Financial Statements, Projects, Portfolio, and Organizational Information Volume 2 Investing in Progress with Experience, Innovation, and Partnership 2005 Annual Report The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies. The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit www.ifc.org. International Finance Corporation 2005 Annual Report Volume 2 Volume 2 Contents Management's Discussion and Analysis 2 Responsibility for External Financial Reporting 28 Financial Statements 31 Project Commitments 60 Participants in Loan Syndications 74 Technical Assistance and Advisory Projects 75 Investment Portfolio 92 Board of Governors 134 Board of Directors and Voting Power 138 IFC Organization and Management 140 IFC Field Representatives and Contacts 144 IFC Addresses 146 Volume 1 of this report includes the theme feature, "Investing in Progress"; messages from the president and executive vice president; updates from the Board of Directors, the Compliance Advisor/Ombudsman, and the Operations Evaluation Group; reports on the IFC's regional activities, investments, and technical assistance in FY05; and reviews of the Corporation's financial and portfolio performance during the year. IFC's Annual Report on the Web, www.ifc.org/ar2005, is a companion to the printed edition. It provides downloadable files of all content in the two volumes, including several language versions of Volume 1. Currency is given in U.S. dollars throughout unless otherwise specified. All numbers reflect rounding. Management's Discussion and Analysis of Financial Condition and Results of Operations I. OVERVIEW International Finance Corporation (IFC or the Corporation) is an international organization, established in 1956, to further economic growth in its developing member countries by promoting private sector development. IFC is a member of the World Bank Group, which also includes the International Bank for Reconstruction and Development (the World Bank), the International Development Association (IDA), and the Multilateral Investment Guarantee Agency (MIGA). It is a legal entity separate and distinct from the World Bank, IDA, and MIGA, with its own Articles of Agreement, share capital, financial structure, management, and staff. Membership in IFC is open only to member countries of the World Bank. As of June 30, 2005, IFCs entire share capital was held by 178 member countries. IFCs principal products are loans and equity investments, with a small guarantee portfolio. Unlike most multilateral development institutions, IFC does not accept host government guarantees of its loans. IFC raises virtually all of the funds for its lending activities through the issuance of debt obligations in the international capital markets, while maintaining a small borrowing window with the World Bank. Equity investments are funded from net worth. During the year ended June 30, 2005 (FY05), IFC had an authorized borrowing ceiling of $3.0 billion (including $0.5 billion to allow for possible prefunding of the funding program for the year to June 30, 2006 (FY06) during FY05). IFCs capital base and its assets and liabilities are primarily denominated in US dollars. The Corporation seeks to minimize market risk (foreign exchange and interest rate risks) by closely matching the currency, rate bases, and maturity of its liabilities in various currencies with assets having the same characteristics. The Corporation controls residual market risk by utilizing currency and interest rate swaps and other derivative instruments. 2 IFC 2005 ANNUAL REPORT II. FINANCIAL SUMMARY Basis of preparation of the Corporations financial statements The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States (US GAAP). The Corporation has traditionally prepared one set of financial statements and footnotes, complying with both US GAAP and International Financial Reporting Standards (IFRS). However, principally due to material differences between US Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended by SFAS No. 138, Accounting for Certain Derivatives and Certain Hedging Relationships (collectively SFAS No. 133), and its counterpart in IFRS, IAS No. 39, Financial Instruments Recognition and Measurement, it has not been possible for the Corporation to satisfy the requirements of both US GAAP and IFRS via one set of financial statements since the year ended June 30, 2000. IFC is actively monitoring developments related to accounting standards and the primary basis for preparation of its financial statements, all with a view to the necessary systems and controls to manage its various lines of business. IFC plans to resume presentation of its financial statements using IFRS by the year ending June 30, 2007. Unless stated otherwise, discussions of financial performance herein refer to income after expenditures for technical assistance and advisory service (TAAS) (operating income). Operating income excludes the effects of SFAS No. 133. The effects of SFAS No. 133 on net income are discussed in Section VII. Financial performance summary From year to year, IFCs operating income is affected by a number of factors, principally the magnitude of provisions for losses against its loans and guarantees; impairment of equity investments; loans in nonaccrual status and recoveries of interest on loans formerly in nonaccrual status; and income (dividends and capital gains) generated from its equity portfolio. A significant part of IFCs liquid assets portfolio is invested in fixed income securities, which are also subject to external market factors that affect the value of such securities, adding variability to operating income. Net income also includes net gains and losses on financial instruments other than from trading activities, pursuant to the implementation of SFAS No. 133. IFC has been consistently profitable since its inception in 1956, and recorded operating income for FY05 of $1,953 million, as compared with $982 million for the year ended June 30, 2004 (FY04), and $528 million for the year ended June 30, 2003 (FY03). The $1,953 million of operating income in FY05 was a record high for the third consecutive year for the Corporation, reflecting strong contributions across each of IFCs main product lines: loans, equities and treasury operations. The Corporation reported record net income in FY05, including the effects of SFAS No. 133, of $2,015 million, as compared with $993 million for FY04 and $487 million for FY03. The Corporations operating income for the past five fiscal years ended June 30 is presented below: 2,000 1,600 1,200 millions 800 US$ 400 0 2001 2002 2003 2004 2005 Fiscal year ended June 30 IFC 2005 ANNUAL REPORT 3 The table below presents selected financial data for the last five fiscal years (in millions of US dollars, except where otherwise stated): As of and for the years ended June 30 2005 2004 2003 2002 2001 Net income highlights: Interest income 1,193 796 795 1,040 1,505 Of which: Interest and financial fees from loans 660 518 477 547 732 Income from time deposits and securities 533 278 318 493 773 Charges on borrowings (309) (141) (226) (438) (961) Net (losses) gains on trading activities (175) (104) 157 31 87 Net income from equity investments 1,365 658 145 160 26 Of which: Realized capital gains on equity sales 723 381 52 288 91 Dividends and profit participations 258 207 147 141 131 Unrealized income from LLPs and certain LLCs 191 - - - - Changes in carrying value of equity investments 269 74 (50) (268) (196) Equity investment impairment write-downs (62) - - - - Net losses on equity-related derivatives and custody & other fees (14) (4) (4) (1) - Release of (provision for) losses on loans & guarantees 261 103 (48) (389) (206) Net noninterest expense (344) (330) (295) (243) (210) Income before expenditures for TAAS 1,991 982 528 161 241 Expenditures for TAAS (38) - - - - Income after expenditures for TAAS (operating income) 1,953 982 528 161 241 Net gains (losses) on other financial instruments 62 11 (41) 54 11 Effect of accounting change - - - - 93 Net income 2,015 993 487 215 345 Balance sheet highlights: Total assets 39,560 32,361 31,543 27,739 26,170 Liquid assets, net of associated derivatives 13,325 13,055 12,952 14,532 13,258 Loans and equity investments, net 11,489 10,279 9,377 7,963 8,696 Borrowings withdrawn and outstanding 15,359 16,254 17,315 16,581 15,457 Total capital 9,798 7,782 6,789 6,304 6,095 Key financial ratios: (1) Return on average assets (2) 5.4% 3.1% 1.8% 0.6% 0.6% Return on average net worth (3) 22.6% 13.7% 8.2% 2.7% 4.1% Cash and liquid investments as a percentage of next three years estimated net cash requirements 142% 116% 107% 109% 101% Debt to equity ratio (4) 1.8:1 2.3:1 2.6:1 2.8:1 2.6:1 Capital adequacy ratio (5) 50% 48% 45% 49% 48% Total reserve against losses on loans to total disbursed loan portfolio (6) 9.9% 14.0% 18.2% 21.9% 16.0% 1. Key financial ratios are generally calculated excluding the effects of SFAS No. 133. 2. Return on average assets is defined as operating income for the fiscal year as a percentage of the average of total assets at the end of such fiscal year and the previous fiscal year. 3. Return on average net worth is defined as operating income for the fiscal year as a percentage of the average of total net worth (excluding payments on account of pending subscriptions) at the end of such fiscal year and the previous fiscal year. 4. Debt to equity ratio is defined as the ratio of outstanding borrowings plus outstanding guarantees to subscribed capital plus retained earnings at the end of the fiscal year. 5. Capital adequacy ratio is defined as the ratio of capital (including paid-in capital, retained earnings, and general loan loss reserve) to risk-weighted assets, both on- and off-balance sheet. 6. Total reserves against losses on loans to total disbursed loan portfolio is defined as reserve against losses on loans as a percentage of the total disbursed loan portfolio at the end of the fiscal year. 4 IFC 2005 ANNUAL REPORT III. CLIENT SERVICES Business overview In partnership with private investors, IFC assists in financing the establishment, improvement, and expansion of private sector enterprises by making investments where sufficient private capital is not otherwise available on reasonable terms. IFC seeks to bring together domestic and foreign private capital and experienced management and thereby create conditions conducive to the flow of private capital (domestic and foreign) into productive investments in its developing member countries. In this way, IFC plays a catalytic role in mobilizing additional project funding from other investors and lenders, either through cofinancing or through loan syndications and guarantees. In addition to project finance (described below) and resource mobilization, IFC offers financial and technical advisory services to private businesses in developing member countries. It also advises member governments on private sector development matters. IFCs investments are normally made in its developing member countries. The Articles of Agreement mandate that IFC shall invest in productive private enterprise. The requirement for private ownership does not disqualify enterprises that are partly owned by the public sector if such enterprises are organized under local commercial and corporate law, operate free of host government control in a market context and according to profitability criteria, and/or are in the process of being totally or partially privatized. The Corporations main investment activity is project financing. This encompasses "greenfield" projects, expansions, and modernizations. IFC also provides corporate credits to selected companies to finance ongoing programs of investment projects. In addition, the Corporation facilitates financing through financial intermediaries, covering project and general purpose lending and specialized lending products such as leasing, trade, and mortgage finance. These financial intermediaries function either as IFCs borrower, on-lending to private sector companies at their own risk, or as IFCs agent, identifying companies for direct loans from IFC. The Corporation applies stringent tests of enterprise soundness, project viability, and developmental impact in determining the eligibility of projects for its investments. Technical assistance and advisory services IFC has historically delivered its mission primarily through investments. IFC has increased its efforts in frontier markets and sustainable development. As a result, the demands on the Corporation for associated advisory work and technical assistance have increased and continue to grow. In FY04, IFC established a funding mechanism for technical assistance and advisory services, funded by designations of IFCs retained earnings. This funding mechanism finances project development facilities, private enterprise partnerships, and similar facilities focused on small and medium-size enterprise development and similar initiatives. Amounts designated for technical assistance and advisory services are determined based on the Corporations annual operating income in excess of $150 million, contemplating the financial capacity and priorities of the Corporation, and are approved by the Corporations Board of Directors prior to the issuance of the annual financial statements. Expenditures for the various approved technical assistance and advisory projects are recorded as expenses in the Corporations income statement in the year in which they occur, beginning in the year ended June 30, 2005 (FY05), and have the effect of reducing retained earnings designated for this specific purpose. On August 3, 2004, IFCs Board of Directors approved a designation of $225 million of the Corporations retained earnings. On July 28, 2005, IFCs Board of Directors approved a further designation of $125 million of the Corporations retained earnings. Additional information on the funding mechanism for technical assistance and advisory services can be found in Notes A and K to the Corporations FY05 financial statements. Performance-based grants initiative In FY05, IFC began the analysis to create a program to fund performance-based grants, targeted at specific industries in developing countries. The performance-based grants initiative (PBGI) involves establishing a pool of resources for funding performance-based grants to individual private-sector projects in developing markets. The PBGI will further IFCs frontier strategy by opening new opportunities to generate developmental impact. The initiative has been discussed by IFCs Board of Directors during the second half of FY05 but no decisions on the principles or modalities of the initiative have yet been made. As a result, IFC has designated $250 million of retained earnings for the initiative, with further deliberations to occur in FY06 on the principles and specifics of the initiative. IFC 2005 ANNUAL REPORT 5 Investment process and portfolio supervision IFCs investment process can be divided into six main stages: The initial four stages are carried out under the responsibility of the Vice President, Identification and appraisal Investment Operations, while the fifth and sixth stages are overseen by the Vice President, Board approval Portfolio and Risk Management. Document negotiation Commitment The Corporation carefully supervises its projects to monitor project performance and Disbursement compliance with contractual obligations and with IFCs internal policies and procedures. Supervision IFCs Board of Directors is informed of such matters and of recommended courses of action at regular intervals. Investment program summary Commitments In FY05, the Corporation entered into new commitments totaling $5.4 billion, compared with $4.8 billion for FY04. Loan and equity investment commitments pending disbursement at June 30, 2005 were $5.8 billion ($4.6 billion at June 30, 2004). Guarantees and client risk management facilities committed but not utilized at June 30, 2005, were $0.8 billion ($0.7 billion at June 30, 2004). FY05 and FY04 commitments comprised the following: 6,000 Guarantees & other 5,000 Quasi-equity Equity 4,000 Loans millions 3,000 US$2,000 1,000 0 IFC Participants IFC Participants FY05 FY05 FY04 FY04 Fiscal year Disbursements IFC disbursed $3.5 billion for its own account in FY05 ($3.2 billion in FY04). IFCs disbursed and outstanding loan portfolio for its own account, excluding fair value adjustments, (disbursed loan portfolio) grew 2% to $10.0 billion at June 30, 2005 ($9.7 billion at June 30, 2004). IFCs equity investment portfolio, net of impairment write-downs and including unrealized gains on investments in LLPs and certain LLCs, grew 32% to $2.5 billion at June 30, 2005 ($1.9 billion at June 30, 2004). The increase in the equity investment portfolio was principally attributable to the Corporations changed process of estimating impairment as detailed in Note C to the Corporations FY05 financial statements. 6 IFC 2005 ANNUAL REPORT Approvals In FY05, IFC approved new investments for its own account, including guarantees and client risk management facilities, totaling $6.6 billion, representing 252 projects, compared with $5.1 billion in FY04, representing 224 projects. In addition, IFC approved loan participations (B-loans) arranged to be placed with financial institutions (Participants) for loans approved by the Corporations Board of Directors totaling $1.9 billion in FY05, compared with $1.1 billion in FY04. FY05 and FY04 approvals comprised the following: 7,000 Guarantees & other 6,000 Quasi-equity 5,000 Equity Loans 4,000 millions 3,000 US$2,000 1,000 0 IFC Participants IFC Participants FY05 FY05 FY04 FY04 Fiscal year Approvals pending commitment for IFCs own account at June 30, 2005, including guarantees and client risk management facilities, were $3.5 billion ($2.4 billion at June 30, 2004). Disbursed investment portfolio The Corporations disbursed investment portfolio is widely diversified by sector and geographic region. The following charts show the distribution of the portfolio as of June 30, 2005 and June 30, 2004: Distribution of disbursed investment portfolio by sector 30 25 20 portfolio 15 of % 10 5 0 A B C D E F G H I J K L M N O A--Finance and insurance I--Collective investment vehicles FY05 B--Utilities J--Chemicals C--Oil, gas and mining K--Wholesale and retail trade FY04 D--Transportation and warehousing L--Primary metals E--Industrial and consumer products M--Accommodation and tourism services F--Information N--Paper and pulp G--Food and beverages O--Other H--Nonmetallic mineral product manufacturing IFC 2005 ANNUAL REPORT 7 Distribution of disbursed investment portfolio by geographic region Sub-Saharan Africa East and South Asia Europe and Central Asia Latin America and Caribbean Middle East and North Africa Other FY05 FY04 Disbursed B-loans The portfolio of disbursed and outstanding B-loans at June 30, 2005 totaled $4.4 billion in 204 transactions, compared with $5.1 billion in 204 transactions at June 30, 2004. Additional information on IFCs loans and equity investments as of and for the years ended June 30, 2005 and June 30, 2004 can be found in Notes C, D , E, F and G to the Corporations FY05 financial statements. Investment products Loans Loans account for the major part of the financing provided by IFC, representing 81% of the Corporations disbursed investment portfolio as of June 30, 2005, compared with 79% at June 30, 2004. Loans will generally have the following characteristics: Term: typically amortizing with final maturities of up to 12 years Currency: primarily in major convertible currencies, principally US dollar, and to a lesser extent, Euro, Swiss franc and Japanese yen Interest rate: fixed or variable Pricing: reflects such factors as market conditions and country and project risks; variable rate loans are generally tied to the 6-month LIBOR index in the relevant currency. Since the year ended June 30, 1999, IFC has offered local currency loan products to certain clients, provided that the Corporation is able to hedge its local currency exposure through mechanisms such as cross-currency swaps or forward contracts. Fixed-rate loans and loans in currencies other than US dollars are normally transformed, using currency and/or interest rate swaps, into US dollar variable rate loans. On June 30, 2005, total loans disbursed and outstanding were $10.0 billion ($9.7 billion at June 30, 2004). At June 30, 2005, 81% (85% at June 30, 2004) of the Corporations loans were US dollar-denominated. The currency composition of the loan portfolio at June 30, 2005 and June 30, 2004 is shown on the accompanying diagram: 10,000 FY05 8,000 FY04 6,000 millions 4,000 US$ 2,000 0 U.S. dollars Euro Other Total currencies 8 IFC 2005 ANNUAL REPORT Equity Equity investments accounted for 19% of the Corporations disbursed investment portfolio at June 30, 2005, compared with 21% at June 30, 2004. IFCs equity investments are typically in the form of common or preferred stock and are usually denominated in the currency of the country in which the investment is made. Quasi-equity In addition to traditional equity investments, the Corporation provides financing through a variety of quasi-equity instruments, which constitute a growing portion of its investment portfolio. Quasi-equities include subordinated or convertible loans, asset-backed securities, mortgage-backed securities, and certain common or preferred shares with put and/or call features. Depending upon their characteristics, quasi-equities may be classified as either loans or equity investments in the Corporations balance sheet. At June 30, 2005, the Corporations disbursed and outstanding quasi-equity portfolio totaled $1,768 million ($1,645 million at June 30, 2004), of which $1,638 million was classified as loans ($1,483 million at June 30, 2004) and $130 million was classified as equity investments ($162 million at June 30, 2004) in the Corporations balance sheet. Loan participations (B-loans) IFC finances only a portion, usually not more than 25%, of the cost of any project. All IFC-financed projects, therefore, require other financial partners. The principal direct means by which the Corporation mobilizes such private sector finance is through the sale of participations in its loans, known as the B-loan program. Through the B-loan program, IFC has worked primarily with commercial banks but also with nonbank financial institutions in financing projects since the early 1960s. Over 150 commercial banks and nonbank financial institutions currently participate in IFCs B-loan program. Whenever it syndicates a loan, IFC will always make a loan for its own account (an A-loan), thereby sharing the risk alongside its loan participants. IFC acts as the lender of record and is responsible for the administration of the entire loan, including the B-loan. IFC charges fees to the borrower at prevailing market rates to cover the cost of the syndication of the B-loan. Since it began its loan syndication program, IFC has placed participations totaling $24 billion. Client risk management products IFC provides clients with access to asset and liability management tools such as currency swaps and interest rate swaps, caps and floors by acting as an intermediary between clients and market counterparties. IFC also provides risk-sharing structures and guarantees that allow its clients to transact directly with market counterparties. Guarantees and partial credit guarantees The Corporation offers partial credit guarantees to clients covering, on a risk-sharing basis, client obligations on bonds and/or loans. The Corporations guarantee is available for debt instruments and trade obligations of clients and covers commercial as well as noncommercial risks. IFC will provide local currency guarantees, but when a guarantee is called, the client will generally be obligated to reimburse the Corporation in US dollar terms. Guarantee fees are consistent with IFCs loan pricing policies. During FY05, the Corporation signed $0.2 billion of guarantees, substantially unchanged from FY04. Advisory activities The Corporation, on its own or through a department jointly managed with the World Bank, provides three general types of advisory services to member countries and individual enterprises: Special advisory services on project structuring and financial packaging. Financial advisory services provided to member governments or to private sector clients. Policy advice to governments on capital markets development and private sector development, including privatization and foreign investment. The Corporation also assists governments with developing legal frameworks for privatizing their state-owned sectors and selling individual enterprises. Fees are charged for advisory services consistent with market rates charged for comparable services. IFC recorded such fees amounting to $41 million for FY05 ($41 million for FY04 and $51 million for FY03). IFC 2005 ANNUAL REPORT 9 Technical assistance and advisory services The provision of technical assistance and advisory services (TAAS) is an essential part of IFCs business. TAAS programs help IFC to deliver its mandate to support sustainable private sector development, helping to enrich development impact and distinguish IFC from its competition. Beginning in FY05, the Corporation established a funding mechanism for TAAS, funded by designations of IFCs retained earnings, in order to address its increased efforts in TAAS. IFC delivers TAAS through mechanisms such as Project Development Facilities and Private Enterprise Partnerships. In IFCs FY05 financial statements, expenditures for TAAS are separately reported as Expenditures for technical assistance and advisory services. Prior to FY05, such expenditures were reported as Contributions to special programs in noninterest expense. In FY05, expenditures for TAAS totaled $38 million. In FY04, Contributions to special programs was $29 million, compared with $28 million in FY03. In FY05, such vehicles included: The World Bank Groups Global SME Capacity Building Facility, which funds partnerships and programs that support the core pillars of the World Bank Groups Small and Medium-Size Enterprise (SME) strategy. The Private Enterprise Partnership, which provides focused technical assistance, with the goal of helping build successful private businesses in the former Soviet Union region. The Private Enterprise Partnership for Africa, which enhances support to SMEs through project development and engaging in improving the investment climate. The Private Enterprise Partnership for the Middle East and North Africa (MENA) , which provides technical assistance to support private sector development to all countries in the MENA region. The Corporations own Technical Assistance Trust Fund, which provides resources through which IFC can cofinance technical assistance being supported by donors. 10 IFC 2005 ANNUAL REPORT IV. TREASURY SERVICES Liquid assets IFC invests its liquidity in highly rated fixed and floating rate instruments issued by, or unconditionally guaranteed by, governments, government agencies and instrumentalities, multilateral organizations, and AAA-rated corporate issuers; these include mortgage- and asset-backed securities, time deposits and other unconditional obligations of banks and financial institutions. The Corporation manages the market risk associated with these investments through a variety of hedging techniques including derivatives, principally currency and interest rate swaps and financial futures. IFCs liquid assets are invested in five separate portfolios. MARKET MANAGED PORTFOLIO VALUE * COMPRISING BY INVESTED IN BENCHMARK P0 $1.0bn Funds awaiting disbursement or IFCs Treasury Short-term deposits US overnight Fed funds ($0.2bn) reinvestment Department P1 $6.7bn Proceeds from market borrowings IFCs Treasury Principally global Since January 2001, ($7.8bn) invested pending disbursement of Department government bonds, asset- adjusted 3-month US operational loans backed securities, and other dollar LIBID **. Prior AAA-rated corporate bonds to January 2001, 6- generally swapped into 6- month US dollar month US dollar LIBOR LIBOR P2 $4.1bn Primarily the Corporations paid-in IFCs Treasury US Treasuries and other 3-year duration US ($3.7bn) capital and accumulated earnings Department sovereign and agency issues Treasuries*** that have not been invested in equity and quasi-equity investments or fixed-rate loans P3 $1.1bn Proceeds from market borrowings External Global government bonds Same as for P1 ($1.1bn) managers and mortgage-backed appointed by securities IFC P4 $0.4bn An outsourced portion of the P2 External US Treasuries and other Lehman Brothers ($0.3bn) portfolio managers sovereign and agency issues Intermediate Treasury appointed by Index IFC Total $13.3bn * at June 30, 2005 (June 30, 2004) ($13.1bn) ** adjusted 3 month US dollar LIBID=US dollar LIBOR-12.5 basis points. The net duration of the P1 and P3 benchmarks is approximately 0.25 years. *** duration of P2 portfolio plus fixed-rate loans The P3 portfolio is not permitted to exceed 12% of the total value of liquid assets at any time. All portfolios are accounted for as trading portfolios. The Corporation has a flexible approach to managing the liquid assets portfolios by making investments on an aggregate portfolio basis against its benchmark within specified risk parameters. In implementing these portfolio management strategies, the Corporation utilizes derivative instruments, including futures, and options, and takes long or short positions in securities. All liquid assets are managed according to an investment authority approved by IFCs Board of Directors and investment guidelines approved by IFCs Finance and Risk Committee, a subcommittee of the Corporations Management Group. IFC 2005 ANNUAL REPORT 11 Capitalization The Corporations capitalization as of June 30, 2005 and June 30, 2004 is as follows: Borrowings from market sources Borrowings from the World Bank Paid-in capital Retained earnings & other FY05 FY04 Borrowings The major source of IFCs borrowings is the international capital markets. Under the Articles of Agreement, the Corporation may borrow in the public markets of a member country only with approvals from that member and also the member in whose currency the borrowing is denominated. The Corporation borrowed $2.0 billion during FY05 ($3.0 billion in FY04 and $3.5 billion in FY03). In addition, IFCs Board of Directors has authorized the repurchase and redemption of and tender for debt obligations issued by the Corporation. During FY05, the Corporation repurchased and retired $133 million of outstanding debt ($33 million in FY04). IFC diversifies its borrowings by currency, country, source, and maturity to provide flexibility and cost-effectiveness. Outstanding market borrowings have remaining maturities ranging from less than one year to almost 30 years, with a weighted average remaining maturity of 11.6 years at June 30, 2005 (11.9 years at June 30, 2004). Market borrowings are generally swapped into floating-rate obligations denominated in US dollars. As of June 30, 2005 the Corporation had gross payables from borrowing-related currency swaps of $9.4 billion ($9.1 billion at June 30, 2004) and from borrowing-related interest rate swaps in the notional principal amount of $6.7 billion ($7.3 billion at June 30, 2004). After the effect of these derivative instruments is taken into consideration, all of the Corporations market borrowings at June 30, 2005, and June 30, 2004, were US dollar- denominated. The weighted average cost of market borrowings after currency and interest rate swap transactions was 3.3% at June 30, 2005 (1.0% at June 30, 2004). Capital and retained earnings As of June 30, 2005, IFCs net worth (presented as Total Capital in the Corporations balance sheet) amounted to $9.8 billion, up from the June 30, 2004 level of $7.8 billion. As of June 30, 2005 and 2004, IFCs authorized capital was $2.45 billion, of which $2.36 billion was subscribed at June 30, 2005, unchanged from June 30, 2004. Over 99% of this was paid in ($2.36 billion at June 30, 2005, and June 30, 2004). The Corporation has agreed to defer the payment dates for certain member countries. Pursuant to these arrangements, $1 million of subscribed shares remained unpaid at June 30, 2005 ($1 million at June 30, 2004). 12 IFC 2005 ANNUAL REPORT V. ENTERPRISE RISK MANAGEMENT In executing its sustainable private sector development business, IFC assumes various kinds of risks. The Corporations management has defined a comprehensive enterprise risk management framework, within which it recognizes four main risk groupings: strategic risk, credit risk, financial risk, and operational risk. Strategic Risk: IFC Development Mission, Environment & Social, Reputation IFCs Enterprise Risk Credit Financial Management Risk: Risk: Client, Market, Country, & Funding, & Counterparty Liquidity Operational Risk: Operational Risk: People, Systems & Processes People, Systems, & Processes Active management of these risks is a key determinant of the Corporations success and its ability to maintain a stable capital and earnings base, and is an essential part of its operations. As part of its enterprise risk management framework, the Corporation has adopted several key financial and exposure policies and a number of prudential policies. FY05 enterprise risk highlights The Corporation established a regionally organized Project Risk Management function as part of its Financial Operations Department that will be responsible for centrally managing investment project administration and compliance monitoring. A Business Risk Department was established to focus on the aspects of strategic and other risks the Corporation faces that are not explicitly monitored by established functions. It has also subsumed the operational risk framework development and Anti-Money Laundering and Combating of Financing of Terrorism functions. The Corporation has initiated policy reviews in two areas: first, of its financial policies, to confirm that these are in line with new business imperatives and best practices in risk management; secondly, of its Safeguard Policies, Policy on Disclosure of Information, and Environmental, Health & Safety (EHS) Guidelines, involving a comprehensive update of its policies and guidelines, subsequent to stakeholder consultation and expert guidance. The reviews, including Board approval of revised policies, are expected to be completed during FY06. Strategic risk IFC defines strategic risk as the potential reputational, financial and other consequences of a failure to achieve its strategic mission and, in particular, its sustainable development mandate. The overall management of strategic risk is effected through the definition and implementation of an annual strategy for meeting the Corporations mission and guidelines for its investment operations and advisory services. The strategy is developed with Senior Management by the Operational Strategy Group, and is approved by the Board of Directors. The Operations Evaluation Group conducts ex post evaluations of the implementation of the Corporations investment strategy on an ongoing basis. Strategic risk includes the risk incurred by IFC in exercising its environmental and social development framework in member countries. Responsibility for managing this part of strategic risk rests with the Environmental and Social Development Department. IFC 2005 ANNUAL REPORT 13 The key guiding principles and policies established as part of the framework for controlling strategic risk are as follows: Guiding principles for IFCs operations Catalytic role: IFC will seek above all to be a catalyst in facilitating productive investments in the private sector of its developing member countries. It does so by mobilizing financing from both foreign and domestic investors from the private and public sectors. Business partnership: IFC functions like a business in partnership with the private sector. Thus, IFC takes the same commercial risks as do private institutions, investing its funds under the discipline of the marketplace. Additionality: IFC participates in an investment only when it can make a special contribution not offered or brought to the deal by other investors. Environmental and social policies The Corporation has developed a comprehensive set of Guidelines and Safeguard Policies to promote environmentally and socially responsible private sector investments. Project sponsors are given the Safeguard Policies for environmental and social issues to review prior to conducting their assessments, as well as the environmental, health, and safety guidelines specific to the particular industry, sector, and type of project. When making investments, IFC applies its standards to the project and project performance is monitored against those standards. Projects are expected to comply with the applicable policies and guidelines, as well as applicable local, national, and international laws. FY05 strategic risk highlights Two years ago, IFCs Environmental and Social Policies became widely recognized as best practice when twelve international commercial banks adopted them in the form of the Equator Principles. To date, a total of 31 leading international financial institutions have adopted these principles. Credit risk IFC defines credit risk as the potential reduction in value of on- and off-balance sheet assets due to a deteriorating credit profile of its clients, the countries in which it invests, or a financial counterparty. Credit risk is incurred in two areas of the Corporations operations: (i) in its investment operations, where IFC provides loans, equity investments, guarantees and derivatives for clients in its developing member countries, and (ii) in its treasury operations, where credit risk is incurred with counterparties in IFCs liquid asset investment, borrowing and asset-liability management activities. As part of its mandate, IFC is prohibited from accepting host government guarantees of repayment on its investments and, therefore, incurs commercial and sovereign risk on its investments. The Corporations Risk Management and Financial Policy Department has oversight responsibility for overall credit risk management and, in addition, monitors and controls credit risk arising in IFCs treasury activities. With respect to IFCs credit risk exposures to clients in developing countries, the Credit Review Department plays a key role. At origination of new investments, the Credit Review Department analyzes information obtained from the investment departments and provides an independent review of the credit risk of the transaction. After commitment, the quality of IFCs loan and equity investment portfolio is monitored according to supervision principles and procedures defined in the Operational Policies and Procedures. Responsibility for the day-to-day monitoring and management of credit risk in the portfolio rests with the portfolio management units of individual investment departments. Their assessments are subject to quarterly review, on a sample basis, by the Loss Provisioning Division of the Controllers and Budgeting Department and by the Credit Review Department. 14 IFC 2005 ANNUAL REPORT The Corporations investment portfolio is subject to a number of operational and prudential limits, including limitations on single project/client exposure, single country exposure, and segment concentration. Similarly, credit policies and guidelines have been formulated covering treasury operations; these are subject to annual revision by the Risk Management and Financial Policy Department, and approval by the Finance and Risk Committee. Specifically, IFC has adopted the following key exposure policies: Investment operations+ 1. IFC does not normally finance for its own account more than 25% of a projects cost. 2. An equity investment in a company does not normally represent more than 35% of the companys total share capital, provided further that IFC is not the single largest shareholder. Until IFC resumes presentation of its financial statements in accordance with IFRS, IFCs equity investment in a company will not normally represent more than 20% of the companys total share capital. 3. Investment in a single obligor may not exceed 3% of IFCs total investment portfolio. 4. Equity plus quasi-equity investments in a single obligor may not exceed 3% of the Corporations net worth plus general reserves, and straight equity investments may not exceed 1.5%. Portfolio Management+ 1. Total investments in a single country will not normally represent more than 12% of IFCs total investment portfolio or 25% of its net worth plus general reserves. Review trigger levels of between 1% and 6% of the portfolio are set for each country. 2. IFC lender of record disbursed exposure in a country may not exceed 10% for Heavily Indebted Poor Countries and 5% for all other countries. Exceptions for countries with low levels of external debt may be set by the Finance and Risk Committee. Lower trigger levels are set for certain countries. 3. The Corporations total exposure to a single risk sector may not exceed 8% of the total investment portfolio. Lower review trigger levels are set for single sectors, and individually for the finance and insurance sector, based on IFCs total portfolio and the country exposure level. 4. IFCs held guarantees that are subrogated in local currency are limited to $200 million. + All exposures are net of specific reserves Treasury operations 1. Counterparties are subject to conservative eligibility criteria, currently restricted to banks and financial institutions with a minimum credit rating of A by leading international credit rating agencies. 2. Exposures to individual counterparties are subject to diversification caps. For derivatives, exposure is measured in terms of "worst case" potential exposure based on simulations of market variables. Institution-specific limits are updated monthly based on changes in counterparty size or credit status. 3. To limit exposure, IFC signs collateral agreements with counterparties that require the posting of collateral when net exposure exceeds certain predetermined thresholds, which decrease as a counterpartys credit rating deteriorates. 4. Because counterparties can be downgraded during the life of a transaction, the agreements provide an option for IFC to terminate all swaps if the counterparty is downgraded below investment grade or if other early termination events occur that are standard in the market. 5. Limits are also imposed on the volume of over-the-counter derivative transactions with individual counterparties. 6. For exchange-traded instruments, IFC limits credit risk by restricting transactions to a list of authorized exchanges, contracts and dealers, and by placing limits on the Corporations open interest rate position in each contract. FY05 credit risk highlights IFC does not recognize income on loans where collectibility is in doubt or payments of interest or principal are past due more than 60 days unless management anticipates that collection of interest is expected in the near future. The amount of nonaccruing loans as a percentage of the disbursed loan portfolio, a key indicator of portfolio performance, decreased to 6.4% at June 30, 2005, compared with 11.5% at June 30, 2004. The principal amount outstanding on nonaccrual loans totaled $634 million at June 30, 2005, a decrease of 43% from the June 30, 2004 level of $1,121 million. The quality of IFCs investment portfolio, as measured by the aggregate risk level, improved further during FY05, continuing the trend noted during the second half of FY03 and FY04. As a result, total reserves against losses on loans at June 30, 2005, decreased to $989 million ($1,367 million at June 30, 2004). This is equivalent to 9.9% of the disbursed loan portfolio, significantly below the level of 14.0% at June 30, 2004. As discussed in Note E to the Corporations FY05 financial statements, the Corporation changed its process of estimating impairment on equity investments to adopt an impairment methodology based largely on fair value estimates. As a result, the Corporation recorded a change in carrying value of the equity investment portfolio. In this regard, the Corporation determined that impairments and changes in carrying value were deemed to be other than temporary. This change in carrying value of the equity portfolio has been reflected in net income from equity investments in the income statement and in equity investments in the balance sheet. IFC 2005 ANNUAL REPORT 15 The five-year trend of reserves against losses on loans is presented below: 25 20 15 portfolio of 10 % 5 0 FY01 FY02 FY03 FY04 FY05 Fiscal year ended June 30 IFC operates under the assumption that the guarantee portfolio is exposed to the same idiosyncratic and systematic risks as IFCs loan portfolio and the inherent, probable losses in the guarantee portfolio need to be covered by an allowance for loss. The allowance at June 30, 2005, was $13 million ($16 million at June 30, 2004), based on the year-end portfolio, and is included in payables and other liabilities on the balance sheet. The reduction in allowance for the year, $3 million for FY05 ($14 million for FY04), is included in the release of (provision for) losses on loans and guarantees in the income statement. The Corporation has not suffered credit losses on its exposures to derivatives counterparties in its treasury operations. Financial risk IFC defines financial risk in three components: (a) the potential inability to realize asset values in its portfolio sufficient to meet obligations to disburse funds as they arise (liquidity risk); (b) the potential inability to access funding at reasonable cost (funding risk); and (c) a deterioration in values of financial instruments or positions due to changes in market interest and exchange rates and the volatility thereof (market risk). Key financial policies IFC currently operates under a number of key financial policies as detailed below, which have been approved by its Board of Directors: 1. Disbursed equity plus quasi-equity investments (net of write-downs) may not exceed 100% of net worth and disbursed equity (net of write-downs) may not exceed 50% of net worth. 