#1IDB Invest Investor Presentation Jan 2024#2INVESTOR PRESENTATION CONTENTS Contents חןיו! 0.2 $ 3.65 85 ROS 1,516.05 1.042.09 1,453.85 1,278.37 +20.30 +13.65 ,025.65 +00.00 03 Our Funding Program 894.92 -03.80 04 04.31 -18.43 01 About IDB Invest 02 Our Financial Profile and Risk Management Framework Our Approach to Sustainability IDB Invest 05 Our Sustainability Debt Framework All figures are expressed in million US dollar as of September 2023, unless otherwise stated.#3INVESTOR PRESENTATION ABOUT US ABOUT US Investing in sustainable impact IDB Invest 3#4INVESTOR PRESENTATION ABOUT 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 private sector enterprises in Latin American and the Caribbean. At IDB Invest, we finance sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development while playing a lead role in integrating ESG sustainability solutions throughout our investment process. IDB Governments Civil society Loans Guarantees Grants Policy advice Technical Assistance Knowledge IDB Invest Private Sector IDB LAB The Innovation Laboratory Loans Guarantees Equity & Mezzanine Loans, Seed and Venture Capital Grants Advisory Services Common shareholders Aligned governance & strategy We manage the IDB's legacy private sector portfolio Knowledge Networks Open Innovation IDB provides us administrative services IDB Invest 4#5INVESTOR PRESENTATION ABOUT US REGIONAL MEMBER NON-REGIONAL MEMBER COUNTRIES COUNTRIES Argentina 11.9% 0.5% Austria Bahamas 0.2% 0.2% Belgium Barbados 0.2% 3.1% Canada Belize 0.1% 5.2% China Bolivia 1.0% 0.01% Croatia Brazil 11.9% 0.6% Denmark Chile 3.1% 0.6% Finland Shareholder overview Colombia 3.1% 2.0% France Costa Rica 0.5% 1.1% Germany Dom. Rep 0.6% 0.3% Israel Ecuador 0.6% 2.9% Italy El Salvador 0.5% 3.7% Japan Member Countries and Guatemala 0.6% 4.6% Korea Voting Power Guyana 0.2% 0.6% Netherlands Haiti 0.5% 0.6% Norway Honduras 0.5% 0.2% Portugal Jamaica 0.4% 0.01% Slovenia Mexico 7.6% 4.3% Spain Nicaragua 0.5% 0.6% Sweden Panama 0.6% 1.4% Switzerland Paraguay 0.5% 0.2% UK Peru 3.2% 14.8% United States Suriname 0.1% Trin. & Tobago 0.5% Uruguay 1.3% Venezuela 3.1% IDB Invest 5#6INVESTOR PRESENTATION ABOUT US 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. Finance Solutions Advisory Services • Loans • . Guarantees Equity and mezzanine Our sectors Financial Intermediaries Infrastructure Corporates Financial Institutions Energy Agribusiness Non-Bank Transport Financial Institutions Knowledge Climate change Investment Funds • Publications • Gender, diversity and • Conferences and inclusion workshops Sustainability and • Resource MSMEs mobilization • Public-private . Blended finance partnerships . Digitalization • • Market trends Feasibility studies Regional/sectorial expertise Π Manufacturing Water and sanitation ΠΗ Tourism Social infrastructure IDB Invest Telecommunications media and technology 6#7INVESTOR PRESENTATION CASE STUDY Building a more inclusive textile supply chain in Honduras Category: Social Sub-category: Employment generation and programs alleviate unemployment from socio-economic crises Honduras NO 1 POVERTY 5 GENDER EQUALITY IDB Invest 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE Approved amount: Allocated amount: Total mobilization: $64M $64M 10 INEQUALITIES REDUCED Case Study Elcatex As of 2021, the project has achieved the following results: About 5,000 new jobs created, surpassing the target of 3,200. Approval Year: 2020 Disbursement Year: 2021 379 SME suppliers integrated into the value chain, 92% of the total expected. $32M Elcatex increased its sales by 24% between 2019 and 2021. The new plant became operational in September 2021 and is expected to reach capacity by 2022 and exceed its targets including for production and exports. 