learning tracking and assessment tool.#9DEVELOPMENT IMPACT Priority Business aligned with SDG's NO POVERTY ZERO HUNGER SSS QUALITY EDUCATION CLEAN WATER 6 AND SANITATION 3 GOOD HEALTH AND WELL-BEING W 10 REDUCED INEQUALITIES Social Inclusion and Equity 523.510 beneficiaries receiving health services 428.158 households with new/upgraded access to drinking water or sanitation QUALITY EDUCATION INDUSTRY INNOVATION AND INFRASTRUCTURE DECENT WORK AND ECONOMIC GROWTH 6 AFFORDABLE AND CLEAN ENERGY DECENT WORK AND ECONOMIC GROWTH Productivity and Innovation 157.531 beneficiaries of on-the-job training 36.363 jobs created by supported firms Economic Integration 377.263 micro, small and medium enterprises financed INDUSTRY, INNOVATION AND INFRASTRUCTURE PARTNERSHIPS FOR THE GOALS 200 km of roads built or upgraded US$2.8 Billion in international trade promoted REDUCED 10 INEQUALITIES GENDER EQUALITY Gender Equality and Diversity 176.251 women beneficiaries of economic empowerment initiatives SUSTAINABLE CITIES AND COMMUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION CLIMATE 13 ACTION 8 LIFE 14 BELOW WATER LIFE 15 INLAND *Numbers are for the period 2016-2018 Climate Change and Environmental Sustainability 264.112 households benefitting from housing solutions 9 Million metric tons of emissions (CO2 equivalent) expected to be reduced per year 100% Installed power generation capacity from renewable sources 9#1010 10 HOW WE REPORT DEVELOPMENT How to achieve the maximum impact on development is one of our core concerns at IDB Invest. DEO tectiveness Overview 2018 INTER-AMERICAN DEVELOPMENT BANK 10B INVEST MULTILATERAL INVEST DEBrief and communicate ementaimpact IDB Invest Defines its N7/2019 The Sustainable Development Goals (SDGs): A Roadmap for Impact Measurement and Management THE SDGS AND THE ROLE OF THE PRIVATE SECTOR Und The Sultanable Devent 2030 amp te thithe M for non-financial impact on nd matrica juz as important to and improv operations and inventare dec The provide a comat language for talking about a thehen of the S Tong Posted puson cod can ge adaly 3000 to me the SDGE A amfunding go local and fer devel to me the nude and master Ang epoca es bess Ma monies try 2030 IDB Invest HOW SDG ALIGNMENT BRIN VALUE TO THE PRIVATE SEC or the c Marty of the co to the drag For one fr of the with the The can include ecting Development Gaps: Methodological Innovations and Inclusion of Private Sector Indicators culture and he men IMPACT MEASUREMENT AND MANAGEMENT MATTERS of the bine and gevelden city to include how the activi 300 h there ing to sh www.convecting the ying to the des has become increasingly visib iferen to the gibel going imply important to ma to the DG aly fo their bushesh the both the pute and private dant "The sework on an accounting Development effectiveness at IDB Invest: a way to add value Fevelopment the pistes trough 201 3% No. 17 Authors: Mana Cecilia Acevedo Eduardo Borenstein Joaquin Lennon LAC Society A way to identify and tackle development challenges, improving lives in partnership with the private sector Clients A differentiator in the market as a responsible knowledge-based organization IDB Invest A means to grow sustainably, to benefit their stakeholders, and to strengthen their brand Shareholders A means to ensure timely and transparent reporting#11PROJECT HIGHLIGHTS Pirapora | solar PV Project Objective: To support the Country's efforts to diversify its energy matrix, by adding 191.5 MW of solar generation capacity Key facts AFFORDABLE AND CLEAN ENERGY DECENT WORK AND ECONOMIC GROWTH 6 INDUSTRY, INNOVATION AND INFRASTRUCTURE O CLIMATE ACTION Expected results Approval Year: 2018 • Segment: Infrastructure s • Delta Score: 9.4 Total Project: R$ 954 million • IDB Invest :25% 3.3 million tons of CO2 eq reduced during the life of the project (20 years) 338.699 MWh/year of clean solar energy supply • Tenor: 20 years • Resource Mobilization: 75% 11#12PROJECT HIGHLIGHTS Danper- Peru Objective: Increase Danper's agricultural and industrial production by applying sustainable agricultural practices and integrating smallholder farmers, especially women, into its supply chain. 