2. Minimum liquidity (liquid assets plus undrawn borrowing commitments from the World Bank) must be sufficient at all times to cover at least 65% of IFCs estimated net cash requirements for the next three years. 3. The currency, rate basis, and maturity of loan assets must be closely matched to borrowings; trigger levels at which foreign exchange and interest rate exposures are hedged are defined. 4. Capital (paid-in capital plus retained earnings plus general loan loss reserves) must equal at least 30% of risk-weighted assets. In addition, under IFCs Articles of Agreement, as long as IFC has outstanding borrowings from the World Bank, IFCs leverage, as measured by the ratio of IFCs debt (borrowings plus outstanding guarantees) to IFCs equity (subscribed capital plus retained earnings), may not exceed 4.0 to 1. Liquidity risk Within the key financial policies described above, in practice the Corporation maintains, as a prudential measure, an operating liquidity target of not less than 70% of three years net cash requirements, including projected disbursement and debt service requirements. 16 IFC 2005 ANNUAL REPORT The primary instruments for maintaining sufficient liquidity are the Corporations liquid asset portfolios. As noted above, IFC distinguishes five such portfolios: P0, which is generally invested in short-dated deposits, money market funds, and tri-party repos, reflecting its use for short- term funding requirements; P1, which is generally invested in: (a) foreign sovereign, sovereign-guaranteed and supra-national fixed income instruments (rated AA- or better); (b) US Treasury or agency instruments; (c) asset-backed securities rated AAA by at least two rating agencies and/or other AAA rated notes issued by Corporations; (d) interest rate futures and swaps to manage currency risk in the portfolio, as well as its duration relative to benchmark; and (e) cash deposits; P2, which is generally invested in US Treasuries and other sovereign and agency issues; P3, which comprises a global fixed income portfolio and a mortgage-backed securities portfolio (managed by external managers); and P4, which is an outsourced portion of the P2 portfolio (managed by external managers). FY05 liquidity risk highlights At June 30, 2005, the Corporations liquidity level stood at $13.3 billion, or 142% of its projected net cash requirements for three years ($13.1 billion, and 116% at June 30, 2004). Funding risk The Corporations primary objective with respect to managing funding risk is, through the adoption of the key financial policies described above, to maintain its AAA credit rating and, thereby, maintain access to funding as needed at the lowest possible cost. Access to funding is maximized, and cost is minimized, by issuing debt securities in various capital markets in a variety of currencies, sometimes using complex structures. These structures include borrowings payable in multiple currencies, or borrowings with principal and/or interest determined by reference to a specified index such as a stock market index, a reference interest rate, a commodity index, or one or more foreign exchange rates. FY05 funding risk highlights During FY05, the Corporation raised $2.0 billion ($3.0 billion in FY04) of funding at sub-LIBOR rates. Market risk The Corporations exposure to market risk is minimized by adopting the matched funding policy noted above and by using a variety of derivative instruments to convert assets and liabilities into 6-month floating rate US dollar assets and liabilities. Investment operations Implementation of the matched funding policy is a two-step process: funds are earmarked at Board approval stage and matched, with respect to interest rate and currency, at disbursement. Interest rate and currency exchange risk associated with fixed rate and/or non-US dollar lending is hedged via currency and interest rate swaps that convert cash flows into variable rate US dollar flows. Exposures to market risk resulting from derivative transactions with clients, which are intended to facilitate clients risk management, are minimized by entering into offsetting positions with highly rated market counterparties. Liquid asset portfolios Consistent with the matched funding policy, the P0, P1 and P3 portfolios are strictly managed to variable rate US dollar benchmarks, on a portfolio basis. To this end, a variety of derivative instruments are used, including short-term, over-the-counter foreign exchange forwards (covered forwards), interest rate and currency swaps, and exchange-traded interest rate futures and options. The Corporation also takes both long and short positions in securities in the management of these portfolios to their respective benchmarks. The primary source of market risk in the liquid asset portfolios is the P2 and P4 portfolios, which, in contrast, are managed to a three- year duration US dollar benchmark, with additional flexibility to deviate from the benchmark. P2 represents the portion of IFCs capital not disbursed as equity investments, and the benchmark reflects the chosen risk profile for this uninvested capital. P4 represents an outsourced portion of the P2 portfolio. Borrowing activities Market risk associated with fixed rate obligations and structured instruments entered into as part of the Corporations funding program is mitigated by using derivative instruments to convert them into variable rate US dollar obligations, consistent with the matched-funding policy. IFC 2005 ANNUAL REPORT 17 Asset-liability management While IFCs matched-funding policy provides a significant level of protection against currency and interest rate risk, the Corporation can be exposed to residual market risk in its overall asset and liability management. This residual market risk is monitored by the Asset- Liability Management group within the Treasury Department. Residual currency risk arises from events such as changes in the level of non-US dollar loan loss reserves. This risk is managed by monitoring the aggregate position in each lending currency and hedging the exposure when the net asset or liability position exceeds $5 million equivalent,through spot sales or purchases. Residual interest rate risk may arise from two sources: Assets that are fully match-funded at inception, which can become mismatched over time due to write-downs, prepayments, or rescheduling; and Differing interest rate reset dates on assets and liabilities. This residual risk is managed by: first, synchronizing interest rate reset dates on assets and liabilities at a portfolio level; and second, measuring the sensitivity of the present value of assets and liabilities in each currency to each basis point change in interest rates, with an action trigger of $50,000 on this measure. FY05 market risk highlights Total liquid asset returns (comprising interest, realized and unrealized gains and losses, and translation adjustments) were $358 million ($177 million in FY04 and $475 million in FY03), of which $148 million was attributable to the P2 and, beginning in FY04, the P4 portfolio ($21 million in FY04 and $264 million in FY03). Currency translation losses for FY05 were $7 million ($7 million gain in FY04 and $8 million gain in FY03). Operational risk IFC defines operational risk as the potential for loss resulting from events involving people, systems and processes. These include both internal and external events, whether caused by a lack of controls, documentation, or contingency planning, or by breakdowns in information systems, communications, physical safeguards, business continuity, supervision, transaction processing, or in the execution of legal, fiduciary, and agency responsibilities. As such, operational risk covers the risks emanating from the manner in which an entity is operated as opposed to the way it is financed. Consistent with the Basel II Capital Adequacy guidelines, IFC is developing a matrix framework to analyze operational risk by identifying, for each area (people, systems and processes), which risks IFC will: (i) manage internally, as part of its ongoing business; (ii) alleviate through contingency planning; or (iii) insure externally, whether by subcontracting, outsourcing or hedging, including insurance. Responsibility for the development of the framework for managing and monitoring operational risk, and for contingency planning for recovery from emergencies, now rests with the Business Risk Department. In respect of insurable operational risk, IFCs Insurance Services Group performs insurance reviews to identify the risks and assess the adequacy of existing insurance policies and limits. 18 IFC 2005 ANNUAL REPORT IFC seeks to mitigate the risks it manages internally by maintaining a comprehensive system of internal controls that is designed not only to identify the parameters of various risks but also to monitor and control those areas of particular concern. Key components of this effort are: Key components of operational risk management The Corporation has adopted the COSO1control framework and a control self-assessment methodology to evaluate the effectiveness of its internal controls in people, systems and processes, and it has an ongoing program in place to cover all significant business operations. In addition, the COBIT2 methodology is used to supplement the COSO review of the information technology function. The program includes compliance testing of key internal controls assuring the reliability of external financial reporting and has been applied to Donor Funded Operations as well. The Internal Audit Department of the World Bank Group performs ongoing independent review of the effectiveness of IFCs internal controls in selected key areas and functions. To promote data integrity, the Corporation has formulated a Data Management Policy. The policy is enforced by the Information Quality Group within the Controllers Department and through a network of Departmental Data Stewards. The Corporation has a New Products/Initiatives Assessment Group, with representation from key business and support functions, to ensure that processes and controls are in place to manage the risks in new products and initiatives before they are executed. 1. COSO refers to the Internal Control - Integrated Framework formulated by the Committee of Sponsoring Organizations of the Treadway Commission, which was convened by the US Congress in response to the well-publicized irregularities that occurred in the financial sector in the United States during the late 1980s. 2 . COBIT refers to Control Objectives for Information and Related Technology, first released in 1996, updated to the 3rd edition released in July 2000, sponsored by the Information Systems Audit and Control Association (ISACA). FY05 operational risk highlights IFC continues to focus on its preparedness to react to an emergency situation that disrupts its normal operations. During FY05, the Corporation has: Extended the scope of the back-up facilities available for its key systems and the testing thereof; Maintained computing facilities with wide-band communications linkages at the homes of staff considered essential to maintaining key business activities in the event that the headquarters building becomes unavailable for use in an emergency situation; and Undertaken periodic emergency response simulation exercises, to test the adequacy of its contingency planning and enhance the preparedness of its emergency management team. The Corporation is continuing a multiyear effort to analyze and develop enhanced methodologies for measuring, monitoring and managing operational risk in its key activities. During FY05, IFC has: Continued a process-mapping exercise to identify potential areas of exposure to operational risk in investment processes and provide a basis for quantifying potential risks, with particular emphasis on its regional operations; and Started the development of a framework for IFCs strategic and operational risk functions within the newly established Business Risk Department. Management has carried out an evaluation of internal controls over external financial reporting for the purposes of determining if there were any changes made in internal controls during the year ended June 30, 2005, that had materially affected, or would be reasonably likely to materially affect, IFCs internal control over external financial reporting. As of June 30, 2005, no such significant changes occurred. Internal controls and procedures are those processes which are designed to ensure that information required to be disclosed is accumulated and communicated to management, as appropriate to allow timely decisions regarding required disclosure by IFC. Management believes that these controls and procedures were effective as of June 30, 2005. IFC 2005 ANNUAL REPORT 19 VI. CRITICAL ACCOUNTING POLICIES The Notes to the Corporations FY05 financial statements contain a summary of the Corporations significant accounting policies, including a discussion of recently issued accounting pronouncements. Certain of these policies are considered to be "critical" to the portrayal of the Corporations financial condition, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. These policies include: (i) determining the level of the allowance for losses in the loan portfolio; (ii) determining the level of impairment of equity investments; and (iii) determining the valuation of certain financial instruments with no quoted market prices. Additional information about these policies can be found in Notes A, C, O and P to the FY05 financial statements. Reserve against losses on loans The Corporation considers a loan as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the loans contractual terms. The reserve against losses for impaired loans reflects managements judgment of the present value of expected future cash flows discounted at the loans effective interest rate. The reserve against losses for loans includes an estimate of probable losses on loans inherent in the portfolio but not specifically identifiable. The reserve is established through periodic charges to income in the form of a provision for losses on loans. Loans written off, as well as any subsequent recoveries, are recorded through the reserve. The assessment of the adequacy of total reserves against losses for loans is highly dependent on managements judgment about factors such as geographical concentration, industry, regional and macroeconomic conditions, and historical trends. Due to the inherent limitation of any particular estimation technique, management utilizes three different and independent methods to provide estimates for the total loan loss reserve balance: (1) a simulation model, (2) country risk ratings and probability of crisis associated with those risks, and (3) a model of the Corporations long-term historical loan portfolio experience. Changes in these estimates could have a direct impact on the provision and could result in a change in the reserve balance. The reserve against losses on loans is separately reported in the balance sheet as a reduction of the Corporations total loans. Increases or decreases in the reserve level are reported in the income statement as provision for losses or release of provision for losses on loans, and guarantees. The reserve against losses on loans relates only to the Client Services segment of the Corporation (see Note R to the FY05 financial statements for further discussion of the Corporations business segments). Equity impairment The Corporation assesses all equity investments for impairment each quarter. When an impairment is identified and is deemed to be other than temporary, the equity investment is written down to its impaired value, which becomes the new cost basis in the equity investment. The Corporation has elected to assume that all impairments shall be deemed to be other than temporary. Impairment losses are not reversed for subsequent recoveries in value of the equity investment until it is sold. Prior to March 31, 2005, the Corporation had carried reserves against losses on the equity investment portfolio. During the year ended June 30, 2005, the Corporation changed its process of estimating impairment on equity investments to adopt an impairment methodology based largely on fair value estimates. As a result, the Corporation recorded a change in carrying value of the equity investment portfolio. . In this regard, the Corporation determined that all impairments and changes in carrying value were deemed to be other than temporary. This change in carrying value of the equity portfolio has been reflected in net income from equity investments in the income statement and in equity investments in the balance sheet. Valuation of financial instruments with no quoted market prices As part of its compliance with SFAS No. 133, the Corporation reports at fair value all of its derivative instruments and certain borrowings that the Corporation has designated as components of fair value hedges. In addition, certain features in various loan agreements, equity investment agreements, and borrowing contracts contain embedded derivatives that, for accounting purposes, are separately accounted as either derivative assets or liabilities, including puts, caps, floors, and forwards. Few of these instruments have a ready market valuation. Therefore, the fair values of the financial instruments with no quoted market prices are estimated using sophisticated pricing models of the net present value of estimated future cash flows. Management makes numerous assumptions in developing the pricing models, including the appropriate discount rates, interest rates, and related volatility and expected movement in foreign currency exchange rates. Changes in assumptions could have a significant impact on the amounts reported as assets and liabilities and the related gains and losses reported in the income statement. The fair value computations affect both the Client Services and Treasury segments of the Corporation (see Note R to the FY05 financial statements for further discussion of the Corporations business segments). Additional information can be found in Notes A, O and P to the FY05 financial statements. 20 IFC 2005 ANNUAL REPORT VII. RESULTS OF OPERATIONS Overview The main elements of IFCs net income, and influences on the level and variability of operating and net income from year to year, are: ELEMENTS SIGNIFICANT INFLUENCES Operating income: Spread on interest earning assets Nonaccruals and recoveries of interest on loans formerly in nonaccrual status and income from participation notes Liquid asset income Realized and unrealized gains and losses on the liquid asset portfolios Income from the equity investment portfolio Performance of the equity portfolio (principally dividends, capital gains) Provisions for losses on loans and guarantees Level of provisions for losses on loans and guarantees Equity impairment write-downs Amount of impairment write-downs Noninterest income and expense Level of technical assistance and advisory services provided by the Corporation to its clients, the level of expense from the staff retirement and other benefits plans, and the approved administrative and other budgets Net income: Net gains (losses) on other financial instruments Principally, differences between changes in fair values of derivative instruments and changes in fair value of hedged items in fair value hedging relationships The following paragraphs detail significant variances between FY05 and FY04, and FY04 and FY03, covering the periods included in the Corporations FY05 financial statements. As disclosed in Note A to the Corporations FY05 financial statements, certain amounts in FY04 and FY03 have been reclassified to conform to the current years presentation. Such reclassifications had no effect on operating income, net income or total assets. FY05 versus FY04 Operating income The Corporations income before expenditures for TAAS and net gains (losses) on other financial instruments for FY05 was $1,991 million. Expenditures for TAAS for FY05 were $38 million, resulting in income after expenditures for TAAS (operating income) for FY05 of $1,953 million, a third consecutive record year. The improvement was mainly attributable to significant equity income (principally capital gains) and a continued overall improvement in the quality of the loan and equity investment portfolio, as measured by portfolio impairment and portfolio risk levels. The aggregate risk level within the portfolio has reduced principally due to: (i) the successful restructuring or rescheduling of problem projects; (ii) the growth in the outstanding portfolio in disbursements with better risk ratings; (iii) the write-off of investments with worse risk ratings than the average risk rating of the portfolio; and (iv) an overall improvement in country risk ratings. This improvement began during the latter stages of FY03 and continued through FY04 and FY05. The Corporations liquid asset portfolios yielded strong positive contributions to the Corporations operating income. A more detailed analysis of the components of IFCs operating income follows. Net interest income IFCs primary interest earning assets are its loan portfolio and its liquid assets portfolios. Net interest income, after charges on borrowings are taken into account, increased by $229 million from $655 million in FY04 to $884 million in FY05. Interest and financial fees from loans (including guarantee fees) for FY05 totaled $660 million, compared with $518 million in FY04, an increase of $142 million, or 27%. Interest income increased from $449 million in FY04 to $574 million in FY05. The growth in the loan portfolio and the overall increase in average interest rates during FY05, when compared with FY04, contributed $118 million, net of interest expense on lending-related swaps, of the increase in interest income. Recoveries of interest on loans being removed from non- accrual status, net of reversals of income on loans being placed in nonaccrual status, were $8 million lower in FY05, compared to FY04, at $31 million in FY05 ($39 million ­ FY04). Income from the Corporations participation notes, over and above minimum contractual interest, totaled $55 million in FY05 ($40 million ­ FY04). Commitment and financial fees also grew to $86 million in FY05 from $69 million in FY04, reflecting strong commitments and disbursements. Interest income from time deposits and securities are discussed below, as a component of liquid asset income. IFC 2005 ANNUAL REPORT 21 The Corporations charges on borrowings increased by $168 million, from $141 million in FY04 to $309 million in FY05, largely reflecting the increased US dollar interest rate environment, when comparing FY05 and FY04. As the Corporations borrowings generally reprice every six months, the effect of the significant rise in the interest rate environment in the fourth quarter of FY04 adversely impacted FY05 charges on borrowings. The weighted average cost of the Corporations borrowings outstanding from market sources, after the effects of borrowing-related derivatives, rose during the year from 1.0% at June 30, 2004 to 3.3% at June 30, 2005. The borrowings portfolio, net of borrowing-related derivatives and before the effects of SFAS No. 133, decreased by $0.4 billion in FY05 from $16.4 billion at June 30, 2004, to $16.0 billion at June 30, 2005. Liquid asset income Liquid asset income comprises interest from time deposits and securities, net gains and losses on trading activities, and a small currency translation effect. The liquid assets portfolio, net of derivatives and securities lending activities, increased from $13.1 billion at June 30, 2004, to $13.3 billion at June 30, 2005. Liquid asset returns totaled $358 million in FY05, reported as interest income from time deposits and securities ($533 million), and net losses on trading activities ($175 million) in the Corporations FY05 income statement. Liquid asset returns totaled $177 million in FY04, reported as interest income from time deposits and securities ($278 million), net losses on trading activities ($104 million), and currency translation gains ($3 million). Net income from equity investments Net income from the equity investment portfolio increased by $707 million from $658 million in FY04 to $1,365 million in FY05. The Corporation generated realized capital gains on equity sales for FY05 of $723 million, as compared with $381 million for FY04, an increase of $342 million. Realized capital gains on equity sales from 19 investments comprised 71% of the FY05 gains, compared to seven investments comprising 64% of the FY04 gains. IFC continued to take advantage of buoyant markets to sell equities and take some limited gains in investments where IFCs developmental role was complete, and where pre-determined sales trigger levels had been met. Dividend income was also significantly higher in FY05 at $258 million, as compared with $207 million in FY04. Consistent with FY04, a significant amount of IFCs dividend income in FY05 was due to returns on the Corporations joint ventures in the oil, gas and mining sectors, which totaled $106 million in FY05, as compared with $65 million in FY04. Beginning in FY05, the Corporations investments in its LLPs and certain LLCs are accounted for under the equity method. As a result, IFCs FY05 operating income includes unrealized income from its investments in LLPs and certain LLCs in the amount of $191 million. Release of provisions for losses on loans and guarantees As noted above, the quality of the Corporations investment portfolio improved during FY05, continuing the trend noted in FY03 and FY04. As a result, IFC recorded a release of provisions for losses on loans and guarantees of $261 million in FY05, including a release of $3 million in respect of guarantees, a significant improvement over FY04 when the Corporation recorded a release of $103 million ($14 million in respect of guarantees). On June 30, 2005, the Corporations total reserves against losses on loans were 9.9% of the disbursed and outstanding loan portfolio (14.0% at June 30, 2004). Noninterest income Noninterest income of $86 million for FY05 was $11 million higher than in FY04 ($75 million). Noninterest expense Administrative expenses (the principal component of noninterest expense) increased by 12% from $360 million in FY04 to $403 million in FY05 principally reflecting the Corporations higher budget authority in FY05 when compared to FY04. Administrative expenses include the grossing-up effect of certain revenues and expenses attributable to the Corporations reimbursable program and jeopardy projects ($33 million in FY05, as compared with $34 million in FY04). The Corporation recorded expense from pension and other postretirement benefit plans in FY05 of $14 million, as compared with $19 million in FY04. Net income As more fully disclosed in Notes A, O and P to the Corporations FY05 financial statements, the Corporation has designated certain hedging relationships in its borrowing activities and its lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, differing valuation methodologies are applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133. The resulting ineffectiveness calculated for such relationships is recorded in net gains (losses) on other financial instruments, in net income. 22 IFC 2005 ANNUAL REPORT The effects of SFAS No. 133 on net income in FY05 and FY04 can be summarized as follows (US$ millions): FY05 FY04 Operating income 1,953 982 SFAS No. 133 adjustments: Net gains (losses) on other financial instruments 62 11 Net income 2,015 993 Net gains (losses) on other financial instruments largely comprises the difference between the change in fair value of derivative instruments and the change in fair value of the hedged item under designated hedging relationships. FY04 versus FY03 Operating income The Corporations operating income for FY04 was $982 million, a second consecutive record year, following FY03s then record operating income of $528 million. The improvement was mainly attributable to significant equity income and an overall improvement in the quality of the loan and equity investment portfolio, as measured by portfolio impairment and portfolio risk levels, principally due to a reduction in the aggregate risk level within the portfolio resulting from the factors outlined above. This improvement began during the latter stages of FY03 and continued through FY04 and resulted in a release of provisions for losses on loans, equity investments and guarantees. The Corporations liquid asset portfolios yielded a positive contribution to the Corporations operating income although at a lower level than in FY03 mainly due to the overall higher interest rate environment during FY04, with a significant rising interest rate environment during the fourth quarter of FY04. The Corporation has a significant holding of fixed income securities, principally in its P2 portfolio, that decline in value in a rising interest rate environment. A more detailed analysis of the components of IFCs operating income follows. Net interest income IFCs primary interest earning assets are its loan portfolio and its liquid assets portfolios. After charges on borrowings are taken into account, net interest income increased by $86 million or 15% from $569 million in FY03 to $655 million in FY04. Interest and financial fees from loans (including guarantee fees) for FY04 were $518 million, compared with $477 million in FY03, an increase of $41 million, or 9%. Interest income increased from $414 million in FY03 to $444 million in FY04, principally reflecting the overall increase in average interest rates during FY04, when compared with FY03. The growth in the loan portfolio and the overall increase in average interest rates during FY04, when compared with FY03, contributed $12 million, net of interest expense on lending- related swaps, of the increase in interest income. Recoveries of interest on loans being removed from non-accrual status, net of reversals of income on loans being placed in nonaccrual status, were $39 million in FY04 ($23 million ­ FY03). Income from the Corporations participation notes, over and above minimum contractual interest, totaled $40 million in FY04 ($33 million ­ FY03). Commitment and financial fees also grew from $63 million in FY03 to $69 million in FY04, reflecting strong commitments and disbursements. Interest income from time deposits and securities are discussed below, as a component of liquid asset income. The Corporations charges on borrowings decreased by $85 million, from $226 million in FY03 to $141 million in FY04, largely reflecting the declining US dollar interest rate environment in late FY03 and early FY04. As the Corporations borrowings generally reprice every six months, the effect of the significant rise in the interest rate environment in the fourth quarter of FY04 did not have a significant impact on charges on borrowings until early FY05. The weighted average cost of the Corporations borrowings outstanding from market sources, after the effects of borrowing-related derivatives, rose slightly during the year from 0.9% at June 30, 2003 to 1.0% at June 30, 2004. The borrowings portfolio, net of borrowing-related derivatives and before the effects of SFAS No. 133, increased by $0.5 billion in FY04 from $15.9 billion at June 30, 2003, to $16.4 billion at June 30, 2004. Liquid asset income Liquid asset income comprises interest from time deposits and securities, net gains and losses on trading activities, and a small currency translation effect. The liquid assets portfolio, net of derivatives and securities lending activities, increased marginally from $13.0 billion at June 30, 2003, to $13.1 billion at June 30, 2004. IFC 2005 ANNUAL REPORT 23 The overall rising interest rate environment experienced during FY04, concentrated in the fourth quarter, resulted in a negative impact on the carrying value of the Corporations fixed income liquid asset investments and, accordingly, lower total returns. Liquid asset returns totaled $177 million in FY04, reported as interest income from time deposits and securities ($278 million), net losses on trading activities ($104 million) and currency translation gains ($3 million) in the Corporations FY04 income statement. Liquid asset returns totaled $475 million in FY03, reported as interest income from time deposits and securities ($318 million), and net gains on trading activities ($157 million). Net income from equity investments Net income from the equity investment portfolio increased by $513 million from $145 million in FY03 to $658 million in FY04. The Corporation generated realized capital gains on equity sales for FY04 of $381 million, as compared with $52 million for FY03, an increase of $329 million. Realized capital gains on equity sales in FY04 were highly concentrated, with $193 million of the total capital gains resulting from sales or partial sales of single equity investments in each of the Czech Republic, the Republic of Korea, and Mexico. IFC took advantage of buoyant markets to take some limited gains in investments where IFCs developmental role was complete, where pre-determined sales trigger levels had been met, and where markets had valued them adequately. Such opportunities did not occur in FY03 with only one sale of an equity investment generating a capital gain in excess of $5 million. Dividend income was also significantly higher in FY04 at $207 million, as compared with $147 million in FY03. Consistent with FY03, a significant amount of IFCs dividend income in FY04 was due in part to returns on the Corporations joint ventures in the oil, gas and mining sectors, which totaled $65 million in FY04, as compared with $61 million in FY03. Release of provisions for losses on loans and guarantees As noted above, the quality of the Corporations investment portfolio improved during FY04, continuing the trend noted in the last nine months of FY03. As a result, IFC recorded a release of provisions for losses on loans and guarantees of $103 million in FY04, including a release of $14 million in respect of guarantees, a significant improvement over FY03 when the Corporation recorded a charge of $48 million (which included a charge of $1 million in respect of guarantees). On June 30, 2004, the Corporations total reserves against losses on loans were 14.0% of the disbursed and outstanding loan portfolio (19.0% at June 30, 2003). Noninterest income Noninterest income of $75 million for FY04 was $10 million lower than in FY03 ($85 million), principally due to lower service fees - $41 million in FY04, as compared with $51 million in FY03. FY03 service fees included the recovery of $11 million of overdue interest and penalties received from one of the Corporations client risk management derivatives to a client in the power sector which did not recur in FY04. Noninterest expense Administrative expenses (the principal component of noninterest expense) increased by 8% from $332 million in FY03 to $360 million in FY04 principally reflecting the Corporations higher budget authority in FY04 when compared to FY03. Administrative expenses include the grossing-up effect of certain revenues and expenses attributable to the Corporations reimbursable program and jeopardy projects ($34 million in FY04, as compared with $30 million in FY03). The Corporation recorded expense from pension and other postretirement benefit plans in FY04 of $19 million, as compared with $24 million in FY03. Net income As more fully disclosed in Notes A, N and O to the Corporations FY04 financial statements, the Corporation has designated certain hedging relationships in its borrowing activities and its lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, differing valuation methodologies are applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133. The resulting ineffectiveness calculated for such relationships is recorded in net gains (losses) on other financial instruments, in net income. The effects of SFAS No. 133 on net income FY04 and FY03 can be summarized as follows (US$ millions): FY04 FY03 Operating income 982 528 SFAS No. 133 adjustments: Net gains (losses) on other financial instruments 11 (41) Net income 993 487 Net gains (losses) on other financial instruments largely comprises the difference between the change in fair value of derivative instruments and the change in fair value of the hedged item under designated hedging relationships. 24 IFC 2005 ANNUAL REPORT VIII. GOVERNANCE Management Changes The Board of Directors (the Board) is charged, under the Articles of Agreement, with the selection of IFCs President. Following the decision by Mr. James D. Wolfensohn to retire on May 31, 2005, the Directors unanimously selected on March 31, 2005, Mr. Paul Wolfowitz to be the next president. Mr. Wolfowitzs appointment became effective June 1, 2005. Following the retirement of the Corporations Executive Vice President (EVP), Mr. Peter Woicke, effective January 31, 2005, Mr. Assaad Jabre has been appointed Acting EVP, effective January 31, 2005. Board of Directors In accordance with its Articles of Agreement, members of IFCs Board are appointed or elected by their member governments. These Directors are neither officers nor staff of IFC. The President is the only management member of the Board, serving as a non-voting member and as Chairman of the Board. The Board has established several Committees including: Committee on Development Effectiveness Audit Committee Budget Committee Personnel Committee Ethics Committee Committee on Governance and Administrative Matters The Board and its Committees function in continuous session at the principal offices of the World Bank Group, as business requires. Each Committees terms of reference establish its respective roles and responsibilities. As Committees do not vote on issues, their role is primarily to serve the full Board in discharging its responsibilities. Audit Committee Membership The Audit Committee consists of eight members of the Board. Membership on the Committee is determined by the Board, based upon nominations by the Chairman of the Board, following informal consultation with the Directors. In addition, membership of the Committee is expected to reflect the economic and geographic diversity of IFCs member countries. Other relevant selection criteria include seniority, continuity and relevant experience. Some or all of the responsibilities of individual committee members are performed by their alternates or advisors. Generally, Committee members are appointed for a two year term; reappointment to a second term, when possible, is desirable for continuity. Audit Committee meetings are generally open to any members of the Board who may wish to attend, and non-Committee members of the Board may participate in the discussion. In addition, the Chairman of the Audit Committee may speak in that capacity at meetings of the Board with respect to discussions held in the Audit Committee. Key responsibilities The Audit Committee is appointed by the Board to assist it in the oversight and assessment of IFCs finances and accounting, including the effectiveness of financial policies, the integrity of financial statements, the system of internal controls regarding finance, accounting and ethics (including fraud and corruption), and financial and operational risks. The Audit Committee also has the responsibility for reviewing the performance and recommending to the Board the appointment of the external auditor, as well as monitoring the independence of the external auditor and meeting with it in executive session. The Audit Committee participates in oversight of the internal audit function, including reviewing the responsibilities, staffing and the effectiveness of internal audit. The Committee also reviews the annual internal audit plan and meets with the Auditor General in executive session. In the execution of its role, the Committee discusses with management, the external auditors, and the internal auditors, financial issues and policies which have a bearing on the Corporations financial position and risk-bearing capacity. The Audit Committee monitors the evolution of developments in corporate governance and the role of audit committees on an ongoing basis and revised its terms of reference in FY04. Communications The Audit Committee communicates regularly with the Board through distribution of the following: The minutes of its meetings. Reports of the Audit Committee prepared by the Chairman, which document discussions held. These reports are distributed to the Directors, Alternates, World Bank Group Senior Management and Vice Presidents of IFC. "Statement(s) of the Chairman" and statements issued by other members of the Committee. The Annual Report to the Board, which provides an overview of the main issues addressed by the Audit Committee over the year. IFC 2005 ANNUAL REPORT 25 The Audit Committees communications with the external auditor are described in the Auditor Independence section, below. Executive sessions Members of the Audit Committee may convene in executive session at any time, without management present. Under the Committees terms of reference, it meets separately in executive session with the external and internal auditors. Access to outside resources and to management Throughout the year, the Audit Committee receives a large volume of information, which supports the preparation of the financial statements. The Audit Committee meets both formally and informally throughout the year to discuss financial and accounting matters. Directors have complete access to the management of the Corporation. The Audit Committee reviews and discusses with management the quarterly and annual financial statements. The Committee also reviews with the external auditor the financial statements prior to their publication and recommends them for approval to the Board of Directors. The Audit Committee has the capacity, under exceptional circumstances, to obtain advice and assistance from outside legal, accounting or other advisors as deemed appropriate. Code of Ethics The World Bank Group strives to foster and maintain a positive work environment that supports the ethical behavior of its staff. To facilitate this effort, the World Bank Group has a Code of Professional Ethics in place. The Code (Code of Professional Ethics ­ Living our Values) applies to all staff (including managers, consultants, and temporary employees) worldwide. The Code is available in nine languages on the World Bank Groups website, www.worldbank.org. Staff relations, conflicts of interest, and operational issues, including the accuracy of books and records, are key elements of the Code. In addition to the Code, an essential element of appropriate conduct is compliance with the obligations embodied in the Principles of Staff Employment, Staff Rules, and Administrative Rules, the violation of which may result in disciplinary action. In accordance with the Staff Rules, senior managers must complete a confidential financial disclosure instrument with the Office of Ethics and Business Conduct. Guidance for staff is also provided through programs, training materials, and other resources. Managers are responsible for ensuring that internal systems, policies, and procedures are consistently aligned with the World Bank Groups ethical goals. In support of its efforts on ethics, the World Bank offers a variety of methods for informing staff of these resources. Many of these efforts are headed by the following groups: The Office of Ethics and Business Conduct provides leadership, management and oversight for the World Bank Groups ethics infrastructure including the Ethics Help Line, a consolidated conflicts of interest disclosure/resolution system, financial disclosure, ongoing training to both internal and external audiences, and communication resources. The Department of Institutional Integrity is charged with investigating allegations of fraud and corruption with the World Bank Group. The Department also investigates allegations of misconduct by World Bank Group staff, and trains and educates staff and clients in detecting and reporting fraud and corruption in World Bank Group-funded projects. The Department reports directly to the President and is composed of professionals from a range of disciplines including financial analysts, researchers, investigators, lawyers, prosecutors, forensic accountants, and World Bank Group staff with operational experience. The World Bank Group has in place procedures for the receipt, retention and treatment of complaints received regarding accounting, internal controls and auditing matters. The World Bank Group offers both the Ethics Help Line, and a Fraud and Corruption hotline run by an outside firm staffed by trained specialists. This third-party service offers numerous methods of communication in addition to a tollfree hotline in countries where access to telecommunications may be limited. In addition, there are other methods by which the Department of Institutional Integrity may receive allegations, including directly by email, anonymously, or through confidential submission through its website, as well as the postal service and telephone. 