17 PARTNERSHIPS FOR THE GOALS 7#8INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK IDB Invest 8#9TOTAL ASSETS - USD 10,954 INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK A Solid Balance Sheet 67% 27% Liquid assets USD 2,912 Loans, Debt Securities, and Equity Investments* USD 7,293 Other assets 7% USD 750 (*) Net of USD 275 million allowance for credit losses. Total equity Investments: USD 297 million LIABILITIES AND CAPITAL - USD 10,954 63% 30% 8% Borrowings USD 6,882 AAA FITCH (Stable) "Excellent capitalization, reduced buffers relative to pre- pandemic levels (...) Fitch expects (...) the FRA and equity/assets ratio to remain above the 'excellent' threshold." Total Capital USD 3,245 Other Liabilities USD 828 AA+ S&P (Stable) "IDB Invest has successfully implemented its expanded mandate over the last six years (...) has ample capital (...) combined with robust liquidity buffers." Aa1 MOODY'S (Stable) "IDB Invest's conservative risk-management practices keeps its capital adequacy and liquidity ratios strong." 9 IDB Invest#10INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK Strong Financial Profile AAA Rated Peer Comparison RAC-Ratio 31% 31% 34% 22% Debt/Total Assets 75% 66% 2.4 61% 53% Multilateral Assets (USD Million) S&P Long Term Issuer Rating IDB-Invest 7.551 AA+ IADB 151.752 AAA EBRD 74.773 AAA IFC 105.264 AAA IDB Invest Source: S&P Global Ratings "Supranational Special Edition. October 2022" Data as of December 31, 2021, except for IFC, whose data are as of June 30, 2021. 12M Liquidity Coverage Ratio 1.6 1.5 1.3 Impaired Loans 5% 6.5% 2% 0.5% IDB IADB EBRD IFC Invest IDB Invest IADB EBRD IFC IDB Invest IADB EBRD IFC IDB Invest IADB EBRD IFC 10 10#11INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK Strong Shareholder Support In 2015 the Board of Governors approved a capital increase of USD 2.0 billion: USD 1.3 billion of new contributions from member countries and USD 725 million of transfers by IDB on behalf of its member countries. 1 Figures are in USD million. IDB transfers are subject to annual approval by IDB's Board of Governors. 706 996 1.286 IDB Invest 2.665 2.736 2.593 2.521 2.326 2.126 1.866 1.576 290 290 240 240 150 50 45 50 50 110 150 150 72 2015 2016 2017 2018 2019 2020 2021 2022 2023 72 2024 71 2025 Total paid-in capital Contributions from members IDB Transfers Capital Increase Payment Schedule¹ IDB Invest operates exclusively with 100% paid-in capital 11 111#12INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK Strong Risk Management Framework 15% Maximum exposure to single country Leverage Risk Appetite Policy Concentration Limits Capital Adequacy Policy** Liquidity Policy** • Defines minimum capital adequacy ratio (CAR) . Core metric: liquidity • 20% Maximum exposure by sub sector * 5%/6% Per client & 20% Internal models deliver capital requirements i.a. for credit per economic group Maximum exposure Equity & quasi equity • and market risk agencies' AA capital requirements • CAR incorporates rating coverage ratio (LCR) LCR time horizon >12 months LCR time horizon and liquidity haircuts consistent with rating agency criteria Market Risk 3.0x Maximum Debt / Capital Guiding principle: match the structure of assets and liabilities: tenor, interest rate and currency risk Market risk exposures are managed with Value at Risk and DV01 limits Liquidity Portfolio Guidelines 