12 NO POVERTY 2 ZERO HUNGER SSS 5 GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH RESPONSIBLE CONSUMPTION AND PRODUCTION PARTNERSHIPS FOR THE GOALS Key facts Approval Year: 2017 Segment: Corporates Delta Score: 8.6 Total Project: US$41M IDB Invest: US$20.7M Tenor: 10 years Resource Mobilization: US$6.8M Expected results Integrate 132 small farmers into the supply chain Create 5,000 jobs, with over half going to women Develop a gender action plan to further enhance gender equality practices#13OUR FRAMEWORK#14STRONG RISK MANAGEMENT FRAMEWORK Typical Lending Cycle 01 06 Ex-post Evaluation 05 Supervision & Recovery Origination Project Approval 04 Closing & First Disbursement 02 Client engagement 03 Approval Path 15% Maximum exposure to single country 20% Risk Appetite Maximum exposure by sector* 5%/6% Maximum exposure Per client and per economic group 20% Maximum exposure in Equity & quasi equity 4 years Maximum liquidity portfolio duration Liquidity Portfolio A Minimum rating for securities at purchase in liquidity portfolio Limits are set based on allocated capital *with the exception of Financial Institutions sector (75%) 3x Key Balance Sheet Metrics Maximum leverage ratio 105% Minimum liquidity coverage ratio 15#15OUR FINANCIAL PROFILE#16A SOUND BALANCE SHEET ASSETS LIABILITIES 38% 32% Liquid assets USD 990 3% Receivables and other assets USD 104 65% Loans and equity Investment (*) USD 2.047 Debt USD 1.207 62% Capital USD 1.934 Figures are expressed in million US dollar as of June 2019 (*) Net of USD 74.9 million in provisions. Total equity Investments: USD 82 million Robust capitalization & Low leverage Capital / total assets ratio of 62% and leverage ratio of 0.6x leave ample room for growth. 17#17STRONG SHAREHOLDER SUPPORT In 2015 the Board of Governors approved a capital increase for up to USD 2 billion: USD 1.3 billion of new contributions from member countries and USD 725 million of by IDB's transfer on behalf of its member countries. Capital Increase¹ Payment schedule 996 706 1,286 1,576 2,665 2,736 2,593 2,521 2,326 2,126 1,866 290 290 240 240 150 50 45 50 50 110 150 150 72 72 71 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total paid in capital IDB's transfer New Capital contributions IDB Invest operates exclusively with 100% paid-in capital 1 Figures are in USD million. IDB transfers are Subjects to annual approval by IDB's Board of Governors 17#18AMPLE LIQUIDITY AND HIGH-QUALITY LIQUID ASSETS Extremely strong coverage of outstanding debt with liquid assets Liquid Assets/Total Debt 2017 2018 2019 161% Liquid Assets by Rating A- 5% A 9% A+ 21% AA AAA AA+ 4% 29% 3% Figures are as of June 2019 106% 82% AA- 29% Liquid Assets by Sector 62% Corporates 14% Sovereigns 3% Supranationals 21% Agencies 18#197.2% Mexico 7.4% Guatemala 9.8% Ecuador HIGH QUALITY & DIVERSIFIED LOAN PORTFOLIO 13.4% Brazil 12% Chile 10% Argentina BY COUNTRY Includes equity investments BY SECTOR 22% Infrastructure 36% Corporate 42% Financial institutions Non-Performing Loans* 1% 2016 0.9% 2017 0.8% 2018 0.6% & Provisions 4.1% 5.2% 4.4% 4.1% 2019 NPL Provisions Non performing loans: defined as Non accrual loans over 90 days as a percentage of total Loan portfolio. 19#20RAC² 72% Multilateral Assets (USD Millions) Rating Long Term Issuer 1 IDB-Invest 3,209 AA 23% 29% 32% IDB 129,459 AAA EBRD 70,716 AAA IFC 94.272 AAA IDB Invest IDB EBRD IFC One of the strongest financial profiles among Multilateral Development Banks Gross Debt/Equity³ 70% 66% 40% 52% Source: S&P Global Supranationals Special Edition Junio 2019. 1 S&P Global rating August 2018. 2 RAC: Adjusted equity/ Assets weighted by risk (%). 3 Gross debt/ adjusted ordinary equity (%). Data as of December 31, 2018, except for the IFC, whose data are as of June 30, 2018. IDB Invest IDB EBRD IFC Liquid assets / Total assets 51% 25% 47% 54% IDB Invest IDB EBRD IFC 20#21DIVERSIFIED FUNDING SOURCES • • • Main Funding Instrument Euro Medium Term Note 2019 Global funding program USD$ 750M - USD$ 1B 2019 Local Currency program USD$ 200- $ 250M Preferred tenor 3-5 years 82% US Dollar 7% Mexican Pesos 0.5% Guaranies 7% Colombian Pesos 4% Brazilian Reais 21#22OUR PRESENCE IN THE CAPITAL MARKETS USD 500M 5 años Fixed Rate Octubre 2019 DOP 500 M USD 10 millones 3 años Fixed Rate Septiembre 2019 (*) MXN 1.5B USD USD 76.2 millones 3 años Floating Rate Septiembre 2019 250M Increase 2.3 Years Floating Rate June 2019 PYG USD COP (*) MXN 30B USD 5M 5 Years Fixed Rate 500M 3 Years Floating Rate December 2018 October 2018 144B USD 50M 7 Years Fixed Rate June - 2018 1.5B USD 80M 3 Years Floating Rate February 2018 USD USD 500M 3 Years Floating Rate April - 2016 USD (+) MXN 400M 3 Years Floating Rate October 2014 400M 3 Years Floating Rate November 2012 800M USD 60M 3 Years Floating Rate April - 2012 22#23In summary, as a member of the IDB Group, IDB Invest has strong shareholder support, a solid financial profile which includes high credit quality and top credit ratings, all while demonstrating its commitment to the development and sustainability of Latin America and the Caribbean. T#24THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO A PO TEN TIAL IN VESTOR. BY ATTENDING THE PRESENTATION OR BY READING THE PRESENTATION SLIDES YOU ACKNOWLEDGE AND AGREE TO THE FOLLOWING: This document and its contents are confidential and proprietary to the Inter-American Investment Corporation ("IDB Invest") and may not be reproduced, redistributed, published or passed on (or the contents otherwise divulged) to any other person, directly or indirectly, in whole or in part, for any purpose. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation and the information contained herein are not an offer of securities for sale in the United States or any other jurisdiction. This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of IDB Invest, or the solicitation of an offer to subscribe for or purchase securities of the Issuer, and nothing contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase any securities of the Issuer should be made solely on the basis of the final terms and conditions of the securities and the information to be contained in the prospectus or equivalent disclosure document produced in connection with the offering of such securities. Prospective investors are required to make their own independent investigations and appraisals of IDB Invest and the nature of the securities before taking any investment decision with respect to securities of IDB Invest. The prospectus (or equivalent disclosure document) may contain information different from the information contained herein. The information in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such information. None of the Issuer, their advisers, connected persons or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentation or its contents. THESE MATERIALS ARE NOT DIRECTED AT OR ACCESSIBLE BY PERSONS IN THE UNITED STATES, OR PERSONS RESIDENT OR LOCATED IN AUSTRALIA, CANADA OR ANY OTHER JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE MATERIALS TO WHICH YOU ARE SEEKING ACCESS WOULD BREACH ANY APPLICABLE LAW OR REGULATION. The materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or in any jurisdiction. Any securities issued in connection with an offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any applicable securities laws of any state, province, territory, county or jurisdiction of the United States. Accordingly, unless an exemption under relevant securities laws is applicable, no such securities may be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in or into the United States or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction. There will be no offer of securities in the United States. This presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward looking terminology, including the terms "anticipates", "believes", "estimates", "expects", "aims", "continues", "intends", "may", "plans", "considers", "projects", "should" or "will", or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not limited to, statements regarding the Issuer's intentions, beliefs or current expectations concerning the Issuer's economy. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results, performance, achievements or industry results of IDB Invest's economy may differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. THESE MATERIALS ARE NOT DIRECTED AT OR ACCESSIBLE BY PERSONS IN THE UNITED STATES, OR PERSONS RESIDENT OR LOCATED IN AUSTRALIA, CANADA OR ANY OTHER JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE MATERIALS TO WHICH YOU ARE SEEKING ACCESS WOULD BREACH ANY APPLICABLE LAW OR REGULATION. If you are not permitted to view materials or are in any doubt as to whether you are permitted to view these materials, please refrain from viewing them. These materials must not be, released or otherwise forwarded, distributed or sent in or into the United States or any jurisdiction in which such offers or sales are unlawful. Persons receiving such documents (including custodians, nominees and trustees) must not distribute or send them in, into or from the United States or any jurisdiction in which such offers or sales are unlawful. Confirmation of understanding and acceptance of disclaimer I warrant that I am not located in the United States or any other jurisdiction where accessing these materials is unlawful, and lagree that I will not transmit or otherwise send any materials to any person in the United States or any other territory where to do so would breach applicable local law or regulation. I have read and understood the disclaimer set out above. I understand that it may affect my rights and I agree to be bound by its terms. I confirm that I am permitted to view the materials.#25Let's continue the conversation Management Felipe Britto Chief, Treasury Division [email protected] Funding Team Eusebio Garre [email protected] Tel.: 202 623 1626 Jorge Cortés [email protected] Tel.: 202 623 2809 Monica Landaeta [email protected] Tel.: 202 623 3160 Website: www.idbinvest.org Bloomberg: IDBINV <GO> LinkedIn: www.idbinvest.org/linkedin Twitter: www.idbinvest.org/twitter Facebook: www.idbinvest.org/facebook Blog: www.idbinvest.org/blog