26 IFC 2005 ANNUAL REPORT Auditor Independence In FY03, the Board adopted a set of principles applicable to the appointment of the external auditor for IFC. Key features of those principles include: Prohibition of the external auditor from the provision of all non audit-related services; All audit-related services must be pre-approved on a case-by-case basis by the Board, upon recommendation of the Audit Committee; Mandatory rebidding of the external audit contract every five years; Prohibition of any firm serving as external auditor for more than two consecutive five-year terms; Mandatory rotation of the senior partner after five years; and An evaluation of the performance of the external auditor at the mid-point of the five year term. In FY04, IFCs external auditor, Deloitte and Touche LLP, began a new five-year term and will have served eleven years as external auditor upon completion of that term, pursuant to a one-time grandfathered exemption from the above-referenced ten-year limit. Even within a five-year term the service of the external auditors is subject to recommendation by the Audit Committee for annual reappointment and approval of a resolution by the Board. As a standard practice, the external auditor is present as an observer at virtually all Audit Committee meetings and is frequently asked to present its perspective on issues. In addition, the Audit Committee meets periodically with the external auditor in private session without management present. Communication between the external auditor and the Audit Committee is ongoing, as frequently as is deemed necessary by either party. IFCs external auditors follow the communication requirements with audit committees set out under U.S. generally accepted auditing standards. In keeping with these standards, significant formal communications include: Quarterly and annual financial statement reporting; Annual appointment of the external auditors; Presentation of the external audit plan; Presentation of control recommendations and discussion of the COSO attestation and report; and Presentation of a statement regarding independence. In addition to Committee meetings, individual members of the Audit Committee have independent access to the external auditor. IFC 2005 ANNUAL REPORT 27 Responsibility for External Financial Reporting MANAGEMENT'S RESPONSIBILITY 28 IFC 2005 ANNUAL REPORT MANAGEMENT'S RESPONSIBILITY (continued) IFC 2005 ANNUAL REPORT 29 REPORT OF INDEPENDENT ACCOUNTANTS 30 IFC 2005 ANNUAL REPORT Financial Statements REPORT OF INDEPENDENT ACCOUNTANTS FINANCIAL STATEMENTS INCLUDING NOTES IFC 2005 ANNUAL REPORT 31 Page 1 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED BALANCE SHEET as of June 30, 2005 and June 30, 2004 (US$ millions) 2005 2004 Assets Due from banks ......................................................................................................................... $ 139 $ 74 Time deposits ............................................................................................................................ 1,799 2,387 Trading securities ­ Note B ...................................................................................................... 14,561 12,842 Securities purchased under resale agreements ....................................................................... 6,282 3,094 Loans ........................................................................................................................................ 9,973 9,753 Less: Reserve against losses on loans ................................................................................. (989) (1,367) Net loans ........................................................................................................................... 8,984 8,386 Equity investments .................................................................................................................... 2,505 1,893 Total loans and equity investments disbursed and outstanding ­ Notes C and E................ 11,489 10,279 Derivative assets ­ Note P......................................................................................................... 1,516 1,092 Receivables and other assets ­ Note H ................................................................................... 3,774 2,593 Total assets .....................................................................................................................$ 39,560 $ 32,361 Liabilities and capital Liabilities Securities sold under repurchase agreements and payable for cash collateral received ............................................................................................... $ 9,321 $ 4,329 Borrowings withdrawn and outstanding ­ Note I From market sources ....................................................................................................... 15,304 16,157 From International Bank for Reconstruction and Development ........................................ 55 97 Total borrowings ........................................................................................................... 15,359 16,254 Derivative liabilities ­ Note P ................................................................................................. 2,332 1,549 Payables and other liabilities ­ Note J................................................................................... 2,750 2,447 Total liabilities ................................................................................................................... 29,762 24,579 Capital Capital stock, authorized 2,450,000 shares of $1,000 par value each ­ Note K Subscribed ........................................................................................................................ 2,365 2,362 Less: Portion not yet paid ................................................................................................ (1) (1) Total capital stock ........................................................................................................ 2,364 2,361 Payments received on account of pending subscriptions ..................................................... - 1 Accumulated other comprehensive income .......................................................................... 1 2 Retained earnings ................................................................................................................ 7,433 5,418 Total capital ...................................................................................................................... 9,798 7,782 Total liabilities and capital .............................................................................................$ 39,560 $ 32,361 The notes to financial statements are an integral part of these statements. 32 IFC 2005 ANNUAL REPORT Page 2 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED INCOME STATEMENT for the three years ended June 30, 2005 (US$ millions) 2005 2004 2003 Interest income Interest and financial fees from loans ­ Note C .......................................................$ 660 $ 518 $ 477 Interest from time deposits and securities ­ Note B ................................................ 533 278 318 Total interest income ......................................................................................... 1,193 796 795 Interest expense Charges on borrowings ­ Note I .............................................................................. 309 141 226 Total interest expense ....................................................................................... 309 141 226 Net interest income ................................................................................................ 884 655 569 Net (losses) gains on trading activities ­ Note B ......................................................... (175) (104) 157 Net income from equity investments ­ Note E.............................................................. 1,365 658 145 Release of (provision for) losses on loans and guarantees ­ Note C........................... 261 103 (48) Net income from loans, equity investments and trading activities ....................... 2,335 1,312 823 Noninterest income Service fees ............................................................................................................. 41 41 51 Other income ­ Note L ............................................................................................. 45 34 34 Total noninterest income .................................................................................. 86 75 85 Noninterest expense Administrative expenses ­ Notes T and U ............................................................... 403 360 332 Expense from pension and other postretirement benefit plans ­ Note S ................. 14 19 24 Contributions to special programs ­ Note M ............................................................ - 29 28 Net translation adjustments ...................................................................................... 7 (7) (8) Other expenses ........................................................................................................ 6 4 4 Total noninterest expense ................................................................................ 430 405 380 Income before expenditures for technical assistance and advisory services and net gains (losses) on other financial instruments........................................ 1,991 982 528 Expenditures for technical assistance and advisory services ­ Note N........................ (38) - - Net gains (losses) on other financial instruments ­ Note O.......................................... 62 11 (41) Net income...................................................................................................................$ 2,015 $ 993 $ 487 The notes to financial statements are an integral part of these statements. IFC 2005 ANNUAL REPORT 33 Page 3 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the three years ended June 30, 2005 (US$ millions) 2005 2004 2003 Net income ..................................................................................................................$ 2,015 $ 993 $ 487 Other comprehensive loss Reclassification to net income of net interest accruals on swaps in cash flow hedging relationships at June 30, 2000 ............................................... (1) (2) (2) Total comprehensive income ...........................................................................$ 2,014 $ 991 $ 485 The notes to financial statements are an integral part of these statements. 34 IFC 2005 ANNUAL REPORT Page 4 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL for the three years ended June 30, 2005 (US$ millions) Retained earnings Designated Payments for technical Accumulated received assistance Designated other on account and advisory for performance- comprehensive Capital of pending Undesignated services based grants Total income stock subscriptions Total capital At July 1, 2002 ..................$ 3,938 $ - $ - $ 3,938 $ 6 $ 2,360 $ - $ 6,304 Year ended June 30, 2003 Net income ..................... 487 487 487 Other comprehensive income (loss) ............... (2) (2) At June 30, 2003 ................$ 4,425 $ - $ - $ 4,425 $ 4 $ 2,360 $ - $ 6,789 Year ended June 30, 2004 Net income .................... 993 993 993 Other comprehensive income (loss) .............. (2) (2) Designations for technical assistance and advisory services - Note K......... (225) 225 - - Payments received on account of pending subscriptions............ 1 1 Payments received for capital stock subscribed.................... 1 1 At June 30, 2004 ................$ 5,193 $ 225 $ - $ 5,418 $ 2 $ 2,361 $ 1 $ 7,782 Year ended June 30, 2005 Net income .................. 2,015 - 2,015 2,015 Expenditures for technical assistance and advisory services - Note N......... 38 (38) - - Other comprehensive income (loss) ... (1) (1) Designations for technical assistance and advisory services - Note K......... (125) 125 - - Designations for performance-based grants - Note K.......... (250) 250 - - Payments received on account of pending subscriptions............. 1 (1) - Payments received for capital stock subscribed................... 2 2 At June 30, 2005 ...............$ 6,871 $ 312 $ 250 $ 7,433 $ 1 $ 2,364 $ - $ 9,798 The notes to financial statements are an integral part of these statements. IFC 2005 ANNUAL REPORT 35 Page 5 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS for the three years ended June 30, 2005 (US$ millions) 2005 2004 2003 Cash flows from loans and equity investment activities Loan disbursements .................................................................................................$ (2,868) $ (2,684) $ (2,646) Equity disbursements ............................................................................................... (588) (468) (313) Loan repayments ..................................................................................................... 2,283 1,935 1,402 Equity redemptions .................................................................................................. 29 4 5 Sales of loans and equity investments ..................................................................... 1,338 975 271 Net cash provided by (used in) investing activities ....................................... 194 (238) (1,281) Cash flows from financing activities Drawdown of borrowings ......................................................................................... 1,989 3,047 3,526 Repayment of borrowings ........................................................................................ (2,497) (3,136) (3,796) Capital subscriptions................................................................................................. 2 1 - Net cash used in financing activities ............................................................... (506) (88) (270) Cash flows from operating activities Net income ............................................................................................................... 2,015 993 487 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Realized capital gains on equity sales ................................................................. (723) (381) (52) Unrealized income from LLPs and certain LLCs ................................................... (191) - - Equity investment impairment write-downs .......................................................... 62 - - (Release of) provision for losses on loans and guarantees.................................. (261) (103) 48 Changes in carrying value of equity investments ................................................. (269) (74) 50 Net translation adjustments ................................................................................. 7 (7) (8) Net (gains) losses on other financial instruments ................................................ (62) (11) 41 Change in accrued income on loans, time deposits and securities ..................... (470) (228) (278) Change in payables and other liabilities .............................................................. 5,808 (330) 1,917 Change in receivables and other assets ............................................................. (4,446) 412 (4,322) Net cash provided by (used in) operating activities ...................................... 1,470 271 (2,117) Change in cash and cash equivalents ......................................................................... 1,158 (55) (3,668) Effect of exchange rate changes on cash and cash equivalents ................................. 38 2,400 265 Net change in cash and cash equivalents ................................................................... 1,196 2,345 (3,403) Beginning cash and cash equivalents .......................................................................... 15,303 12,958 16,361 Ending cash and cash equivalents ..........................................................................$ 16,499 $ 15,303 $ 12,958 Composition of cash and cash equivalents Due from banks ........................................................................................................$ 139 $ 74 $ 93 Time deposits ........................................................................................................... 1,799 2,387 2,293 Securities held in trading portfolio ............................................................................ 14,561 12,842 10,572 Total cash and cash equivalents .....................................................................$ 16,499 $ 15,303 $ 12,958 Supplemental disclosure Change in ending balances resulting from exchange rate fluctuations: Loans outstanding ...............................................................................................$ (9) $ 83 $ 145 Borrowings ........................................................................................................... (24) (765) (473) The notes to financial statements are an integral part of these statements. 36 IFC 2005 ANNUAL REPORT Page 6 INTERNATIONAL FINANCE CORPORATION STATEMENT OF CAPITAL STOCK AND VOTING POWER as of June 30, 2005 (US$ thousands) Capital stock Voting power Capital stock Voting power Amount Percent Number Percent Amount Percent Number Percent Members paid of total of votes of total Members paid of total of votes of total Afghanistan .......................$ 111 * 361 0.02 Latvia ................................ $ 2,150 0.09 2,400 0.10 Albania .............................. 1,302 0.06 1,552 0.06 Lebanon ............................ 135 0.01 385 0.02 Algeria ............................... 5,621 0.24 5,871 0.24 Lesotho ............................. 71 * 321 0.01 Angola ............................... 1,481 0.06 1,731 0.07 Liberia ............................... 83 * 333 0.01 Antigua and Barbuda ......... 13 * 263 0.01 Libya ................................. 55 * 305 0.01 Argentina ........................... 38,129 1.61 38,379 1.59 Lithuania ........................... 2,341 0.10 2,591 0.11 Armenia ............................. 992 0.04 1,242 0.05 Luxembourg ...................... 2,139 0.09 2,389 0.10 Australia ............................ 47,329 2.00 47,579 1.98 Macedonia, FYR of ........... 536 0.02 786 0.03 Austria ............................... 19,741 0.84 19,991 0.83 Madagascar ...................... 432 0.02 682 0.03 Azerbaijan ......................... 2,367 0.10 2,617 0.11 Malawi .............................. 1,822 0.08 2,072 0.09 Bahamas, The ................... 335 0.01 585 0.02 Malaysia ........................... 15,222 0.64 15,472 0.64 Bahrain .............................. 1,746 0.07 1,996 0.08 Maldives ........................... 16 * 266 0.01 Bangladesh ....................... 9,037 0.38 9,287 0.39 Mali ................................... 451 0.02 701 0.03 Barbados ........................... 361 0.02 611 0.03 Malta ................................. 1,615 0.07 1,865 0.08 Belarus .............................. 5,162 0.22 5,412 0.22 Marshall Islands ................ 663 0.03 913 0.04 Belgium ............................. 50,610 2.14 50,860 2.11 Mauritania ......................... 214 0.01 464 0.02 Belize ................................. 101 * 351 0.01 Mauritius ........................... 1,665 0.07 1,915 0.08 Benin ................................. 119 0.01 369 0.02 Mexico .............................. 27,589 1.17 27,839 1.16 Bhutan ................................ 720 0.03 970 0.04 Micronesia, Fed. States of. 744 0.03 994 0.04 Bolivia ................................ 1,902 0.08 2,152 0.09 Moldova ............................ 784 0.03 1,034 0.04 Bosnia and Herzegovina ... 620 0.03 870 0.04 Mongolia ........................... 144 0.01 394 0.02 Botswana ........................... 113 * 363 0.02 Morocco ............................ 9,037 0.38 9,287 0.39 Brazil ................................. 39,479 1.67 39,729 1.65 Mozambique ..................... 322 0.01 572 0.02 Bulgaria ............................. 4,867 0.21 5,117 0.21 Myanmar ........................... 666 0.03 916 0.04 Burkina Faso ..................... 836 0.04 1,086 0.05 Namibia ............................ 404 0.02 654 0.03 Burundi .............................. 100 * 350 0.01 Nepal ................................ 822 0.03 1,072 0.04 Cambodia .......................... 339 0.01 589 0.02 Netherlands ...................... 56,131 2.37 56,381 2.34 Cameroon .......................... 885 0.04 1,135 0.05 New Zealand .................... 3,583 0.15 3,833 0.16 Canada .............................. 81,342 3.44 81,592 3.39 Nicaragua ......................... 715 0.03 965 0.04 Cape Verde ....................... 15 * 265 0.01 Niger ................................. 147 0.01 397 0.02 Central African Republic .... 119 0.01 369 0.02 Nigeria .............................. 21,643 0.92 21,893 0.91 Chad................................... 1,364 0.06 1,614 0.07 Norway ............................. 17,599 0.74 17,849 0.74 Chile .................................. 11,710 0.50 11,960 0.50 Oman ................................ 1,187 0.05 1,437 0.06 China ................................. 24,500 1.04 24,750 1.03 Pakistan ............................ 19,380 0.82 19,630 0.82 Colombia ........................... 12,606 0.53 12,856 0.53 Palau ................................ 25 * 275 0.01 Comoros ............................ 14 * 264 0.01 Panama ............................ 1,007 0.04 1,257 0.05 Congo, Dem. Rep. of ..... 2,159 0.09 2,409 0.10 Papua New Guinea .......... 1,147 0.05 1,397 0.06 Congo, Republic of ............ 131 0.01 381 0.02 Paraguay .......................... 436 0.02 686 0.03 Costa Rica ......................... 952 0.04 1,202 0.05 Peru .................................. 6,898 0.29 7,148 0.30 Côte d'Ivoire ...................... 3,544 0.15 3,794 0.16 Philippines ........................ 12,606 0.53 12,856 0.53 Croatia ............................... 2,882 0.12 3,132 0.13 Poland .............................. 7,236 0.31 7,486 0.31 Cyprus ............................... 2,139 0.09 2,389 0.10 Portugal ............................ 8,324 0.35 8,574 0.36 Czech Republic ................. 8,913 0.38 9,163 0.38 Romania ........................... 2,661 0.11 2,911 0.12 Denmark ............................ 18,554 0.78 18,804 0.78 Russian Federation .......... 81,342 3.44 81,592 3.39 Djibouti .............................. 21 * 271 0.01 Rwanda ............................ 306 0.01 556 0.02 Dominica ........................... 42 * 292 0.01 Saint Kitts and Nevis ........ 638 0.03 888 0.04 Dominican Republic .......... 1,187 0.05 1,437 0.06 St. Lucia ............................ 74 * 324 0.01 Ecuador ............................. 2,161 0.09 2,411 0.10 Samoa .............................. 35 * 285 0.01 Egypt, Arab Republic of ..... 12,360 0.52 12,610 0.52 Saudi Arabia ..................... 30,062 1.27 30,312 1.26 El Salvador ........................ 29 * 279 0.01 Senegal ............................ 2,299 0.10 2,549 0.11 Equatorial Guinea .............. 43 * 293 0.01 Serbia and Montenegro..... 1,803 0.08 2,053 0.09 Eritrea ................................ 935 0.04 1,185 0.05 Seychelles ........................ 27 * 277 0.01 Estonia .............................. 1,434 0.06 1,684 0.07 Sierra Leone ..................... 223 0.01 473 0.02 Ethiopia ............................. 127 0.01 377 0.02 Singapore ......................... 177 0.01 427 0.02 Fiji ...................................... 287 0.01 537 0.02 Slovak Republic ................ 4,457 0.19 4,707 0.20 Finland ............................... 15,697 0.66 15,947 0.66 Slovenia ............................ 1,585 0.07 1,835 0.08 France ............................. 121,015 5.12 121,265 5.04 Solomon Islands ............... 37 * 287 0.01 Gabon ................................ 1,268 0.05 1,518 0.06 Somalia ............................. 83 * 333 0.01 Gambia, The ...................... 94 * 344 0.01 South Africa ...................... 15,948 0.67 16,198 0.67 Georgia .............................. 861 0.04 1,111 0.05 Spain ................................ 37,026 1.57 37,276 1.55 Germany .......................... 128,908 5.45 129,158 5.36 Sri Lanka .......................... 7,135 0.30 7,385 0.31 Ghana ................................ 5,071 0.21 5,321 0.22 Sudan ............................... 111 * 361 0.02 Greece ............................... 6,898 0.29 7,148 0.30 Swaziland ......................... 684 0.03 934 0.04 Grenada ............................ 74 * 324 0.01 Sweden ............................. 26,876 1.14 27,126 1.13 Guatemala ......................... 1,084 0.05 1,334 0.06 Switzerland ....................... 41,580 1.76 41,830 1.74 Guinea ............................... 339 0.01 589 0.02 Syrian Arab Republic ........ 194 0.01 444 0.02 Guinea-Bissau ................... 18 * 268 0.01 Tajikistan .......................... 1,212 0.05 1,462 0.06 Guyana .............................. 1,392 0.06 1,642 0.07 Tanzania ........................... 1,003 0.04 1,253 0.05 Haiti ................................... 822 0.03 1,072 0.04 Thailand ............................ 10,941 0.46 11,191 0.46 Honduras ........................... 495 0.02 745 0.03 Timor-Leste ...................... 777 0.03 1,027 0.04 Hungary ............................. 10,932 0.46 11,182 0.46 Togo ................................. 808 0.03 1,058 0.04 Iceland ............................... 42 * 292 0.01 Tonga ............................... 34 * 284 0.01 India ................................... 81,342 3.44 81,592 3.39 Trinidad and Tobago ........ 4,112 0.17 4,362 0.18 Indonesia ........................... 28,539 1.21 28,789 1.20 Tunisia .............................. 3,566 0.15 3,816 0.16 Iran, Islamic Republic of .... 1,444 0.06 1,694 0.07 Turkey ............................... 14,545 0.62 14,795 0.61 Iraq .................................... 147 0.01 397 0.02 Turkmenistan .................... 810 0.03 1,060 0.04 Ireland ............................... 1,290 0.05 1,540 0.06 Uganda ............................. 735 0.03 985 0.04 Israel .................................. 2,135 0.09 2,385 0.10 Ukraine ............................. 9,505 0.40 9,755 0.41 Italy .................................... 81,342 3.44 81,592 3.39 United Arab Emirates ....... 4,033 0.17 4,283 0.18 Jamaica ............................. 4,282 0.18 4,532 0.19 United Kingdom ................ 121,015 5.12 121,265 5.04 Japan ............................... 141,174 5.97 141,424 5.87 United States .................... 569,379 24.09 569,629 23.65 Jordan ............................... 941 0.04 1,191 0.05 Uruguay ............................ 3,569 0.15 3,819 0.16 Kazakhstan ........................ 4,637 0.20 4,887 0.20 Uzbekistan ........................ 3,873 0.16 4,123 0.17 Kenya ................................ 4,041 0.17 4,291 0.18 Vanuatu ............................ 55 * 305 0.01 Kiribati ............................... 12 * 262 0.01 Venezuela, Rep. Boliv. de 27,588 1.17 27,838 1.16 Korea, Republic of ............. 15,946 0.67 16,196 0.67 Vietnam ............................ 446 0.02 696 0.03 Kuwait ................................ 9,947 0.42 10,197 0.42 Yemen, Republic of .......... 715 0.03 965 0.04 Kyrgyz Republic ................ 1,720 0.07 1,970 0.08 Zambia .............................. 1,286 0.05 1,536 0.06 Lao People's Dem. Rep. ... 278 0.01 528 0.02 Zimbabwe ......................... 2,120 0.09 2,370 0.10 Total June 30, 2005 $ 2,363,891 100.00+ 2,408,391 100.00+ Total June 30, 2004 $ 2,361,499 100.00+ 2,405,499 100.00+ * Less than .005 percent. + May differ from the sum of the individual percentages shown because of rounding. The notes to financial statements are an integral part of these statements. IFC 2005 ANNUAL REPORT 37 Page 7 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS PURPOSE The International Finance Corporation (IFC or the Corporation), an international organization, was established in 1956 to further economic development in its member countries by encouraging the growth of private enterprise. The Corporation is a member of the World Bank Group, which also includes the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), and the Multilateral Investment Guarantee Agency (MIGA). The Corporation's activities are closely coordinated with and complement the overall development objectives of the other World Bank Group institutions. The Corporation, together with private investors, assists in financing the establishment, improvement, and expansion of private sector enterprises by making loans and equity investments where sufficient private capital is not otherwise available on reasonable terms. The Corporation also plays a catalytic role in mobilizing additional project funding from other investors and lenders, either through cofinancing or through loan participations, underwritings, and guarantees. In addition to project finance and resource mobilization, the Corporation offers an array of financial and technical advisory and corporate governance services to private businesses in the developing world to increase their chances of success. It also advises governments on how to create an environment hospitable to the growth of private enterprise and foreign investment. The Corporation's share capital is provided by its member countries. It raises most of the funds for its investment activities through the issuance of notes, bonds and other debt securities in the international capital markets. NOTE A ­ SUMMARY OF SIGNIFICANT ACCOUNTING AND RELATED POLICIES The consolidated financial statements include the financial statements of the Corporation and two variable interest entities (VIE) created after December 31, 2003, in which the Corporation has been deemed to be the primary beneficiary (see Note W). The accounting and reporting policies of the Corporation conform with accounting principles generally accepted in the United States of America (US GAAP). On July 28, 2005, the Board of Directors of the Corporation (the Board) approved these financial statements for issue. Financial statements presentation - Certain amounts in the prior years have been reclassified to conform to the current year's presentation. Use of estimates - The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting periods. Actual results could differ from these estimates. A significant degree of judgment has been used in the determination of: the adequacy of the reserve against losses on loans and impairment of equity investments; estimated fair values of all derivative instruments and related financial instruments in qualifying hedging relationships; and net periodic pension income. There are inherent risks and uncertainties related to the Corporation's operations. The possibility exists that changing economic conditions could have an adverse effect on the financial position of the Corporation. The Corporation uses internal models to determine the fair values of derivative and other financial instruments and the aggregate level of the reserve against losses on loans and impairment of equity investments. The Corporation undertakes continuous review and respecification of these models with the objective of refining its estimates, consistent with evolving best market practices. Changes in estimates resulting from refinements in the assumptions and methodologies incorporated in the models are reflected in net income in the period in which the enhanced models are first applied. Translation of currencies - Assets and liabilities not denominated in United States dollars (US dollars or $), other than disbursed equity investments, are expressed in US dollars at the exchange rates prevailing at June 30, 2005 and June 30, 2004. Disbursed equity investments are expressed in US dollars at the prevailing exchange rates at the time of disbursement. Income and expenses are translated at the rates of exchange prevailing at the time of the transaction. Translation gains and losses are credited or charged to income. Loans - The Corporation originates loans to facilitate project finance, restructuring, refinancing, corporate finance, and/or developmental impact. Loans are recorded as assets when disbursed. Loans are carried at the principal amounts outstanding. Where loans are part of a designated hedging relationship employing derivative instruments, the carrying value is adjusted for changes in fair value attributable to the risk being hedged. These adjustments are reported in net gains and losses on other financial instruments in the income statement. It is the Corporation's practice to obtain collateral security such as, but not limited to, mortgages and third-party guarantees. Revenue recognition on loans - Interest income and commitment fees on loans are recorded as income on an accrual basis. Loan origination costs are expensed as incurred. Loan origination fees are recognized in income when received. The net of loan origination fees and loan origination costs is considered insignificant. All other fees are recorded as income when received in freely convertible currencies. The Corporation does not recognize income on loans where collectibility is in doubt or payments of interest or principal are past due more than 60 days unless management anticipates that collection of interest will occur in the near future. Any interest accrued on a loan placed in nonaccrual status is reversed out of income and is thereafter recognized as income only when the actual payment is received. Interest not previously recognized but capitalized as part of a debt restructuring is recorded as deferred income, included in the balance sheet in payables and other liabilities, and credited to income only when the related principal is received. Such capitalized interest is considered in the computation of the reserve against losses on loans and equity investments in the balance sheet. 38 IFC 2005 ANNUAL REPORT Page 8 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Reserve against losses on loans - The Corporation recognizes portfolio impairment on loans in the balance sheet through the reserve against losses on loans, recording a provision or release of provision for losses on loans in net income on a quarterly basis, which increases or decreases the reserve against losses on loans. Management determines the aggregate level of the reserve against losses on loans, taking into account established guidelines and its assessment of recent portfolio quality trends. The guidelines comprise simulation techniques, internal country risk ratings and the impairment potential of the loan portfolio based on the Corporation's historical portfolio write-off and loss reserve experience on mature investments. The reserve against losses on loans reflects estimates of both probable losses already identified and probable losses inherent in the portfolio but not specifically identifiable. The determination of identified probable losses represents management's judgment of the creditworthiness of the borrower and is established through review of individual loans undertaken on a quarterly basis. The Corporation considers a loan as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the loan's contractual terms. Unidentified probable losses are the aggregate probable losses over a one-year risk horizon, in excess of identified probable losses. The risks inherent in the portfolio that are considered in determining unidentified probable losses are those proven to exist by past experience and include: country systemic risk; the risk of correlation or contagion of losses between markets; uninsured and uninsurable risks; nonperformance under guarantees and support agreements; and opacity of, or misrepresentation in, financial statements. Loans are written-off when the Corporation has exhausted all possible means of recovery, by reducing the reserve against losses on loans. Such reductions in the reserve are offset by recoveries associated with previously written-off loans. Equity investments - The Corporation invests for current income, capital appreciation, developmental impact, or all three; the Corporation does not take operational, controlling, or strategic equity positions within its investees. Equity investments are acquired through direct ownership of equity instruments of investees and as a limited partner in limited liability partnerships (LLPs) and limited liability companies (LLCs). Revenue recognition on equity investments ­ Direct equity investments and certain investments in investment companies are carried at cost less impairment. The Corporation enters into put and call option agreements in connection with equity investments; these are accounted for in accordance with Statement of Financial Accounting Standards (SFAS) No. 133. The Corporation's investments in limited LLPs and LLCs that maintain specific ownership accounts are accounted for under the equity method. Certain equity investments, for which recovery of invested capital is uncertain, are accounted for under the cost recovery method, such that receipts of freely convertible currencies are first applied to recovery of invested capital and then to capital gains. The cost recovery method is principally applied to the Corporation's investment in its unincorporated oil and gas joint ventures. Dividends and profit participations received on cost method equity investments are generally recorded as income when received in freely convertible currencies. Realized capital gains on the sale or redemption of equity investments are measured against the average cost of the investments sold and are generally recorded as income when received in freely convertible currencies or securities, which are readily convertible into freely convertible currencies. Capital losses are recognized when incurred. Impairment of equity investments ­ Every cost method equity investment is assessed for impairment each quarter. When an impairment is identified and is deemed to be other than temporary, the equity investment is written down to the impaired value, which becomes the new cost basis in the equity investment. Impairment losses are not reversed for subsequent recoveries in value of the equity investment, until it is sold. Guarantees ­ The Corporation extends financial guarantee facilities to its clients to provide credit enhancement for their debt securities and trade obligations. Beginning in the year ended June 30, 2001, the Corporation began offering partial credit guarantees to clients covering, on a risk-sharing basis, client obligations on bonds and/or loans. Under the terms of the Corporation's guarantees, the Corporation agrees to assume responsibility for the client's financial obligations in the event of default by the client (i.e., failure to pay when payment is due). Guarantees are regarded as issued when the Corporation commits to the guarantee. This date is also the "inception" of the guarantee contract. Guarantees are regarded as outstanding when the underlying financial obligation of the client is incurred, and called when the Corporation's obligation under the guarantee has been invoked. There are two liabilities associated with the guarantees: (1) the stand-ready obligation to perform and (2) the contingent liability. The stand-ready obligation to perform is recognized at the commitment date unless a contingent liability exists at that time or is expected to exist in the near term. The contingent liability associated with the financial guarantees is recognized when it is probable the guarantee will be called and when the amount of guarantee called can be reasonably estimated. All liabilities associated with guarantees are included in payables and other liabilities, and the receivables are included in other assets on the balance sheet. When the guarantees are called, the amount disbursed is recorded as a new loan, and specific reserves are established, based on the estimated probable loss. These reserves are included in the reserve against losses on loans on the balance sheet. Guarantee fees are recorded in income as the stand-ready obligation to perform is fulfilled. Commitment fees on guarantees are recorded as income on an accrual basis. Funding Mechanism for Technical Assistance and Advisory Services - In the year ended June 30, 2004, IFC established a funding mechanism for technical assistance and advisory services. The funding mechanism is used to finance the Corporation's technical assistance and advisory activities. Amounts designated for technical assistance and advisory services are determined based on the Corporation's annual operating income in excess of $150 million, and contemplating the financial capacity and priorities of the Corporation. Expenditures for the various approved technical assistance and advisory projects are recorded as expenses in the Corporation's income statement in the year in which they occur and have the effect of reducing retained earnings designated for technical assistance and advisory services. Performance-Based Grants Initiative - In the year ended June 30, 2005, IFC began the analysis to create a program to fund performance- based grants, targeted at specified industries in developing countries. Because the decision to proceed with this program was still under review by the Board at June 30, 2005, IFC designated $250 million of retained earnings for the program, but has not yet allocated or disbursed any amount under the program. IFC 2005 ANNUAL REPORT 39 Page 9 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Liquid asset portfolio - The Corporation's liquid funds are invested in government and agency obligations, time deposits and asset-backed securities. Government and agency obligations include long and short positions in highly rated fixed rate bonds, notes, bills, and other obligations issued or unconditionally guaranteed by governments of countries or other official entities including government agencies and instrumentalities or by multilateral organizations. The liquid asset portfolio, as defined by the Corporation, consists of: time deposits and securities; related derivative instruments; securities purchased under resale agreements, securities sold under repurchase agreements and payable for cash collateral received; receivables from sales of securities and payables for purchases of securities; and related accrued income and charges. Trading securities are carried at fair value with any changes in fair value reported in net gains and losses on trading activities. Interest on securities and amortization of premiums and accretion of discounts are reported in interest from time deposits and securities. The Corporation classifies due from banks, time deposits, and securities (collectively, cash and cash equivalents) as an element of liquidity in the statement of cash flows because they are readily convertible to known amounts of cash within 90 days. Repurchase and resale agreements - Repurchase agreements are contracts under which a party sells securities and simultaneously agrees to repurchase the same securities at a specified future date at a fixed price. Resale agreements are contracts under which a party purchases securities and simultaneously agrees to resell the same securities at a specified future date at a fixed price. It is the Corporation's policy to take possession of securities purchased under resale agreements, which are primarily liquid government securities. The market value of these securities is monitored and, within parameters defined in the agreements, additional collateral is obtained when their value declines. The Corporation also monitors its exposure with respect to securities sold under repurchase agreements and, in accordance with the terms of the agreements, requests the return of excess securities held by the counterparty when their value increases. Repurchase and resale agreements are accounted for as collateralized financing transactions and recorded at the amount at which the securities were acquired or sold plus accrued interest. Securities purchased under resale agreements, securities sold under agreements to repurchase and securities payable for cash collateral received are recorded at fair value. Borrowings - To diversify its access to funding and reduce its borrowing costs, the Corporation borrows in a variety of currencies and uses a number of borrowing structures, including foreign exchange rate-linked, inverse floating rate and zero coupon notes. Generally, the Corporation simultaneously converts such borrowings into variable rate US dollar borrowings through the use of currency and interest rate swap transactions. Under certain outstanding borrowing agreements, the Corporation is not permitted to mortgage or allow a lien to be placed on its assets (other than purchase money security interests) without extending equivalent security to the holders of such borrowings. Borrowings are recorded at the amount repayable at maturity, adjusted for unamortized premium and unaccreted discount. Where borrowings are part of a designated hedging relationship employing derivative instruments, the carrying amount is adjusted for changes in fair value attributable to the risk being hedged. Adjustments for changes in fair value attributable to hedged risks are reported in net gains and losses on other financial instruments in the income statement. Interest on borrowings and amortization of premiums and accretion of discounts are reported in charges on borrowings. Risk management, derivative instruments, and hedge accounting - The Corporation enters into transactions in various derivative instruments for financial risk management purposes in connection with its principal business activities, including lending, client risk management, borrowing, liquid asset portfolio management and asset and liability management. The Corporation does not use derivatives for speculative, marketing or merchandising purposes. All derivative instruments are recorded on the balance sheet at fair value as derivative assets or derivative liabilities. Where they are not clearly and closely related to the host contract, certain derivative instruments embedded in loans, equity investments and market borrowing transactions entered into on or after January 1, 1999, are bifurcated from the host contract and recorded at fair value as derivative assets and liabilities. The value at inception of such embedded derivatives is excluded from the carrying value of the host contracts on the balance sheet. Changes in fair values of derivative instruments used in liquid asset portfolio management activities are recorded in net gains and losses on trading activities. Changes in fair values of derivative instruments other than those used in liquid asset portfolio management activities are recorded in net gains (losses) on other financial instruments. Subject to certain specific qualifying conditions in SFAS No. 133, a derivative instrument may be designated either as a hedge of the fair value of an asset or liability (fair value hedge), or as a hedge of the variability of cash flows of an asset or liability or forecasted transaction (cash flow hedge). For a derivative instrument qualifying as a fair value hedge, fair value gains or losses on the derivative instrument are reported in net income, together with offsetting fair value gains or losses on the hedged item that are attributable to the risk being hedged. For a derivative instrument qualifying as a cash flow hedge, fair value gains or losses associated with the risk being hedged are reported in other comprehensive income and released to net income in the period(s) in which the effect on net income of the hedged item is recorded. Fair value gains and losses on a derivative instrument not qualifying as a hedge are reported in net income. The Corporation has designated certain hedging relationships in its borrowing and lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, the valuation methodologies applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133, may differ. The resulting ineffectiveness calculated for such relationships is recorded in net gains and losses on other financial instruments in the income statement. The Corporation has not designated any hedging relationships as cash flow hedges. 