4 years Maximum liquidity portfolio duration A Minimum rating required Limits are based on a concept of allocated capital except for limits per client und economic group, and Maximum Equity Exposure limit, which are based on total exposure *Except for Financial Institutions sector (60%) IDB Invest 12#13INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK High Quality and Diversified Development Portfolio 1,690 2,446 4,177 5,384 6,207 30 31 32 25 30 2018 2019 2020 ■Development Portfolio 7,293 175.3 2021 2022 Q3 2023 Impaired Loans 12% Mexico 6% Guatemala 6% El Salvador Development Portfolio By country Development Portfolio By Sector Infrastructure 26% 7% Colombia 9% Peru 7% Ecuador 2.5% 1.7% Non-Performing 1.2% 0.7% 0.5% 0.5% Loan Ratio Corporate 2018 2019 2020 2021 2022 Q3 2023 30% 4.8% 4.8% 4.9% 4.8% Provisioning Ratio 4.3% 4.2% 2018 2019 2020 2021 2022 Q3 2023 Financial Institutions 44% Non-Performing Loan Ratio: Unpaid principal balance of nonperforming loans divided by the unpaid principal balance of development related debt investments. Provisioning Ratio: loan loss allowance divided by loans and debt securities at amortized cost 18% Chile 14% Brazil IDB Invest All other countries show exposures below 5% Country and Sector Breakdown per Year End 2022 13#14INVESTOR PRESENTATION CASE STUDY Bolstering the productivity and sustainability of the pulp and paper industry in Brazil Category: Green Sub-category: Renewable energy Brazil AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY INNOVATION 12 Approved amount: Allocated amount: Total mobilization: $180M $13.7M $267.6M Case Study Klabin By the end of 2021, the following results have been achieved (vs. 2018): 1,673 new permanent jobs created 60% increase in wood produced by its own plantations Approval Year 2019 Disbursement Year: 2020 60% increase in wood supplied by local farmers Volume of production of pulp and paper (in tons) increased 15% and 87%, respectively. US$1.1 billion in export sales Installed power capacity for renewable energy generation increased from 384 MW to 530 MW. RESPONSIBLE CONSUMPTION AND PRODUCTION PARTNERSHIPS 17 FOR THE GOALS IDB Invest 14#15INVESTOR PRESENTATION FUNDING PROGRAM IDB Invest Funding Program 15#16INVESTOR PRESENTATION Funding Strategy FUNDING PROGRAM 2024 Funding Program: USD 2.6bn ○ USD benchmark issues ○ Public issues in strategic markets O MTNs in selected currencies and tenors ○ Local currency issues to fund local projects 834 640 Annual Funding Volume 2,253 1,608 2,475 2,383 1,493 1,229 1,024 Maturity Profile 924 1,512 34 IDB Invest FUNDING PROGRAM 558 376 187 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Most borrowings are swapped into US dollar variable-rate Promote secondary market liquidity through underwriters Outstanding Borrowings By Currency USD 71% EUR 16% AUD 11% MXN 7% COP 3% Others 2% 16#17INVESTOR PRESENTATION FUNDING PROGRAM USD Global Benchmark Market IDB Invest has been a recurrent USD issuer since 2012 6 USD benchmarks issued in the last 4 years Attractive yield pickup vs US Treasuries All global bonds listed at the London Stock Exchange 2022 USD 1 billion 3 Year Sustainability Bond 2.625% Mar 2025 MS+32.0bp T+20.4bp US45828Q2A46 Allocation by geography EMEA 29% C APAC 34% Global SEC Exempt Program 2023 USD 1 billion 5 Year Sustainability Bond 4.125% Mar 2028 MS+59.0bp T+38.5 US45828Q2B29 Allocation by geography APAC EMEA 62% O 12% Allocation by Investor Type IC Banks 1% 6% AM 11% Americas 37% IDB Invest Others 4% CB/OI 78% Allocation by Investor Type Banks 30% Americas AM 26% 