40 IFC 2005 ANNUAL REPORT Page 10 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The risk management policy for each of the Corporation's principal business activities and the accounting policies particular to them are described below. Lending activities The Corporation's policy is to closely match the currency, rate basis, and maturity of its loans and borrowings. Derivative instruments are used to convert the cash flows from fixed rate US dollar or non-US dollar loans into variable rate US dollars. The impact on net income of changes in fair value of interest rate swaps qualifying for the shortcut method under SFAS No. 133 is exactly offset by a corresponding adjustment to the fair value of the related loans. The Corporation has elected not to designate hedging relationships for all other lending-related derivatives that do not qualify for the shortcut method. Client risk management activities The Corporation enters into derivatives transactions with its clients to help them hedge their own currency, interest rate, or commodity risk, which, in turn, improves the overall quality of the Corporation's loan portfolio. To hedge the market risks that arise from these transactions with clients, the Corporation enters into offsetting derivative transactions with matching terms with authorized market counterparties. Changes in fair value of all derivatives associated with these activities are reflected currently in net income. Though hedge accounting is not applicable to these activities, the matching of terms between the offsetting transactions minimizes the impact on net income. Fees and spreads charged on these transactions are recorded as income on an accrual basis. Borrowing activities The Corporation issues debt securities in various capital markets with the objectives of minimizing its borrowing costs, diversifying funding sources, and developing member countries' capital markets, sometimes using complex structures. These structures include borrowings payable in multiple currencies, or borrowings with principal and/or interest determined by reference to a specified index such as a stock market index, a reference interest rate, a commodity index, or one or more foreign exchange rates. The Corporation uses derivative instruments with matching terms, primarily currency and interest rate swaps, to convert such borrowings into variable rate US dollar obligations, consistent with the Corporation's matched funding policy. The Corporation has designated the majority of derivatives associated with borrowing activities as fair value hedges of the underlying borrowings. There are a small number of cash flow-like hedging transactions for which no hedge relationship has been designated. Liquid asset portfolio management activities The Corporation manages the interest rate, currency and other market risks associated with certain of the time deposits and securities in its liquid asset portfolio by entering into derivative transactions to convert the cash flows from those instruments into variable rate US dollars, consistent with the Corporation's matched funding policy. The derivative instruments used include short-term, over-the-counter foreign exchange forwards (covered forwards), interest rate and currency swaps, and exchange-traded interest rate futures and options. As the entire liquid asset portfolio is classified as a trading portfolio, all securities (including derivatives) are carried at fair value, and no hedging relationships have been designated. Asset and liability management In addition to the risk managed in the context of its business activities detailed above, the Corporation faces residual market risk in its overall asset and liability management. Residual currency risk is managed by monitoring the aggregate position in each lending currency and eliminating the net excess asset or liability position through spot sales or purchases. Interest rate risk due to reset date mismatches is reduced by synchronizing the reset dates on assets and liabilities and managing overall interest rate risk on an aggregate basis. Interest rate risk arising from mismatches due to writedowns, prepayments and reschedulings, and residual reset date mismatches, is monitored by measuring the sensitivity of the present value of assets and liabilities in each currency to each basis point change in interest rates. The Corporation monitors the credit risk associated with these activities by careful assessment and monitoring of prospective and actual clients and counterparties. In respect of liquid assets and derivatives transactions, credit risk is managed by establishing exposure limits based on the credit rating and size of the individual counterparty. In addition, the Corporation has entered into master agreements governing derivative transactions that contain close-out and netting provisions and collateral arrangements. Under these agreements, if the Corporation's credit exposure to a counterparty, on a mark-to-market basis, exceeds a specified level, the counterparty must post collateral to cover the excess, generally in the form of liquid government securities. Resource mobilization - The Corporation mobilizes funds from commercial banks and other financial institutions (Participants) by facilitating loan participations, without recourse. These loan participations are administered and serviced by the Corporation on behalf of the Participants. The disbursed and outstanding balances of the loan participations are not included in the Corporation's balance sheet. Pension and other postretirement benefits - IBRD has a defined benefit Staff Retirement Plan (SRP), a Retired Staff Benefits Plan (RSBP) and a Post-Employment Benefits Plan (PEBP) that cover substantially all of its staff members as well as the staff of the Corporation and of MIGA. The SRP provides regular pension benefits and includes a cash balance plan. The RSBP provides certain health and life insurance benefits to eligible retirees. The PEBP provides pension benefits administered outside the SRP. All costs associated with these plans are allocated between IBRD, the Corporation, and MIGA based upon their employees' respective participation in the plans. In addition, the Corporation and MIGA reimburse IBRD for their share of any contributions made to these plans by IBRD. The net periodic pension and other postretirement benefit income or expense allocated to the Corporation is included in expense from pension and other postretirement benefits, respectively, in the income statement. The Corporation includes a receivable from IBRD in receivables and other assets, representing prepaid pension and other postretirement benefit costs. Accounting and financial reporting developments - In January 2003, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 46, Consolidation of Variable Interest Entities ­ an interpretation of ARB No. 51 (FIN 46). During December 2003, FASB replaced FIN 46 with FASB Interpretation No. 46, Consolidation of Variable Interest Entities ­ an interpretation of ARB No. 51 (FIN 46R). FIN 46 and FIN 46R define certain "variable interest entities" (VIEs) and require parties to such entities to assess and measure variable interests in the VIEs for the purpose of determining possible consolidation of the VIEs. Variable interests can arise from financial instruments, service contracts, guarantees, leases or other arrangements with VIE. An entity that will absorb a majority of VIE's expected losses or expected IFC 2005 ANNUAL REPORT 41 Page 11 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS residual returns is deemed to be the primary beneficiary of the VIE and must include the assets, liabilities, and results of operations of the VIE in its consolidated financial statements. Enterprises are required to apply the provisions of FIN 46 to VIEs created after January 31, 2003. Entities with an interest in an entity that is subject to FIN 46R and that is created after December 31, 2003 are required to apply the provisions of FIN 46R and related FSPs to that entity immediately. Nonpublic entities are required to apply the provisions of FIN 46R to all entities that are subject to FIN 46R by the beginning of the first annual period beginning after December 15, 2004. IFC applied FIN 46 to entities created after January 31, 2003 and applied FIN 46R to entities created after December 31, 2003. As a result of its analysis, the Corporation identified two VIEs in which it is deemed to be the primary beneficiary. The assets, liabilities and the results of operations of the two VIEs have been included in IFC's consolidated financial statements. In addition to the VIEs in which IFC is deemed to be the primary beneficiary, the Corporation has significant variable interest in certain other VIEs that are not consolidated because the Corporation is not the primary beneficiary. Pursuant to the requirements for nonpublic entities (nonpublic entities as defined in SFAS No. 123, Accounting for Stock-Based Compensation), IFC is required to apply the provisions of FIN 46R to entities created before January 31, 2003 in its financial statements for the year ending June 30, 2006. As a result, the Corporation expects to include the assets, liabilities and results of operations of three additional VIE's in which it is deemed to be the primary beneficiary. Given the combined size of these VIEs, the impact is not expected to be material to the Corporation's results of operations, cash flow or financial position. The Corporation has also identified a number of investments in which it is not deemed to be the primary beneficiary but it is reasonably possible that IFC could be deemed to hold a significant variable interest in the VIE. Note W provides further details regarding the Corporation's variable interests in VIEs. Emerging Issues Task Force (EITF) Issue No. 03-16, Accounting for Investments in Limited Liability Companies expanded the use of the equity method to investments held in LLCs which maintain separate ownership accounts and in which the investor's investment is in excess of 3-5%. EITF 03-16 is effective for fiscal periods beginning after June 15, 2004. The Corporation does have investments in LLCs, which maintain separate ownership accounts, and has adopted the equity method of accounting for those investments. FASB issued SFAS No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No.20 and FASB Statement No.3. The Corporation has elected to early adopt SFAS No. 154 as of July 1, 2005. The adoption will have no material impact on the Corporation's results of operations, cash flows or financial position as to that date. FASB issued SFAS No.153, Exchange of Nonmonetary Assets, as amendment of APB Opinion No.29, which requires nonmonetary exchanges, which have commercial substance to be accounted for at fair value. The Corporation elected to early adopt SFAS No.153 as of April 1, 2005. The adoption had no material impact on the Corporation's results of operations, cash flows or financial position. In September 2004, FASB postponed certain paragraphs pertaining to the consensus reached by the EITF on Issue No. 03-1, The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments. EITF 03-1 was issued to clarify the meaning of "other-than- temporary impairment" and its application to investments classified as either available-for-sale or held-to-maturity under SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities (including individual securities and investments in mutual funds), and investments accounted for under the cost method. Though part of EITF 03-1 was deferred, certain sections of the guidance were adopted by IFC, specifically those sections related to disclosures. In June 2004, FASB ratified the consensus reached by the Emerging Issues Task Force (EITF) on Issue No. 02-14, Whether an Investor Should Apply the Equity Method of Accounting to Investments Other Than Common Stock If the Investor Has the Ability to Exercise Significant Influence Over the Operating and Financial Policies of the Investee. EITF 02-14 defines features of certain financial instruments which are deemed to be "in substance" common shares, and which, therefore, must be included in the investor's analysis of total investment in an investee company for purposes of determining if the investor has the ability to exercise significant influence over the investee. EITF 02-14 was effective for IFC beginning October 1, 2004. The impact of adopting EITF 02-14 was not material to the Corporation's results of operations, financial position and cash flows. The US Accounting Standards Executive Committee issued, and FASB ratified, Statement of Position (SOP) 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer (SOP 03-3). The Corporation will adopt SOP 03-3 as of July 1, 2005, and the adoption is not expected to have a material impact on the Corporation's results of operations, cash flows or financial position as of June 30, 2005. In addition, during the year ended June 30, 2005, FASB issued and/or approved various FASB Staff Positions, EITF Issues Notes, and other interpretative guidance related to Statements of Financial Accounting Standards and APB Opinions. The Corporation analyzed and implemented the new guidance, as appropriate, with no material impact on either the financial position or results of operations of the Corporation. 42 IFC 2005 ANNUAL REPORT Page 12 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE B ­ LIQUID ASSET PORTFOLIO The composition of the Corporation's liquid asset portfolio is included in the balance sheet captions as follows (US$ millions): June 30, 2005 June 30, 2004 Assets Due from banks $ 56 $ 39 Time deposits 1,720 2,375 Trading securities 14,561 12,842 Securities purchased under resale agreements 6,282 3,094 Receivables and other assets: Receivables from sales of securities 1,330 813 Accrued interest income on time deposits and securities 1,116 665 Accrued income on derivative instruments 42 24 Derivative assets 151 93 Total assets 25,258 19,945 Liabilities Payables and other liabilities: Payables for purchases of securities 1,769 1,733 Accrued charges on derivative instruments 110 112 Securities sold under repurchase agreements and payable for cash collateral received 9,321 4,329 Derivative liabilities 733 716 Total liabilities 11,933 6,890 Total net liquid asset portfolio $ 13,325 $ 13,055 The liquid asset portfolio is denominated primarily in US dollars; investments in other currencies, net of the effect of associated derivative instruments that convert non-US dollar securities into US dollar securities, represent less than 1% of the portfolio at June 30, 2005 (less than 1% - June 30, 2004). The annualized rate of return on the trading portfolio during the year ended June 30, 2005, was 2.6% (1.4% - year ended June 30, 2004; 3.7% - year ended June 30, 2003). After the effect of associated derivative instruments, the liquid asset portfolio generally reprices within one year. Trading securities The composition of trading securities is as follows: Year ended June 30, 2005 At June 30, 2005 Fair value average Average daily balance Fair value maturity Average (US$ millions) (US$ millions) (years) yield (%) Government and agency obligations $ 7,716 $ 7,923 3.4 3.9 Asset-backed securities 3,518 4,220 24.2 3.9 Corporate securities 2,756 2,300 3.9 4.4 Money market funds 367 118 - 2.6 Total trading securities $ 14,357 $ 14,561 Year ended June 30, 2004 At June 30, 2004 Fair value average Average daily balance Fair value maturity Average (US$ millions) (US$ millions) (years) yield (%) Government and agency obligations $ 5,208 $ 6,996 4.8 3.9 Asset-backed securities 2,785 2,767 14.6 1.7 Corporate securities 3,121 2,956 3.3 4.4 Money market funds 124 123 - 1.3 Total trading securities $ 11,238 $ 12,842 The expected maturity of the asset-backed securities will differ from the contractual maturity, as reported above, due to prepayment features. IFC 2005 ANNUAL REPORT 43 Page 13 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Liquid asset portfolio income Income from the liquid asset trading portfolio for the years ended June 30, 2005, 2004 and 2003 comprises (US$ millions): 2005 2004 2003 Interest income $ 533 $ 278 $ 318 Net (losses) gains on trading activities: Realized (80) (38) 131 Unrealized (95) (66) 26 Net (losses) gains on trading activities (175) (104) 157 Translation adjustments - 3 - Total income from liquid asset portfolio $ 358 $ 177 $ 475 Collateral The estimated fair value of securities held by the Corporation at June 30, 2005 as collateral, in connection with derivatives transactions and purchase and resale agreements, that may be sold or repledged was $6,446 million ($3,101 million - June 30, 2004). NOTE C ­ LOANS AND EQUITY INVESTMENTS AND RESERVE AGAINST LOSSES ON LOANS The distribution of the disbursed portfolio by sector is as follows (US$ millions): June 30, 2005 June 30, 2004 Equity Equity Loans investments Total Loans investments Total Finance and insurance $ 2,637 $ 845 $ 3,482 $ 2,190 $ 790 $ 2,980 Utilities 1,085 198 1,283 1,188 134 1,322 Oil, gas and mining 775 167 942 684 137 821 Transportation and warehousing 757 40 797 626 117 743 Industrial and consumer products 723 66 789 637 86 723 Information 460 119 579 505 184 689 Food and beverages 512 62 574 625 67 692 Nonmetallic mineral product manufacturing 529 24 553 539 69 608 Collective investment vehicles 56 402 458 52 585 637 Chemicals 337 73 410 465 63 528 Wholesale and retail trade 336 63 399 301 40 341 Primary metals 350 27 377 524 36 560 Accommodation and tourism services 322 43 365 313 64 377 Paper and pulp 266 27 293 280 37 317 Agriculture and forestry 207 60 267 201 31 232 Textiles, apparel and leather 181 21 202 220 38 258 Construction and real estate 142 7 149 148 3 151 Plastics and rubber 93 52 145 64 41 105 Other 194 18 212 178 35 213 Total disbursed portfolio 9,962 2,314 12,276 9,740 2,557 12,297 Unrealized income from LLPs and certain LLCs - 191 191 - - - Fair value adjustments 11 - 11 13 2 15 Carrying value of loans and equity investments $ 9,973 $ 2,505 $ 12,478 $ 9,753 $ 2,559 $ 12,312 The distribution of the disbursed loan and equity investment portfolio by geographical region is as follows (US$ millions): June 30, 2005 June 30, 2004 Equity Equity Loans investments Total Loans investments Total Latin America and Caribbean $ 3,681 $ 618 $ 4, 299 $ 3,957 $ 741 $ 4,698 Europe and Central Asia 2,847 540 3,387 2,560 423 2,983 Asia 1,922 737 2,659 1,724 917 2,641 Sub-Saharan Africa 677 186 863 737 292 1,029 Middle East and North Africa 672 107 779 678 140 818 Other 163 126 289 84 44 128 Total disbursed portfolio 9,962 2,314 12,276 9,740 2,557 12,297 Unrealized income from LLPs and certain LLCs - 191 191 - - - Fair value adjustments 11 11 13 2 15 Carrying value of loans and equity investments $ 9,973 $ 2,505 $ 12,478 $ 9,753 $ 2,559 $ 12,312 At June 30, 2005, 16% (21% - June 30, 2004) of the disbursed loan portfolio consisted of fixed rate loans, while the remainder was at variable rates. 44 IFC 2005 ANNUAL REPORT Page 14 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Loan portfolio The currency composition and average yield of the disbursed loan portfolio are summarized below: June 30, 2005 June 30, 2004 Amount Average Amount Average (US $ millions) yield (%) (US $ million) yield (%) US dollar $ 8,074 6.6 $ 8,286 5.1 Euro 1,193 4.8 984 5.6 Other currencies 695 8.8 470 8.7 Total disbursed loan portfolio 9,962 6.5 9,740 5.3 Fair value adjustments 11 13 Carrying value of loans $ 9,973 $ 9,753 After the effect of interest rate and currency swaps, the Corporation's loans are principally denominated in US dollars. Disbursed loans in all currencies are repayable during the years ending June 30, 2006 through June 30, 2010, and thereafter, as follows (US$ millions): 2006 2007 2008 2009 2010 Thereafter Total Fixed rate loans $ 430 $ 204 $ 212 $ 229 $ 200 $ 356 $ 1,631 Variable rate loans 1,343 1,133 1,194 1,172 980 2,509 8,331 Total disbursed loan portfolio $ 1,773 $ 1,337 $ 1,406 $ 1,401 $ 1,180 $ 2,865 9,962 Fair value adjustments 11 Carrying value of loans $ 9,973 The Corporation's disbursed variable rate loans generally re-price within one year. Loans on which the accrual of interest has been discontinued amounted to $634 million at June 30, 2005 ($1,121 million - June 30, 2004). Interest income not recognized on nonaccruing loans during the year ended June 30, 2005 totaled $58 million ($82 million - year ended June 30, 2004; $82 million - year ended June 30, 2003). Interest collected on loans in nonaccrual status, related to current and prior years, during the year ended June 30, 2005 was $36 million ($54 million - year ended June 30, 2004; $40 million - year ended June 30, 2003). The average recorded investment in impaired loans during the year ended June 30, 2005, was $1,486 million ($2,114 million - year ended June 30, 2004). The recorded investment in impaired loans at June 30, 2005 was $1,191 million ($1,781 million - June 30, 2004). Reserve against losses on loans Changes in the reserve against losses, on loans for the year ended June 30, 2005, 2004, and 2003, are summarized below (US$ millions): June 30, 2005 June 30, 2004 June 30, 2003 Beginning balance $ 1,367 $ 1,684 $ 1,758 Release of provision for losses (259) (89) 47 Other adjustments (119) (228) (121) Ending balance $ 989 $ 1,367 $ 1,684 The release of provision for losses on loans and guarantees in the income statement for the year ended June 30, 2005 includes $3 million release in respect of guarantees ($14 million release - year ended June 30, 2004; $1 million provision - year ended June 30, 2003). At June 30, 2005 the accumulated reserve for losses on guarantees, included in the balance sheet in payables and other liabilities, was $13 million ($16 million - June 30, 2004). Other adjustments comprise loan write-offs and recoveries, reserves against interest capitalized as part of a debt restructuring, and translation adjustments. Interest and financial fees from loans Interest and financial fees from loans for the years ended June 30, 2005, 2004, and 2003 comprise the following (US$ millions): 2005 2004 2003 Interest income $ 574 $ 449 $ 414 Commitment fees 17 15 18 Other financial fees 69 54 45 Total interest and financial fees from loans $ 660 $ 518 $ 477 IFC 2005 ANNUAL REPORT 45 Page 15 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE D ­ GUARANTEES Under the terms of the Corporation's guarantees, the Corporation agrees to assume responsibility for the client's financial obligations in the event of default by the client, where default is defined as failure to pay when payment is due. Guarantees entered into by the Corporation generally have maturities consistent with those of the loan portfolio. Guarantees signed at June 30, 2005 totaled $998 million ($886 million ­ June 30, 2004). Guarantees of $291 million that were outstanding at June 30, 2005 ($315 million ­ June 30, 2004) were not included in loans on the Corporation's Balance Sheet. The outstanding amount represents the maximum amount of undiscounted future payments that the Corporation could be required to make under these guarantees. NOTE E ­ NET INCOME FROM EQUITY INVESTMENTS Net income from equity investments for the years ended June 30, 2005, 2004, and 2003 comprise the following (US$ millions): 2005 2004 2003 Realized capital gains on equity sales $ 723 $ 381 $ 52 Dividends and profit participations 258 207 147 Unrealized income from LLPs and certain LLCs 191 - - Changes in carrying value of equity investments 269 74 (50) Equity investment impairment write-downs (62) - - Net losses on equity-related derivatives (12) (2) (3) Custody and other fees (2) (2) (1) Total income from equity investments $ 1,365 $ 658 $ 145 Dividends and profit participations include $106 million ($65 million - year ended June 30, 2004, and $61 million - year ended June 30, 2003) of receipts received in freely convertible cash, net of cash disbursements, in respect of investments accounted for under the cost recovery method. Unrealized income from LLPs and certain LLCs results from the implementation of EITF 03-16 during the year ending June 30, 2005. The Corporation assesses all equity investments each quarter for impairment. Prior to March 31, 2005, the Corporation had carried reserves against losses on the equity investment portfolio. During the year ended June 30, 2005, the Corporation changed its process of estimating impairment on equity investments to adopt an impairment methodology based largely on fair value estimates. As a result, the Corporation recorded a change in carrying value of the equity investment portfolio. In this regard, the Corporation determined that all impairments and changes in carrying value were deemed to be other than temporary. This change in carrying value of the equity portfolio has been reflected in net income from equity investments in the income statement and in equity investments in the balance sheet. NOTE F ­ PROJECTS APPROVED AND COMMITTED BUT NOT DISBURSED OR UTILIZED Projects approved by the Board of Directors not committed, loan and equity commitments signed but not yet disbursed, and guarantee and client risk management facilities signed but not yet utilized are summarized below (US$ millions): June 30, 2005 June 30, 2004 Projects approved but not committed: Loans $ 2,333 $ 1,753 Equity investments 400 398 Guarantees 731 240 Client risk management facilities 19 26 Total projects approved but not committed 3,483 2,417 Projects committed but not disbursed: Loans 4,819 3,518 Equity investments 1,013 1,035 Projects committed but not utilized: Guarantees 707 571 Client risk management facilities 120 103 Total projects committed but not disbursed or utilized 6,659 5,227 Total projects approved but not disbursed or utilized $ 10,142 $ 7,644 46 IFC 2005 ANNUAL REPORT Page 16 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE G ­ RESOURCE MOBILIZATION Loan participations arranged to be placed with Participants in respect of loans approved by the Board of Directors, loan participations signed as commitments for which disbursement has not yet been made and loan participations disbursed and outstanding and serviced by the Corporation for the Participants are as follows (US$ millions): June 30, 2005 June 30, 2004 Loan participations arranged to be placed with Participants approved but not committed $ 2,194 $ 2,175 Loan participations signed as commitments but not disbursed 901 454 Loan participations arranged to be placed with Participants approved but not disbursed $ 3,095 $ 2,629 Loan participations disbursed and outstanding which are serviced by the Corporation $ 4,382 $ 5,092 NOTE H ­ RECEIVABLES AND OTHER ASSETS Receivables and other assets are summarized below (US$ millions): June 30, 2005 June 30, 2004 Receivables from sales of securities $ 1,330 $ 813 Accrued interest income on time deposits and securities 1,116 665 Accrued income on derivative instruments 316 317 Accrued interest income on loans 113 94 Pre-paid pension and other postretirement benefit costs 348 290 Headquarters building: Land 89 89 Building 184 184 Less: Building depreciation (38) (33) Headquarters building, net 235 240 Deferred charges and other assets 316 174 Total receivables and other assets $ 3,774 $ 2,593 IFC 2005 ANNUAL REPORT 47 Page 17 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE I ­ BORROWINGS Market borrowings and associated derivatives The Corporation's borrowings outstanding from market sources and currency and interest rate swaps, net of unamortized issue premiums and discounts, are summarized below: June 30, 2005 Interest rate swaps Currency swaps notional principal Market borrowings payable (receivable) payable (receivable) Net currency obligation Weighted Weighted Notional Weighted Weighted Amount (US average Amount (US average amount (US average Amount (US average $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) US dollar $ 7,029 3.9 $ 8,872 2.7 $ 6,350 3.2 $ 15,641 3.3 (6,610) (3.8) - - Japanese yen 5,008 3.8 (5,008) (3.8) - - - - Pound sterling 1,713 5.4 (1,713) (5.4) - - - - Hong Kong dollar 745 6.0 (745) (6.0) - - - - South African rand 662 7.5 (662) (7.5) - - - - Euro 514 6.3 (514) (6.3) - - - - Australian dollar 497 4.7 (497) (4.7) - - - - Canadian dollar 284 1.0 (284) (1.0) - - - - Colombian peso 265 12.5 (265) (12.5) - - - - New Zealand dollar 216 5.6 (216) (5.6) - - - - Malaysian ringgit 132 2.9 (132) (2.9) - - - - Moroccon dirham 110 4.5 (110) (4.5) - - - - Swiss francs 78 2.7 (78) (0.4) 78 0.4 - - (78) (2.7) - - Hungarian Forints 49 9.0 (49) (9.0) - - - - Peruvian Soles Nuevos 46 6.6 (46) (6.6) - - - - Principal at face value 17,348 $ (1,447) $ (260) $ 15,641 Less: Unamortized discounts, net (593) Total market borrowings 16,755 Fair value adjustments (1,451) Carrying value of market borrowings $ 15,304 June 30, 2004 Interest rate swaps Currency swaps notional principal Market borrowings payable (receivable) payable (receivable) Net currency obligation Weighted Weighted Notional Weighted Weighted Amount (US average Amount (US average amount (US average Amount (US average $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) US dollar $ 7,696 4.6 $ 8,571 0.4 $ 6,935 1.3 $ 15,950 1.0 (7,253) (4.4) - - Japanese yen 4,984 4.1 (4,984) (4.1) - - - - Pound sterling 1,718 5.4 (1,718) (5.4) - - - - Hong Kong dollar 743 6.0 (743) (6.0) - - - - Euro 680 6.1 (680) (6.1) - - - - Australian dollar 535 4.8 (535) (4.8) - - - - South African rand 486 13.8 (486) (13.8) - - - - Canadian dollar 297 1.0 (297) (1.0) - - - - Colombian peso 230 12.5 (230) (12.5) - - - - New Zealand dollar 223 5.0 (223) (5.0) - - - - Swiss francs 80 2.5 (80) (0.3) 80 0.3 - - (80) (2.5) - - Singapore dollar 58 4.3 (58) (4.3) - - - - Hungarian Forints 48 9.0 (48) (9.0) - - - - Peruvian Soles Nuevos 14 7.3 (14) (7.3) - - - - Principal at face value 17,792 $ (1,525) $ (318) $ 15,950 Less: Unamortized discounts, net (701) Total market borrowings 17,091 Fair value adjustments (934) Carrying value of market borrowings $ 16,157 48 IFC 2005 ANNUAL REPORT Page 18 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The weighted average cost of the Corporation's borrowings outstanding from market sources after currency and interest rate swap transactions was 3.3% at June 30, 2005 (1.0% - June 30, 2004). The weighted average remaining maturity of the Corporation's borrowings from market sources was 11.6 years at June 30, 2005 (11.9 years - June 30, 2004). Net fair value adjustments to the carrying value of market borrowings comprises $(1,451) million ($(934) million - June 30, 2004) representing adjustments to the carrying value of transactions in designated fair value hedging relationships. The net nominal amount receivable from currency swaps of $1,447 million and the net notional amount receivable from interest rate swaps of $260 million at June 30, 2005 ($1,525 million and $318 million - June 30, 2004), shown in the above table, are represented by currency and interest rate swap assets at fair value of $1,270 million and currency and interest rate swap liabilities at fair value of $1,439 million ($951 million and $637 million - June 30, 2004), included in derivative assets and derivative liabilities, respectively, on the balance sheet. Borrowings from IBRD Borrowings outstanding from IBRD are summarized below: June 30, 2005 June 30, 2004 Principal Weighted Principal Weighted amount average amount average (US$ millions) cost (%) (US$ millions) cost (%) US dollar $ 53 6.4 $ 77 6.4 Euro 2 8.1 7 8.4 Other currencies - - 13 6.2 Total borrowings outstanding from IBRD $ 55 $ 97 The weighted average remaining maturity of borrowings from IBRD was 2.6 years at June 30, 2005 (2.9 years - June 30, 2004). During fiscal year ended June 30, 2005, IFC entered into a Local Currency Borrowing Facility Agreement with IBRD, which is capped at $300 million. At June 30, 2005, an undrawn borrowings commitment amounting to $50 million had been entered into under this facility ($nil - June 30, 2004). Charges on borrowings for the year ended June 30, 2005 includes $5 million ($8 million - year ended June 30, 2004; $10 million - year ended June 30, 2003) in respect of IBRD borrowings. Maturity of borrowings The principal amounts repayable on borrowings outstanding in all currencies, gross of any premiums or discounts, during the years ending June 30, 2006 through June 30, 2010 and thereafter are summarized below (US$ millions): 2006 2007 2008 2009 2010 Thereafter Total Borrowings from market sources $ 1,478 $ 1,885 $ 1,824 $ 1,228 $ 1,926 $ 9,007 $ 17,348 Borrowings from IBRD 24 18 9 3 1 - 55 Total borrowings, gross $ 1,502 $ 1,903 $ 1,833 $ 1,231 $ 1,927 $ 9,007 17,403 Less: Unamortized discounts, net (593) Fair value adjustments (1,451) Carrying value of borrowings $ 15,359 After the effect of interest rate and currency swaps, the Corporation's borrowings generally reprice within one year. NOTE J ­ PAYABLES AND OTHER LIABILITIES Payables and other liabilities are summarized below (US$ millions): June 30, 2005 June 30, 2004 Accrued charges on borrowings $ 247 $ 269 Accrued charges on derivative instruments 268 205 Payables for purchases of securities 1,769 1,735 Accounts payable, accrued expenses and other liabilities 416 191 Deferred income 50 47 Total payables and other liabilities $ 2,750 $ 2,447 NOTE K ­ CAPITAL TRANSACTIONS The Corporation's authorized share capital was increased to $2,450 million through two capital increases in 1992. The subscription and payment period for shares then allocated ended on August 1, 1999, but the Corporation has agreed to defer the payment date for certain member countries beyond this date. Pursuant to these arrangements, $1 million of subscribed shares remained unpaid at June 30, 2005 ($1 million - June 30, 2004). During the year ended June 30, 2005, 1,615 shares were subscribed and paid by member countries at a par value of $1,000 each (720 - year ended June 30, 2004). $nil million was paid in on account of pending subscriptions in the year ended June 30, 2005 ($1 million - year ended June 30, 2004). IFC 2005 ANNUAL REPORT 49 Page 19 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On July 28, 2005, the Board of Directors approved the designation of $125 million of the Corporation's retained earnings for the purposes of the funding mechanism for technical assistance and advisory services. On July 28, 2005, the Board of Directors approved the designation of $250 million of the Corporation's retained earnings for the purposes of establishing a proposed performance-based grants initiative. During the year ended June 30, 2005, no amounts have been utilized for the initiative. NOTE L ­ OTHER INCOME Other income for the year ended June 30, 2005, predominantly comprises $16 million of fees collected from clients for expenses incurred by the Corporation on their behalf, included in administrative expenses ($16 million - year ended June 30, 2004; $15 million - year ended June 30, 2003) and other income under other reimbursable arrangements of $13 million ($10 million - year ended June 30, 2004; $8 million ­ year ended June 30, 2003). NOTE M ­ CONTRIBUTIONS TO SPECIAL PROGRAMS Prior to the year ended June 30, 2005, from time to time, the Board of Directors approved recommendations under which the Corporation contributed to special programs, comprising the Corporation's Global Small and Medium Enterprise Capacity Building Facility, Technical Assistance Fund and Foreign Investment Advisory Service and other donor-funded operations. During the year ended June 30, 2004, the Corporation contributed a total of $29 million to these facilities ($28 million - year ended June 30, 2003), of which the largest amounts were attributable to the Global SME Capacity Building facility and the Private Enterprise Partnership. NOTE N ­ TECHNICAL ASSISTANCE AND ADVISORY SERVICES During the year ended June 30, 2004, $225 million was designated for the funding mechanism for technical assistance and advisory services. There were no expenditures under the technical assistance and advisory services funding mechanism in the year ended June 30, 2004. During June 30, 2005, the Board of Directors approved $160 million in respect of proposed future technical assistance and advisory activities, which were expected to be expended under the technical assistance and advisory services funding mechanism beginning in the years ending June 30, 2006 through June 30, 2010, including $70 million projected in the year ending June 30, 2006. Actual amounts expended may differ from projected amounts, both in terms of amount and timing. During the year ended June 30, 2005, the Corporation has recorded expenditures for technical assistance and advisory services totaling $38 million. At June 30, 2005, retained earnings designated for technical assistance and advisory services totaled $312 million. NOTE O ­ NET GAINS (LOSSES) ON OTHER FINANCIAL INSTRUMENTS Net gains (losses) on other financial instruments for the year ended June 30, 2005, 2004, and 2003, comprises (US$ millions): 2005 2004 2003 Difference between changes in fair value of derivative instruments designated as a fair value hedge and change in fair value of hedged items attributable to risks being hedged $ (48) $ 65 $ (32) Change in fair value of derivative instruments, other than those associated with liquid asset investments, not designated as a hedge 112 (54) (6) Amortization of difference between fair value and carrying value of hedged items at July 1, 2000 not designated for hedge accounting under SFAS No. 133 (3) (2) (5) Release from accumulated other comprehensive income of transition gain on cash flow-like hedges 1 2 2 Net gains (losses) on other financial instruments $ 62 $ 11 $ (41) Of the total net gains (losses) on other financial instruments, unrealized gains of $44 million (losses $26 million - year ended June 30, 2004; $nil million ­ year ended June 30, 2003) are attributable to borrowings and related derivatives transactions, unrealized gains of $15 million (gains $36 million - year ended June 30, 2004; losses $40 million ­ year ended June 30, 2003) are attributable to loans and related derivatives transactions, and unrealized gains of $3 million (gains $1 million - year ended June 30, 2004; losses $1 million - year ended June 30, 2003) are attributable to client risk management activities. Upon the adoption of SFAS No. 133 on July 1, 2000, the Corporation recorded a gain of $14 million to accumulated other comprehensive income to adjust the book value to fair value of cross-currency interest rate swaps in cash flow-like hedges. The Corporation elected not to seek hedge accounting for these transactions under SFAS No.133 and, accordingly, records the cross-currency interest rate swaps at fair value, with the change in fair value included in earnings. The gain recorded in accumulated other comprehensive income upon adoption of SFAS No.133 is released into earnings over the remaining original hedge term. The amounts released for the years ended June 30, 2005 and June 30, 2004 are shown above; the expected release for the year ending June 30, 2006 is $1 million. 