16% IC/PF 9% CB/OI 45% 17#18INVESTOR PRESENTATION FUNDING PROGRAM Euro Market Allocation by geography Allocation by Investor Type Strategic Market for IDB Invest Inaugural EUR issue launched in 2022 Attractive yield pickup vs Bunds Broad participation across Euro Zone countries Provide a unique opportunity for European investors to combine impact and topcredit quality with an attractive yield Global Program (SEC Exempt) 2022 EUR 650 million 5-Year Fixed Rate Social Bond 3.125% Nov 2027 MS+12bp DBR+96.8bp XS2547604715 France 10% Other 12% UK/Ireland 11% Asia 14% Germany/Austria/Sw itzerland 31% Banks 20% IC/PF 6% Ο Ο BeNelux 22% AM 25% Allocation by geography Germany/Austria/Sw itzerland 25% Other France 2% 11% 2023 EUR 500 million Nordics 6% 7 Year Italy 9% 3.125% Jun 2030 MS+21bp DBR+97.3bp XS2547604715 Asia 10% Allocation by Investor Type IC/PF 6% AM 11% C UK/Ireland BeNelux 23% 14% CB/OI 33% IDB Invest CB/OI 49% Banks TRY 50% 18#19INVESTOR PRESENTATION FUNDING PROGRAM Kangaroo Market Strategic market for IDB Invest Growing domestic and international investor base Attractive yield pickup vs Australian and semi-government bonds IDB Invest AUD domestic issues are repo eligible with Reserve Bank of Australia 2021 AUD 400 million 5 Year Fixed Rate Social Bond 1.10% Jun 2026 ACGB+41bp AU3CB0281285 AUD (Kangaroo) Program 2022 AUD 300 million 5 Year Fixed Rate Green Bond 2.30% Feb 2027 ACGB+58bp AU3CB0286557 Allocation by geography Australia,... Allocation by geography Europe, 31% Asia, 10% Other, 1% Australia,... Allocation by Investor Type IDB Invest Fund Manager 64% Banks 12% Allocation by Investor Type CB / OI 24% IC 15% CB / OI Asia, 9% 70% AM 11% Europe, 69% Other, 1% Banks 4% 19#20INVESTOR PRESENTATION FUNDING PROGRAM Mexican Market IDB Invest is a frequent issuer in Mexico since 2008 Issued one benchmark per year since 2018 Currently 3 bonds outstanding listed in BIVA Stock Exchange Strategic market to finance local currency projects Stand alone MXN domestic debt issuance program Strong local investor participation 2022 MXN 2.5 Billion 3-Year Floating Rate Social MSME Bond TIIE +5 Sep 2025 MXJIBIOKO044 2023 MXN 3.5 Billion 3-Year Floating Rate Social TIIE +10 Oct 2026 MXJIBIOKO051 MXN Local Program AM 64% Allocation by Investor Type Others 4% AM 67% Allocation by Investor Type CB/OI 22% Banks 8% IC/PF 2% PF 2% Banks 31% IDB Invest 20 20#21INVESTOR PRESENTATION FUNDING PROGRAM Sustainable Bond Program All sustainable bonds are issued under the Sustainable Debt Framework which is ICMA aligned 100% funds were allocated in 2021 US$ 4.7 bn bond issued under sustainable format 66% of total outstanding bonds are under sustainable format Green Bonds IDB Invest 2023 US$ 43.1 2022 US$ 272.9 2021 US$ 186.6 $502.7 Social Bonds 2023 US$191.7 2022 US$ 843.1 |2021 US$ 423.4 $1,266.4 Sustainability Bonds $3,000 2023 US$ 1,020.0 2022 US$ 1,000.0 2021 US$1,000.0 Sustainable Debt Framework 21#22INVESTOR PRESENTATION OUR APPROACH TO SUSTAINABILITY OUR INSTITUTIONAL APPROACH TO IMPACT AND SUSTAINABILITY We believe that impact investing is the future of our region. IDB Invest#23INVESTOR PRESENTATION OUR INSTITUTIONAL APPROACH TO SUSTAINABILITY 100% Committed to Sustainability KEY SUSTAINABILITY TARGETS* REPORTING AND IMPACT MANAGEMENT CORPORATE SUSTAINABILITY EXTERNAL ASSESMENTS AND ESG INDICES 100% of new projects aligned with Paris Climate Agreement from 2023 on 30% of new financing to support climate change mitigation and/or adaptation 40% of new projects to support climate change mitigation and/or adaptation 25% of new projects to support Gender Equality 5% of new projects to support Diversity and Inclusion First development bank in Latin America and the Caribbean to deliver a TCFD Disclosure in its Annual Report, including Scope 1, 2 and 3 GHG emissions Annual IDB Group Sustainability Report and GRI-Annex following the standards of the Global Reporting Initiative. Founding signatory of the Operating principles for Impact Management IDB Group is carbon neutral since 2006 Headquarters Buildings received LEED Platinum certification (top level); several country offices LEED Certified. Commitment to Gender Equality: Second Multilateral Development Bank worldwide and first in the Americas to receive EDGE Move Certification. 38% of staff in mid- and senior level positions are women. SUSTAINALYTICS a Morningstar company RATED 09/2022 DZ BANK SEAL OF QUALITY FOR SUSTAINABILITY Inter-American Investment Corp. S&P Green Bond Index Bloomberg * Select organizational targets according to the IDB Group Corporate Results Framework (CRF). For more information on the CRF visit https://crf.iadb.org/en/2020-2023/level-3?institution=all&status=all&year=2021 IDB Invest 23#24INVESTOR PRESENTATION OUR INSTITUTIONAL APPROACH TO SUSTAINABILITY IDB Invest Strategic Priorities Aligned with Sustainable Development Goals Productivity and Innovation Regional Value Chains Gender Equality and Diversity 4 QUALITY EDUCATION AFFORDABLE AND CLEAN ENERGY DECENT WORK AND ECONOMIC GROWTH M 6 INDUSTRY, INNOVATION AND INFRASTRUCTURE 8 DECENT WORK AND ECONOMIC GROWTH INDUSTRY, INNOVATION AND INFRASTRUCTURE PARTNERSHIPS FOR THE GOALS REDUCED 10 INEQUALITIES > LA GENDER EQUALITY Climate Change and Environmental Sustainability SUSTAINABLE CITIES AND COMMUNITIES LIFE 14 BELOW WATER RESPONSIBLE CONSUMPTION AND PRODUCTION Q 15 LIFE ON LAND Social Inclusion and Digitalization CLIMATE NO POVERTY ACTION QUALITY EDUCATION Equity ZERO HUNGER SSS CLEAN WATER AND SANITATION GOOD HEALTH AND WELL-BEING W REDUCED 10 INEQUALITIES 8 DECENT WORK AND ECONOMIC GROWTH INDUSTRY, INNOVATION 9 AND INFRASTRUCTURE 24 24#25INVESTOR PRESENTATION OUR INSTITUTIONAL APPROACH TO SUSTAINABILITY Impact Management Framework Knowledge management / Analytics (DEA) 5 Implementing operational findings Selectivity Tools Selecting the right projects and clients Generating and transferring knowledge 3 2 Assessing potential impact and designing projects for results Managing and evaluating the portfolio for impact IES / Studies / Communications DELTA / DELTA / XSR Objectives IDB Invest Select operations in line with our mandate as a development bank Ensure operations are structured to be strategically relevant, effective, and measurable Manage our portfolio to maximize impact and sustainability Foster continuous learning from our operations Ensure accountability to stakeholders 25#26INVESTOR PRESENTATION OUR INSTITUTIONAL APPROACH TO SUSTAINABILITY Our Sustainability Policy and Practices IDB Invest Environmental and Social Sustainability Policy a. The IFC Performance Standards b. The World Bank Group's Environmental, Health and Safety (EHS) Guidelines c. IDB Invest Exclusion List Corporate Governance Development Framework Access to Information Policy Independent Consultation and Investigation Mechanism 26#27INVESTOR PRESENTATION Our Project Cycle 01 OUR INSTITUTIONAL APPROACH TO SUSTAINABILITY 02 ORIGINATION CLIENT ENGAGEMENT 03 APPROVAL 04 05 CLOSING & FIRST DISBURSEMENT SUPERVISION & RECOVERY ESG AND DEVELOPMENT IMPACT DUE DILIGENCE EMBEDDED IN EVERY STEP OF THE PROJECT CYCLE Strategic selection using the Selectivity