50 IFC 2005 ANNUAL REPORT Page 20 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE P ­ DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS Many of the Corporation's financial instruments are not actively traded in any market. Accordingly, estimates and present value calculations of future cash flows are used to estimate the fair values. Determining future cash flows for fair value estimation is subjective and imprecise, and minor changes in assumptions or methodologies may materially affect the estimated values. The excess or deficit resulting from the difference between the carrying amounts and the fair values presented does not necessarily reflect the realizable values, since the Corporation generally holds loans, borrowings and other financial instruments to maturity with the aim of realizing their recorded values. The estimated fair values reflect the interest rate environments as of June 30, 2005 and June 30, 2004. In different interest rate environments, the fair value of the Corporation's financial assets and liabilities could differ significantly, especially the fair value of certain fixed rate financial instruments. Reasonable comparability of fair values among financial institutions is not likely, because of the wide range of permitted valuation techniques and numerous estimates that must be made in the absence of secondary market prices. This lack of objective pricing standards introduces a greater degree of subjectivity and volatility to these derived or estimated fair values. Therefore, while disclosure of estimated fair values of financial instruments is required, readers are cautioned in using these data for purposes of evaluating the financial condition of the Corporation. The fair values of the individual financial instruments do not represent the fair value of the Corporation taken as a whole. The methodologies used and key assumptions made to estimate fair values as of June 30, 2005 and June 30, 2004 are summarized below. Liquid assets - The estimated fair value of time deposits and the trading securities portfolio are based on quoted market prices and the present value of estimated future cash flows using appropriate discount rates. Derivative instruments - Fair values for covered forwards were derived by using quoted market forward exchange rates. Fair values for other derivative instruments were derived by determining the present value of estimated future cash flows using appropriate discount rates. Loans and loan commitments - The Corporation generally has not sold its loans from the portfolio, and there is no comparable secondary market. Fair values for fixed rate loans and loan commitments were determined using a discounted cash flow model based on a discount rate comprising the fixed rate loan spread plus the year-end estimated cost of funds. Since rates on variable rate loans and loan commitments are generally reset on a quarterly or semiannual basis, the carrying value adjusted for credit risk was determined to be the best estimate of fair value. The Corporation also holds options to convert loans into equity of certain of its investee companies. Fair values of these conversion options are based on quoted market prices or other calculated values of the underlying equity investment. Equity investments - Fair values of equity investments accounted for at cost less impairment were determined using market prices where available, put option prices, book values or cost, certain of which were discounted based upon management's estimate of net realizable value. Where market prices were not available or alternate valuation techniques were not practical, cost was determined to be the best estimate of fair value. Investments in LLPs and certain LLCs are not included as they are accounted for under the equity method. Borrowings - Fair values were derived by determining the present value of estimated future cash flows using appropriate discount rates. IFC 2005 ANNUAL REPORT 51 Page 21 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Estimated fair values of the Corporation's financial assets and liabilities and off-balance sheet financial instruments are summarized below (US$ millions). The Corporation's credit exposure is represented by the estimated fair values of its financial assets. June 30, 2005 June 30, 2004 Carrying Fair value amount adjustments Fair value Fair value Financial assets Due from banks, time deposits, securities and securities purchased under resale agreements $ 22,781 $ - $ 22,781 $ 18,397 Loans 9,973 423 10,396 10,222 Reserve against losses on loans (989) - (989) (1,367) Net Loans 8,984 423 9,407 8,855 Cost method equity investments 2,095 2,654 4,749 3,178 Derivative assets: Liquid asset portfolio-related 151 - 151 93 Loans-related 72 - 72 15 Borrowings-related 1,270 - 1,270 951 Client risk management-related 23 - 23 33 Total derivative assets 1,516 - 1,516 1,092 Nonfinancial assets 3,774 - 3,774 2,593 Total assets $ 39,150 $ 3,077 $ 42,227 $ 34,115 Financial liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 9,321 $ $ 9,321 $ 4,329 Market and IBRD borrowings outstanding 15,359 2 15,361 16,258 Derivative liabilities: Liquid asset portfolio-related 733 - 733 716 Loans-related 139 - 139 162 Borrowings-related 1,439 - 1,439 637 Client risk management-related 21 - 21 34 Total derivative liabilities 2,332 - 2,332 1,549 Nonfinancial liabilities 2,750 2,750 2,447 Total liabilities $ 29,762 $ 2 $ 29,764 $ 24,583 June 30, 2005 June 30, 2004 Carrying Fair value amount adjustments Fair value Fair value Off-balance sheet financial instruments Loan commitments $ 4,819 $ 12 $ 4,831 $ 3,527 52 IFC 2005 ANNUAL REPORT Page 22 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE Q ­ CURRENCY POSITION The Corporation conducts its operations for its loans, time deposits and securities and borrowings in multiple currencies. The Corporation's policy is to minimize the level of currency risk by closely matching the currency of its assets (other than equity investments and quasi-equity investments) and liabilities by using hedging instruments. The Corporation's equity investments in enterprises located in its developing member countries are typically made in the local currency of the country. As a matter of policy, the Corporation carries the currency risk of equity investments and quasi-equity investments and funds these investments from its capital and retained earnings. The following table summarizes the Corporation's exposure in major currencies at June 30, 2005, and June 30, 2004 (US$ millions): June 30, 2005 Japanese Other Fair value US dollar Euro yen currencies adjustments Total Assets Cash and cash equivalents $ 14,020 $ 2,020 $ 199 $ 260 $ - $ 16,499 Securities purchased under resale agreements 5,436 846 - - - 6,282 Loans disbursed and outstanding 8,075 1,193 26 668 11 9,973 Less: Reserve against losses on loans (795) (127) (3) (64) - (989) Net loans 7,280 1,066 23 604 11 8,984 Equity investments - - - 2,505 - 2,505 Total loans and equity investments disbursed and outstanding 7,280 1,066 23 3,109 11 11,489 Derivative assets 2,653 1,629 5,355 4,512 (12,633) 1,516 Receivables and other assets 3,477 69 106 122 - 3,774 Total assets $ 32,866 $ 5,630 $ 5,683 $ 8,003 $ (12,622) $ 39,560 Liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 7,845 $ 1,476 $ - $ - $ - $ 9,321 Borrowings 6,823 508 5,013 4,466 (1,451) 15,359 Derivative liabilities 8,749 3,487 568 887 (11,359) 2,332 Payables and other liabilities 2,414 97 100 139 - 2,750 Total liabilities $ 25,831 $ 5,568 $ 5,681 $ 5,492 $ (12,810) $ 29,762 June 30, 2004 Japanese Other Fair value US dollar Euro yen currencies adjustments Total Assets Cash and cash equivalents $ 11,859 $ 2,831 $ 455 $ 158 $ - $ 15,303 Securities purchased under resale agreements 2,916 178 - - - 3,094 Loans disbursed and outstanding 8,286 984 26 444 13 9,753 Equity investments disbursed and outstanding - - - 2,557 2 2,559 Total investments 8,286 984 26 3,001 15 12,312 Reserve against losses (1,779) (183) (4) (67) - (2,033) Net investments 6,507 801 22 2,934 15 10,279 Derivative assets 2,346 1,800 5,411 4,237 (12,702) 1,092 Receivables and other assets 2,260 121 116 96 - 2,593 Total assets $ 25,888 $ 5,731 $ 6,004 $ 7,425 $ (12,687) $ 32,361 Liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 3,126 $ 1,203 $ - $ - $ - $ 4,329 Borrowings 7,457 677 4,993 4,061 (934) 16,254 Derivative liabilities 8,232 3,598 902 697 (11,880) 1,549 Payables and other liabilities 2,127 115 107 98 - 2,447 Total liabilities $ 20,942 $ 5,593 $ 6,002 $ 4,856 $ (12,814) $ 24,579 IFC 2005 ANNUAL REPORT 53 Page 23 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE R ­ SEGMENT REPORTING For management purposes, the Corporation's business comprises two segments: client services and treasury services. The client services segment consists primarily of lending and equity investment activities. Operationally, the treasury services segment consists of the borrowing, liquid asset management, asset and liability management and client risk management activities. Consistent with internal reporting, net income (expense) from asset and liability management and client risk management activities in support of client services are allocated to client services segment. The assessment of segment performance by senior management includes net income for each segment, return on assets, and return on capital employed. The Corporation's management reporting system and policies are used to determine revenues and expenses attributable to each segment. Consistent with internal reporting, administrative expenses are allocated to each segment based largely upon personnel costs and segment head counts. Transactions between segments are immaterial and, thus, are not a factor in reconciling to the consolidated data. The accounting policies of the Corporation's segments are, in all material respects, consistent with those described in note A, "Summary of Significant Accounting and Related Policies." An analysis of the Corporation's major components of income and expense by business segment for the years ended June 30, 2005, 2004, and 2003 is given below (US$ millions): 2005 2004 2003 Client Treasury Client Treasury Client Treasury services services Total services services Total services services Total Interest income $ 660 $ 533 $ 1,193 $ 518 $ 278 $ 796 $ 477 $ 318 $ 795 Charges on borrowings (151) (158) (309) (41) (100) (141) (79) (147) (226) Net (losses) gains on trading activities - (175) (175) - (104) (104) - 157 157 Net income from equity investments 1,365 - 1,365 658 - 658 145 - 145 Release of (provision for) losses on loans and guarantees 261 - 261 103 - 103 (48) - (48) Service fees 41 - 41 41 - 41 51 - 51 Administrative expenses (397) (6) (403) (354) (6) (360) (326) (6) (332) Other noninterest income (expense) 18 - 18 (14) 3 (11) (14) - (14) Income before expenditures for technical assistance and advisory services and net gains (losses) on other financial instruments 1,797 194 1,991 911 71 982 206 322 528 Expenditures for technical assistance and advisory services (38) - (38) - - - - - - Net gains (losses) on other financial instruments 18 44 62 37 (26) 11 (41) - (41) Net income $ 1,777 $ 238 $ 2,015 $ 948 $ 45 $ 993 $ 165 $ 322 $ 487 Geographical segment data in respect of client services are disclosed in Note C, and are not relevant in respect of treasury services. NOTE S ­ PENSION AND OTHER POSTRETIREMENT BENEFITS The Corporation, IBRD, and MIGA participate in a defined benefit SRP, a Retired Staff Benefits Plan (RSBP), and a Post-Employment Benefits Plan (PEBP) that cover substantially all of their staff members. The SRP provides regular pension benefits and includes a cash balance plan. The RSBP provides certain health and life insurance benefits to eligible retirees. The PEBP provides certain pension benefits administered outside the SRP. The Corporation uses a June 30 measurement date for its pension and other postretirement benefit plans. The amounts presented below reflect the Corporation's respective share of the costs, assets, and liabilities of the plans. All costs, assets, and liabilities associated with these plans are allocated between the Corporation, IBRD, and MIGA based upon their employees' respective contributions to the plans. Costs allocated to IBRD are then shared between IBRD and IDA based on an agreed cost- sharing ratio. The Corporation, IDA, and MIGA reimburse IBRD for their proportionate share of any contributions made to these plans by IBRD. Contributions to these plans are calculated as a percentage of salary. 54 IFC 2005 ANNUAL REPORT Page 24 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table summarizes the projected benefit obligations, fair value of plan assets, and funded status associated with SRP, RSBP, and PEPB allocated to the Corporation for the years ended June 30, 2005, 2004, and 2003 (US$ millions): SRP RSBP PEPB 2005 2004 2003 2005 2004 2003 2005 2004 2003 Benefit cost Service cost $ 48 $ 43 $ 44 $ 6 $ 5 $ 5 $ 2 $ 2 $ 1 Interest cost 100 84 96 7 5 6 1 1 1 Expected return on plan assets (145) (122) (125) (8) (6) (6) - - - Amortization of prior service cost 3 3 3 - - - - - - Amortization of unrecog- nized net loss (gain) - 3 - 2 2 2 - - - Amortization of transition asset - - (3) - - - - - - Net periodic pension cost $ 6 $ 11 $ 15 $ 7 $ 6 $ 7 $ 3 $ 3 $ 2 The expenses for the SRP, RSBP, and PEBP are included in STET expense from pension and other postretirement benefit plans. For the fiscal years ended June 30, 2005, June 30, 2004, and June 30, 2003, expenses for these plans of $16 million, $20 million and $24 million, respectively, were allocated to IFC. The Corporation's net expense for these plans reported in the income statement was $14 million, $19 million, and $24 million for the fiscal years ended June 30, 2005, June 30, 2004, and June 30, 2003, respectively. The following table summarizes the benefit obligations, plan assets and funded status associated with the SRP, RSBP, and PEBP for the Corporation for the fiscal years ended June 30, 2005, June 30, 2004, and June 30, 2003 (US$ millions). Since the assets for the PEBP are not held in an irrevocable trust separate from the assets of IBRD, they do not qualify for off-balance sheet accounting and are therefore included in IBRD's investment portfolio. IFC has recognized a receivable (prepaid asset) from IBRD and a payable (liability) to IBRD equal to the amount required to support the plan. The assets of the PEBP are invested in fixed income instruments. SRP RSBP PEPB 2005 2004 2003 2005 2004 2003 2005 2004 2003 Projected Benefit Obligation Beginning of year $ 1,392 $ 1,269 $ 1,166 $ 103 $ 91 $ 87 $ 15 $ 12 $ 11 Service cost 48 43 44 6 5 5 2 2 1 Interest cost 100 84 96 7 5 6 1 1 1 Employee contributions 14 13 13 2 1 1 - - Amendments - - 13 - - 3 - - 1 Benefits paid (68) (56) (53) (6) (5) (4) (2) (1) (1) Actuarial loss (gain) 145 39 (10) 50 6 (7) 7 1 (1) End of year 1,631 1,392 1,269 162 103 91 23 15 12 Fair value of plan assets Beginning of year $ 1,592 $ 1,328 $ 1,328 $ 99 $ 80 $ 77 $ - $ - $ - Employee contributions 14 13 13 2 1 1 - - - Actual return on assets 88 284 33 15 16 2 - - - Employer contributions 44 23 7 8 7 4 - - - Benefits paid (68) (56) (53) (6) (5) (4) - - - End of year 1,670 1,592 1,328 118 99 80 - - - Funded status Plan assets in excess of (less than) projected benefit obligation $ 39 $ 200 $ 59 $ (44) $ (4) $ (11) $ (23) $ (15) $ (12) Unrecognized net loss (gain) from past experience different from changes in assumptions 258 57 183 62 21 26 6 (1) (2) Unrecognized prior service cost 11 14 17 - - - - - - Prepaid (accrued) pension cost $ 308 $ 271 $ 259 $ 18 $ 17 $ 15 $ (17) $ (16) $ (14) Accumulated Benefit Obligation $ 1,255 $ 1,008 $ 930 $ 162 $ 103 $ 91 $ 20 $ 13 $ 10 The prepaid SRP cost was $308 million at June 30, 2005 ($270 million - June 30, 2004) and the prepaid RSBP cost was $18 million at June 30, 2005 ($17 million - June 30, 2004). These amounts are included in Receivables and other assets in the Balance Sheet. IFC 2005 ANNUAL REPORT 55 Page 25 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Assumptions The actuarial assumptions used are based on financial market interest rates, past experience, and management's best estimate of future benefit changes and economic conditions. Changes in these assumptions will impact future benefit costs and obligations. The expected long-term rate of return for the SRP assets is a weighted average of the expected long-term (10 years or more) returns for the various asset classes, weighted by the portfolio allocation. Asset class returns are developed using a forward-looking building block approach and are not strictly based on historical returns. Equity returns are generally developed as the sum of expected inflation, expected real earnings growth and expected long-term dividend yield. Bond returns are generally developed as the sum of expected inflation, real bond yield, and risk premium/spread (as appropriate). Other asset class returns are derived from their relationship to equity and bond markets. The expected long- term rate of return for the RSBP is computed using procedures similar to those used for the SRP. The discount rate used in determining the benefit obligation is selected by reference to the year-end AAA and AA corporate bonds. Actuarial gains and losses occur when actual results are different from expected results. Amortization of these unrecognized gains and losses will be included in income if, at the beginning of the fiscal year, they exceed 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets. If required, the unrecognized gains and losses are amortized over the expected average remaining service lives of the employee group. The following tables present the weighted-average assumptions used in determining the projected benefit obligations and the net periodic pension costs for the fiscal years ended June 30, 2005, June 30, 2004, and June 30, 2003: Weighted average assumptions used to determine projected benefit obligation (%) SRP RSBP PEPB 2005 2004 2003 2005 2004 2003 2005 2004 2003 Discount rate 5.25 6.25 5.75 5.25 6.25 5.75 5.25 6.25 5.75 Service cost 5.90 6.40 5.40 Health care growth rates -at end of fiscal year 6.80 7.30 6.10 Ultimate health care growth rate 4.25 4.75 3.75 Year in which ultimate rate is reached 2012 2012 2011 Weighted average assumptions used to determine net periodic pension cost (%) SRP RSBP PEPB 2005 2004 2003 2005 2004 2003 2005 2004 2003 Discount rate 6.25 5.75 6.75 6.25 5.75 6.75 6.25 5.75 6.75 Expected return on plan assets 7.75 7.75 7.75 8.25 7.75 7.75 Rate of compensation increase 6.40 5.40 6.40 Health care growth rates -at end of fiscal year 7.30 6.10 7.10 -to year 2011 and thereafter 4.75 3.75 4.75 The medical cost trend rate can significantly affect the reported postretirement benefit income or costs and benefit obligations for the RSBP. The following table shows the effects of a one-percentage-point change in the assumed healthcare cost trend rate (US$ millions): One percentage point increase One percentage point decrease Effect on total service and interest cost $ 23 $ (19) Effect on postretirement benefit obligation 279 (222) Investment Strategy The investment policy for the SRP and the RSBP is to optimize the risk-return relationship as appropriate to the respective plan's needs and goals, using a global diversified portfolio of various asset classes. Specifically, the long-term asset allocation is based on an analysis that incorporates expected returns by asset class as well as volatilities and correlations across asset classes and the liability profile of the respective plans. This analysis, referred to as an asset-liability analysis, also provides estimates of potential future contributions and future asset and liability balances. Plan assets are managed by external investment managers and monitored by IBRD's pension investment department. The pension plan assets are invested in diversified portfolios of public equity, fixed income, and alternative investments. The fixed-income and public equity asset classes are rebalanced on a monthly basis. 56 IFC 2005 ANNUAL REPORT Page 26 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table presents the weighted-average asset allocation at June 30, 2005, and June 30, 2004, and the respective target allocation by asset category for the SRP and RSRP (%): SRP RSBP Target % of Plan Target % of Plan Assets Allocation Assets Allocation 2005 2005 2005 2004 2005 2004 Asset Class Fixed Income 40% 40% 40% 30% 31% 30% Public Equity 35 40 42 30 37 43 Alternative Investments 25 20 18 40 32 27 Total 100% 100% 100% 100% 100% 100% Alternative Investments include: Private Equity up to 12% 7.1% 7.0% up to 28 11.2% 11.0% Real Estate up to 8 4.0 4.0 up to 18 3.7 3.5 Hedge Funds up to 12 8.7 7.0 up to 23 16.8 12.5 Estimated Future Benefits Payments The following table shows the benefit payments expected to be paid in each of the next five years and subsequent five years. The expected benefit payments are based on the same assumptions used to measure the benefit obligation at June 30, 2005 (US$ millions): SRP RSBP PEBP July 1, 2005 - June 30, 2006 $56 $3 $1 July 1, 2006 - June 30, 2007 62 4 1 July 1, 2007 - June 30, 2008 68 4 1 July 1, 2008 - June 30, 2009 74 5 1 July 1, 2009 - June 30, 2010 79 6 1 July 1, 2010 - June 30, 2015 474 36 9 Expected Contributions The Corporation's contribution to the SRP and RSBP varies from year to year, as determined by the Pension Finance Committee, which bases its judgment on the results of annual actuarial valuations of the assets and liabilities of the SRP and RSBP. The best estimate of the amount of contributions expected to be paid to the SRP and RSBP for the Corporation during the fiscal year beginning July 1, 2005 is $47 million and $12 million, respectively. NOTE T ­ SERVICE AND SUPPORT PAYMENTS The Corporation obtains certain administrative and overhead services from IBRD in those areas where common services can be efficiently provided by IBRD. This includes shared costs of the Boards of Governors and Directors, and other services such as communications, internal auditing, administrative support, supplies, and insurance. The Corporation makes payments for these services to IBRD based on negotiated fees, chargebacks and allocated charges, where chargeback is not feasible. Expenses allocated to the Corporation for the year ended June 30, 2005, were $25 million ($21 million - year ended June 30, 2004; $19 million - year ended June 30, 2003). NOTE U ­ TRUST FUNDS The Corporation uses the services of IBRD to administer funds on behalf of donors that are restricted for specific uses, including technical assistance, feasibility studies and project preparation, global and regional programs and research and training programs. These funds are placed in trust and are not included in the Corporation's assets. The responsibilities of the Corporation are to arrange for services generally not otherwise provided by it, including full project implementation and procurement of goods and services. The distribution of Trust Fund assets by executing agent is as follows (US$ millions): June 30, 2005 June 30, 2004 Total fiduciary Number of Total fiduciary Number of assets active funds assets active funds Executed by the Corporation $ 287 612 $ 232 578 Executed by the recipient - - 1 1 Total $ 287 612 $ 233 579 IFC 2005 ANNUAL REPORT 57 Page 27 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE V ­ CONTINGENCIES In the normal course of its business, the Corporation is from time to time named as a defendant or co-defendant in various legal actions on different grounds in various jurisdictions. Although there can be no assurances, based on the information currently available, the Corporation's Management does not believe the outcome of any of the various existing legal actions will have a material adverse effect on the Corporation's financial condition or results of operations. NOTE W ­ VARIABLE INTEREST ENTITIES An entity is subject to FIN 46R and is called a variable interest entity (VIE) if it has: (1) equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; or (2) equity investors that lack decision-making rights about the entity's operations or the equity holders that do not absorb the expected losses or receive the expected returns of the entity proportionally to their voting rights. A VIE is consolidated by its primary beneficiary, which is the party involved with the VIE that absorbs a majority of the expected losses or receives a majority of the expected residual returns or both. The primary beneficiary is required to initially measure the assets, liabilities and noncontrolling interests of the VIE at their carrying amounts at the date on which it first became the primary beneficiary. Because certain VIEs were created prior to the issuance of FIN 46R, it may not be practicable to determine the carrying amounts of the assets, liabilities and noncontrolling interests at the initial date, and in such cases, the primary beneficiary must measure the assets, liabilities and noncontrolling interests at their fair values on the date FIN 46R is first applied. The primary beneficiary is also required to disclose information about the nature, purpose, size, and activities of the VIE, and collateral and recourse creditors may have against the VIE. An enterprise may hold significant variable interests in VIEs, which are not consolidated because the enterprise is not the primary beneficiary. In such cases, the enterprise is required to disclose information about its involvement with and exposure to the VIE, and about the nature, purpose, size, and activities of the VIE. An enterprise is not required to apply FIN 46R to certain entities if, after making an exhaustive effort, it is unable to obtain the information necessary to: (1) determine whether the entity is a VIE; (2) determine if the enterprise is the primary beneficiary of the possible VIE; or (3) perform the accounting required to consolidate a possible VIE. In such cases, the enterprise is required to disclose the number of entities to which FIN 46R is not being applied, why the information required to apply FIN 46R is not available, the nature, purpose and activities of the entities to which FIN 46R is not being applied, and the enterprise's maximum exposure to the entities to which FIN 46R is not being applied. The Corporation is required to apply the provisions of FIN 46R to entities created on or after January 1, 2004 in its financial statements for the year ended June 30, 2005, and to entities created before January 1, 2004 in its financial statements for the year ending June 30, 2006. The Corporation has identified two VIEs, created after January 1, 2004, in which the Corporation is deemed to be the primary beneficiary. The two entities have been consolidated into IFC's financial statements as of June 30, 2005. The two entities are securitization vehicles in the Finance and Insurance sector in the Latin America and Caribbean Region. IFC has issued a financial guarantee against the senior debt securities of the securitization vehicles. The securitization vehicles meet the definition of a VIE. Accordingly, the financial guarantees issued by IFC have been deemed to absorb the majority of the expected losses of the securitization vehicles, and IFC is, therefore, deemed to be the primary beneficiary. As a result of the consolidation, IFC has included assets of $131 million in receivables and other assets and liabilities of $131 million in payables and other liabilities in its balance sheet; there was no material impact on the Corporation's results of operations or cash flows associated with the consolidation. The Corporation has also identified three VIEs, created before January 1, 2004, in which IFC is deemed to be the primary beneficiary. These three entities will be consolidated into IFC's financial statements beginning in the year ending June 30, 2006. IFC's net investment in these three entities totals $2 million and, accordingly, consolidation of these entities beginning in the year ending June 30, 2006 is expected to have no material impact on the financial position, results of operations or cash flows of IFC. 58 IFC 2005 ANNUAL REPORT Page 28 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS In addition, based on the exhaustive review of its loan, equity and guarantee portfolio, the Corporation has identified 34 investments in VIEs in which the Corporation is not the primary beneficiary, but in which it is reasonably possible the Corporation could be deemed to hold significant variable interests. The Corporation's total investment in these entities, comprising disbursed and committed but undisbursed balances, which correspond to the maximum exposure to loss the Corporation has as a result of its involvement, was $195 million at June 30, 2005. The regional and sectoral analysis of the Corporation's investments in these VIEs is as follows (US$ millions): June 30, 2005 Equity Loans investments Total Latin America and Caribbean $ 149 $ 13 $ 162 Europe and Central Asia 54 19 73 Asia 27 16 43 Sub-Saharan Africa 102 11 113 Middle East and North Africa 31 - 31 Other - 29 29 Total VIE investments $ 363 $ 88 $ 451 June 30, 2005 Equity Loans investments Total Finance and insurance $ 28 $ 15 $ 43 Utilities 130 3 133 Oil, gas and mining 55 4 59 Transportation and warehousing 68 12 80 Information 7 4 11 Food and beverages 7 2 9 Nonmetallic mineral product manufacturing 24 - 24 Collective investment vehicles - 38 38 Accommodation and tourism services 4 - 4 Pulp and paper 21 2 23 Textiles, apparel and leather 1 - 1 Plastics and rubber 18 8 26 Total VIE Investments $ 363 $ 88 $ 451 Based on the most recent available data from these VIEs, the assets of these VIEs totaled $3,997 million. IFC 2005 ANNUAL REPORT 59 Sub-Saharan Africa 60 East Asia and the Pacific 62 South Asia 64 Europe and Central Asia 65 Latin America and the Caribbean 69 Project Commitments Middle East and North Africa 72 Global 73 This table includes projects signed and processed during FY05. Certain transactions signed in FY04 for which processing was not completed until FY05 are also included. All amounts are given in U.S. dollars, regardless of the currency of the transaction. For the purposes of the table, "IFC Loan" includes loan-type quasi-equity investments; "IFC Equity" includes equity-type quasi- equity investments. Structured finance mobilization is a feature of selected transactions reported under guarantee, loan, and equity investments, but this amount is not included in the total committed for these projects. The mobilization number covers the full amount at the project commitment date (projects may involve tranches in multiple years). Where such projects have not yet gone to market, the mobilization column is marked "to be determined," and the amount will be reported in FY06. Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization SUB-SAHARAN AFRICA REGIONAL Afren Plc will establish and develop oil and gas enterprises in the Gulf of Guinea. ­ 1.03 ­ ­ ­ 1.03 ­ African Reinsurance Corporation will expand and strengthen its operational capacity. ­ 10.40 ­ ­ ­ 10.40 ­ Celtel International BV, a pan-African provider of cellular telephone services, will 40.00 ­ ­ ­ ­ 40.00 ­ expand and engage in acquisitions. Celtel International BV will allow IFC to purchase warrants in the company. ­ 1.00 ­ ­ ­ 1.00 ­ Celtel International BV will enable IFC to convert its preferred shares in the company. ­ 6.42 ­ ­ ­ 6.42 ­ Pan African Investment Partners Ltd., a private equity fund, will target high- ­ 10.50 ­ ­ ­ 10.50 ­ growth regional companies. COUNTRY Angola Nossa Seguros, an insurance company, will introduce new products in the ­ 1.00 ­ ­ ­ 1.00 ­ country's insurance sector. OSEL, an engineering and construction company, will restructure and strengthen 10.00 ­ ­ ­ ­ 10.00 ­ its links with suppliers and subcontractors. Botswana Micro Provident Botswana Limited will strengthen its position among consumer ­ 3.92 ­ ­ ­ 3.92 ­ finance companies and help diversify the financial market. Burkina Faso SBPH S.A. will renovate the Hotel Indépendance as an international business hotel. 2.58 ­ ­ ­ ­ 2.58 ­ Cameroon Nosa Sarl will upgrade its laundry soap plant and install water treatment facilities. 1.00 ­ ­ ­ ­ 1.00 ­ Congo, Democratic Republic of Pro Credit Bank SARL, a microfinance institution, will tailor financial services to ­ .45 ­ ­ ­ .45 ­ lower-income clients and micro and small enterprises. (All amounts are in millions of U.S. dollars.) 60 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Gabon Vaalco Gabon (Etame), Inc., will undertake offshore oil exploration, 30.00 ­ ­ ­ ­ 30.00 ­ development, and production. Ghana Ghana School Finance Facility will provide local currency financing to build ­ ­ 1.50 ­ ­ 1.50 1.10 private schools and purchase educational materials in the Accra region. Scancom Limited, a mobile operator, will acquire a 15-year operating license 40.00 ­ ­ ­ ­ 40.00 ­ and extend its network. Kenya Investment & Mortgages Bank (Kenya) Ltd. will serve small and medium 3.00 ­ ­ ­ ­ 3.00 ­ enterprises and export-oriented corporate customers. Kongoni River Farm Limited will establish a rose flower farm in Nanyuki. 1.99 ­ ­ ­ ­ 1.99 ­ Magadi Soda Company Ltd. will transform its variable-rate loans into fixed-rate ­ ­ ­ 2.50 ­ 2.50 ­ liabilities to take advantage of low interest rates. Madagascar BNI-Credit Lyonnais Madagascar, a commercial bank, will finance projects in 6.27 ­ ­ ­ ­ 6.27 ­ the hotel and tourism, agribusiness, textile, and fishery industries. Mauritania Générale de Banque de Mauritanie pour l'Investissement et le Commerce 9.95 ­ ­ ­ ­ 9.95 ­ will provide medium and long-term finance to projects in Mauritania and nearby countries. Nigeria Accion Nigeria, a microfinance institution, will provide financial services to micro ­ 1.89 ­ ­ ­ 1.89 ­ and small enterprises and low-income individuals. Diamond Bank will address the country's scarcity of term finance. 30.00 ­ ­ ­ ­ 30.00 ­ Guaranty Trust Bank, Plc will provide term finance. 20.00 ­ ­ ­ ­ 20.00 ­ MTN Nigeria Communications Limited will expand its GSM cellular network. 35.00 ­ ­ ­ ­ 35.00 ­ Obajana Cement PLC will build and operate a greenfield cement plant. 75.00 ­ ­ ­ ­ 75.00 ­ South Africa FirstRand Limited will allocate common shares to black economic empowerment 27.18 ­ ­ ­ ­ 27.18 ­ groups and to its black South African staff. Hernic Ferrochrome Pty Limited will expand production capacity and improve .30 ­ ­ ­ ­ .30 ­ its environmental and social development program. South Africa Home Loans will invest in mortgage originations and securitization 1.38 ­ ­ ­ ­ 1.38 ­ of loans. Tanzania Bonite Bottlers Limited, a Coca-Cola franchise, will upgrade and expand its 10.00 ­ ­ ­ ­ 10.00 ­ plant in Moshi. Exim Bank of Tanzania will strengthen its capital base, foster competition in the 3.00 ­ ­ ­ ­ 3.00 ­ local credit market, and meet increasing demand from smaller businesses. Uganda Development Finance Company of Uganda Limited will develop business in 10.00 ­ ­ ­ ­ 10.00 ­ term finance, leasing, and mortgages. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 61 Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization EAST ASIA AND THE PACIFIC COUNTRY Cambodia Canadia Bank Limited, a private bank, will expand its residential mortgage portfolio. 5.00 ­ ­ ­ ­ 5.00 ­ China Babei Group Co., Ltd., a producer of silk ties and fabrics, will expand its 11.00 5.00 ­ ­ ­ 16.00 ­ facilities and increase production. Beijing City Commercial Bank will strengthen its capital base and introduce ­ 57.87 ­ ­ ­ 57.87 ­ international standards and practices. BioVeda China will provide capital for Chinese companies in biotechnology and ­ 3.00 ­ ­ ­ 3.00 ­ life sciences. CDH China Capital Growth Fund, L.P. will invest equity in high-growth and ­ 18.00 ­ ­ ­ 18.00 ­ market-leading Chinese companies. China Minsheng Banking Co., Ltd. will finance private sector companies. ­ 2.80 ­ ­ ­ 2.80 ­ CSRC China Corporation will expand a carbon black plant and increase its 11.00 1.00 ­ ­ ­ 12.00 ­ production capacity. CT Holdings Group Co., Ltd. will own and operate facilities for power 40.00 ­ ­ ­ ­ 40.00 ­ generation and gas transportation. Fang Xin Limited, a cosmetic packaging company, will expand its operations. ­ 5.00 ­ ­ ­ 5.00 ­ Five Star Home Appliance Co. Ltd. (Nanjing), a consumer electronics retailing ­ 7.00 ­ ­ ­ 7.00 ­ chain, will expand its operations. HiSoft Technology International Limited, an IT outsourcing company, will ­ 4.00 ­ ­ ­ 4.00 ­ expand into new technologies and businesses. Jiangxi Chenming Paper Co. Ltd. will build mills to produce high-quality 60.00 ­ ­ ­ ­ 60.00 ­ lightweight coated paper in Jiangxi. Minsheng Shipping will upgrade its fleet, improve efficiency, and serve the 15.75 ­ ­ ­ ­ 15.75 ­ demand for transportation along the Yangtze River. New Hope will expand its operations from the real sector to the financial sector. ­ 45.00 ­ ­ ­ 45.00 ­ Polarplus Industrial Shenzhen Company Limited, a cosmetics packaging 1.20 ­ ­ ­ .80 2.00 ­ company, will expand its operations. RAK Gao Yao Ceramics Limited will build a ceramic tile manufacturing line at its 13.00 ­ ­ ­ ­ 13.00 ­ plant in Gao Yao. Shanghai Derxin Precision Mould & Electronics Company Limited will expand 1.80 ­ ­ ­ 1.20 3.00 ­ its operations. Shanghai Fangxin Metal Technologies Company Limited, a cosmetics 7.20 ­ ­ ­ 4.80 12.00 ­ packaging company, will expand its operations. Shanxi HongAn Coking Technology Co., Ltd. will establish an export-oriented ­ ­ ­ ­ 30.00 30.00 ­ merchant plant to produce metallurgical coke. Stora Enso Oyj will develop its timber plantation and related investments. 50.00 ­ ­ ­ 25.00 75.00 ­ (All amounts are in millions of U.S. dollars.) 62 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Yantai Changyu Group Company Limited will increase its competitiveness in ­ 17.64 ­ ­ ­ 17.64 ­ the domestic wine market. Yantai North Andre Juice Co., Ltd. will expand its production facilities and 15.00 ­ ­ ­ ­ 15.00 ­ rationalize its capital structure to strengthen its position in its industry. Indonesia Bank NISP will acquire a diversified pool of receivables related to the purchase and ­ ­ 25.00 ­ ­ 25.00 25.00 renting of motorcycles. P.T. Astra Otoparts Tbk, a manufacturer and distributor of automotive components, 24.00 ­ ­ ­ ­ 24.00 ­ will increase production and enhance skills in product and process engineering. P.T. Austindo Nusantara Jaya, a financier of consumer purchases of automobiles, 15.00 ­ ­ ­ ­ 15.00 ­ will expand its financing and leasing activities, diversify its funding, and better match assets and liabilities. P.T. Ecogreen Oleochemicals will expand its production facility to improve its 25.00 ­ ­ ­ ­ 25.00 ­ international competitiveness and achieve economies of scale. P.T. Indorama Synthetics Tbk will build, own, and operate a power plant for its 48.00 ­ ­ ­ ­ 48.00 ­ main production site. P.T. Prakarsa Alam Segar will expand its noodle production to supply the market ­ ­ ­ ­ 5.20 5.20 ­ in western Java. P.T. Prakarsa Alam Segar will expand its noodle production to supply the market ­ ­ ­ ­ 4.80 4.80 ­ in western Java. Wahana Ottomitra Multiartha, a consumer finance company, will strengthen its ­ 20.00 ­ ­ ­ 20.00 ­ financing of motorcycles. Korea, Republic of Halim & Co., Ltd. will issue shares to strengthen its balance sheet, lower ­ 1.54 ­ ­ ­ 1.54 ­ financing costs, and maintain its position in the domestic poultry market. Lao People's Democratic Republic Millicom Lao Company Limited, a GSM cellular operator, will enhance its 4.00 ­ ­ ­ ­ 4.00 ­ network capacity and extend coverage to additional provinces. Papua New Guinea PNG MicroFinance will provide credit and financial services to micro and ­ 1.20 ­ ­ ­ 1.20 ­ small businesses. Philippines Cagayan Electric Power & Light Co., Inc. (CEPALCO) will expand its capital 14.95 ­ ­ ­ ­ 14.95 ­ expenditure program. Eastwood Cyber One Corporation, a property development company, will 12.50 ­ ­ ­ ­ 12.50 ­ expand an office park. Filinvest Land, Inc., will increase the supply of low-cost housing and 41.36 ­ ­ ­ ­ 41.36 ­ finance mortgages. National Home Mortgage Finance Corporation will develop the market for 30.31 1.89 ­ ­ ­ 32.21 ­ nonperforming assets. Paramount Life & General Insurance Corporation will make acquisitions to ­ 1.50 ­ ­ ­ 1.50 ­ consolidate the market for life and general insurance policies. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 63 Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Samoa Samoa Venture Capital Fund will support smaller enterprises with medium- to ­ .40 ­ ­ ­ .40 ­ long-term funding. Thailand Siam Industrial Credit Public Co. Ltd., a financier of automobiles and small 34.63 ­ ­ ­ ­ 34.63 ­ businesses, will diversify its funding and extend the maturities of its liabilities. TA Orange Company Limited, a mobile telephone company, will expand its 33.00 ­ ­ ­ ­ 33.00 ­ network and convert short-term debt into long-term financing. Vietnam Khai Vy Corporation and Duyen Hai Corporation, a furniture manufacturer, 6.00 ­ ­ ­ ­ 6.00 ­ will expand its working capital and refinance its short-term debt. Saigon Thuong Tin Commercial Joint Stock Bank will strengthen its capital ­ 1.17 ­ ­ ­ 1.17 ­ base and institutional capacity. Saigon Thuong Tin Commercial Joint Stock Bank will strengthen its capital ­ 2.04 ­ ­ ­ 2.04 ­ base and institutional capacity. SOUTH ASIA COUNTRY India AD Hydro Power Limited will build and operate a run-of-river hydropower 42.09 7.00 ­ ­ ­ 49.09 ­ project in the northern state of Himachal Pradesh. Andhra Pradesh Paper Mills Limited will refinance, upgrade its facilities, and 35.00 5.00 ­ ­ ­ 40.00 ­ improve its cost competitiveness and environmental friendliness. APIDC Biotechnology Venture Fund will invest in Indian companies in ­ 4.00 ­ ­ ­ 4.00 ­ biotechnology and life sciences. Apollo Tyres Limited will streamline the production process to improve 10.04 ­ ­ ­ ­ 10.04 ­ efficiency and increase capacity. Bharat Biotech International Limited will fund research, expand production ­ 4.50 ­ ­ ­ 4.50 ­ of affordable vaccines, and begin exporting to other developing countries. Centurion Bank Ltd. will conduct a rights issue as part of a recapitalization plan. ­ .07 ­ ­ ­ .07 ­ CMS Computers Ltd. will expand its operations into more than 180 cities ­ 2.50 ­ ­ ­ 2.50 ­ across India. Cosmo Films Limited will upgrade its production of polypropylene films for use ­ 4.11 ­ ­ ­ 4.11 ­ in packaging, lamination, tapes, labeling, and specialty applications. Dabur Pharma Limited will expand and upgrade its manufacturing facilities for ­ 15.06 ­ ­ ­ 15.06 ­ oncology products. DCM Shriram Consolidated Limited will consolidate its businesses, enhance its 30.00 ­ ­ ­ ­ 30.00 ­ cost competitiveness, and upgrade its environmental standards. Infrastructure Development Finance Company Limited, a financier of 50.00 ­ ­ ­ ­ 50.00 ­ infrastructure projects, will strengthen evolving market mechanisms and diversify its funding. Kotak Mahindra Bank, a commercial bank, will on-lend to small and 22.00 ­ ­ ­ ­ 22.00 ­ medium enterprises. (All amounts are in millions of U.S. dollars.) 64 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization KPIT Cummins Infosystems Limited, a provider of information technology 11.00 ­ ­ ­ ­ 11.00 ­ services, will expand its sales, build facilities for software development, and make strategic acquisitions. NIIT Student Loan Program will provide financing to students in computer ­ ­ 2.28 ­ ­ 2.28 ­ courses conducted by NIIT Ltd. Niko Resources Ltd., an oil and gas company, will expand its operations, install 10.00 ­ ­ ­ ­ 10.00 ­ an offshore platform and related equipment, and conduct onshore exploration and development. Rain Calcining Limited will upgrade its capacity for producing calcined 10.00 ­ ­ ­ ­ 10.00 ­ petroleum coke. Ramky Infrastructure Ltd. will implement concessions to provide waste ­ 11.00 ­ ­ ­ 11.00 ­ management services. Sealion Sparkle Port & Terminal Services Limited will provide port 4.93 ­ ­ ­ ­ 4.93 ­ management services to a new terminal at Dajej. Shree Ram Fibers Ltd. will expand its production of polyester film, integrate its 20.00 ­ ­ ­ ­ 20.00 ­ tire cord production, and diversify its chemicals business. Tata Iron & Steel Company Limited will implement an investment program. 100.00 ­ ­ ­ 200.00 300.00 ­ United Riceland Limited, a rice miller and exporter, will expand its milling capacity. 8.50 ­ ­ ­ ­ 8.50 ­ Vysya Bank will use proceeds of a rights issue to shore up its capital adequacy ­ 3.51 ­ ­ ­ 3.51 ­ ratio and fund growth in its asset base. Maldives Universal Enterprises Pvt. Limited will renovate its tourism facilities and 30.00 ­ ­ ­ ­ 30.00 ­ refinance to counteract difficulties caused by the tsunami. EUROPE AND CENTRAL ASIA REGIONAL Baltic-American Enterprise Fund will implement a securitization program for 7.07 ­ ­ ­ ­ 7.07 56.43 residential mortgages. Raiffeisen International Banking will expand its operation network in Belarus, 200.15 ­ ­ ­ ­ 200.15 ­ Russia, and Serbia and Montenegro. SEAF Central and Eastern Europe Growth Fund LLC will use a capital increase to ­ .44 ­ ­ ­ .44 ­ support small and medium enterprises in Central and Eastern Europe. Societe Generale, S.A. will support its affiliates' consumer finance activities, 265.00 ­ ­ ­ ­ 265.00 ­ operational car leasing activities, and related investment projects. COUNTRY Albania Fushe-Kruje Cement Factory will create an integrated complex producing 30.00 ­ ­ ­ ­ 30.00 ­ cement for the domestic market. Azerbaijan Kocbank (Azerbaijan) Limited will enhance its banking standards. ­ .40 ­ ­ ­ .40 ­ Belarus JSC Belgazprombank will meet increasing demand for term finance from small 5.00 ­ ­ ­ ­ 5.00 ­ and medium enterprises. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 65 Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Bosnia and Herzegovina Bosnalijek, d.d. Sarajevo, a pharmaceuticals company, will build facilities for 9.40 ­ ­ ­ ­ 9.40 ­ production, distribution, and storage. HVB Central Profit Banka d.d. will expand its corporate and retail lending business ­ 2.70 ­ ­ ­ 2.70 ­ HVB Central Profit Banka d.d. will expand its corporate and retail lending business. ­ 1.46 ­ ­ ­ 1.46 ­ Raiffeisen Bank D.D. Bosnia and Herzegovina will expand its housing 15.50 ­ ­ ­ ­ 15.50 ­ finance lending. Bulgaria Kaufland Bulgaria Eood & Co. KD will open discount stores. 52.21 ­ ­ ­ ­ 52.21 ­ Trakya Glass Bulgaria E.A.D., a subsidiary of the Turkish Sisecam Group, will ­ ­ ­ ­ 17.53 17.53 ­ finance construction of a greenfield tableware plant. Trakya Glass Bulgaria E.A.D. will build a float glass plant. ­ ­ ­ ­ 47.58 47.58 ­ Unionbank AD will extend its funding base and provide on-lending to small and 6.27 ­ ­ ­ ­ 6.27 ­ medium enterprises. Croatia Lidl d.o.o.k.d., Croatia will open discount food stores. 48.63 ­ ­ ­ ­ 48.63 ­ Privredna Banka Zagreb d.d. will improve its long-term lending, particularly to 99.42 ­ ­ ­ ­ 99.42 ­ mortgage customers and small enterprises. Georgia TBC Bank will strengthen its regulatory capital under the new supervisory rules of 4.00 ­ ­ ­ ­ 4.00 ­ the country's central bank. TBC Leasing will expand its operations with small and medium enterprises. 3.00 ­ ­ ­ ­ 3.00 ­ Kazakhstan Bank CenterCredit will provide leases to small and medium enterprises through 10.00 ­ ­ ­ ­ 10.00 ­ its subsidiary, CentreLeasing. BTA Leasing will expand its leasing operations and strengthen its capital base ­ 1.10 ­ ­ ­ 1.10 ­ and institutional capacity. Kyrgyz Republic Kyrgyz-Chinese Joint Venture Altyn-Ajydar will build a cardboard and fluting 1.40 ­ ­ ­ ­ 1.40 ­ paper plant and modernize a corrugated packaging plant. Kyrgyz Investment & Credit Bank will broaden its funding base and increase its 2.50 ­ ­ ­ ­ 2.50 ­ SME portfolio. Romania Banca Pentru Mica Industrie si Libera Initiativa will strengthen its capital 7.00 ­ ­ ­ ­ 7.00 ­ structure and extend the tenor of loans to small and medium enterprises. Banca Tiriac Priveste inainte will expand its medium-term financing for small 27.50 ­ ­ ­ ­ 27.50 ­ and medium enterprises and corporate clients. Banca Transilvania will raise subordinated capital through a public offering and 45.07 ­ ­ ­ ­ 45.07 ­ expand its mortgage lending. DistrigazSud, a gas distribution and supply company, will upgrade and expand ­ 54.43 ­ ­ ­ 54.43 ­ its network. (All amounts are in millions of U.S. dollars.) 