Tool Screening against exclusion list Request to the client to commit to comply with IDB Invest Environmental and Social policy and practices • • Obtain information about the Client's assets and management of E&S risks and impact; Assign a project categorization based on E&S risk; Conduct a site visit to the project's area of influence; Assess the project against IDB Invest Sustainability Policy requirements; • Prepare an Environmental and Social • • Review Summary (ESRS) and E&S Action Plan (ESAP); Define impact indicators with DELTA tool; Public Disclosure: the Investment Summary, ESRS and ESAP are disclosed on our website prior to IDB Invest Board approval. The legal agreement includes standard E&S conditions, specific ESAP requirements and impact indicators tied to milestones. Prior to each disbursement, IDB Invest verifies E&S conditions and ESAP requirements for compliance. The IDB Invest portfolio management and E&S Teams supervise the Client's compliance with E&S requirements, ESAP conditions and track impact indicators on a regular basis. IDB Invest 27#28INVESTOR PRESENTATION OUR SUSTAINABLE DEBT FRAMEWORK IDB Invest OUR SUSTAINABLE DEBT FRAMEWORK#29INVESTOR PRESENTATION OUR SUSTAINABLE DEBT FRAMEWORK Our Sustainable Debt Framework CATEGORIES Green Social Finance projects with environmental impact Finance projects with social impact DEBT PRODUCTS Sustainability Finance projects with environmental and social impact IDB Invest Public Bond Offerings Local Currency Bonds Private Placements Commercial Paper ALIGMENT The The Green Bond Principles Social Bond Principles 29#30INVESTOR PRESENTATION Use of Proceeds OUR SUSTAINABLE DEBT FRAMEWORK SOCIAL PROJECT CATEGORIES Employment generation and programs to alleviate unemployment from socio-economic crises 1. Renewable energy 2. Energy efficiency Socio-economic advancement and 5. improvement 3. Clean transportation 1. Affordable basic infrastructure 4. Access to essential services 2. Food security and sustainable 3. food systems Management of Proceeds $ IDB Invest GREEN PROJECT CATEGORIES 4. Environmentally sustainable management of living natural resources and land use 5. Climate change adaptation and climate resilience 6. Sustainable water and wastewater management L COMMITMENT TO ALLOCATE FUNDS WITHIN 24 MONTHS LOOK-BACK PERIOD: 24 MONTHS 30#31INVESTOR PRESENTATION OUR SUSTAINABLE DEBT FRAMEWORK Second Party Opinion <> idbinvest.org IDB Invest ABOUT US PROJECTS COUNTRIES SECTORS SOLUTIONS IMPACT SUSTAINABILITY INVESTOR Q Search on IDB invest Contact Us → 0 V.E "... IDB Invest Sustainable Debt Framework is aligned with the four components of the Green Bond Principles 2018 and Social Bond Principle 2020 ..." "... In our assessment, the bonds issued via this framework will provide an 'advanced' contribution to sustainability ..." SECOND PARTY OPINION on the sustainability of IDB Invest's Sustainable Debt Framework V.E is of the opinion that IDB Invest's Sustainable Debt Framework is aligned with the four core components the Green Bond Principles 2018 and the Social Bond Principles 2020. Framework Contribution to Sustainability: Characteristics of the Framework Weak Limited Robust Advanced Expected impacts Project Categories Advanced ESG risks management Advanced Limited Robust Weak SDG Mapping MM 11 2 555 Q 13 5 14 Mar 15 周建 16 17 ⇒ Green: 6 categories Social: 4 categories divided in 7 subcategories Latin America Yes Project locations Existence of framework Share of refinancing Look back period To be communicated for each issuance No more than 24 months