66 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Unicredit Leasing S.A. will consolidate and expand its leasing business. 9.40 ­ ­ ­ ­ 9.40 ­ Russian Federation ABOLmed, an antibiotics company, will relocate its facilities to Novosibirsk and 8.00 ­ ­ ­ ­ 8.00 ­ expand capacity. Agro-Industrial Finance Company will provide financing to agricultural ­ ­ ­ ­ 2.50 2.50 ­ enterprises that have supply links to major food and agribusiness companies. Baring Vostok Private Equity Fund III, a private equity fund, will invest in ­ 12.50 ­ ­ ­ 12.50 ­ private Russian companies with solid growth potential. Bauxite Timana (SUAL) will expand its mine and build a greenfield alumina refinery. 45.00 ­ ­ ­ 30.00 75.00 ­ Eurosib SPB­Transportation Systems will expand and improve its railcar fleet. 30.00 ­ ­ ­ ­ 30.00 ­ JSC Novatek will expand its natural gas and condensate fields in the Yamalo-Nenets ­ 35.00 ­ ­ ­ 35.00 ­ Autonomous Region near the Arctic Circle. JSC SFAT; JSC RUSWORLD (Russkiy Mir Group) will modernize its rail tank 20.48 ­ ­ ­ 25.03 45.52 ­ car business. JSC SFAT; JSC RUSWORLD (Russkiy Mir Group) will modernize its rail tank 24.52 ­ ­ ­ 29.97 54.48 ­ car business. Kronospan Russia will build a greenfield wood-based panels plant in Egorievsk. 90.49 ­ ­ ­ ­ 90.49 ­ KuibyshevAzot JSC will refinance its short-term borrowings and upgrade its 15.00 ­ ­ ­ ­ 15.00 ­ production facilities. Limited Liability Company Esanna Holdings will acquire and renovate the 15.00 ­ ­ ­ 50.00 65.00 ­ Grand Hotel in St. Petersburg. Moscow Credit Bank will expand its lending to small and medium enterprises 10.00 ­ ­ ­ ­ 10.00 ­ and develop its mortgage lending capacity. North-Western Shipping Company will acquire new vessels to transport bulk 23.00 ­ ­ ­ 23.48 46.48 ­ and containerized cargo. OAO TogliattiAzot will build a second methanol line and upgrade its existing facility. 30.00 ­ ­ ­ 45.00 75.00 ­ OOO Kronostar will manufacture particleboard. 45.00 ­ ­ ­ ­ 45.00 ­ Open Joint Stock Company Commercial Bank "Center-invest," a private bank, 10.00 ­ ­ ­ ­ 10.00 ­ will use a ruble-indexed loan to provide long-term local currency loans to small and medium enterprises. Peter Hambro Mining Plc will explore and appraise its properties in the Amur ­ 15.00 ­ ­ ­ 15.00 ­ region in Russia's Far East. Quadriga Capital Russia, a private equity fund, will invest in private midsize ­ 17.70 ­ ­ ­ 17.70 ­ companies, mainly in the St. Petersburg and Nizhny Novgorod regions. Russia Partners II, LP will invest in medium enterprises in industries that provide ­ 10.00 ­ ­ ­ 10.00 ­ basic goods and services to consumers in Russia and the former Soviet Union. Russia Women's Microfinance Network will use a ruble-linked credit line to 1.00 ­ ­ ­ ­ 1.00 ­ on-lend to individual entrepreneurs and microenterprises. Russian Standard Bank will use a ruble-linked revolving loan to strengthen 20.00 ­ ­ ­ ­ 20.00 ­ its capacity to offer retail lending products. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 67 Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Sibakadembank will on-lend to private small and medium enterprises. 7.00 ­ ­ ­ ­ 7.00 ­ Volga Shipping Company will acquire new vessels to transport bulk and 25.18 ­ ­ ­ 17.25 42.43 ­ containerized cargo. Serbia and Montenegro HVB Central Profit Banka d.d. will expand its small and medium enterprise and 37.61 ­ ­ ­ ­ 37.61 ­ mortgage businesses. Opportunity Bank Montenegro, a provider of banking and credit services to 5.22 ­ ­ ­ ­ 5.22 ­ micro and small enterprises, will expand its loan portfolio. Podgoricka Banka a.d. will begin providing long-term loans and improve its 6.46 2.01 ­ ­ ­ 8.47 ­ management capacity. Raiffeisenbank Yugoslavija a.d. will provide long-term funding to corporate and ­ 1.94 ­ ­ ­ 1.94 ­ retail customers. Raiffeisenbank Yugoslavija a.d. will provide long-term funding to corporate and ­ .85 ­ ­ ­ .85 ­ retail customers. Tigar MH will modernize its tire manufacturing as a production unit for Michelin ­ 4.08 ­ ­ ­ 4.08 ­ in Europe. Tajikistan First Microfinance Bank Tajikistan will provide credit and other financial ­ .67 ­ ­ ­ .67 ­ services to micro and small enterprises. Turkey Acibadem Saglik Hizmetleri Ve Ticaret A.S. will build and equip hospitals in 20.00 ­ ­ ­ ­ 20.00 ­ Istanbul and Bursa. Arcelik, A.S. will build a greenfield washing machine plant in Russia. 103.41 ­ ­ ­ 103.41 206.82 ­ Assan Demir Ve sac Sanayii AS, a producer of aluminum and steel products, will 30.00 ­ ­ ­ ­ 30.00 ­ restructure its balance sheet and modernize its operations. Intercity Fleet Management, an automobile fleet leasing company, will expand 15.00 5.00 ­ ­ 27.75 47.75 ­ its business and improve its management and technical systems. PALEN Enerji Dogal Gaz Dagitim Endustri will increase natural gas distribution 2.00 ­ ­ ­ ­ 2.00 ­ in the city of Erzurum. PALGAZ Dogal Gaz Dagitim Sanayi will increase natural gas distribution in the 10.00 ­ ­ ­ ­ 10.00 ­ city of Gebze. Turk and Konomi Bankasi A.S. will consolidate its Tier II capital. 50.00 ­ ­ ­ ­ 50.00 ­ Turkiye Sinai Kalkinma Bankasi A.S. will strengthen its Tier II capital, expand its 50.00 ­ ­ ­ ­ 50.00 ­ balance sheet, and provide medium-term funding for capital investment by private sector companies. Yüce Özel Egitim ve Kültürel Hizmetleri A.S., a high school and vocational 4.50 ­ ­ ­ ­ 4.50 ­ institute, will upgrade its facilities, seek international accreditation, and develop educational software. Ukraine Aval Bank will strengthen its balance sheet to support its growth. 35.00 ­ ­ ­ ­ 35.00 ­ (All amounts are in millions of U.S. dollars.) 68 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization CJSC AES Kyivoblenergo, an electricity distribution company, will upgrade 30.00 ­ ­ ­ ­ 30.00 ­ equipment, increase capacity and efficiency, and invest in communication systems and information technology. CJSC AES RivneEnergo, an electricity distribution company, will upgrade equipment, 15.00 ­ ­ ­ ­ 15.00 ­ increase capacity and efficiency, and invest in communication systems and information technology. CJSC Myronivsky Khliboprodukt will increase its poultry production capacity. 60.00 20.00 ­ ­ ­ 80.00 ­ LATIN AMERICA AND THE CARIBBEAN REGIONAL AgCert International, LLC will generate emission reduction credits by improving ­ 15.00 ­ ­ ­ 15.00 ­ animal waste management on livestock farms. Digicel Eastern Caribbean Limited will build a network for mobile telephones. ­ .12 ­ ­ ­ .12 ­ Digicel Eastern Caribbean Limited will build a network for mobile telephones. .50 ­ ­ ­ ­ .50 ­ Grupo Financiero Uno will expand and consolidate operations in Central America. 30.00 ­ ­ ­ ­ 30.00 ­ Salutia, a processor of electronic transactions in health care, will conduct a ­ .17 ­ ­ ­ .17 ­ rights issue. Trans Union Central America, a credit bureau company, will develop credit ­ .09 ­ ­ ­ .09 ­ information systems for Central America. COUNTRY Argentina Aceitera General Deheza S.A. will build warehouses and increase its capacity for 20.00 ­ ­ ­ 30.00 50.00 ­ oilseed processing. BACS Banco de Crédito y Securitización, S.A. will expand operations into 25.00 ­ ­ ­ ­ 25.00 ­ origination, financing, and securitization of export-oriented trade finance receivables. Banco de Galicia y Buenos Aires, S.A. will provide long-term financing to 40.00 ­ ­ ­ ­ 40.00 ­ export-oriented SMEs and midsize corporates. S.A. San Miguel A.G.I.C.I. y F., a producer and exporter of lemons and lemon- 20.00 ­ ­ ­ 10.00 30.00 ­ derived industrial products, will restructure debt and increase its export capacity. Vicentin S.A.I.C., an oilseed processor, will expand storage capacity, open regional 35.00 ­ ­ ­ ­ 35.00 ­ offices, overhaul management information systems, and lengthen the maturity of its liabilities. Bolivia Transierra S.A. will transport natural gas from fields to the entry point of the 50.00 ­ ­ ­ 100.00 150.00 ­ Bolivia-Brazil export pipeline. Brazil ABN AMRO REAL S.A. will lend to environment-related projects and to family- 27.00 ­ ­ ­ ­ 27.00 48.00 owned, midsize companies that are improving corporate governance. ABN AMRO REAL S.A. will provide capital to local companies, focusing on firms 98.00 ­ ­ ­ ­ 98.00 ­ that are upgrading their corporate governance and environmental performance. Amaggi Exportaçao e Importaçao Limitada, a soybean trader and financier of 30.00 ­ ­ ­ ­ 30.00 ­ farms, will build storage facilities and strengthen its working capital. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 69 Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Aracruz Celulose S.A. will expand production capacity, increase its forestry assets, 50.00 ­ ­ ­ ­ 50.00 ­ improve logistics, and pursue sustainable business initiatives. Brazil Corporate Governance Fund will invest in mid-cap companies and help ­ 20.00 ­ ­ ­ 20.00 ­ improve corporate governance practices. Comgas, a gas distribution company, will expand its network to new areas of ­ ­ ­ ­ 45.00 45.00 ­ São Paulo. Companhia Brasileira de Securitizacao will develop the secondary markets for ­ 3.10 ­ ­ ­ 3.10 ­ mortgages and mortgage-backed securities. Cosan S.A. Industria e Comercio, a sugar and ethanol producer and exporter, 70.00 ­ ­ ­ ­ 70.00 ­ will modernize operations, improve yields, and increase its sugar milling capacity. Dixie Toga S.A., a packaging company, will issue warrants. ­ .35 ­ ­ ­ .35 ­ Empresa Brasileira de Aeronautica S.A. (Embraer) will extend its product range 35.00 ­ ­ ­ 100.00 135.00 ­ with a new family of aircraft. Empresa Brasileira de Aeronautica S.A. (Embraer) will extend its product range ­ ­ ­ ­ 45.00 45.00 ­ with a new family of aircraft. GP Capital III L.P. will make private equity investments in later-stage companies. ­ 15.00 ­ ­ ­ 15.00 ­ Lojas Americanas S.A. will upgrade its retail chain by opening stores and 35.00 ­ ­ ­ ­ 35.00 ­ improving its Web site and management information systems. Net Servicos de Comunicacao S.A., a pay-TV operator, will complete a rights ­ 7.37 ­ ­ ­ 7.37 ­ issue as part of debt restructuring. TriBanco Brazil will develop products to expand the sales outlets for micro and 10.00 ­ ­ ­ ­ 10.00 ­ small entrepreneurs. Chile Factorline S.A. will provide factoring services to help export-oriented small and 5.00 ­ ­ ­ ­ 5.00 ­ medium enterprises. Proa II Fondo de Inversion will invest in midsize local companies that are ­ 11.00 ­ ­ ­ 11.00 ­ reorienting their sales to export markets. Colombia Banco Davivienda S.A., a mortgage originator, will conduct a domestic ­ ­ 1.80 ­ ­ 1.80 ­ subordinated bond issue. Carvajal S.A. will expand further in Latin America, improve efficiency, and 50.00 ­ ­ ­ ­ 50.00 ­ upgrade its environmental standards. Colombian Home Mortgage Corp. (CHMC) will acquire and securitize residential ­ ­ 3.77 ­ ­ 3.77 375.43 mortgage loans, developing the country's secondary mortgage market. Colombian Home Mortgage Corp. (CHMC) will acquire and securitize residential ­ ­ 3.59 ­ ­ 3.59 64.61 mortgage loans, developing the country's secondary mortgage market. Costa Rica Banco Banex, S.A. will expand its corporate and mortgage lending. 40.00 ­ ­ ­ ­ 40.00 ­ Dominican Republic Aeropuertos Dominicanos Siglo XXI, S.A. will install equipment, renovate 45.00 ­ ­ ­ 15.00 60.00 ­ facilities, and build a new airport in Samaná. (All amounts are in millions of U.S. dollars.) 70 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Consorcio Energetico Punta Cana-Macao S.A. will finance a greenfield wind 10.00 ­ 12.65 ­ ­ 22.65 TBD power plant and refinance its medium-term debt. Domicem S.A. will finance full ownership of a captive power plant. 3.75 ­ ­ ­ ­ 3.75 ­ Occidental Hotels Management B.V. will restructure its corporate debt. 20.00 ­ ­ ­ ­ 20.00 ­ Occidom B.V. will restructure its corporate debt. 10.00 ­ ­ ­ 40.00 50.00 ­ Ecuador Procesadora Nacional de Alimentos C.A.­PRONACA will upgrade facilities and 20.00 ­ ­ ­ ­ 20.00 ­ the environmental standards at its farms and slaughterhouses. El Salvador Atlantic Aircraft Holding Ltd. will make payments on new Airbus aircraft. 30.00 ­ ­ ­ ­ 30.00 ­ La Hipotecaria will expand its mortgage lending to lower-income borrowers. 20.00 ­ ­ ­ ­ 20.00 ­ Jamaica Jamaica Energy Partners, a power plant, will expand its generating capacity and 28.00 ­ ­ ­ ­ 28.00 ­ refinance debt for longer maturity. Mexico Controladora de Servicios Medicos S.A. de C.V. will build and operate a medical 14.50 ­ ­ ­ ­ 14.50 ­ complex in Guadalajara. Financiera Compartamos, S.A. de C.V., S.F.O.L. will provide microfinance loans, ­ ­ 14.98 ­ ­ 14.98 11.20 primarily to women in rural areas Financiera Educativa de Mexico S.A. de C.V. will provide financing for the 15.08 .68 ­ ­ ­ 15.76 ­ country's education sector. GMAC Financiera will strengthen its program in mortgage-backed securities. 64.09 ­ 49.30 ­ ­ 113.39 TBD Grupo Financiero Banorte, S.A. de C.V. will enhance long-term leases of 50.00 ­ ­ ­ ­ 50.00 ­ industrial complexes and related infrastructure built and managed by local development companies. Hipotecaria Credito y Casa, a specialized housing institution, will diversify its 20.60 ­ ­ ­ ­ 20.60 ­ funding sources and products. Hipotecaria Su Casita, S.A. de C.V­SOFOL will originate mortgages for lower- 50.53 ­ ­ ­ ­ 50.53 ­ income clients and securitize its mortgage loans. Panama Compania Panamena de Aviacion, S.A., an international airline, will meet its 15.00 ­ ­ ­ ­ 15.00 ­ working capital requirements. Manzanillo International Terminal­Panama, S.A., a port, will expand capacity 50.00 ­ ­ ­ ­ 50.00 ­ and efficiency to meet an increase in container traffic. Paraguay Telefonica Celular del Paraguay S.A. will expand its nationwide GSM 15.00 ­ ­ ­ ­ 15.00 ­ cellular network. Peru Corporacion Drokasa S.A., an exporter of produce and manufacturer of ­ ­ 7.50 ­ ­ 7.50 17.50 pharmaceuticals, will increase its access to local capital markets. Edpyme Edyficar S.A. will expand its loan program to microentrepreneurs 1.00 ­ ­ ­ ­ 1.00 ­ in poor neighborhoods. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 71 Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Empresa Agroindustrial Laredo S.A.A., a sugar producer, will transform ­ ­ ­ .30 ­ .30 ­ variable-rate liabilities into fixed-rate liabilities. Interseguro Compania de Seguros de Vida S.A., a life insurance company, will ­ .60 ­ ­ ­ .60 ­ expand its business, focusing on annuity products for retirees. Inversiones Malecon de la Reserva S.A. will acquire and invest in hotel and 10.00 ­ ­ ­ ­ 10.00 ­ tourism projects. Ransa Comercial S.A., a logistics services provider, will expand operations. 10.00 ­ ­ ­ ­ 10.00 ­ Universidad San Martin de Porres will restructure its debt and fund its ­ ­ 9.00 ­ ­ 9.00 TBD investment plan. Trinidad and Tobago Trinidad Cement Company will improve cost competitiveness and upgrade 35.00 ­ ­ ­ ­ 35.00 ­ capacity at its plant in Jamaica. Uruguay Surinvest International Limited will provide trade finance and other financial ­ 1.50 ­ ­ ­ 1.50 ­ services in the Mercosur region. Venezuela Vinccler Oil & Gas C.A. will expand production of natural gas. 12.00 ­ ­ ­ ­ 12.00 ­ MIDDLE EAST AND NORTH AFRICA REGIONAL Nuqul Group, a producer of hygienic paper products, will expand, modernize, 25.00 ­ ­ ­ ­ 25.00 ­ and consolidate its debt. COUNTRY Egypt Egypt Factors will establish the country's first trade finance company. ­ 3.00 ­ ­ ­ 3.00 ­ Merlon Petroleum Company of Egypt will explore and develop gas fields in the 10.00 ­ ­ ­ ­ 10.00 ­ El Mansoura concession. Merlon Petroleum Company of Egypt will transform its variable-rate liabilities ­ ­ ­ 1.00 ­ 1.00 ­ into fixed-rate liabilities to take advantage of low interest rates. Wadi Holdings will expand its poultry and olive operations and refinance part 15.00 ­ ­ ­ ­ 15.00 ­ of its debt. Iran, Islamic Republic of Karafarin Bank will increase its working capital and expand its corporate and 10.00 ­ ­ ­ ­ 10.00 ­ retail services, including term lending to exporters and trading companies. Karafarin Leasing Company will provide medium-term equipment leases to ­ 2.00 ­ ­ ­ 2.00 ­ the private sector. Saman Bank JSC will increase its working capital and expand its corporate and 10.00 ­ ­ ­ ­ 10.00 ­ retail services, including term lending to exporters and trading companies. Iraq Iraq National Bank will lend to small and medium enterprises. 8.00 ­ ­ ­ ­ 8.00 ­ National Bank of Kuwait­Iraq will provide capital to the Credit Bank of Iraq, ­ 1.91 ­ ­ ­ 1.91 ­ helping modernize its operations and expand its products and services. (All amounts are in millions of U.S. dollars.) 72 IFC 2005 ANNUAL REPORT Risk Total Structured IFC IFC IFC Management FY05 Finance Project Description Loan Equity Guarantee Products Syndications Committed Mobilization Jordan Societe Generale de Banque Jordanie will restructure, recapitalize to meet ­ 2.20 ­ ­ ­ 2.20 ­ central bank requirements, and upgrade services to international standards. Lebanon Sabis International School­Adma will build schools in a suburb of Beirut. 8.00 ­ ­ ­ ­ 8.00 ­ Oman Alliance Housing Bank, the country's first private sector housing bank, will 45.00 ­ ­ ­ ­ 45.00 ­ expand operations. Mazoon Petrogas SAOC will further develop its crude oil production in 40.00 ­ ­ ­ ­ 40.00 ­ northwest Oman. Taageer Finance Company will provide leasing to small and medium enterprises. 10.00 ­ ­ ­ ­ 10.00 ­ Pakistan Abamco Composite Fund, a mutual fund, will invest in large-cap listed ­ 5.00 ­ ­ ­ 5.00 ­ securities and local currency debt market instruments. NBFI Credit will provide leasing and medium-term loans to small and 7.00 ­ ­ ­ ­ 7.00 ­ medium enterprises. Packages Limited, a paper products manufacturer, will upgrade, expand, and ­ ­ 25.00 ­ ­ 25.00 43.00 relocate its operations. Packages Limited will upgrade and relocate its operations for pulp and ­ .43 ­ ­ ­ .43 ­ paper production. Premier Mercantile Services Limited will expand the capacity of its container 6.00 ­ ­ ­ ­ 6.00 ­ terminal at the port of Karachi. Saudi Arabia Saudi British Bank will strengthen its mortgage lending program. 50.00 ­ ­ ­ ­ 50.00 ­ Saudi Orix Leasing Company (SOLC) will conduct a rights issue to maintain ­ 3.73 ­ ­ ­ 3.73 ­ IFC's equity in the company. GLOBAL Bank Belgolaise S.A. will provide short-term financing in Africa related to ­ ­ 60.00 ­ ­ 60.00 90.00 petroleum products. First International Merchant Bank plc will establish a network of trade finance 10.00 ­ ­ ­ ­ 10.00 ­ companies to provide factoring and forfaiting services to exporters. GEM VII Targeted Value Income Fund will invest in a globally diversified ­ 30.00 ­ ­ ­ 30.00 ­ portfolio of emerging market debt issues. Melrose Resources plc will fund its subsidiaries' oil and gas capital expenditure 25.00 ­ 3.33 ­ ­ 28.33 ­ program and refinance debt at operations in Bulgaria. Orient-Express Hotels will acquire and invest in midsize hotel and tourism 25.00 ­ ­ ­ ­ 25.00 ­ projects in Latin America and Asia. Santiago CDO Ltd. will target private sector corporate debt issues in 15.00 15.00 ­ ­ ­ 30.00 370.00 emerging markets. (All amounts are in millions of U.S. dollars.) IFC 2005 ANNUAL REPORT 73 Participants in Loan Syndications ABN AMRO Bank N.V. Erste Bank der Osterreichischen Sparkassen AG Banco Bilbao Vizcaya Argentaria S.A. Fortis Bank N.V. Banco Itau Europa S.A. HSBC Group Banco Santander Central Hispano, S.A. HSH Nordbank AG Bank of America N.A. ING Bank N.V. Barclays Bank PLC International Finance Participation Trust Bayerische Hypo- und Vereinsbank AG Investkredit Bank AG BNP Paribas JP Morgan Chase & Co. Caixa de Aforros de Vigo, Ourense e Pontevedra "CaixaNova" Landesbank Hessen-Thuringen Girozentrale Caixa Geral de Depositos S.A. Natexis Banques Populaires Caja de Ahorros de Valencia, Castellon y Allicante "Bancaja" Nordea Bank AB (publ) Caja de Ahorros Del Mediterraneo Raiffeisen Zentralbank Osterreich AG Raiffeisenlandesbank Niederosterreich-Wien AG Caja de Ahorros y Monte de Piedad de las Baleares "Sa Nostra" Societe Generale S.A. Caja Insular de Ahorros de Canarias Standard Bank Plc Calyon Standard Chartered Bank Caterpillar Financial Services UK Ltd. State Bank of India Citibank N.A. UniCredito Italiano SpA Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland) WestLB AG 74 IFC 2005 ANNUAL REPORT Sub-Saharan Africa 76 East Asia and the Pacific 78 Technical Assistance South Asia 82 Europe and Central Asia 84 Latin America and the Caribbean 87 and Advisory Projects Middle East and North Africa 89 Global 90 This table includes technical assistance and advisory projects active during FY05. This work is supported by various donors, including IFC itself. Many projects in the table are carried out by a network of 24 facilities managed by IFC; some serve a developing region, while others emphasize a specific aspect of development. Many facilities, including most of the regional project development facilities, fund their activities from a pool of core funds raised from a group of donors; other facilities, such as the Private Enterprise Partnership, raise donor funds specifically for individual projects and initiatives. In addition to the facilities, IFC manages trust funds on behalf of many donor governments to support technical assistance work. During FY05, IFC also established the Funding Mechanism for Technical Assistance and Advisory Services, which uses a portion of the Corporation's retained earnings to support specific activities. Acronyms and abbreviations in the table include the following: CBF Capacity Building Facility MSME micro, small, and medium enterprise CCF Corporate Citizenship Facility NGO nongovernmental organization CPDF China Project Development Facility PEDF Pacific Enterprise Development Facility EOF Environmental Opportunities Facility PENSA Program for Eastern Indonesia SME Assistance FDI foreign direct investment PEP Private Enterprise Partnership FIAS Foreign Investment Advisory Service PEP-Africa Private Enterprise Partnership for Africa FMO Netherlands Development Finance Company PEP-MENA Private Enterprise Partnership for the Middle East FMTAAS Funding Mechanism for Technical Assistance and and North Africa Advisory Services PEP-SE Private Enterprise Partnership Southeast Europe FY fiscal year SEDF SouthAsia Enterprise Development Facility GBSN Global Business School Network SFMF Sustainable Financial Markets Facility IT information technology SGBI Strengthening Grassroots Business Initiative LAC Latin America and the Caribbean Technical SME small and medium enterprise Assistance Facility TATF Technical Assistance Trust Funds Linkages IFC's program to link its larger investments with UNDP United Nations Development Program local small businesses UNIDO United Nations Industrial Development Organization MIGA Multilateral Investment Guarantee Agency WTO World Trade Organization MPDF Mekong Private Sector Development Facility IFC 2005 ANNUAL REPORT 75 Project Project Description Donor Program SUB-SAHARAN AFRICA REGIONAL Business Development Services To design services to increase small firms' productivity in specific industries in Netherlands TATF Kenya and Madagascar. Chad-Cameroon Capacity Building To provide local entrepreneurs with training and contracting opportunities, to IFC FMTAAS build capacity of the Petroleum Revenues Oversight and Control Committee, and to provide institutional support to Chad's Ministry of Petroleum. East Africa Credit Scoring Tool To develop an SME credit scoring tool in partnership with the Tanzania, Kenya, IFC CBF and Uganda Bankers' Institute. Hernic To enclose two open ferrochrome furnaces and reduce local air pollution. Netherlands EOF Honey Care To use an innovative payment system to increase the income of small-scale honey IFC SGBI farmers in Kenya and Tanzania. Lusophone Business School To identify and propose a program of institutional capacity building for Switzerland GBSN Networks management training institutions in Angola, Cape Verde, Guinea Bissau, Mozambique, and São Tomé and Principe. Promoting Sustainable To develop and test timber certification protocols and provide training in Norway CCF/ Agribusiness Commodities sustainable forest management practices. PEP-Africa Railway Privatization and SMEs To incorporate outsourcing and spin-off opportunities for SMEs in the privatization IFC Linkages of a railway in Kenya and Uganda. Roundabout Playpumps To operate over 500 playpumps (children's merry-go-rounds that serve as pumps IFC SGBI for clean drinking water) in South Africa, Mozambique, Swaziland, and Uganda. SME Entrepreneurship To remove regulatory constraints that SMEs face when registering and licensing IFC/Netherlands PEP-Africa Development Initiative their businesses in Cameroon, Ghana, Kenya, Madagascar, Nigeria, and Senegal. Support and Training To help micro and small enterprises in Chad, Mali, and Nigeria grow and integrate Netherlands TATF Entrepreneurship Program (STEP) into the mainstream economy. COUNTRY Cameroon Indigenous Peoples To support the Foundation for Environment and Development in formulating a Norway CCF Community Development long-term development plan for pygmy communities affected by the Chad-Cameroon oil pipeline. Chad Chad SME Program To accelerate growth by providing local entrepreneurs with training, access to IFC/Netherlands Linkages/ finance, and contract opportunities with oil companies and their subcontractors. CBF/ FMTAAS FINADEV Tchad Access to Finance To help FINADEV Tchad develop management information, IT, and accounting IFC FMTAAS systems. Democratic Republic of Congo ProCredit Bank Technical Assistance To facilitate the founding of ProCredit Bank and contribute to its long-term vitality. IFC TATF SME Needs Assessment To contribute to improving the general business environment and access to Belgium TATF finance, information, and consultancy services for the country's SMEs. Ghana Africap--Kumasi Iron Workers To study environmental health and safety risks to workers and find ways to Netherlands SFMF optimize production processes. Agribusiness Value Chain Analysis To analyze inefficiencies along the value chain and recommend interventions to Netherlands TATF improve competitiveness. Cooperative Credit Unions To help credit unions improve their financial management and improve staff skills. Core Funds PEP-Africa Association Project 76 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Housing Market Study To foster mortgage origination and construction financing for high-quality, Switzerland TATF affordable housing. Promoting Private Sector To improve the capacity of microfinance institutions through training and United States/UNDP PEP-Africa Microfinance exposure to best practices. Schools Financing Facility To strengthen the environment in which private schools operate. Core Funds PEP-Africa Subcontracting and To promote sourcing and exchange of contracts for goods and services, as well FMO/UNDP PEP-Africa Partnership Exchange as transfer best practices. Kenya Aureos Safepak To study the technical and economic feasibility of Safepak's proposal to create a Netherlands SFMF plastics recycling facility. Cinearts Afrika To provide grant funding to CineArts Afrika's production of a feature film on IFC TATF gender issues. Coca-Cola SABCO Linkages To assess the distribution system for Coca-Cola products in Nairobi and Core Funds PEP-Africa recommend improvements. Madagascar Factoring Industry Study To evaluate the environment for the factoring industry and its feasibility to Ireland TATF increase access to finance for MSMEs. Mali Business Development Services To support business development services for smaller enterprises. IFC CBF Trickle Up To strengthen a program using community-based revolving funds and training to IFC CBF/SGBI help extremely poor people in northern Mali start and expand microenterprises. Mauritania Consumer and Small Business To help Banque pour le Commerce et L'Industrie develop a viable small business Netherlands TATF Banking finance operation. Mozambique Mozal Linkages To improve the competitiveness of local SMEs by diversifying markets, increasing IFC/Core Funds Linkages/ opportunities to participate in the smelter's supply chain, improving access to PEP-Africa working capital; and to assist the company's community development initiatives. South East Africa Tourism To implement a new policy and strategy for sustainable tourism and conservation. IFC TATF Investment Program Nigeria Cluster Development Program To help clusters of smaller businesses in the garment, leather, and light UNIDO/World Bank PEP-Africa engineering sectors develop skills and improve links to larger corporate buyers. MTN Village Phones To help MTN Nigeria develop a sustainable village phone business model. Netherlands Linkages Small-Scale Power Generation To complete replicable development of two small-scale power plants. IFC TATF and Distribution Somalia Private Sector Survey To identify interventions that would assist the growth of the country's private Ireland TATF sector. South Africa Competitive Business Advantage To conduct a Competitive Business Advantage workshop in Johannesburg. Norway SFMF Sustainable Mining for the To provide an executive development course on Corporate Social Responsibility Norway/Italy CCF Extractive Sector and competitiveness for extractive sector clients and to support a consortium in developing local tourism. Women Entrepreneurship Program To improve access to finance, business networks, and markets for women-owned IFC/Core Funds TATF/ small and medium enterprises. PEP-Africa Swaziland Gone Rural To help women who manufacture goods from lutindzi grass in supply chain IFC SGBI development, sales, marketing strategy, gender issues, and HIV/AIDS prevention. IFC 2005 ANNUAL REPORT 77 Project Project Description Donor Program Tanzania Kilombero Business Linkages To improve the capacity of small-scale sugar cane outgrowers and farmers Core Funds PEP-Africa associations and identify SMEs that could provide goods and services to a sugar mill. Leasing Program To develop leasing as an alternative source of finance to SMEs. Switzerland PEP-Africa Micro, Small, and Medium To evaluate MSMEs' demand for finance and the capacity of financial institutions Netherlands TATF Enterprises Study to meet this demand. Uganda Housing Sector Study To analyze the housing sector, including the rental market, and to collect housing Luxembourg/Israel/IFC TATF indicators and compare them to international benchmarks. Zambia Konkola Copper Mine SME Supplier To help local small business build capacity to provide goods and services to the Core Funds PEP-Africa Development mining sector. EAST ASIA AND THE PACIFIC REGIONAL Corporate Governance To strengthen the corporate governance and capacity of financial institutions IFC FMTAAS serving the SME sector. Digital Divide Data To provide a patient capital investment to a company seeking to expand IFC SGBI operations and improve its corporate governance in Cambodia and Lao PDR. Enterprise and Investment To help improve private sector legislation in partnership with the governments of Australia/Core Funds MPDF Legislation Cambodia, Lao PDR, and Vietnam. Pacific Islands Financial To help Pacific island countries develop a training center for the region's financial Australia TATF Institutions Training institutions. Research Studies To conduct business environment research for Cambodia, Lao PDR, and Vietnam, Core Funds MPDF and publish summaries of donors' initiatives on MPDF's Web Site. Socially Responsible Investment To provide information to the investment community about sustainable and Netherlands SFMF Sector Study responsible investment. Strengthening Financial Institutions To help strengthen the corporate governance and institutional capacity of selected Netherlands TATF financial institutions in the East Asia region. Tsunami Matching Grant To provide immediate financial support to corporates that are positioned to IFC FMTAAS respond rapidly to emergencies. COUNTRY Cambodia Canadia Bank Capacity Building To help the bank operate in a market environment through improvements in Japan TATF management, marketing, and delivery of services. Corporate Citizenship Awards To promote good corporate citizenship in collaboration with the country's ministry IFC CCF/TATF of commerce, by highlighting good practices and IFC's global leadership role in this area. Hagar To provide Hagar Design, Hagar Soya, and Hagar Catering with support to IFC SGBI strengthen management capabilities, improve management controls and information systems, and improve product design and marketing. WTO Business Guide To provide a resource guide for the country's business owners on issues related Core Funds MPDF to WTO membership. China Auchan SME Suppliers To help small business suppliers to the Auchan hypermarket chain improve Core Funds CPDF hygiene and food safety. 78 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Business Edge Management Training To increase the skills and competitiveness of smaller enterprises through business Core Funds CPDF management training. Cement Sector Analysis To improve the availability of market data supporting development and Norway TATF modernization of the cement sector. Chengdu City Commercial Bank To build the bank's capacity in asset-liability management and conduct a full Norway/Core Funds CPDF Capacity Building financial statement audit based on international standards. Chengdu Rural Credit Cooperatives To improve the credit analysis skills of the cooperatives' staff. Core Funds CPDF Training Chengdu Small Enterprises Credit To enhance skills of the company's staff and strengthen the relationship with Switzerland CPDF Guarantee Company partner lending institutions. Consulting Development To develop the local consulting industry to accelerate development of the Core Funds CPDF private sector. Corporate Governance To provide corporate governance training and reviews to raise awareness and Core Funds/Canada CPDF improve standards; to develop a related toolkit for local business associations, regulators, and consulting firms. Credit Analysis To formalize a workbook for credit analysis on corporate borrowers. Core Funds CPDF Credit Cooperative Unions To undertake a diagnostic review of the Zhejiang and Hangzhou Credit Netherlands TATF Cooperative Unions. Creditor Rights Protection To raise awareness and recommend reforms related to secured transactions. Core Funds CPDF Environment and Corporate To help China Green, an independent power producer, improve management and Spain TATF Governance Support corporate governance and strengthen systems for the environmental, social, and employee safety aspects of its business. Fenglin International Limited To help Fenglin develop sustainable business practices that meet international Sweden TATF standards. Information and Communications To develop an assessment of the country's digital divide and related investment Spain TATF Technology Analysis needs. Leasing Law To help the national legislature prepare and pass a leasing law in line with Core Funds/Switzerland CPDF international best practice. Leshan City Commercial Bank To help the bank develop staff skills and implement systems for credit Core Funds CPDF Institutional Strengthening management and human resources. Minshan Natural Reserve To help minority communities in natural reserve areas supply products to a large Core Funds CPDF Community Development retailer on a sustainable basis. New Hope Dairy Linkages To help local dairies enhance farm management practices and upgrade the raw Core Funds/ CPDF/TATF milk supply. Netherlands North Andre Supply Chain Linkages To develop food traceability for apple growers and improve farm management. IFC/Germany Linkages/ TATF Plastics Recycling To finance a recycling start-up company in Guangzhou. IFC/Denmark/Italy EOF Privatization of State-Owned To publish a study of the country's privatization process. IFC TATF Enterprises Pulp and Paper Industry To prepare a master plan for development of the pulp and paper industry, Finland TATF Development including training on new technologies and management approaches. Secured Transaction Work To help Chinese authorities and market players develop a credit reporting system. Core Funds CPDF Sichuan Environmental Compliance To help establish a program of incentives for smaller businesses to implement Sweden/IFC CPDF Project sustainable environmental practices. Sichuan Hog Sector Study To examine the hog sector and create related assistance for smaller businesses Denmark CPDF and financial institutions. IFC 2005 ANNUAL REPORT 79 Project Project Description Donor Program Sichuan Investment Promotion To raise the investment promotion skills of the bureau's staff and conduct Core Funds/MIGA CPDF Bureau investment climate benchmarking. SME Mapping To identify constraints to growth of smaller businesses, particularly in interior Core Funds/Canada CPDF provinces. SME Partnering Project To help local small businesses form trading and investment partnerships with Core Funds CPDF foreign firms. Xi'an City Commercial Bank Credit To help Xi'an City Commercial Bank strengthen its credit risk management. Switzerland TATF Risk Management Yunnan Hydropower To study the market for hydropower in Yunnan province and southern China and Spain/Switzerland TATF to assess hydrology risks related to three proposed plants. Fiji Fiji Development Bank To help the bank implement changes in management and reorganize its operations. Australia PEDF/TATF Nature's Way Cooperative To increase the volume and quality of the country's exports of fresh breadfruit. New Zealand PEDF/TATF Tourism Investment Workshop To conduct a workshop for investors, banks, developers, resort managers, Core Funds PEDF international development and government agencies, and industry specialists seeking to promote investment in the country's tourism industry. Indonesia Business Association Development To build capacity for associations serving SMEs in the cocoa and handicraft sectors. Core Funds PENSA Cocoa Industry Investment To help the cocoa sector attract investment from large commercial players and Core Funds PENSA international financial institutions and to improve productivity and marketing in the supply chain. Furniture Industry To help producers across the furniture supply chain access finance and improve Core Funds PENSA competitiveness. Handicraft Market Linkages and To help handicraft producers link with foreign markets and trade promotion Core Funds PENSA Capacity Building programs. Health Care Sector Study To provide an overview of the country's private health care sector and identify Israel TATF investment opportunities for IFC. Maize Farming To improve the profitability of maize production by helping farmer groups Core Funds PENSA organize, improve yields, and integrate into the supply chain. Microfinance and Alternative To help microfinance institutions improve access to finance for micro, small, and Core Funds PENSA Channels medium enterprises. Oil, Gas, and Mining Linkages and To link oil, gas, and mining companies with local suppliers and contractors and to Core Funds PENSA Stakeholder Relations provide a clearinghouse for best practices in stakeholder relations. Poultry Industry To encourage investment by large and experienced poultry companies in grain Core Funds PENSA drying, feed milling, poultry production, and processing and to improve the productivity of SME poultry farmers and poultry processing plants. Provision of Enterprise Access To enhance business development service providers' capacity, so that they can Core Funds/Switzerland PENSA to Credit help SMEs improve access to credit. Regional Banks Sector Study To study the country's regional and provincial banks, including challenges from Netherlands TATF sector reorganization and potential to serve SMEs. Seaweed Farmer Cooperation To identify best practices in seaweed farming and promote their use. Core Funds PENSA Seaweed Processing and Market To increase the value of seaweed sales by bringing processing closer to farmers Core Funds PENSA Access and to link farmers and buyers online. SME Business Directory To help SMEs access overseas markets and find less costly alternatives for Australia/ PENSA promoting products. Astra Foundation SME Credit Line To strengthen banks' capacity to serve the SME market by improving their credit IFC FMTAAS skills and assisting in their institutional development. 80 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Subnational Deregulation To help governments streamline business registration. The Asia Foundation PENSA Sustainable Forestry To provide guidelines on improving the enabling environment to increase the Nature Conservancy PENSA supply of certified and community timber. Sustainable Wood To develop a demonstration model of a single trade chain from source to store World Wildlife Fund PENSA that uses sustainable wood. Voices of the Private Sector To provide input to stakeholders on the concerns of SMEs and large-scale IFC PENSA companies. Women Entrepreneurs' Credit Risk To study the creditworthiness of women entrepreneurs as compared to their Core Funds PENSA male counterparts. Lao People's Democratic Republic Lao Business Forum To initiate a mechanism for ongoing dialogue between government, the private Luxembourg/IFC TATF/IFC sector, and potential investors. Mongolia Mobicom Capacity Building To strengthen Mobicom's capacity in financial management, marketing, and sales. Norway TATF Mongolia Meat Quality Assurance To train local slaughterhouses in best international practices. Denmark Linkages Program Palau National Development Bank of To help the bank assess the feasibility of establishing a microfinance unit. Core Funds PEDF Palau Papua New Guinea Bank South Pacific To help implement an efficient credit scoring system to improve the handling of Core Funds PEDF/CBF credit applications. Commercial Orchid Growers' To help members attend a floriculture train-the-trainer course in Fiji. Core Funds PEDF Association Lihona Butterfly Farm To examine the commercial viability of reopening a butterfly farm for the benefit Core Funds PEDF of surrounding villages. Microfinance Institution Building To conduct a diagnostic study and develop a business plan for a new microfinance Netherlands TATF institution. National Fisheries College To join the college in conducting training for women in skills necessary to turn New Zealand PEDF/CCF subsistence fishing activities into viable commercial enterprises. PNG Divers Association (PNGDA) To assess the association's potential for generating income through e-commerce. Core Funds PEDF Porgera Joint Venture Linkages To advise local authorities on the commercial viability and operation of a small Core Funds PEDF Partnership hydroelectric scheme that would replace supplies from a mining project. Philippines Banco de Oro Capacity Building To strengthen the bank's corporate governance and institutional capacity. Japan TATF Boracay Island Private Sector To assess tourism infrastructure and other private sector investment opportunities Bavaria/IFC TATF Investment on the island of Boracay. Health Care Industry Assessment To study the country's private health care industry and identify investment Sweden TATF opportunities for IFC. New Port City Sustainability To assess sustainability issues related to Megaworld Corporation's New Port Spain TATF Assessment City development. Water Sector and Private Sector To advise on ways to attract private sector interest in the country's water sector. France/IFC TATF Participation Samoa National Bank of Samoa To help implement training to update the bank's credit procedures and policies. New Zealand PEDF/TATF Samoa Hotel Association To help implement an e-booking system by training personnel, installing hardware Core Funds PEDF and software, and developing Web content. IFC 2005 ANNUAL REPORT 81 Project Project Description Donor Program Samoa Venture Capital Fund To establish a venture capital investment vehicle for local businesses that cannot Core Funds PEDF access financing from existing financial institutions. Solomon Islands Central Bank of Solomon Islands To analyze credit unions, savings clubs, and the Solomon Islands Credit Union Australia/Core Funds PEDF/TATF League and recommend changes to ensure sustainability of the sector. Thailand Bond Market Development To organize the marketplace for trading bonds, improving price transparency and IFC TATF market surveillance. Timor-Leste Private Sector Investment To identify private sector investment opportunities in agribusiness, fisheries, Norway TATF forestry, oil and gas, infrastructure, tourism, and the financial sector. Vanuatu Melanesian Cooperative Savings To help the institution develop a strategic business plan while maintaining its Australia PEDF/TATF and Loan Society emphasis on indigenous access to finance. Vietnam Asia Commercial Bank To strengthen the bank's retail, SME finance operations, corporate governance, IFC/Japan TATF Management Information System and institutional capacity through an upgrade of its management information system. BTC Vietnam To improve the level of environmental and social commitment through capacity Luxembourg SFMF building for financial institutions. Sacombank To strengthen the corporate governance and institutional capacity of Sacombank. Japan TATF Thanh Hoa Bamboo Growers To increase the income of farmers in Thanh Hoa province through bamboo Luxembourg/ CCF Support cultivation and improvement in the supply chain. Netherlands SOUTH ASIA REGIONAL Banker Training To train bankers in Bhutan and northeast India; topics include introducing new Core Funds SEDF financial products and tools and techniques for human resources. FDI Roundtable on Regulatory To examine how regulatory reform can improve the environment for foreign Core Funds SEDF Reform direct investment. Gender Entrepreneurship Markets To develop a program based on a diagnostic study of women in SMEs and a Core Funds SEDF regional forum. Knowledge Centers and SME To localize the SME Toolkit and work with chambers of commerce in Dhaka, Core Funds SEDF Toolkit Chittagong, and Bhutan to disseminate business information and provide training. Promoting Trade between To promote advocacy, dialogue, and research to remove nontariff barriers and Core Funds SEDF Bangladesh and Northeast India promote trade between Bangladesh and northeast India. SME Bank Diagnostic Tool To develop a diagnostic tool for evaluating SEDF's partner banks. IFC CBF/SEDF Solar Lighting To develop low-cost solar lamps to market to poor people in rural areas. Netherlands EOF Tsunami Matching Grant To provide immediate financial support to corporations that are positioned to IFC FMTAAS respond rapidly to emergency needs. COUNTRY Bangladesh Administrative Barriers Review To review administrative barriers to inform design of a multidonor private sector Core Funds SEDF/FIAS development project. Bangladesh Women Chamber of To develop the capacity and improve the financial sustainability of the Bangladesh Core Funds SEDF Commerce and Industry Women Chamber of Commerce and Industry. Bank Competency Group Training To train inspectors in auditing risk-based systems in various areas of banking. Core Funds SEDF 82 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Bank Corporate Governance and To train the central bank and commercial bankers on corporate governance and Core Funds SEDF Credit Risk Management on credit risk management related to SME finance. CBA Dhaka To provide training on environmental management for financial intermediaries Netherlands SFMF and SMEs. Chittagong Woman Entrepreneurs To develop the capacity and improve the financial sustainability of the Chittagong Core Funds SEDF Woman Entrepreneurs, a business association. Credit Scoring Modules To develop training modules on credit scoring. Core Funds SEDF Dhaka Chamber of Commerce and To conduct an in-depth diagnostic review of DCCI and develop a strategic Core Funds SEDF Industries Diagnostic Review framework for the organization. Global Bank Diagnostic Instrument To prepare a global diagnostic instrument that verifies readiness of a financial IFC/Core Funds CBF/SEDF institution to serve SMEs, in collaboration with several other IFC regional facilities. Improving Registration Procedures To disseminate information on business registration procedures. Core Funds SEDF Institutionalizing Reforms for To build capacity of the civil service and strengthen the government's ability to Core Funds SEDF Private Sector Development support private sector growth. Investment Incentive Review To review existing fiscal measures for investment in Bangladesh and develop Core Funds SEDF appropriate recommendations. Knitwear Sector To improve the competitiveness of the knitwear sector though export promotion Core Funds SEDF and clustering. Registrar of Businesses To automate the functions of the Registrar of Joint Stock Companies and Firms Core Funds/Australia SEDF to improve the country's environment for business entry registration. Roundtable on Free Zones for To disseminate principles, international best practices, and experiences in Core Funds SEDF Investment Promotion and Export improving the business environment to key stakeholders. Competitiveness SME Market Financial Survey To conduct a survey of the SME market from a banker's perspective. Core Funds SEDF SME Panel Survey and Report To track performance of SMEs through a series of panel surveys and identify Core Funds SEDF key constraints. SME Units at Banks To help set up separate units within banks to focus on serving SMEs. Core Funds SEDF Trade Policy and Apparel Exports To examine the potential economic impact of SAARC Cumulation and General Core Funds SEDF System of Preferences on the country's apparel export sectors. Bhutan Information Technology Park To study the feasibility of establishing a combined information technology park Core Funds SEDF Feasibility Study and distance learning center. Women's Entrepreneurship and To improve entrepreneurial capacity of rural women in producing and marketing Core Funds SEDF Poverty Alleviation medicinal herb products. India Bharatiya Yuva Shakti Trust To develop an innovative, sustainable financing solution for local entrepreneurs Netherlands/IFC TATF Developing Young Entrepreneurs to fill a gap in the Indian financial market. BILT Farm Forestry Program To support an outreach program that helps poor farmers in tribal villages grow IFC Linkages/ trees on marginal lands for pulp and paper production. CBF Cairn Community and Economic To help an IFC oil and gas client establish a community development program in IFC/Netherlands Linkages/ Development remote rural areas of Rajastan and support development of local supply-chain and CCF income-generating activities for communities nearby. Cogeneration Turbine To introduce cogeneration to local industries by beta-testing gas turbines and Netherlands EOF Manufacturing producing steam turbines. Electric Car Manufacturing To support the country's first electric car manufacturer. IFC/Netherlands EOF IFC 2005 ANNUAL REPORT 83 Project Project Description Donor Program Environmental and Social Issues To work with a potential IFC investee and its outgrowers to address Italy CCF in Sugar Supply Chains environmental, social, and labor issues in production practices. Food Safety Management System To help an IFC client manage food production safety and quality and become Sweden TATF eligible for HACCP certification. HIV/AIDS Capacity Building for To build the capacity of corporations to address HIV/AIDS in the workplace, Netherlands CCF IFC Clients in-house clinics, and surrounding communities. Information Technology for To provide rural farming communities in Tamil Nadu with access to IT services IFC CCF Rural Farmers through communications kiosks. Lead Battery Certification To develop a certification program for lead battery manufacturing. Netherlands CCF Northeast India Brand Summit To promote the area's industrial products and build brands for better market Core Funds SEDF access. Powerlinks Occupational Health To increase awareness among contractors and employees of workplace health Netherlands CCF and Safety Training and safety issues and good practice. Private Health Care Sector To help expand the health care sector in northeast India. Core Funds SEDF Development Self-Employed Women's Association To administer existing portfolio projects: SEWA Trade Facilitation Centre IFC SGBI (Dutch-funded) and SEWA Barefoot Managers' School (Japanese-funded). SME Training: Applying Global To develop best practice SME training methods appropriate to meet the Netherlands/IFC TATF Best Practice country's needs. Maldives Coral Reef Rehabilitation and To work with resort hotels that are IFC clients and with local NGOs and tour Netherlands CCF Protection operators to test methods of rehabilitating coral reefs affected by human activity. Nepal SME Toolkit Bizmantra To localize the SME Toolkit and increase access to business information and Core Funds SEDF management training. Sri Lanka Road Safety Training Institute To determine the viability of establishing a road safety training institute. Sweden TATF Feasibility Study Water Disinfection and Purification To build a permanent water purification and disinfection system as part of the United States TATF post-tsunami reconstruction. EUROPE AND CENTRAL ASIA REGIONAL ACG/BTC Pipeline To increase opportunities for local SMEs to become part of the supply chain for IFC Linkages/ the ACG/BTC Pipeline. CBF Alternative Dispute Resolution To help introduce mediation into the formal court system and increase awareness Core Funds PEP-SE of its potential. Balkans Infrastructure Development To help the public sector in Southeast Europe increase private participation and Netherlands TATF investment in infrastructure, especially the energy, transport, and water and sanitation sectors. Central Asia Housing Finance To identify the legal and regulatory gaps in the housing finance systems in Switzerland PEP Gaps Analysis Azerbaijan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan. Competitive Business Advantage To hold Competitive Business Advantage workshops in Sarajevo, Belgrade, Netherlands/IFC SFMF/ Skopje, and Tirana. PEP-SE Herbal Development Initiative To strengthen private development of the herbal sector by building the capacity Core Funds PEP-SE of business associations in Bosnia and Herzegovina and in Serbia and Montenegro. 84 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Leasing To build local capacity and knowledge through training on leasing legislation and Core Funds PEP conduct an awareness campaign to highlight financial benefits of leasing. COUNTRY Albania Albania National Commercial Bank To train bank staff, conduct sector studies, and offer consulting services to Core Funds PEP-SE individual companies to help them access finance. Albanian Construction Association To strengthen the construction association's sustainability and capacity to serve Core Funds PEP-SE its members. Export Promotion Agency To help the agency with critical organizational and technical issues to improve Core Funds PEP-SE its services to exporters and Albania's competitiveness in regional and EU markets. Telecommunication Regulatory To prepare a capacity building program for the authority's management and staff. Spain TATF Authority HR Needs Assessment Belarus Business Enabling Environment To reduce the regulatory burden on SMEs by conducting surveys, identifying Sweden PEP barriers to growth, discussing problems with decision-makers and the business community, and providing the government with policy advice. Strengthening BelgazpromBank's To help the bank develop a viable consumer and small business finance operation. Sweden TATF Capacity Bosnia and Herzegovina Auto Cluster To align the performance of car parts suppliers with international manufacturing Core Funds PEP-SE standards, raising their attractiveness to foreign investors. Construction Sector Development To increase competitiveness and readiness of local companies for large Core Funds PEP-SE infrastructure projects through training and links to sources of financing. Corporate Governance To improve corporate governance and operational performance of newly privatized Core Funds PEP-SE SMEs through consulting to firms and training of managers and board members. KLAS Company To develop a business model for the company's retail division and support Core Funds PEP-SE involvement of SMEs as suppliers in the company's value chain. Wood Sector Development To assist SME development in the wood sector through consulting and training to Core Funds PEP-SE enhance competitiveness. Bulgaria Bulgarian Electricity Generation To design a transparent and competitive wholesale market that encourages IFC TATF Advisory participation of private investors in the country's power sector. Kazakhstan Corporate Governance To increase knowledge of good corporate governance practices at local companies IFC PEP/ and banks. FMTAAS Ispat Karmet To help smaller businesses maintain links with Ispat Karmet and aid them in IFC Linkages/ expanding and modernizing their businesses through the SME Resource, a special CBF purpose funding vehicle. SME Supplier Development in Oil To support the development of SME suppliers to international oil and gas projects. Japan TATF and Gas Projects Kyrgyz Republic Kumtor Snow Leopard Conservation To preserve the area's biodiversity, including endangered snow leopards. Italy CCF and Biodiversity FYR Macedonia Financial Institutions Capacity To build capacity of financial institutions and regulatory bodies and increase Core Funds PEP-SE Building access to capital for SMEs. Makstil Company To improve the competitiveness and profitability of the company's supply chain, Core Funds PEP-SE including scrap metal operators and collectors, and support development of the recycling industry. IFC 2005 ANNUAL REPORT 85 Project Project Description Donor Program SME Agency Strengthening To increase the capacity of the agency and local business service providers to Core Funds PEP-SE address EU accession issues and introduce HACCP in the country's food companies. Union of Chambers of Commerce To strengthen the management capacity of the business association and expand Core Funds PEP-SE its members' access to products and services. Romania Banca Comerciala Romana To help the bank strengthen its corporate governance, internal auditing, and IFC/Italy FMTAAS/ environmental policy and management systems. SFMF Industrial Competitiveness To help fund a study of the country's competitiveness. IFC FMTAAS Russian Federation A Chance To Work To provide disadvantaged youth with an opportunity to improve their lives and to IFC TATF promote corporate social responsibility, by providing orphans with training and internship opportunities at major Moscow-based companies. Commercial Energy Efficiency To support the Commercializing Energy Efficiency Finance program in Russia. Switzerland SFMF Finance Competitive Business Advantage To train financial institutions on how to manage environmental and social issues Switzerland SFMF associated with their lending and investment operations. Fishing Industry Survey To identify key issues and constraints of the country's fishing industry. Iceland PEP Komi Republic SME Development To help the SUAL Group maximize local sourcing opportunities from the Russian IFC PEP/CBF Federation's Komi Republic. Northwest Russia Forest Investment To improve the investment environment in northwest Russia's forest industry and Finland/Private donors PEP encourage the use of sustainable forestry practices. Primary Mortgage Market To spur the development of the primary and residential mortgage market, Canada/Netherlands/ PEP Development particularly among local banks in regions beyond Moscow. Switzerland/IFC Securitization To advise government entities on new regulations to create an environment for Austria TATF securitization and provide education to regulators and market players on the benefits and mechanics of securitization. Steel Sector Assessment To analyze the demand characteristics for various steel products, review the main United Kingdom TATF players in the industry, and identify efficient producers who are suitable for modernization of their facilities. Sustainable Energy Finance To promote investments in energy efficient technologies. Denmark/Finland/IFC/ PEP World Bank Volga Automotive To improve quality and production efficiency at a large automobile factory. Austria PEP Serbia and Montenegro Belgrade Municipal Solid Waste To improve efficiency and management in Belgrade's municipal solid waste Denmark/IFC TATF operations in preparation for private sector participation. Business Associations Capacity To enhance private sector development in the municipality of Vrsac through Core Funds PEP-SE Building assistance to the Association of Small and Medium Enterprises and Entrepreneurship. CPOT Pipeline Strategy To prepare for development of the Constanza-Pancevo-Omisalj-Trieste oil pipeline. Austria TATF MAXI Company To enhance MAXI's value chain by helping it adopt best practices and improve Core Funds PEP-SE customer service and quality of products. Podgoricka Banka Restructuring To support the bank's restructuring and upgrading by providing financial advisory Austria/Greece/IFC TATF and Privatization services. Privatization Agency of Serbia To assist the agency's Capital Market Center and assess the portfolio of companies Italy TATF held by the State Share Fund of Serbia. Tigar Finance and Accounting To help Tigar AD establish an effective treasury, finance, and control department Italy TATF Departments and train staff, including its chief financial officer. 86 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Tajikistan PamirEnergy Tariffs To help PamirEnergy develop a revised tariff collection strategy and demand-side Switzerland TATF management program to reduce consumers' energy consumption and make energy bills more affordable. Rural Finance Replication To establish a private company owned by farmers and to finance inputs, arrange Canada PEP for processing, and provide marketing services. Turkey Cultural and Historic Tourism To examine tourism possibilities for the port of Kushadesi based on its cultural Norway CCF heritage. Waste Recycling Market Assessment To assess business opportunities for recycling. IFC EOF Ukraine Commercial Mediation and Dispute To investigate commercial mediation and alternative dispute resolution in Ukraine. Sweden PEP/TATF Resolution HACCP Food Safety To expedite Sandora's efforts to fully implement a Hazard Analysis and Critical Germany TATF Control Point food safety program. Pulp and Paper Industry To identify key issues and constraints of the country's pulp and paper industry. Finland/IFC PEP/TATF SME Policy To help improve the legal framework for business permits and to assist permit European Commission PEP agencies in simplifying their issuance procedures. Southern Ukraine Vegetable To develop agribusiness skills to improve access to finance and markets, improve Sweden PEP Supply Chain farm productivity by introducing husbandry, and demonstrate a more productive use of assets. Vinnitsa Dairy Supply Chain To develop business skills among dairy farmers, promote milk safety awareness, Sweden PEP and improve farm productivity and milk quality. Vinnitsa Fruit Supply Chain To develop agribusiness management skills among fruit farmers, improve Austria PEP sustainability by demonstrating a more productive use of assets, and introduce modern techniques and technologies. LATIN AMERICA AND THE CARIBBEAN REGIONAL Competitive Business Advantage To help financial institutions understand how to manage environmental and social Switzerland SFMF issues associated with their lending and investment operations. Credit Bureau Program To foster the development of private credit bureaus, facilitating the extension of IFC TATF credit to underserved segments of the population. Indigenous Peoples and Impact To assemble indigenous perspectives on a range of topics related to the work IFC CCF Assessment of the Organization of American States and to the themes of an OAS summit. Leasing Maps To assess the national regulatory and legal framework for the leasing industry in Canada/Switzerland LAC Honduras and Nicaragua. Municipal Scorecard To establish a benchmarking tool for municipalities' regulation of the private sector. Switzerland LAC Simplification of Business To provide a toolkit for reforms that simplify business regulations at the municipal Norway LAC Regulations at the Subnational level. Level: Toolkit for Reform Implementation SME Toolkit To modify IFC's SME Toolkit to meet specific needs of smaller enterprises in Bolivia Switzerland TATF and Peru. Southern Cone Development To help strengthen civic values among poor and vulnerable youth in Argentina, IFC TATF Marketplace Chile, Paraguay, and Uruguay. IFC 2005 ANNUAL REPORT 87 Project Project Description Donor Program Wastewater Systems for Sugar Mills To review the wastewater system and identify cost-effective design improvements Norway EOF for two sugar mills. COUNTRY Argentina Banco Hipotecario Argentina To create a strategy for fully privatizing Banco Hipotecario Argentina. Spain TATF Bolivia AXS Bolivia To develop an Internet cafe franchise. IFC Linkages/ LAC Community Development and Rural To develop pilots to deliver rural electrification to isolated communities using Bavaria TATF Electrification renewable energy, including wind, biomass, solar photovoltaics, and micro-hydropower. Indigenous Enterprise Development To study the opportunities for indigenous people in business and help indigenous Netherlands LAC/TATF artisan groups gain market access for their products. Irupana To provide Irupana with a patient capital loan to optimize its production capacity IFC SGBI and packing facilities, helping it increase exports and implement a management information and monitoring system. Leasing Development To expand leasing operations and draft new laws. Switzerland LAC National Guide of Business To set up a Web portal to host a national online guide to procedures of the Netherlands LAC Procedures Central Public Administration, as part of a larger effort to simplify administrative procedures and increase transparency. Simplifying Procedures at the To simplify business procedures in the municipalities of Montero, Tarija, and Norway LAC Municipal Level Trinidad. Wood Sector Supply Chain To strengthen the supply chain for wood products by promoting access to finance IFC LAC/CBF and improving the availability of certified wood. Brazil Competitive Business Advantage To conduct a Competitiveness Business Advantage course. IFC SFMF Forestry Certification To strengthen the country's forest certification program and align it with Italy CCF international standards. Odebrecht Supplier Finance To provide training for supplier and subcontractor development, supporting IFC's IFC Linkages/ loan to the company for financing of SME suppliers. CBF Soy Stakeholder Dialogue To support consultation between an IFC client and NGOs on soy production in IFC CCF the Cerrado. Wind Power Viability Assessment To review the feasibility of IFC engagement with privately held wind power IFC TATF projects that are in development under a Brazilian government program. Colombia Supply-chain Best Practice To map local initiatives of large companies that work with SMEs as suppliers Canada LAC and distributors. Dominican Republic Wind Power Feasibility Study To review wind data, technical bids, and selection of turbines and to estimate Sweden TATF the amount of electricity to be generated. Ecuador Labor Relations To facilitate discussions between a trade union and management on the possibility IFC CCF of establishing unions on plantations. Organic Waste Fermentation To define the most beneficial and cost-effective methodology for converting Bavaria TATF and Biogas organic solid wastes from livestock rearing, animal and food processing, and wastewater management into biogas and marketable fertilizer-like solids. El Salvador Global Home Township Feasibility To analyze the potential for the Global Home Township program in El Salvador. IFC TATF Study Metrocentro To provide local SME retailers with tailored training and consulting. Italy Linkages/ CCF 88 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Guatemala Gold Mining and Community To work with the company's foundation to establish community-run tree nurseries Norway CCF Development for mine reforestation. Haiti Grupo M Mediation To initiate negotiations between management and workers at an apparel IFC TATF manufacturing plant, helping resolve a labor dispute. Nicaragua Simplification of Business To help the municipalities of Granada, Leon, and Masaya reduce administrative Switzerland LAC Procedures barriers in the business environment. Wood Sector: Export Promotion To strengthen smaller businesses' access to competitive markets using Netherlands LAC for SMEs environmental management certification as a marketing tool. Peru Corporate Social Responsibility To identify interactions between large and small enterprises and analyze practices Canada LAC that contribute to the sustainability of their businesses. Edyficar To help a microfinance institution improve its efficiency. IFC Linkages/ CBF Institutional Capacity Building To help local governments in Cajamarca contribute to more equal distribution of IFC LAC and Transparency benefits generated by a mining project. Minera Yanacocha To improve the competitiveness of local SMEs by diversifying their markets and IFC/Netherlands Linkages/ participating in a mine's supply chain. CBF Municipal Business Procedures Map To map current practice and design a national plan to simplify municipal Canada LAC procedures. Orient Express Linkages To help link small-scale producers and service providers in the Cuzco region to IFC LAC/CBF/ contracting opportunities with Orient Express Hotels and rail operations in the Linkages region. Simplification of Business To simplify procedures for obtaining operating and construction licenses in Switzerland LAC Regulations metropolitan Lima. SME Toolkit Adaptation To provide a management tool to help lenders improve their performance when Switzerland LAC advising small and medium enterprises. Textile Sector To strengthen the textile sector in Arequipa. Netherlands LAC Venezuela Vinncler Oil and Gas To develop an environmental and social management framework, helping support Spain TATF the company's expansion. MIDDLE EAST AND NORTH AFRICA Afghanistan Afghanistan Finance Company To help a new private sector leasing company set up best practice credit analysis, Core Funds PEP-MENA marketing, and equipment leasing functions. Algeria Arab Leasing Corporation To improve the company's operating processes and guidelines, train staff in credit Core Funds PEP-MENA analysis and marketing, and provide coaching to management. CARE To develop CARE's capacity to organize advocacy events, including national Core Funds PEP-MENA debates and a conference on family businesses. Conseil National Consultatif To build the capacity of the national council of business associations, including by Core Funds PEP-MENA establishing a unit to coordinate donor-funded programs. Crédit Populaire d'Algérie To help the bank establish best practice risk management procedures and systems. Core Funds PEP-MENA IFC 2005 ANNUAL REPORT 89 Project Project Description Donor Program Egypt Alexandria Business Association To review the association's risk management processes and procedures and Core Funds PEP-MENA Credit Scoring develop a credit-scoring model. Banque Misr To help the bank assess the microfinance performance of its branches, develop a Core Funds PEP-MENA business plan, install an IT system, and review procedures, systems, and training. Business Edge To support local organizations that provide management training to SMEs by Core Funds PEP-MENA providing them with IFC's Business Edge products and tools. Export Development Bank of Egypt To analyze the bank's profitability and customer segmentation and help it Core Funds PEP-MENA establish an SME operation. Islamic Republic of Iran Saman Bank and Karafarin Bank To support two new private sector commercial banks by strengthening their Spain TATF organization, operational procedures, credit analyses, and risk management functions. Jordan Arab Bank Academy for Banking To help develop training modules to serve the needs of banks targeting the Core Funds PEP-MENA and Financial Services region's SMEs. Lebanon Banking Sector Corporate To survey corporate governance in the country's banking sector generally and Core Funds PEP-MENA Governance assess the corporate governance of a leading local commercial bank. Morocco AZIT Business Organization To build the capacity of AZIT, a business member organization in the industrial IFC PEP-MENA zone of Tangiers. Banque Centrale Populaire To promote the bank's services to SME clients and conduct a benchmarking study Core Funds PEP-MENA of its risk management function. Business Associations Training To facilitate business associations' access to training by a local service provider, IFC PEP-MENA Confédération Générale des Enterprises du Maroc. IZDIHAR Business Association To help a business association design and implement a marketing plan for new IFC PEP-MENA and existing services. Regional Investment Promotion To establish an investment promotion agency aiming at increasing FDI inflows to Core Funds PEP-MENA Agency the country's northern regions. Tunisia Banker Sustainability Training To collaborate with the World Bank Mediterranean Environmental Technical Netherlands SFMF Assistance Program in training bankers on topics related to sustainability. BIAT Banking Operations To develop and promote Banque Internationale Arabe de Tunisie's SME banking Core Funds PEP-MENA operations. GLOBAL ACCION Microfinance Facility To use ACCION International's expertise to help banks set up new microfinance IFC FMTAAS business units. Animal Welfare Good Practice To provide guidance on animal welfare for IFC livestock clients and other Netherlands/Norway/ CCF Note agribusiness companies. IFC Corporate Social Responsibility and To develop a national competitiveness strategy that will promote corporate social Sweden TATF/FIAS National Competitiveness responsibility and encourage a sustainable private sector in FIAS client countries. Gender Entrepreneurship Markets To incorporate gender issues into IFC's work, assist women entrepreneurs, and IFC FMTAAS advise financial institutions on financial services and business support to women. Global Business School Network To enhance the institutional capacity of business schools in developing countries IFC FMTAAS so they can provide a stronger pool of management talent to local, regional, and multinational firms and organizations. 90 IFC 2005 ANNUAL REPORT Project Project Description Donor Program Grassroots Business Organizations To help grassroots business organizations improve their operations, develop better Switzerland TATF systems, and establish access to markets and financing. Human Rights Impact Assessment To develop a guide to human rights impact assessment for use across sectors by IFC CCF companies in the field. IFC Against AIDS To develop tailored tools and advice to address workforce and community-related IFC FMTAAS concerns stemming from HIV/AIDS. Indigenous Business Summit To provide a technical forum on indigenous business for leaders of indigenous IFC CCF peoples, practitioners of impact assessment, private companies, and other stakeholders. Linkage Toolkit To train staff and develop sector-specific networks for coordinating linkage IFC CBF/ activities. Linkages Monitoring and Evaluation of IFC's To devise a standard and shared approach to methodology employed in IFC CBF Technical Assistance monitoring and evaluating the impact of technical assistance on projects in the various donor-funded facilities managed by IFC. Olam Sustainable Forestry To help Olam address sustainability and fair trade opportunities. Netherlands/Norway/ CCF Management IFC Sustainability Regional Service To develop a network of regional service providers to deliver sustainability-related Netherlands SFMF Providers products and services. Sustainable Investment in Emerging To stimulate more sustainable investment in emerging market listed equities by Netherlands SFMF Markets addressing gaps in local research infrastructure. Tourism Workbook To develop a handbook for practitioners on managing the socioeconomic impact Netherlands/Norway/ CCF of hotel and tourism development. IFC Traditional Medicine Market Study To conduct a survey of the traditional medicine market in China and India. Switzerland TATF Youth Entrepreneurship To enhance existing youth enterprise development initiatives in Kenya and India IFC CBF and appraise their potential for replication. IFC 2005 ANNUAL REPORT 91 Sub-Saharan Africa 94 East Asia and the Pacific 103 South Asia 109 Europe and Central Asia 112 Latin America and the Caribbean 120 Investment Portfolio Middle East and North Africa 129 Global 133 STATEMENT OF CUMULATIVE GROSS COMMITMENTS (at June 30, 2005) Cumulative Commitments1 Cumulative Commitments1 (US$ thousands) (US$ thousands) Country, Region Number of Country, Region Number of or Other Area Enterprises IFC Syndications Total or Other Area Enterprises IFC Syndications Total Afghanistan 3 8,322 -- 8,322 Estonia 11 137,806 11,855 149,661 Albania 10 127,389 8,917 136,306 Ethiopia 4 21,848 1,719 23,567 Algeria 9 112,175 5,557 117,732 Fiji 7 25,059 2,500 27,559 Angola 5 13,810 -- 13,810 Finland 4 1,233 1,915 3,148 Argentina 172 2,945,104 2,376,464 5,321,568 Gabon 5 145,588 110,000 255,588 Armenia 3 9,087 -- 9,087 Gambia, The 8 6,943 -- 6,943 Australia 2 975 -- 975 Georgia 9 85,462 -- 85,462 Azerbaijan 16 167,575 72,930 240,505 Ghana 42 333,661 272,000 605,661 Bangladesh 19 202,088 52,745 254,833 Greece 7 26,292 41,107 67,400 Barbados 3 8,625 -- 8,625 Grenada 2 8,000 -- 8,000 Belarus 4 31,250 -- 31,250 Guatemala 17 251,075 110,000 361,075 Belize 3 21,500 11,000 32,500 Guinea 9 33,684 -- 33,684 Benin 8 2,939 -- 2,939 Guinea-Bissau 4 7,246 -- 7,246 Bhutan 1 10,000 -- 10,000 Guyana 4 4,911 -- 4,911 Bolivia 26 326,152 140,500 466,652 Haiti 2 1,911 -- 1,911 Bosnia and Honduras 8 63,832 79,401 143,233 Herzegovina 22 166,094 10,578 176,671 Hungary 28 315,240 70,335 385,575 Botswana 6 10,693 -- 10,693 India 183 3,108,679 725,057 3,833,736 Brazil 169 4,245,551 3,246,792 7,492,342 Indonesia 87 1,593,896 1,195,871 2,789,768 Bulgaria 19 299,361 86,911 386,271 Iran, Burkina Faso 7 5,648 -- 5,648 Islamic Republic of 11 63,343 8,199 71,542 Burundi 3 6,626 -- 6,626 Iraq 2 9,912 -- 9,912 Cambodia 5 24,243 -- 24,243 Israel 1 10,500 -- 10,500 Cameroon 27 302,153 471,500 773,653 Italy 1 960 -- 960 Cape Verde 5 10,009 -- 10,009 Jamaica 16 213,682 79,694 293,376 Chad 3 15,172 13,900 29,072 Japan 1 40,000 -- 40,000 Chile 42 963,429 496,733 1,460,162 Jordan 28 250,848 70,250 321,098 China 100 1,603,178 614,554 2,217,732 Kazakhstan 22 367,253 172,917 540,170 Colombia 65 952,640 487,631 1,440,271 Kenya 62 335,503 59,295 394,798 Congo, Korea, Republic of 47 826,449 195,700 1,022,149 Democratic Kyrgyz Republic 8 52,561 -- 52,561 Republic of 10 75,373 -- 75,373 Lao People's Congo, Republic of 6 115,005 25,000 140,005 Democratic Republic 5 7,247 -- 7,247 Costa Rica 16 210,504 99,709 310,213 Latvia 6 80,967 35,000 115,967 Côte d'Ivoire 40 265,016 70,964 335,980 Lebanon 25 325,878 230,430 556,308 Croatia 11 304,536 97,657 402,193 Lesotho 2 454 -- 454 Cyprus 6 19,681 645 20,327 Liberia 3 12,703 -- 12,703 Czech Republic 16 396,808 245,588 642,396 Lithuania 8 81,637 9,309 90,946 Dominica 1 700 -- 700 Macedonia, Dominican Republic 22 373,899 213,100 586,999 Former Yugoslav Ecuador 17 156,506 16,240 172,746 Republic of 11 93,098 25,000 118,098 Egypt 56 1,022,961 504,871 1,527,832 Madagascar 13 55,484 -- 55,484 El Salvador 15 247,118 113,500 360,618 Malawi 14 35,854 -- 35,854 Eritrea 1 949 -- 949 Malaysia 11 54,868 5,389 60,258 92 IFC 2005 ANNUAL REPORT STATEMENT OF CUMULATIVE GROSS COMMITMENTS (at June 30, 2005) Cumulative Commitments1 Cumulative Commitments1 (US$ thousands) (US$ thousands) Country, Region Number of Country, Region Number of or Other Area Enterprises IFC Syndications Total or Other Area Enterprises IFC Syndications Total Maldives 4 63,750 8,500 72,250 Spain 5 19,043 1,685 20,728 Mali 18 93,781 40,000 133,781 Sri Lanka 25 204,265 23,616 227,881 Mauritania 10 61,645 9,503 71,148 Sudan 6 27,268 6,489 33,757 Mauritius 11 38,619 96 38,715 Swaziland 8 47,779 -- 47,779 Mexico 130 3,336,386 2,172,089 5,508,474 Syrian Arab Republic 3 20,288 -- 20,288 Moldova 8 72,286 25,000 97,286 Tajikistan 10 27,988 -- 27,988 Mongolia 5 10,150 -- 10,150 Tanzania 39 104,065 13,041 117,105 Morocco 28 405,338 515,014 920,352 Thailand 64 1,277,911 1,701,374 2,979,285 Mozambique 21 207,977 -- 207,977 Togo 7 18,600 -- 18,600 Namibia 4 23,878 -- 23,878 Trinidad and Tobago 13 239,279 235,000 474,279 Nepal 6 73,673 36,000 109,673 Tunisia 20 135,819 2,281 138,100 Nicaragua 9 29,643 929 30,571 Turkey 124 2,636,075 1,626,533 4,262,608 Niger 1 2,493 -- 2,493 Uganda 38 87,396 1,588 88,985 Nigeria 55 596,619 113,155 709,774 Ukraine 13 259,493 -- 259,493 Oman 6 123,860 57,000 180,860 Uruguay 12 125,550 20,000 145,550 Pakistan 94 1,332,991 536,769 1,869,760 Uzbekistan 14 64,964 12,900 77,864 Panama 16 514,533 153,300 667,833 Vanuatu 1 5,398 -- 5,398 Papua New Guinea 3 14,500 -- 14,500 Venezuela 38 823,230 703,791 1,527,021 Paraguay 5 30,008 -- 30,008 Vietnam 25 241,076 203,375 444,451 Peru 47 603,519 298,621 902,140 Yemen, Republic of 8 39,517 1,105 40,622 Philippines 85 1,358,502 695,880 2,054,382 Zambia 28 150,023 20,286 170,309 Poland 42 411,146 115,317 526,462 Zimbabwe 51 284,262 99,000 383,262 Portugal 7 51,811 11,000 62,811 Romania 27 573,348 194,471 767,819 Regional Investments Russian Federation 92 2,123,852 433,070 2,556,922 Sub-Saharan Africa 32 607,095 1,906 609,001 Rwanda 3 5,166 -- 5,166 East Asia and Saint Lucia 2 9,940 -- 9,940 the Pacific 18 518,023 -- 518,023 Samoa 5 1,485 -- 1,485 South Asia 9 203,170 -- 203,170 Saudi Arabia 2 61,329 -- 61,329 Europe and Senegal 19 100,260 12,398 112,658 Central Asia 29 1,143,689 25,000 1,168,689 Serbia and Latin America and Montenegro 22 289,998 92,423 382,421 the Caribbean 35 487,592 63,000 550,592 Seychelles 6 29,359 2,500 31,859 Middle East and Sierra Leone 4 29,186 -- 29,186 North Africa 9 133,160 -- 133,160 Slovakia 5 115,544 -- 115,544 Other2 17 59,814 1,400 61,214 Slovenia 12 225,160 47,383 272,543 Global 45 1,116,499 308,000 1,424,499 Somalia 2 975 -- 975 South Africa 42 383,113 15,000 398,113 Total: 3,316 49,386,567 23,653,713 73,040,279 1. Commitments are composed of funds to be provided by IFC for its own account, funds to be provided by participants through the purchase of an interest in IFC's investment, and funds to be provided by other financial institutions in association with IFC, where IFC has rendered material assistance in mobilizing these funds. Cumulative commitments are composed of disbursed and undisbursed balances. The undisbursed portion is revalued at current exchange rates, while the disbursed portion represents the cost of commitment at the time of disbursement. From FY04 forward, the Corporation includes guarantee and risk management products in commitments. 2. Of this amount, $9.8 million represents investments made at a time when the authorities on Taiwan represented China in the International Finance Corporation. The balance represents investments in West Bank and Gaza. IFC 2005 ANNUAL REPORT 93 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Angola Enterprise Bank of Angola Finance & Insurance FY04 0.7 -- -- 0.7 0.7 Fábrica de Bleach Corasol Limitada Chemicals FY99 0.6 -- 0.6 -- 0.6 Nossa Seguros Finance & Insurance FY05 1.0 -- -- 1.0 1.0 OSEL Construction & Real Estate FY05 10.0 -- 10.0 -- 10.0 10.6 1.7 12.3 Benin Finadev Microfinance Finance & Insurance FY01 0.3 -- -- 0.3 0.3 -- 0.3 0.3 Botswana Abercrombie & Kent Botswana Accommodation & Tourism Services FY00, 01 2.8 -- 1.5 -- 1.5 (Proprietary) Limited Kalahari Diamond Resources PLC Oil, Gas, & Mining FY03 2.0 -- -- 2.0 2.0 Micro Provident Botswana Limited Finance & Insurance FY05 3.9 -- -- 4.0 4.0 1.5 6.0 7.5 Burkina Faso SBPH S.A. Accommodation & Tourism Services FY05 2.6 -- 2.4 -- 2.4 Société Voltaique De Plastique Chemicals FY79 0.5 -- -- 0.1 0.1 Sarl (SOVOLPLAS) 2.4 0.1 2.6 Burundi Vegetables and Flowers Exports S.A. Agriculture & Forestry FY01 0.5 -- 0.6 -- 0.6 Verreries du Burundi, S.A.R.L. Nonmetallic Mineral Product FY81, 87 5.7 -- -- 1.0 1.0 Manufacturing 0.6 1.0 1.6 Cameroon Banque Internationale du Cameroun Finance & Insurance FY01 0.6 -- -- 0.9 0.9 Pour l'Épargne et le Crédit Bata Societe Anonyme Camerounaise Textiles, Apparel, & Leather FY75 0.4 -- -- 0.1 0.1 Cameroon Oil Transportation Company Oil, Gas, & Mining FY01 86.1 86.1 68.8 -- 68.8 Complexe Avicole de Mvog-Betsi Agriculture & Forestry FY96 0.4 -- 0.3 -- 0.3 Cotonnière Industrielle du Textiles, Apparel, & Leather FY86 6.1 -- 2.3 -- 2.3 Cameroun (CICAM) FME-GAZ Chemicals FY02 0.3 -- 0.2 -- 0.2 Horizon Bilingual Education Complex Education Services FY01 0.3 -- 0.4 -- 0.4 Nosa Sarl Chemicals FY05 1.0 -- 1.0 -- 1.0 Notacam S.A. Textiles, Apparel, & Leather FY97 0.9 -- 0.8 -- 0.8 Orange Cameroun S.A. Information FY02 0.9 -- -- -- -- Pecten Cameroon Company Oil, Gas, & Mining FY92, 96, 97, 98, 03 115.0 235.1 44.0 -- 44.0 Prestige Bottling Company Food & Beverages FY88 3.4 -- -- 0.3 0.3 Société Agro-Industrielle et Agriculture & Forestry FY00 0.4 -- 0.2 -- 0.2 Commerciale du Cameroun Société Industrielle Laitiere du Food & Beverages FY87 2.7 -- -- 0.6 0.6 Cameroun "SILAC" 118.0 1.9 119.9 Cape Verde Caixa Económica de Cabo Verde, S.A. Finance & Insurance FY04 6.1 -- 6.1 -- 6.1 Growela Cabo Verde, Lda Textiles, Apparel, & Leather FY94 1.0 -- 0.2 -- 0.2 6.2 -- 6.2 94 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Chad Finadev Tchad Finance & Insurance FY03 0.2 -- -- 0.2 0.2 Tchad Oil Transportation Company Oil, Gas, & Mining FY01 13.9 13.9 11.1 -- 11.1 S.A. (TOTCO) 11.1 0.2 11.3 Congo, Democratic Republic of Celtel Congo (RDC) s.p.r.l. Information FY00, 03 27.0 -- 16.3 -- 16.3 Grands Hotels du Zaire, S.Z.A.R.L. Accommodation & Tourism Services FY85 15.0 -- 7.8 -- 7.8 Pro Credit Bank SARL Finance & Insurance FY05 0.5 -- -- 0.5 0.5 Société Financière de Développement Finance & Insurance FY70 1.3 -- -- 1.3 1.3 Société Textile de Kisangani S.Z.A.R.L. Textiles, Apparel, & Leather FY85 6.6 -- 10.7 0.4 11.1 34.8 2.2 37.0 Congo, Republic of Congolaise des Bois Impregnes, S.A. Industrial & Consumer Products FY87 1.8 -- 1.5 0.3 1.8 Société d'Etude de la Cellulose Pulp & Paper FY82 0.2 -- -- 0.2 0.2 du Congo 1.5 0.4 2.0 Côte d'Ivoire Bank of Africa (Côte d'Ivoire) Finance & Insurance FY99, 03 0.2 -- -- 0.2 0.2 Banque Ivoirienne de Développement Finance & Insurance FY65, 78 0.4 -- -- 0.4 0.4 Industriel, S.A. Cinergy, S.A. Utilities FY99 40.5 30.3 25.7 -- 25.7 Drop Ivoire Food & Beverages FY99 1.3 -- 1.4 -- 1.4 Établissements R. Gonfreville, S.A. Textiles, Apparel, & Leather FY77, 87 10.7 -- -- 1.1 1.1 Filature et Tissage Gonfreville Textiles, Apparel, & Leather FY96 -- -- 0.2 -- 0.2 Industrial Promotion Services Collective Investment Vehicles FY88 0.9 -- -- 0.8 0.8 (Côte d'Ivoire) S.A. Ivoir-Cafe S.A. Professional, Scientific, & FY93 0.1 -- -- + + Technical Services Moulin du Sud-Ouest Food & Beverages FY80 3.3 -- -- 0.4 0.4 Multi Produits S.A. Wholesale & Retail Trade FY94, 97 0.8 -- 0.1 0.4 0.5 Ocean Energy Côte d'Ivoire Ltd. Oil, Gas, & Mining FY93, 95, 96, 98 63.7 20.0 -- 48.7* 48.7 Omnium Chimique et Cosmétique Food & Beverages FY87, 94, 97 9.1 -- -- 2.4 2.4 (COSMIVOIRE) S.A. Pétro Ivoire S.A. Utilities FY96, 00 2.0 -- 1.2 -- 1.2 S.G.I. Africaine de Bourse S.A. Finance & Insurance FY00 + -- -- + + Société des Industries Alimentaires Food & Beverages FY88, 90 4.9 -- 2.6 0.9 3.5 et Laitieres "SIALIM" Société Hôtelière de la Lagune Accommodation & Tourism Services FY00 2.1 -- 1.5 0.4 1.9 Société Ivoirenne d'Engrais (SIVENG) Chemicals FY80 6.4 -- -- 1.3 1.3 Société Médicale de Moyens Health Care FY01 1.2 -- 1.6 -- 1.6 et d'Équipement Société pour le Développement Agriculture & Forestry FY97 2.8 -- 3.9 -- 3.9 Industriel de la Région d'Odienné Texicodi S.A. Textiles, Apparel, & Leather FY96 -- -- 0.3 -- 0.3 Tropical Rubber Côte d'Ivoire Agriculture & Forestry FY99 3.5 -- 1.8 -- 1.8 40.3 57.0 97.3 Ethiopia Ethiopian Pulp and Paper, S.C. Pulp & Paper FY66 1.9 -- -- 1.2 1.2 -- 1.2 1.2 Gabon Vaalco Gabon (Etame), Inc. Oil, Gas, & Mining FY02, 05 40.0 -- 32.5 -- 32.5 32.5 -- 32.5 IFC 2005 ANNUAL REPORT 95 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Gambia, The Kerr Kande Farm Limited II Agriculture & Forestry FY98 0.2 -- 0.2 -- 0.2 Kombo Beach Hotel Limited Accommodation & Tourism Services FY84 2.9 -- + -- + Lyefish Company Limited Food & Beverages FY95 0.4 -- 0.4 -- 0.4 Makumbaya Farms Limited Agriculture & Forestry FY91 1.0 -- -- 0.4 0.4 Ndebaan Medi-Services Company Health Care FY94 0.2 -- 0.2 -- 0.2 Limited Pelican Seafood (Gambia) Limited Food & Beverages FY91 1.1 -- 1.1 -- 1.1 1.8 0.4 2.2 Ghana Anglogold Ashanti Iduapriem Limited Oil, Gas, & Mining FY90, 92, 96, 97 27.2 18.5 2.6 2.5 5.1 Appiah Menka Complex Limited Chemicals FY91 0.9 -- 0.6 -- 0.6 CAL Bank Limited Finance & Insurance FY90, 91, 93 8.9 -- -- 0.9 0.9 Diamond Cement Ghana Limited Nonmetallic Mineral Product FY02 6.0 -- 3.5 1.0 4.5 Manufacturing Enterprise Life Assurance Company Finance & Insurance FY01 0.1 -- -- 0.1 0.1 Ltd. (ELAC) Ghana Aluminum Products Limited Primary Metals FY92 0.4 -- -- 0.4 0.4 (Ghanal) Network Computer Systems (NCS) Information FY98 0.7 -- 0.5 -- 0.5 Professional Technical Services Limited Industrial & Consumer Products FY98 0.3 -- 0.3 -- 0.3 Scancom Limited Information FY05 40.0 -- 40.0 -- 40.0 Securities Discount Company Finance & Insurance FY91 0.2 -- -- 0.2 0.2 Shangri-La Hotel Accommodation & Tourism Services FY95 0.4 -- 0.9 -- 0.9 Sikaman Savings and Loan Company Finance & Insurance FY01 0.5 -- -- 0.5 0.5 Limited Tacks Farms Ghana Limited Agriculture & Forestry FY97 0.4 -- 0.4 -- 0.4 48.9 5.7 54.6 Guinea Société Aurifère de Guinée S.A. Oil, Gas, & Mining FY88 8.3 -- + -- + Société Guinéenne d'Hôtellerie et Accommodation & Tourism Services FY95, 99 4.7 -- 3.4 0.6 4.0 d'Investissements (SGHI) 3.4 0.6 4.0 Guinea-Bissau Agribissau SARL Agriculture & Forestry FY95 0.9 -- -- 0.1 0.1 Banco de Africa Ocidental, S.A.R.L. Finance & Insurance FY00 0.3 -- -- 0.3 0.3 -- 0.4 0.4 Kenya AAA Growers Agriculture & Forestry FY00 0.5 -- 0.3 -- 0.3 Allpack Industries Limited Pulp & Paper FY87 0.4 -- -- 0.4 0.4 Ceres Estates Limited Food & Beverages FY97 0.9 -- 0.9 -- 0.9 Deras Limited Textiles, Apparel, & Leather FY99 1.0 -- 1.0 -- 1.0 Diamond Trust of Kenya Limited Finance & Insurance FY82 1.0 -- -- 0.8 0.8 Equitea EPZ Company Ltd. Food & Beverages FY98 0.4 -- -- 0.1 0.1 Gapco Kenya Transportation & Warehousing FY02 15.0 -- 13.8 -- 13.8 Grain Bulk Handlers Limited Transportation & Warehousing FY98 10.0 -- 4.2 -- 4.2 Industrial Promotion Services (Kenya) Transportation & Warehousing FY92 0.1 -- -- 0.1 0.1 Ltd.