in each issuance IDB Invest 31#32INVESTOR PRESENTATION OUR SUSTAINABLE DEBT FRAMEWORK 2021 -Allocation US$ 1.6Bn Sustainable debt issued in 2021 100% FUNDS ALLOCATED $421M 26% GREEN Socioeconomic advancement and empowerment $799M 67.5% Employment generation and programs to alleviate unemployment from socio-economic crises $257M 21.7% Access to essential services 1A $113M 9.5% Affordable infrastructure basic $9M 0.8% Food security and sustainable food systems 101 $6M 0.5% 92.1% $387M Renewable energy $1,184M 74% SOCIAL 4.8% $20M Energy efficiency 3.1% $13M Sustainable water and wastewater management IDB Invest 32#33INVESTOR PRESENTATION H Of gC 2021 - Impact Social Indicators OUR SUSTAINABLE DEBT FRAMEWORK Jobs supported by firms 72.3k MSMEs financed 570k Beneficiaries of employment support initiatives 19.4k Target Population GAAP G Green Indicators Actual IDB Invest Expected % Installed power generation from renewable energy sources 1,533 MW 2,904 MW 53% Reduction of emissions 2.5 M Tons 52.5 M Tons 5% Energy generated - renewable 5.3 MW/h 111.3 MW/h 5% Women beneficiaries of economic empowerment initiatives 16.8k # Projects USD Amounts Excluded Population 1 $6M Treated wastewater (m3) 161M 167M 96% Farmers with improved access to agricultural services and investments Low-Income Population 3 $121M 4.9k MSMEs 24 $899M Households with improved access to water or sanitation Poor population 1 $38M 657.2k Vulnerable 1 $16M Women-led SMEs 4 $141M International trade promoted $3.7B * Projects may have more than one target population Beneficiaries receiving health services 14.2k The indicators presented herein have not been prorated for the portion of IDB Invest's contribution to the total project 33#34INVESTOR PRESENTATION OUR SUSTAINABLE DEBT FRAMEWORK SDG Alignment Projects are usually mapped to more than one SDG 15 ON LAND $7M 3 Projects 3 GOOD HEALTH AND WELL-BEING $5M 3 Projects ་་་ 2 GER SUSTAINABLE CITIES 11 AND COMMUNITIES A. $27M 5 Projects $7M 3 Projects CLEAN WATER AND SANITATION $30M 5 Projects 1 POVERTY $33M 11 Projects REDUCED 10 INEQUALITIES $69M 5 GENDER EQUALITY $105M 12 Projects 15 Projects DECENT WORK AND ECONOMIC GROWTH $386M 51 Projects USTRYMATION AND INFRASTRUCTURE $310M 46 Projects AFFORDABLE AND CLEAN ENERGY $107M 22 Projects 17 PARTNERSHIPS FOR THE GOALS $162M 22 Projects 12 PORSABLE CONSUMPTION AND PRODUCTION $120M 22 Projects CLIMATE 13 ACTION $119M 19 Projects IDB Invest 34#35INVESTOR PRESENTATION Independent External Review <> IDB Invest 0 idbinvest.org ABOUT US PROJECTS COUNTRIES SECTORS SOLUTIONS IMPACT SUSTAINABILITY INVESTORS Q Search on IDB invoct Contact Us → 0 SUSTAINALYTICS a Morningstar company "... Based on the limited assurance procedures conducted, nothing has come to Sustainalytics' attention that causes them to believe that, in all material respects, the reviewed bond projects, funded through proceeds of IDB's sustainability bonds, are not in conformance with the Use of Proceeds criteria outlined in the Framework...." 41 No errors or Exceptions were identified ..." IDB Invest Type of Engagement: Annual Review Date: September 21, 2022 Engagement Team: Nadia Djinnit, [email protected], (+1) 416 861 0403 Sameen Ahmed, [email protected] Introduction In 2020, Interamerican Investment Corporation ("IDB Invest") developed its Sustainable Debt Framework (the "Framework") aimed at financing and refinancing social and green projects related to affordable basic infrastructure, access to essential services, employment generation, renewable energy, energy efficiency, clean public transport, water efficiency and management, and climate resilience. In May 2022, IDB Invest engaged Sustainalytics to review the projects funded through sustainability bonds issued under the Framework in 2021 and provide an assessment as to whether the projects met the Use of Proceeds criteria and Reporting commitments outlined in the Framework. Evaluation Criteria Sustainalytics evaluated the projects and assets funded with proceeds from the 2021 sustainability bonds issued under the Framework based on whether the projects: 1. Met the Use of Proceeds and Eligibility Criteria outlined in the Framework; and 2. Reported on at least one of the Key Performance Indicators (KPIs) for each Use of Proceeds criteria outlined in the Framework. IDB Invest 35#36INVESTOR PRESENTATION CASE STUDY Increasing access to finance for Jamaican SMEs Category: Social Sub-category: Socioeconomic advancement and empowerment Jamaica Approved amount: Allocated amount: $35M $35M сл GENDER EQUAL TY DECENT WORK AND 8 ICONOVE GROWTH 9 AND INFRASTRUCTURE INDUSTRY, INNOVATION Case Study JMMB Bank The project is successfully helping JMMB to strengthen its SME portfolio widening access to finance for this segment. Specifically, the following outcomes have been achieved: 372 SMEs supported Total value of loans disbursed to SMEs is around US$87.5 million. At the end of 2021, JMMB had an outstanding SME portfolio of US$ 168.8 Million Also, as a result of this transaction, JMMB Bank has developed an E&S Policy and an E&S Framework (as part of the ESMS), implemented a gender-gap analysis, provided training in diversity, and designed a gender action plan that will guide the Bank's steps to improve gender equality and diversity. 10 REDUCED INEQUALITIES RESPONSIBLE 12 CONSUMPTION AND PRODUCTION QO 36 56 IDB Invest#37INVESTOR PRESENTATION In summary, our bonds represent a unique investment opportunity that combines the strength of IDB Invest as a member of the IDB Group with strong shareholder support, a solid financial profile and top credit ratings, With a demonstrated commitment to the development of sustainable enterprises in Latina American and the Caribbean IDB Invest 37#38INVESTOR PRESENTATION Join us in building tomorrow, today. Funding Team Management Website: www.idbinvest.org Bloomberg: IDBINV Corp <GO> LinkedIn: www.idbinvest.org/linkedin Twitter: www.idbinvest.org/twitter Facebook: www.idbinvest.org/facebook Blog: www.idbinvest.org/blog Eusebio Garre Director - Head of Funding [email protected] Tel.: 202 623 1626 Orlando Ferreira Chief, Finance and Administration - CFO Monica Landaeta Lead Funding Officer [email protected] Tel.: 202 623 3160 Janne Sevanto Managing Director -Treasurer 38 88 IDB Invest#39THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY PROVIDED AS INFORMATION ONLY. THIS PRESENTATION MAY NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO A POTENTIAL INVESTOR. 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 IDB Invest, 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 IDB Invest 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 IDB Invest, 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 RESIDENT OR LOCATED IN ANY JURISDICTION WHERE THE EXTENSION OF AVAILABILITY OF THE MATERIALS TO WHICH YOU ARE SEEKING ACCESS WOULD BREACH ANY APPLICABLE LAW OR REGULATION. 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 RESIDENT OR LOCATED IN ANY 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 any jurisdiction in which such offers, or sales are unlawful. 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