--Frigoken Ltd. Industrial Promotion Services (Kenya) Textiles, Apparel, & Leather FY92 0.1 -- -- 0.1 0.1 Ltd.--Novaskins Tannery Ltd. Industrial Promotion Services (Kenya) Food & Beverages FY92 0.1 -- -- 0.1 0.1 Ltd.--Premiere Food Industries Ltd. International Hotels (Kenya) Limited Accommodation & Tourism Services FY95 6.0 -- 2.4 -- 2.4 Investment & Mortgages Bank Finance & Insurance FY05 3.0 -- 3.0 -- 3.0 (Kenya) Ltd. 96 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Kenya (continued) K-Rep Bank Limited Finance & Insurance FY97, 99 1.4 -- -- 1.4 1.4 Kenya Airways Limited Transportation & Warehousing FY03 6.5 -- 3.3 -- 3.3 Kongoni River Farm Limited Agriculture & Forestry FY05 2.0 -- 1.9 -- 1.9 Leather Industries of Kenya Limited Textiles, Apparel, & Leather FY84, 92 1.4 -- -- 0.6 0.6 Lesiolo Grain Handlers Limited Transportation & Warehousing FY01 2.5 -- 2.5 -- 2.5 Locland Limited Agriculture & Forestry FY98 0.6 -- 0.1 -- 0.1 Mabati Rolling Mills Limited Industrial & Consumer Products FY00 11.5 -- 8.0 -- 8.0 Magadi Soda Company Ltd. Chemicals FY96, 04, 05 35.0 -- 26.0 -- 26.0 Magana Flowers (K) Limited Agriculture & Forestry FY00 1.2 -- 0.9 -- 0.9 Makini School Limited Education Services FY97 0.5 -- 0.1 -- 0.1 Oil Crop Development Limited Agriculture & Forestry FY86 2.2 -- -- 0.7 0.7 Panafrican Paper Mills (E.A.) Limited Pulp & Paper FY70, 74, 77, 79, 81, 68.5 3.9 25.8 -- 25.8 88, 90, 94, 96 Redhill Flowers (Kenya) Limited Agriculture & Forestry FY97 0.3 -- 0.3 -- 0.3 Rift Valley Textiles Limited Textiles, Apparel, & Leather FY76 9.6 1.3 -- 2.5 2.5 Tourism Promotion Services Holdings Ltd. Accommodation & Tourism Services FY72 1.6 0.8 -- 2.2 2.2 Tsavo Power Company Ltd. Utilities FY00, 01 17.6 23.5 11.3 0.8 12.1 105.7 10.0 115.7 Liberia Liberian Agricultural Company Agriculture & Forestry FY00 3.5 -- 0.4 -- 0.4 Liberian Bank for Development Finance & Insurance FY66, 77 0.7 -- -- 0.7 0.7 and Investment Liberian Timber and Plywood Industrial & Consumer Products FY88 8.5 -- 7.2 -- 7.2 Operation Company 7.6 0.7 8.3 Madagascar Bank of Africa Madagascar Finance & Insurance FY00 1.3 -- 0.7 0.8 1.5 BNI-Crédit Lyonnais Madagascar Finance & Insurance FY92, 05 8.9 -- 6.1 2.6 8.7 Cottonline S. A. Textiles, Apparel, & Leather FY04 1.5 -- 1.5 -- 1.5 Grands Hôtels de Madagascar Accommodation & Tourism Services FY98 1.0 -- 0.6 -- 0.6 Karibotel Accommodation & Tourism Services FY95 0.4 -- 0.2 -- 0.2 La Cotonniere D'Antsirabe Textiles, Apparel, & Leather FY86, 90 7.9 -- -- 0.2 0.2 (COTONA), S.A. Société Textile de Majunga S.A. Textiles, Apparel, & Leather FY77, 87 15.0 -- 1.3 0.3 1.6 10.3 3.9 14.3 Malawi Kabula Hotel Limited Accommodation & Tourism Services FY00 0.6 -- 0.6 -- 0.6 Mwaiwathu Private Hospital Limited Health Care FY97 0.8 -- -- 0.8 0.8 National Insurance Company Limited Finance & Insurance FY00 1.0 -- -- 0.5 0.5 (NICO) 0.6 1.3 2.0 Mali Graphique Industrie S.A. Pulp & Paper FY99 + -- 0.4 -- 0.4 Hôtel Le Rabelais Accommodation & Tourism Services FY99 -- -- 0.1 -- 0.1 Imprim Color Information FY00 + -- -- -- -- La Société d'Exploitation des Mines Oil, Gas, & Mining FY95 39.8 25.0 -- 4.8 4.8 d'Or de Sadiola S.A. (SEMOS) Société Industrielle de Karite du Agriculture & Forestry FY82 2.5 -- 1.6 0.5 2.0 Mali, S.A. Société Industrielle d'Emballage et Plastics & Rubber FY99 0.3 -- 0.3 -- 0.3 de Conditionnement Société Malienne de Promotion Hôtelière Accommodation & Tourism Services FY94, 98, 03 4.3 -- 1.9 -- 1.9 4.2 5.3 9.5 IFC 2005 ANNUAL REPORT 97 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Mauritania Générale de Banque de Mauritanie Finance & Insurance FY98, 00, 04, 05 31.1 -- 24.6 -- 24.6 pour l'Investissement et le Commerce TIVISKI S.A.R.L. Food & Beverages FY99 + -- 0.4 -- 0.4 24.9 -- 24.9 Mauritius Mauritius Venture Capital Fund Limited Collective Investment Vehicles FY96 1.6 -- -- 0.2 0.2 Saxon Management Limited and Saxon Accommodation & Tourism Services FY90 3.0 -- -- 1.0 1.0 Properties Limited Socota Textile Mills Limited Textiles, Apparel, & Leather FY87 6.0 -- -- 1.0 1.0 -- 2.1 2.1 Mozambique Ausmoz Farm Holdings, Lda. Agriculture & Forestry FY01 0.7 -- 0.7 -- 0.7 Auto Body Grand Prix Lda Industrial & Consumer Products FY03 0.3 -- 0.3 -- 0.3 Banco de Microfinanças de Finance & Insurance FY01, 03 0.4 -- -- 0.4 0.4 Moçambique (BMF) BIMI--Banco de Investimento, SARL Finance & Insurance FY99 0.3 -- -- 0.3 0.3 Cabo Caju, Lda. Food & Beverages FY00 0.6 -- 0.6 -- 0.6 Companhia De Pescas da Zambezia Lda Food & Beverages FY98 1.0 -- 1.0 -- 1.0 Empresa Nacional de Hidrocarbonetos Oil, Gas, & Mining FY04 18.5 -- -- 18.5 18.5 de Moçambique Maragra Acucar SARL Food & Beverages FY00 10.3 -- 10.3 -- 10.3 Mozambique Aluminum S.A.R.L. Primary Metals FY98, 01 121.3 -- 104.9 -- 104.9 (MOZAL) 117.8 19.2 137.0 Namibia Life Office of Namibia Limited Finance & Insurance FY98, 01 1.6 -- -- 1.6 1.6 Novanam Limited Agriculture & Forestry FY95, 97, 98, 03 19.4 -- 10.4 -- 10.4 10.4 1.6 12.0 Niger Les Moulines du Sahel, S.A. Food & Beverages FY82 1.9 -- -- 0.2 0.2 -- 0.2 0.2 Nigeria Abuja International Diagnostic and Health Care FY97 2.5 -- 1.8 0.7 2.5 Medical Center Accion Nigeria Finance & Insurance FY05 1.9 -- -- 1.9 1.9 Adamac Industries Limited Oil, Gas, & Mining FY03 25.0 15.0 25.0 -- 25.0 African Reinsurance Corporation Finance & Insurance FY05 10.4 -- -- 10.4 10.4 Andchristie Company Limited Information FY97 0.2 -- 0.1 -- 0.1 Ansbby Nigeria Limited Chemicals FY99 0.1 -- 0.1 -- 0.1 Arewa Textiles, Ltd. Textiles, Apparel, & Leather FY64, 67, 70, 92 6.6 0.7 -- 0.6 0.6 Capital Alliance Private Equity Collective Investment Vehicles FY00 7.5 -- -- 7.5 7.5 (Mauritius), Ltd. Diamond Bank Finance & Insurance FY01, 05 50.0 -- 36.0 -- 36.0 FSB International Bank Finance & Insurance FY01 22.5 -- 17.1 -- 17.1 First Securities Discount House Finance & Insurance FY93 0.9 -- -- 0.9 0.9 Global Fabrics Manufacturers Limited Textiles, Apparel, & Leather FY00 0.3 -- 0.3 -- 0.3 Guaranty Trust Bank Plc. Finance & Insurance FY01, 04, 05 60.0 -- 50.0 -- 50.0 Hercules Tyres Manufacturing Plastics & Rubber FY00 1.3 -- 1.3 -- 1.3 Nigeria Limited Hygeia Nigeria Limited Health Care FY00 0.6 -- -- 0.2 0.2 Ikeja Hotel Limited Accommodation & Tourism Services FY81, 85, 88 12.6 -- -- 1.5 1.5 Investment Banking and Trust Finance & Insurance FY01 20.0 -- 20.0 -- 20.0 Company Limited 98 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Nigeria (continued) Mid-East Nigeria Limited Nonmetallic Mineral Product FY96 0.1 -- 0.1 -- 0.1 Manufacturing Niger Delta Contractor Revolving Finance & Insurance FY02 15.0 -- 15.0 -- 15.0 Credit Facility Obajana Cement PLC Construction & Real Estate FY05 75.0 -- 75.0 -- 75.0 Oha Motors (Nigeria) Limited Transportation & Warehousing FY01 0.9 -- 0.8 -- 0.8 Safety Center International Limited Education Services FY01 0.6 -- 0.5 0.1 0.6 UPDC Hotels Ltd Accommodation & Tourism Services FY04 11.0 -- 11.0 -- 11.0 Vinfessen Industries Limited Plastics & Rubber FY96 1.0 -- 1.0 -- 1.0 255.1 23.6 278.7 Rwanda Societe Rwandaise des Allumettes Industrial & Consumer Products FY88 1.2 -- 1.0 0.2 1.2 (SORWAL), S.A.R.L. 1.0 0.2 1.2 Senegal African Seafood, S.A. Food & Beverages FY86 3.0 -- -- 0.7 0.7 Banque de L'Habitat du Sénégal S.A. Finance & Insurance FY80 0.4 -- -- 0.5 0.5 Bud Senegal, S.A. Agriculture & Forestry FY72, 74, 76 0.9 -- -- 0.8 0.8 Ciments du Sahel S.A. Nonmetallic Mineral Product FY00 17.5 -- 15.1 2.3 17.3 Manufacturing GTi Dakar LLC Utilities FY98 12.3 11.6 7.9 1.7 9.6 Royal Saly S.A. Accommodation & Tourism Services FY02 1.0 -- 1.4 -- 1.4 Société d'Exploitation des Ressources Food & Beverages FY96, 97, 99 1.4 -- -- 0.4 0.4 Thoniéres Société Financière Sénégalaise pour le Finance & Insurance FY74, 85 0.3 -- -- 0.3 0.3 Développement de l'Industrie Tourisme 24.3 6.7 31.0 Seychelles Coral Strand Hotel Accommodation & Tourism Services FY96 3.6 -- 0.3 -- 0.3 0.3 -- 0.3 Sierra Leone Celtel Sierra Leone Ltd. Information FY00 4.0 -- 1.2 -- 1.2 1.2 -- 1.2 Somalia Somali Bad Company Limited Plastics & Rubber FY85 0.6 -- 1.1 -- 1.1 Somali Molasses Company Limited Transportation & Warehousing FY81 0.4 -- + -- + 1.1 -- 1.1 South Africa AEF Bulwer Timber Ltd. Industrial & Consumer Products FY99 -- -- -- 0.2 0.2 African Bank Limited Finance & Insurance FY02, 04 16.6 -- 5.5 -- 5.5 The Biotech Venture Partners Fund Collective Investment Vehicles FY02 1.8 -- -- 2.6 2.6 Carosa Farm (Pty) Limited Agriculture & Forestry FY97 0.6 -- 0.1 0.1 0.2 Cheiron Health Technologies (Pty) Ltd Professional, Scientific, & Technical FY00 1.3 -- -- 0.3 0.3 Services Dargle Timber (Pty) Limited/Bulwer Industrial & Consumer Products FY99 0.6 -- 0.4 -- 0.4 Timber (Pty) Limited Decentralised Banking Solutions Information FY00 0.8 -- -- 0.8 0.8 Consult (Pty) Limited Edu-Loan (Pty) Ltd. Finance & Insurance FY02 1.9 -- 1.8 -- 1.8 Eerste River Medical Center Health Care FY98 1.0 -- -- 1.0 1.0 FirstRand Limited Finance & Insurance FY05 27.2 -- 26.0 -- 26.0 Foxtrot Meat Processors CC Food & Beverages FY99 0.5 -- 0.4 -- 0.4 IFC 2005 ANNUAL REPORT 99 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA South Africa (continued) Hernic Ferrochrome Pty Limited Oil, Gas, & Mining FY04 30.7 -- 25.8 4.7 30.5 Midrand Days Inn Accommodation & Tourism Services FY98 1.4 -- -- 0.4 0.4 Mvelaphanda Gold (Pty) Limited Oil, Gas, & Mining FY04 27.7 -- 33.4 -- 33.4 New Africa Mining Fund Collective Investment Vehicles FY03 5.0 -- -- 4.8 4.8 Printability Pulp & Paper FY01 6.9 -- 5.9 3.9 9.7 Rubico Holding SA (Pty) Ltd. Information FY01, 02 6.3 -- 1.3 5.0 6.3 SPV--Micawber 325 (Proprietary) Oil, Gas, & Mining FY04 -- -- -- + + Limited South Africa Capital Growth Fund, Ltd. Collective Investment Vehicles FY96 20.0 -- -- + + South Africa Franchise Equity Fund Collective Investment Vehicles FY95 2.8 -- -- 0.2 0.2 Limited South Africa Home Loans Finance & Insurance FY00, 01, 02, 03, 12.6 -- 3.2 7.0 10.3 04, 05 South Africa Private Equity Fund III, L.P. Collective Investment Vehicles FY99 35.0 -- -- 23.3 23.3 Spier Estate Hotel Accommodation & Tourism Services FY02 12.0 -- 14.5 1.9 16.4 Tusk Project Management (Pty) Ltd Professional, Scientific, & Technical FY01 1.8 -- 1.7 0.1 1.8 Services 119.9 56.1 176.1 Sudan Cotton Textile Mills, Ltd. Textiles, Apparel, & Leather FY76 10.0 -- 8.7 1.3 10.0 Gezira Managil Textile Company Limited Textiles, Apparel, & Leather FY78 8.4 -- 6.7 1.4 8.1 Khartoum Spinning and Weaving Textiles, Apparel, & Leather FY64, 72 0.7 1.5 -- 0.3 0.3 Company, Ltd. River Nile Petroleum Company Limited Transportation & Warehousing FY82 0.3 -- -- 0.3 0.3 Seleit Food Production Limited Agriculture & Forestry FY78 6.3 4.2 0.4 -- 0.4 Sudan Eagle Cement Company Ltd. Nonmetallic Mineral Product FY80 0.3 -- -- 0.2 0.2 Manufacturing 15.8 3.5 19.3 Swaziland Mbabane Concerte Centre (Pty) Limited Oil, Gas, & Mining FY92 0.7 -- -- 0.3 0.3 Natex Swaziland Limited Textiles, Apparel, & Leather FY85, 88, 93 13.9 -- -- 3.7 3.7 The Royal Swaziland Sugar Food & Beverages FY78, 86 9.7 -- -- 0.5 0.5 Corporation Limited Swazi Paper Mills Ltd. Pulp & Paper FY95, 02 8.8 -- 4.5 -- 4.5 Swazi Wattle Industries (Pty) Ltd Chemicals FY01 1.1 -- 0.8 0.2 1.1 Swaziland Industrial Development Finance & Insurance FY87, 93 3.6 -- -- 1.0 1.0 Company Limited 5.3 5.8 11.1 Tanzania Aquva Ginners Tanzania Ltd Agriculture & Forestry FY97 0.8 -- 0.7 -- 0.7 Bonite Bottlers Limited Food & Beverages FY05 10.0 -- 10.0 -- 10.0 Boundary Hill Lodge Limited Accommodation & Tourism Services FY01 0.2 -- 0.2 -- 0.2 Exim Bank of Tanzania Finance & Insurance FY02, 05 6.5 -- 5.7 -- 5.7 Highland Soap and Allied Products Chemicals FY78 1.8 -- -- 0.4 0.4 Limited Indian Ocean Hotel Limited Accommodation & Tourism Services FY00 2.5 -- 2.1 -- 2.1 International House Property Limited Construction & Real Estate FY97 2.3 -- 0.1 -- 0.1 Maji Masafi Limited Food & Beverages FY98 1.1 -- + -- + National Bank of Commerce (NBC) Finance & Insurance FY01 10.0 -- -- 10.0 10.0 Tanzania Breweries Limited Food & Beverages FY95 6.0 -- -- 3.4 3.4 Tourism Promotion Services (Tanzania) Accommodation & Tourism Services FY94 8.9 -- 3.1 -- 3.1 Limited Tourism Promotion Services (Zanzibar) Accommodation & Tourism Services FY95, 99 1.4 -- 0.2 -- 0.2 Limited 22.0 13.8 35.8 100 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Togo Société Togolaise de Produits Marins Food & Beverages FY92, 95 0.3 -- -- 0.1 0.1 (STPM) West African Cement Nonmetallic Mineral Product FY00 5.9 -- 1.1 1.2 2.4 Manufacturing 1.1 1.3 2.4 Uganda Agro Management Limited Chemicals FY96 1.0 -- 0.5 0.4 0.9 Clovergem Fish and Foods Limited Food & Beverages FY93 1.0 -- 0.8 -- 0.8 Development Finance Company of Finance & Insurance FY85, 93, 95, 05 11.0 -- 10.0 -- 10.0 Uganda Limited Gomba Fishing Industries Limited Agriculture & Forestry FY99 1.4 -- 0.5 -- 0.5 Tilda (Uganda) Limited Agriculture & Forestry FY99 1.9 -- 0.7 -- 0.7 White Nile Dairies (Uganda) Limited Food & Beverages FY99 0.3 -- 0.1 -- 0.1 12.7 0.4 13.1 Zambia Amaka Cotton Ginneries Limited Agriculture & Forestry FY99 1.3 -- 1.3 -- 1.3 Celtel Zambia Limited Information FY99, 00, 04 9.1 -- 2.3 1.3 3.6 Chingola Hotel Accommodation & Tourism Services FY02 1.0 -- 0.6 -- 0.6 Development Bank of Zambia Finance & Insurance FY76 0.5 -- -- 0.5 0.5 Drilltech Engineering Limited Oil, Gas, & Mining FY99 0.2 -- 0.1 -- 0.1 Esquire Roses Farm Limited Agriculture & Forestry FY00 0.5 -- 0.1 -- 0.1 JY Estates Limited Agriculture & Forestry FY98 0.9 -- 0.9 -- 0.9 Kafue Textiles of Zambia Limited Textiles, Apparel, & Leather FY80, 85 10.8 -- 5.7 -- 5.7 Marasa Holdings Limited Accommodation & Tourism Services FY01 4.6 -- 3.4 -- 3.4 Masstock (Zambia) Limited Agriculture & Forestry FY89 2.2 -- 2.2 -- 2.2 Michelangelo Executive Lodge Limited Accommodation & Tourism Services FY02 0.2 -- 0.1 -- 0.1 Mpongwe Development Company Agriculture & Forestry FY85 1.8 -- -- 0.3 0.3 Limited 16.8 2.1 18.9 Zimbabwe Agflora (Pvt) Limited Agriculture & Forestry FY97 0.2 -- 0.2 -- 0.2 Bell Medical Centers Limited Health Care FY00 0.8 -- -- 0.8 0.8 Commercial Bank of Zimbabwe Limited Finance & Insurance FY98 26.8 -- 4.3 -- 4.3 Deraswiss Zimbabwe (Pvt) Ltd. Textiles, Apparel, & Leather FY00 1.0 -- 1.1 -- 1.1 Hy-Veld Holdings (Pvt) Limited and Food & Beverages FY99 1.3 -- 0.7 -- 0.7 Extraction Incorporated (Pvt) Limited Isfar (Pvt) Limited Textiles, Apparel, & Leather FY97 0.1 -- 0.1 -- 0.1 Itachi Plastics (Pvt) Limited Plastics & Rubber FY96 0.4 -- 0.3 0.1 0.3 Lowveld Leather (Pvt) Limited Textiles, Apparel, & Leather FY97 0.5 -- 0.3 0.2 0.5 Shagelok Chemicals (Pvt) Ltd. Chemicals FY97 1.1 -- 0.9 0.2 1.0 Stone One Holdings Limited, Zimbabwe Oil, Gas, & Mining FY96 1.5 -- 1.4 -- 1.4 Victoria Falls Safari Lodge Hotel Accommodation & Tourism Services FY94 2.7 -- -- 0.2 0.2 (Pvt.) Ltd 9.2 1.4 10.7 IFC 2005 ANNUAL REPORT 101 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SUB-SAHARAN AFRICA Regional Investment The AIG African Infrastructure Fund Collective Investment Vehicles FY00 74.8 -- -- 39.4 39.4 L.L.C. AIG African Infrastructure Management Collective Investment Vehicles FY00 0.2 -- -- 0.2 0.2 LLC Afren Plc Oil, Gas, & Mining FY05 1.0 -- -- 1.0 1.0 Africa Banking Corp Finance & Insurance FY90, 92, 02 3.0 -- -- 3.0 3.0 Africa International Financial Holdings, Collective Investment Vehicles FY03 20.0 -- -- 20.0 20.0 LLC Africa Media Group Limited Information FY02, 04 5.2 -- -- 5.2 5.2 Africa Microfinance Ltd. Collective Investment Vehicles FY02 2.0 -- -- 2.0 2.0 Aminex Plc Oil, Gas, & Mining FY97, 99 12.6 -- -- 4.8 4.8 Aureos East Africa Fund, LLC Collective Investment Vehicles FY03 4.0 -- -- 3.9 3.9 Aureos Southern Africa Fund, LLC Collective Investment Vehicles FY03 6.0 -- -- 6.0 6.0 Celtel International B.V. Information FY00, 02, 05 77.4 -- 40.0 11.8 51.8 Coca Cola SABCO (Pty) Ltd. Food & Beverages FY02 20.0 -- 10.0 10.0 20.0 Framlington Asset Management West Collective Investment Vehicles FY99 + -- -- + + Africa SA Industrial Promotion Services (Kenya) Collective Investment Vehicles FY82, 04 5.8 -- -- 5.7 5.7 Limited Kunene Finance Company Industrial & Consumer Products FY95 -- -- -- 0.7 0.7 MTN Nigeria Communications Limited Information FY04, 05 135.0 -- 120.0 15.0 135.0 Osprey Oil and Gas Limited Oil, Gas, & Mining FY03 0.3 -- -- 0.3 0.3 Pan African Investment Partners Ltd. Collective Investment Vehicles FY04 25.5 -- -- 22.9 22.9 Tullow Oil Plc Oil, Gas, & Mining FY04 -- -- -- 28.8 28.8 West Africa Growth Fund Collective Investment Vehicles FY97 6.4 -- -- 2.6 2.6 170.0 183.3 353.3 Total equity and loans 1,251.3 421.6 1,672.9 Total guarantees and risk management products 98.9 Total IFC portfolio for Sub-Saharan Africa 1,771.8 102 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EAST ASIA AND THE PACIFIC Cambodia ACLEDA Finance & Insurance FY00, 04 7.6 -- 6.0 1.6 7.6 Canadia Bank Limited Finance & Insurance FY05 5.0 -- 5.0 -- 5.0 SEF Hagar Soya Food & Beverages FY03 0.5 -- -- 0.5 0.5 Société Concessionaire de l'Aéroport Transportation & Warehousing FY04 10.0 -- 9.8 -- 9.8 20.8 2.0 22.9 China Advantage China Holdings Limited Finance & Insurance FY02, 03 0.7 -- -- 0.7 0.7 Anjia Group Holdings Finance & Insurance FY04 2.0 -- -- 2.0 2.0 Asian Strategic Investments Corporation Industrial & Consumer Products FY04 10.0 -- -- 10.0 10.0 Group ASIMCO International Casting (Shanxi) Industrial & Consumer Products FY00 16.5 -- 12.6 -- 12.6 Co., Ltd Babei Group Co., Ltd. Textiles, Apparel, & Leather FY05 16.0 -- 11.0 5.0 16.0 Bank of Shanghai Finance & Insurance FY00, 02 50.3 -- -- 50.3 50.3 Beijing City Commercial Bank Finance & Insurance FY05 57.9 -- -- 57.9 57.9 BioVeda China Fund L.P. Collective Investment Vehicles FY05 3.0 -- -- 3.0 3.0 CDH China Capital Growth Fund, L.P. Collective Investment Vehicles FY05 18.0 -- -- 18.0 18.0 CDH China Fund, L.P. Collective Investment Vehicles FY02 20.0 -- -- 4.9 4.9 CSMC Technologies Corporation Industrial & Consumer Products FY04 11.5 -- -- 8.9 8.9 CSRC China Corporation Chemicals FY02, 05 23.0 -- 17.8 3.0 20.8 CT Holdings Group Co. Ltd. Utilities FY05 40.0 -- 40.0 -- 40.0 CUNA Mutual Group Finance & Insurance FY04 12.0 -- -- 12.0 12.0 Changjiang BNP Paribas Peregrine Finance & Insurance FY03 11.6 -- -- 11.6 11.6 Securities Co., Ltd. Chengdu Huarong Chemical Company Chemicals FY99 10.6 8.6 4.5 3.2 7.7 Limited China Dynamic Growth Fund, L.P. Collective Investment Vehicles FY94 12.4 -- -- 7.8 7.8 China Green Energy Limited Utilities FY04 20.0 -- 20.0 -- 20.0 China Huarong Asset Management Finance & Insurance FY02 34.5 -- 9.0 2.5 11.5 Corporation China II Ltd. Finance & Insurance FY04 28.0 -- 28.0 -- 28.0 China Minsheng Banking Corp., Ltd. Finance & Insurance FY03, 05 26.3 -- -- 26.3 26.3 China Re Life Finance & Insurance FY04 15.3 -- -- 15.4 15.4 China Walden Management Limited Collective Investment Vehicles FY94 + -- -- + + China Walden Ventures Investment Collective Investment Vehicles FY94 7.5 -- -- -- -- Limited Fang Xin Limited Plastics & Rubber FY05 5.0 -- -- 5.0 5.0 Five Star Home Appliance Co Ltd. Wholesale & Retail Trade FY05 7.0 -- -- 7.0 7.0 (Nanjing) Global Infotech Holdings, Inc. Information FY03 3.5 -- -- 3.5 3.5 Guangxi Baise Fenglin Fiberboard Industrial & Consumer Products FY04 21.0 14.0 15.0 6.0 21.0 Corporation Limited HiSoft Technology International Limited Information FY05 4.0 -- -- 4.0 4.0 Industrial Bank Finance & Insurance FY04 52.2 -- -- 52.2 52.2 Jiangxi Chenming Paper Co. Ltd. Pulp & Paper FY04 72.9 -- 60.0 12.9 72.9 Jilin Huazheng Agribusiness Food & Beverages FY03 15.0 7.0 15.0 -- 15.0 Development Co., Ltd. Minsheng Shipping Transportation & Warehousing FY05 15.8 -- 15.8 -- 15.8 Nanjing City Commercial Bank Finance & Insurance FY02 26.6 -- -- 26.6 26.6 Nanjing Kumho Tire Co., Ltd. Plastics & Rubber FY96, 04 53.7 38.8 34.0 6.0 40.0 New China Life Insurance Company Finance & Insurance FY01 30.7 -- -- 13.2 13.2 New Hope Finance & Insurance FY05 45.0 -- -- 45.0 45.0 Newbridge Investment Partners, L.P. Collective Investment Vehicles FY95 6.7 -- -- 1.8 1.8 Ningxia Darong Chemicals & Chemicals FY04 11.5 8.0 10.0 1.5 11.5 Metallurgy Co. Ltd. Orient Finance Company Finance & Insurance FY97 10.0 20.0 3.8 -- 3.8 Polarplus Industrial Shenzhen Plastics & Rubber FY05 1.2 0.8 1.2 -- 1.2 Company Limited RAK Gao Yao Ceramics Limited Nonmetallic Mineral Product FY05 13.0 -- 13.0 -- 13.0 Manufacturing IFC 2005 ANNUAL REPORT 103 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EAST ASIA AND THE PACIFIC China (continued) SEAF Sichuan SME Investment Fund LLC Collective Investment Vehicles FY01 4.5 -- -- 4.5 4.5 SYWG BNP Paribas Asset Management Finance & Insurance FY03 1.9 -- -- 1.9 1.9 Co. Ltd. Scana Leshan Machinery Co., Ltd. Primary Metals FY99 5.9 -- 2.9 1.4 4.3 Shandong Wanjie High-tech Co., Ltd Textiles, Apparel, & Leather FY02 -- -- 12.2 -- 12.2 Shanghai Derxin Precision Mould & Plastics & Rubber FY05 1.8 1.2 1.8 -- 1.8 Electronics Company Limited Shanghai Fangxin Metal Technologies Plastics & Rubber FY05 7.2 4.8 7.2 -- 7.2 Company Limited Shanghai International Banking & Education Services FY04 0.1 -- -- 0.1 0.1 Finance Institute Shanghai Krupp Stainless Co., Ltd. Primary Metals FY00 30.0 68.8 22.8 -- 22.8 Shanxi HongAn Coking Technology Primary Metals FY04 40.0 30.0 40.0 -- 40.0 Co., Ltd. Shenzhen China Bicycles Company Industrial & Consumer Products FY88, 92, 94 20.9 -- 8.5 -- 8.5 (Holdings) Limited Shenzhen Tai-Yang PCCP Company, Nonmetallic Mineral Product FY93 5.0 -- 3.8 1.0 4.7 Limited Manufacturing Sino Gold Limited Oil, Gas, & Mining FY03 5.0 -- -- 3.5 3.5 Southern Aluminum Industry (China) Primary Metals FY04 12.0 -- 12.0 -- 12.0 Co., Ltd. Suzhou Huasu Plastics Co., Ltd. Chemicals FY97 24.5 22.2 -- 2.5 2.5 Wumart Stores, Inc Wholesale & Retail Trade FY04 6.5 -- -- 3.9 3.9 Xi'an City Commercial Bank Finance & Insurance FY03 19.9 -- -- 19.9 19.9 Xinao Gas Holdings Limited Utilities FY04 35.0 -- 25.0 10.0 35.0 Yangtze Special Situations Fund L.P. Collective Investment Vehicles FY04 0.8 -- -- 0.8 0.8 Yangtze Special Situations Fund, L.P. Collective Investment Vehicles FY04 16.1 -- -- 16.1 16.1 Yantai Changyu Group Company Food & Beverages FY05 17.6 -- -- 17.6 17.6 Limited Yantai Mitsubushi Cement Company Nonmetallic Mineral Product FY93 30.7 -- 1.5 -- 1.5 Limited Manufacturing Yantai North Andre Juice Co., Ltd. Food & Beverages FY05 15.0 -- 15.0 -- 15.0 Zhong Chen Energy Storage Co. Ltd. Transportation & Warehousing FY04 5.0 -- -- 5.0 5.0 463.2 515.5 978.8 Fiji Hillview Limited Accommodation & Tourism Services FY99 3.9 -- 5.6 -- 5.6 5.6 -- 5.6 Indonesia P.T. Agro Muko Food & Beverages FY91 12.7 -- -- 2.2 2.2 P.T. Astra Otoparts Tbk. Industrial & Consumer Products FY93, 05 24.0 -- 24.0 1.9 25.9 P.T. Berlian Laju Tanker Transportation & Warehousing FY98 28.2 25.2 -- 3.4 3.4 P.T. Bina Danatama Finance Tbk. Finance & Insurance FY93, 96 20.0 35.0 3.7 -- 3.7 P.T. Daralon Textile Manufacturing Textiles, Apparel, & Leather FY72, 77, 79 5.5 1.7 -- 1.1 1.1 Corporation P.T. Dharmala Agrifood Food & Beverages FY96 20.0 10.0 0.4 -- 0.4 P.T. Gawi Makmur Kalimantan Food & Beverages FY03 11.5 4.7 11.5 -- 11.5 P.T. Indorama Synthetics Tbk. Textiles, Apparel, & Leather FY90, 91, 95, 99, 01, 146.8 67.5 48.0 11.8 59.8 03, 05 P.T. Kabel Indonesia--KABELINDO Industrial & Consumer Products FY71 2.2 1.0 -- 0.4 0.4 P.T. Kia Keramik Mas Nonmetallic Mineral Product FY92, 94, 96 31.1 63.5 18.8 9.0 27.8 Manufacturing P.T. Monterado Mas Mining Oil, Gas, & Mining FY88 2.0 4.5 -- 2.0 2.0 P.T. Nusantara Tropical Fruit Agriculture & Forestry FY93 8.6 6.7 10.0 -- 10.0 P.T. South Pacific Viscose Chemicals FY93, 96, 04 54.5 60.0 20.4 -- 20.4 PT Alumindo Light Metal Industry Tbk. Primary Metals FY97 15.0 20.0 5.7 -- 5.7 PT Astra Graphia Tbk. Professional, Scientific, & FY93 2.5 -- -- 1.5 1.5 Technical Services PT Astra International Tbk. Industrial & Consumer Products FY90, 91, 94, 03 36.9 -- -- 0.5 0.5 104 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EAST ASIA AND THE PACIFIC Indonesia (continued) PT Asuransi Jiwa Manulife Indonesia Finance & Insurance FY88 0.3 -- -- 0.3 0.3 PT Austindo Nusantara Jaya Finance & Insurance FY05 15.0 -- 15.0 -- 15.0 PT Bank Buana Indonesia Tbk Finance & Insurance FY03 15.4 -- -- 12.2 12.2 PT Ecogreen Oleochemicals Chemicals FY04, 05 55.0 -- 55.0 -- 55.0 PT Grahawita Santika Accommodation & Tourism Services FY96 11.8 -- 5.0 -- 5.0 PT Kalimantan Sanggar Pusaka (KSP) Food & Beverages FY97 35.0 6.0 13.1 -- 13.1 and Subsidiaries PT KDLC BancBali Finance Finance & Insurance FY94 16.2 -- -- 1.7 1.7 PT KIA Serpih Mas Nonmetallic Mineral Product FY95 21.2 55.0 15.0 6.2 21.2 Manufacturing PT Megaplast Jayacitra Industrial & Consumer Products FY99 11.3 -- 4.4 2.5 6.9 PT Prakarsa Alam Segar Food & Beverages FY04 35.0 10.0 35.0 -- 35.0 PT Sahabat Mewah Dan Makmur Agriculture & Forestry FY03 12.0 -- 3.0 -- 3.0 PT Samudera Indonesia Tbk. Transportation & Warehousing FY93 17.0 3.0 -- 5.0 5.0 PT Sayap Mas Utama Chemicals FY98 10.0 20.0 2.5 -- 2.5 PT Sigma Cipta Caraka Information FY01 3.0 -- -- 3.0 3.0 PT Sunson Textile Manufacturer Tbk. Textiles, Apparel, & Leather FY02 12.4 8.2 12.4 -- 12.4 PT Wings Surya Chemicals FY98 8.7 21.3 2.2 -- 2.2 PT. Asia Wisata Promosindo--IBIS Accommodation & Tourism Services FY91 -- -- 2.0 -- 2.0 PT. Bank NISP Tbk. Finance & Insurance FY98, 01, 02, 04 53.6 -- 35.0 7.7 42.7 PT. Makro Indonesia Wholesale & Retail Trade FY93, 00 1.3 -- -- 19.4 19.4 Wahana Ottomitra Multiartha Finance & Insurance FY05 20.0 -- -- 20.0 20.0 Yayasan Pendidikan Asian Pasifik Education Services FY04 1.0 -- 1.0 -- 1.0 Yayasan Pendidikan Singapura Indonesia Education Services FY04 1.8 -- 1.8 -- 1.8 344.8 111.8 456.6 Korea, Republic of Asset Korea Capital Management Collective Investment Vehicles FY99, 02 0.9 -- -- 0.9 0.9 Co. Ltd. CJ Development Co. Ltd. Finance & Insurance FY01 -- -- 7.3 -- 7.3 Cheil Jedang Investment Trust & Finance & Insurance FY01 45.7 -- -- 16.6 16.6 Securities Dae Chang Industrial Company Limited Primary Metals FY99 22.3 9.8 9.5 7.1 16.5 Halim & Co., Ltd. Food & Beverages FY99, 05 21.5 -- 14.0 0.7 14.7 Hana Bank Finance & Insurance FY71, 74, 76, 79, 143.6 65.0 -- 18.0 18.0 80, 82, 89, 91, 94, 97, 98, 99, 03 Iljin Electric Co., Ltd. Industrial & Consumer Products FY99 15.0 -- 1.5 -- 1.5 Korea Development Investment Corp. Industrial & Consumer Products FY92 0.2 -- -- 0.2 0.2 --Dae Boo Battery Company Ltd. Korea Development Investment Corp. Textiles, Apparel, & Leather FY92 0.2 -- -- 0.2 0.2 --Daemyung Industrial Co., Ltd. Korea Development Investment Corp. Industrial & Consumer Products FY92 0.3 -- -- 0.3 0.3 --Seoshin Electronics Co., Ltd. Korea Development Investment Corp. Industrial & Consumer Products FY92 0.1 -- -- 0.1 0.1 --Seoul Cad Mold & Tool Co. Korea Development Investment Corp. Industrial & Consumer Products FY92 0.3 -- -- 0.3 0.3 --Sewon Electro-Mechanics Co. Ltd. Korea Development Investment Corp. Industrial & Consumer Products FY92 0.2 -- -- 0.2 0.2 --Shin Chang Precision Co., Ltd. Korea Development Investment Corp. Industrial & Consumer Products FY92 0.1 -- -- 0.1 0.1 --Sung Kwang Lighting Co., Ltd. Korea Growth and Restructuring Collective Investment Vehicles FY00 35.0 -- -- 33.8 33.8 Fund, L.P. Korea Mortgage Corporation Finance & Insurance FY01 98.0 -- 33.2 8.8 42.1 Samgwang Gohachem Co., Ltd. Chemicals FY92 0.1 -- -- 0.1 0.1 Shinmoorim Paper Manufacturing Pulp & Paper FY99, 00 41.4 8.0 20.6 9.2 29.8 Company, Limited 86.1 96.8 182.9 IFC 2005 ANNUAL REPORT 105 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EAST ASIA AND THE PACIFIC Lao People's Democratic Republic Belmont Hotel Investments (Laos) Ltd. Accommodation & Tourism Services FY98, 01 1.2 -- 0.8 -- 0.8 Burapha Agro-forestry Company Ltd. Industrial & Consumer Products FY99 0.8 -- 0.8 -- 0.8 Endeavour Embroidery Co. Ltd. Textiles, Apparel, & Leather FY99 0.2 -- 0.1 -- 0.1 Millicom Lao Company Limited Information FY05 4.0 -- 4.0 -- 4.0 Villa Santi Accommodation & Tourism Services FY01 1.2 -- 1.1 -- 1.1 6.9 -- 6.9 Malaysia Twenty First Century Oleochemicals Chemicals FY90 5.2 3.4 2.0 0.7 2.7 SDN. BHD. 2.0 0.7 2.7 Mongolia Agricultural Bank of Mongolia Finance & Insurance FY04 1.2 -- -- 1.2 1.2 G&M Industrial Co. Ltd. Textiles, Apparel, & Leather FY97 1.3 -- 1.1 0.2 1.3 Trade & Development Bank of Mongolia Finance & Insurance FY04 5.0 -- 3.5 1.5 5.0 XacBank Ltd. Finance & Insurance FY02 0.4 -- 0.4 -- 0.4 4.9 2.9 7.8 Papua New Guinea PNG MicroFinance Finance & Insurance FY05 1.2 -- -- 1.2 1.2 -- 1.2 1.2 Philippines Alaska Milk Corporation Food & Beverages FY79 -- -- -- 0.6 0.6 All Asia Capital Trust (AACT) Finance & Insurance FY80, 83, 89, 90, 95 31.0 5.0 16.4 2.7 19.1 All AsiaCapital Growth Venture Collective Investment Vehicles FY96 4.0 -- -- 3.1 3.1 BVI­I, Ltd. All AsiaCapital Managers, Inc. Collective Investment Vehicles FY96 + -- -- + + Asian Eye Institute Health Care FY03 1.0 -- 1.0 -- 1.0 Asian Hospital Inc. Health Care FY01 5.0 -- 4.3 -- 4.3 Avalon Professional Web Trade Pte. Ltd. Information FY01, 02 1.6 -- 0.7 1.0 1.7 Avantex Mill Corporation Textiles, Apparel, & Leather FY91 13.2 -- -- 2.0 2.0 Banco de Oro Universal Bank Finance & Insurance FY02 20.0 -- 10.0 10.0 20.0 Cagayan Electric Power & Light Co., Inc. Utilities FY05 14.9 -- 14.6 -- 14.6 Eastwood Cyber One Corporation Professional, Scientific, & FY02, 05 32.5 -- 29.7 -- 29.7 Technical Services Filinvest Alabang Inc. Wholesale & Retail Trade FY02 22.0 -- 19.9 -- 19.9 Filinvest Land, Inc. Finance & Insurance FY05 41.4 -- 40.4 -- 40.4 H&Q Philippines Holdings BVI, Inc. Collective Investment Vehicles FY99 5.8 -- -- 5.8 5.8 H&Q Philippines Ventures II, Inc. Collective Investment Vehicles FY94 2.4 -- -- 1.1 1.1 H&Q Philippines Ventures, Inc. Collective Investment Vehicles FY89 2.5 -- -- 0.6 0.6 Holcim Philippines, Inc. Nonmetallic Mineral Product FY93 23.8 -- -- 5.6 5.6 Manufacturing Land Registration Systems, Inc. Professional, Scientific, & FY04 24.7 -- 22.0 2.7 24.7 Technical Services Manila North Tollways Corporation Transportation & Warehousing FY02 45.4 -- 41.0 -- 41.0 Manila Water Company, Inc. Utilities FY03, 04 75.5 -- 62.7 15.0 77.7 Mariwasa Manufacturing, Inc. Nonmetallic Mineral Product FY70, 72, 00 15.7 0.5 14.7 -- 14.7 Manufacturing Marsman-Drysdale Agribusiness Food & Beverages FY99 15.0 8.8 8.0 -- 8.0 Holdings, Inc. Megaworld Corporation Construction & Real Estate FY02 -- -- -- 0.5 0.5 Micro Enterprise Bank, A Thrift Bank Inc. Finance & Insurance FY01 0.1 -- -- 0.1 0.1 Mirant Pagbilao Corporation Utilities FY93 70.0 11.0 12.0 10.0 22.0 Mirant Sual Corporation Utilities FY96 47.5 196.0 21.7 17.5 39.2 106 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EAST ASIA AND THE PACIFIC Philippines (continued) National Home Mortgage Finance Finance & Insurance FY05 32.2 -- 29.6 1.9 31.5 Corporation Northern Mindanao Power Corporation Utilities FY93 16.8 21.0 -- 4.3 4.3 Paramount Life & General Insurance Finance & Insurance FY05 1.5 -- -- 1.5 1.5 Corporation Philippine Associated Smelting and Oil, Gas, & Mining FY81 5.0 -- -- 5.0 5.0 Refining Corporation Pilipinas Shell Petroleum Corporation Chemicals FY93 40.3 65.9 -- 1.6 1.6 PlantersBank Mortgage Securitization Finance & Insurance FY01 23.9 -- -- 5.8 5.8 Pryce Gases Incorporated Transportation & Warehousing FY99 13.0 5.0 15.0 -- 15.0 SME.COM Information FY00 0.1 -- -- 0.1 0.1 STRADCOM Corporation Transportation & Warehousing FY01 20.0 -- 11.1 8.0 19.1 Software Ventures Int'l., Inc Professional, Scientific, & FY03 4.0 -- -- 4.0 4.0 Technical Services Victorias Chemical Corporation Chemicals FY73 2.2 -- -- 0.3 0.3 Walden AB Ayala Management Co. Inc. Collective Investment Vehicles FY95 0.1 -- -- 0.1 0.1 Walden AB Ayala Ventures Co. Inc. Collective Investment Vehicles FY95 3.8 -- -- 0.6 0.6 374.6 111.5 486.1 Samoa MedCen Samoa Limited Health Care FY99 0.5 -- 0.5 -- 0.5 Samoa Venture Capital Fund Collective Investment Vehicles FY05 0.4 -- -- 0.4 0.4 Wilex Cocoa Food & Beverages FY97 0.3 -- 0.3 -- 0.3 0.8 0.4 1.2 Thailand Ayudhya Development Leasing Finance & Insurance FY92, 93, 96, 98 12.4 -- -- 2.4 2.4 Company Limited Bangkok Mass Transit System Public Transportation & Warehousing FY97, 99 99.7 -- 89.8 9.8 99.7 Company Limited Bumrungrad Hospital Public Company Health Care FY94 -- -- -- 0.6 0.6 Limited--BHPC Central Plaza Hotel Public Accommodation & Tourism Services FY93 13.9 -- -- 13.9 13.9 Company Ltd. Fabrinet Industrial & Consumer Products FY04 3.0 -- 2.4 -- 2.4 Finance One Public Company Finance & Insurance FY95 30.0 147.9 17.8 -- 17.8 Ltd Credit Line HMC Polymers Company Limited Chemicals FY88, 96 19.0 11.0 -- 3.9 3.9 Krung Thai IBJ Leasing Company, Finance & Insurance FY92 0.4 -- -- 0.4 0.4 Ltd. (KILC) Lombard Thailand Intermediate Collective Investment Vehicles FY02 37.5 -- -- 35.5 35.5 Fund, LLC. Siam Asahi Technoglass Co. Ltd. Industrial & Consumer Products FY90 7.0 -- -- 6.4 6.4 Siam Industrial Credit Public Co Ltd Finance & Insurance FY05 34.6 -- 34.0 -- 34.0 TA Orange Company Limited Information FY05 32.9 -- 33.2 -- 33.2 Thai Farmers Bank--Ladprao General Health Care FY92 0.3 -- -- 0.3 0.3 Hospital Co. Ltd. Thai Petrochemical Industry Public Chemicals FY97, 02 98.2 383.3 21.9 -- 21.9 Company Limited True Corporation Public Information FY02 26.5 -- 27.3 -- 27.3 Company Limited Tuntex Petrochemicals (Thailand) Chemicals FY94 24.9 137.5 -- 4.9 4.9 Public Co. Ltd. United Palm Oil Industry Public Food & Beverages FY88 -- -- -- 1.1 1.1 Company Limited 226.4 79.2 305.6 IFC 2005 ANNUAL REPORT 107 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EAST ASIA AND THE PACIFIC Vietnam Allianz General Insurance (Vietnam) Finance & Insurance FY03 1.3 -- -- 1.3 1.3 Co. Ltd. Asia Commercial Bank Finance & Insurance FY03 5.0 -- -- 5.0 5.0 Dragon Capital Limited Collective Investment Vehicles FY03 2.0 -- -- 1.8 1.8 Franco-Vietnamese Hospital Health Care FY02 8.0 -- 8.0 -- 8.0 Glass Egg Digital Media Limited Information FY03 1.8 -- -- 1.8 1.8 Global CyberSoft, Inc. Information FY02 1.3 -- -- 1.3 1.3 Khai Vy Corporation and Duyen Industrial & Consumer Products FY05 6.0 -- 6.0 -- 6.0 Hai Corporation Nghi Son Cement Corporation Nonmetallic Mineral Product FY99 + + 12.7 -- 12.7 Manufacturing RMIT International University Education Services FY02 7.3 -- 7.3 -- 7.3 Vietnam (RIUV) Saigon Thuong Tin Commercial Joint Finance & Insurance FY03, 04, 05 7.1 -- -- 7.1 7.1 Stock Bank San Miguel Haiphong Glass Company Nonmetallic Mineral Product FY97 10.0 4.5 3.9 -- 3.9 Manufacturing Vietnam Enterprise Investment Limited Collective Investment Vehicles FY02, 03 20.0 -- 6.0 8.0 14.0 Vinh Phat Company Limited Textiles, Apparel, & Leather FY99 0.2 -- 0.1 -- 0.1 44.0 26.3 70.3 Regional Investment AIF Capital Limited Collective Investment Vehicles FY95, 98 0.1 -- -- 0.1 0.1 Asia Opportunity Fund, L.P. Collective Investment Vehicles FY99 73.3 -- -- 41.8 41.8 The Asian Infrastructure Fund Collective Investment Vehicles FY95 50.0 -- -- 20.5 20.5 Avenue Asia Special Situations Collective Investment Vehicles FY04 40.0 -- -- 39.9 39.9 Fund III, L.P. Kula Fund Limited Collective Investment Vehicles FY98 3.0 -- -- 1.4 1.4 SMELoan Finance & Insurance FY02 16.0 -- 1.1 5.0 6.1 Vital Solutions Pte. Ltd. Information FY01 1.0 -- -- 1.0 1.0 1.1 109.6 110.7 Total equity and loans 1,581.4 1,058.0 2,639.4 Total guarantees and risk management products 437.8 Total IFC portfolio for East Asia and the Pacific 3,077.2 108 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SOUTH ASIA Bangladesh BRAC Bank Finance & Insurance FY04 1.6 -- -- 1.6 1.6 DeltaBRAC Housing Finance Corporation Finance & Insurance FY98 3.0 -- 2.2 0.7 2.9 Dynamic Textile Industries Limited Textiles, Apparel, & Leather FY92 2.5 2.0 1.9 -- 1.9 GrameenPhone Limited Information FY00, 04 30.0 -- 30.0 -- 30.0 Industrial Development Leasing Finance & Insurance FY85, 96 1.8 -- -- 0.1 0.1 Company of Bangladesh Limited Industrial Promotion and Development Finance & Insurance FY80, 99 11.1 -- 4.4 -- 4.4 Company of Bangladesh Limited Khulna Power Company Limited Utilities FY99 22.5 21.6 12.1 -- 12.1 Lafarge Surma Cement Limited Nonmetallic Mineral Product FY02 45.0 15.0 35.0 10.0 45.0 Manufacturing R.A.K. Ceramics (Bangladesh) Pvt. Ltd. Nonmetallic Mineral Product FY03 12.0 -- 9.6 -- 9.6 Manufacturing World Communications, Inc. Information FY98 + -- -- + + 95.2 12.4 107.6 Bhutan Bhutan Resorts Corporation Limited Accommodation & Tourism Services FY04 10.0 -- 10.0 -- 10.0 10.0 -- 10.0 India AD Hydro Power Limited Utilities FY05 49.1 -- 42.3 7.0 49.3 APIDC Biotechnology Venture Fund Collective Investment Vehicles FY05 4.0 -- -- 4.0 4.0 Andhra Pradesh Paper Mills Limited Pulp & Paper FY05 40.0 -- 35.0 5.0 40.0 Apollo Tyres Limited Plastics & Rubber FY03, 05 29.4 15.0 27.8 -- 27.8 BHW-Birla Home Finance Limited Finance & Insurance FY04 21.2 -- 22.1 -- 22.1 Ballarpur Industries Limited Pulp & Paper FY01, 04 15.0 -- 15.0 -- 15.0 Balrampur Chini Mills Ltd. Food & Beverages FY03 14.9 -- 16.1 -- 16.1 Bharat Biotech International Limited Chemicals FY05 4.5 -- -- 4.5 4.5 Bharti Tele-Ventures Limited (BTVL) Information FY01 20.0 -- -- 5.0 5.0 Bhartiya Samruddhi Finance Limited Finance & Insurance FY01 1.0 -- -- 1.0 1.0 Bihar Sponge Iron Limited Primary Metals FY85, 91 9.6 -- 6.8 -- 6.8 CESC Limited Utilities FY91, 93 51.5 67.0 22.3 -- 22.3 CMS Computers Ltd Information FY04 22.5 -- 10.0 12.5 22.5 Cairn Energy PLC Oil, Gas, & Mining FY04 40.0 -- 40.0 -- 40.0 Centurion Bank Ltd. Finance & Insurance FY95, 97, 05 18.9 -- -- 0.8 0.8 Continental Carbon India Limited Chemicals FY01, 04 9.0 11.5 7.5 -- 7.5 Cosmo Films Limited Plastics & Rubber FY03, 05 14.1 -- 6.3 4.2 10.4 Crompton Greaves Ltd. Industrial & Consumer Products FY04 15.0 -- 15.0 -- 15.0 DCM Shriram Consolidated Limited Chemicals FY05 30.0 -- 30.0 -- 30.0 DQ Entertainment Limited Information FY03 3.0 -- 1.5 1.5 3.0 Dabur Pharma Limited Chemicals FY05 15.1 -- -- 15.1 15.1 Dewan Housing Finance Corporation Finance & Insurance FY03 12.0 -- 13.0 -- 13.0 Ltd. Eurolight Electricals Pvt. Ltd. Industrial & Consumer Products FY98 + -- -- + + GVK Industries Limited Utilities FY96 37.5 45.5 -- 7.5 7.5 Global Trade Finance (Pvt.) Limited Finance & Insurance FY01 2.5 -- -- 1.2 1.2 Global Trust Bank Limited Finance & Insurance FY94, 98, 00, 01 16.0 -- 2.0 1.4 3.4 Henkel SPIC India Ltd Chemicals FY95, 00 4.7 -- -- 4.7 4.7 Hole-in-the-Wall Education Limited Education Services FY02 1.6 -- -- 1.6 1.6 Housing Development Finance Finance & Insurance FY78, 87, 91, 93, 147.8 100.0 100.0 -- 100.0 Corporation Limited 01, 03 IL&FS Venture Corporation Limited Collective Investment Vehicles FY93, 95 1.0 -- -- 1.0 1.0 India Auto Ancillary Fund Collective Investment Vehicles FY99 2.3 -- -- 1.2 1.2 The India Direct Fund, L.P. Collective Investment Vehicles FY96 7.5 -- -- 6.2 6.2 Indian Infrastructure Equipment Limited Finance & Insurance FY02 3.2 -- -- 3.2 3.2 Indian Seamless Metal Tubes Limited Primary Metals FY01 6.0 -- 6.0 -- 6.0 Indus Investments Mauritius Limited Collective Investment Vehicles FY96 + -- -- + + Indus Venture Investments Limited Collective Investment Vehicles FY96 5.0 -- -- 1.7 1.7 Indus Venture Management Limited Collective Investment Vehicles FY92 -- -- -- + + IFC 2005 ANNUAL REPORT 109 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SOUTH ASIA India (continued) Information Technology Fund Collective Investment Vehicles FY94 0.6 -- -- 0.6 0.6 Infrastructure Development Finance Finance & Insurance FY98, 05 65.5 -- 50.0 15.5 65.5 Company Limited Infrastructure Leasing and Financial Finance & Insurance FY91, 93, 95, 99 48.0 -- -- 5.4 5.4 Services Limited KPIT Cummins Infosystems Limited Information FY05 11.0 -- 11.0 -- 11.0 Kotak Mahindra Bank Finance & Insurance FY05 22.0 -- 22.0 -- 22.0 Larsen & Toubro Construction & Real Estate FY03 50.0 -- 50.0 -- 50.0 Mahindra & Mahindra Financial Finance & Insurance FY02 17.2 -- 18.2 -- 18.2 Services Limited Mahindra & Mahindra Limited Industrial & Consumer Products FY81, 90, 93 28.8 -- -- 0.1 0.1 Mahindra Infrastructure Developers Utilities FY01 10.0 -- -- 10.0 10.0 Limited Mahindra Shubhlabh Services Limited Agriculture & Forestry FY03 2.2 -- -- 2.3 2.3 Moser Baer India Limited Industrial & Consumer Products FY96, 99, 00 71.3 -- 22.2 16.3 38.5 N B Footwear limited Textiles, Apparel, & Leather FY90 -- -- 0.2 -- 0.2 Nagarjuna Coated Tubes Limited Primary Metals FY81 1.8 -- -- 0.2 0.2 NewPath Ventures LLC Professional, Scientific, & FY03, 04 13.0 -- -- 13.0 13.0 Technical Services Nicco-Uco Financial Services Limited Finance & Insurance FY93, 96, 97, 98 6.5 -- 1.9 -- 1.9 Niko Resources Ltd. Oil, Gas, & Mining FY03 40.0 -- 37.8 -- 37.8 Orchid Chemicals & Pharmaceuticals Chemicals FY01 20.0 -- -- 3.0 3.0 Limited Owens Corning (India) Limited Nonmetallic Mineral Product FY97 25.0 -- 7.7 -- 7.7 Manufacturing Oxides and Specialties Limited Chemicals FY91 0.3 -- -- 0.3 0.3 Powerlinks Transmission Limited Utilities FY04 74.6 -- 78.1 -- 78.1 Prism Cement Ltd. Nonmetallic Mineral Product FY95 20.0 15.0 10.0 0.2 10.2 Manufacturing RAK Ceramics India Pvt. Ltd. Nonmetallic Mineral Product FY04 20.0 -- 20.0 -- 20.0 Manufacturing Rain Calcining Limited Chemicals FY96, 05 34.7 -- 10.0 2.7 12.7 Ramky Infrastructure Ltd. Utilities FY05 11.0 -- -- 11.0 11.0 SREI International Finance Limited Finance & Insurance FY98, 00 33.0 -- 12.9 -- 12.9 Sealion Sparkle Port & Terminal Transportation & Warehousing FY05 4.9 -- 5.2 -- 5.2 Services Limited Shree Ram Fibers Ltd Textiles, Apparel, & Leather FY05 20.0 -- 20.0 -- 20.0 South Asian Regional Apex Fund Collective Investment Vehicles FY96 7.3 -- -- 5.9 5.9 Spryance, Inc. Information FY01, 03 3.0 -- -- 3.0 3.0 Steuerung Anlage Pvt. Ltd. Industrial & Consumer Products FY98 0.1 -- -- 0.1 0.1 Sundaram Finance Limited Finance & Insurance FY86, 93, 94, 95, 04 47.5 -- 45.9 -- 45.9 Sundaram Home Finance Limited Finance & Insurance FY00, 02 12.5 -- 9.6 2.2 11.8 Switching Technologies Guenther Industrial & Consumer Products FY90 -- -- 0.3 -- 0.3 Limited TAN India Limited Chemicals FY89 -- -- + -- + TCW/ICICI Private Equity Fund, L.L.C. Collective Investment Vehicles FY98 10.0 -- -- 3.3 3.3 The Tata Iron and Steel Compnay Primary Metals FY81, 86, 93, 94, 05 195.0 216.7 100.0 -- 100.0 Limited Tata Motors Limited Industrial & Consumer Products FY03 50.0 -- 50.0 -- 50.0 The Technology Development and Collective Investment Vehicles FY91 2.8 -- -- + + Information Company of India Limited United Phosphorus Limited Chemicals FY04 17.5 -- 17.5 -- 17.5 United Riceland Limited Food & Beverages FY96, 05 18.5 -- 15.4 -- 15.4 Usha Martin Limited Primary Metals FY03 24.6 -- 21.0 2.5 23.5 Vysya Bank Finance & Insurance FY01, 05 10.8 -- -- 7.2 7.2 Walden Nikko India Management Collective Investment Vehicles FY98 + -- -- + + Co. Ltd. Walden-Nikko India Ventures Collective Investment Vehicles FY98 2.4 -- -- 1.9 1.9 Co., L.D.C. 1,055.4 197.2 1,252.7 110 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity SOUTH ASIA Maldives Maldives Finance Leasing Company Finance & Insurance FY02 4.3 -- 3.0 1.3 4.3 Limited Taj Maldives (Pvt.) Ltd Accommodation & Tourism Services FY04 8.5 8.5 8.5 -- 8.5 Universal Enterprises Pvt. Limited Accommodation & Tourism Services FY05 30.0 -- 30.0 -- 30.0 Villa Shipping and Trading Company Accommodation & Tourism Services FY96, 03 21.0 -- 12.0 -- 12.0 Private Limited 53.5 1.3 54.8 Nepal Bhote Koshi Power Company Utilities FY98 23.9 32.9 14.9 2.9 17.9 Private Limited Himal Power Limited Utilities FY96 32.0 -- 23.1 -- 23.1 International Leasing and Finance Finance & Insurance FY01 0.3 -- -- 0.3 0.3 Co., Ltd. Jomsom Mountain Resort (Pvt.), Ltd. Accommodation & Tourism Services FY98 4.0 -- 4.0 -- 4.0 42.1 3.2 45.3 Sri Lanka Asia Power (Private) Limited Utilities FY97 11.0 8.8 3.9 2.3 6.2 Commercial Bank of Ceylon Finance & Insurance FY03, 04 12.9 -- -- 12.8 12.8 Dialog Telekom Ltd. Information FY04 50.0 -- 50.0 -- 50.0 Fitch Ratings Lanka Limited Finance & Insurance FY00 0.1 -- -- 0.1 0.1 Lanka Hospital Corporation Private Health Care FY01 1.1 -- -- -- -- Limited National Development Bank Housing Finance & Insurance FY00 1.3 -- -- 1.1 1.1 Finance Co. Packages Lanka (Private) Limited Pulp & Paper FY97 1.1 -- -- 1.1 1.1 South Asia Gateway Terminals Transportation & Warehousing FY00 28.6 -- 16.3 3.6 19.9 (Private) Limited Suntel Limited Information FY01 7.5 -- -- 7.5 7.5 70.2 28.5 98.7 Regional Investment Asian Mezzanine Infrastructure Fund Collective Investment Vehicles FY97 2.3 -- -- 0.6 0.6 J.P. Morgan Partners Asia LDC Collective Investment Vehicles FY99 + -- -- + + Modern Asia Environmental Holdings Utilities FY04 15.0 -- 15.0 -- 15.0 SEAVI Venture Management (Bermuda) Collective Investment Vehicles FY03 -- -- -- + + Limited 15.0 0.6 15.6 Total equity and loans 1,341.4 243.3 1,584.7 Total guarantees and risk management products 93.5 Total IFC portfolio for South Asia 1,678.2 IFC 2005 ANNUAL REPORT 111 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Albania Eurotech Cement, Shpk Nonmetallic Mineral Product FY99 1.2 -- 0.2 -- 0.2 Manufacturing Fushe-Kruje Cement Factory Nonmetallic Mineral Product FY05 30.0 -- 30.0 -- 30.0 Manufacturing Insurance Institute of Albania Finance & Insurance FY04 5.5 -- -- 6.2 6.2 National Commercial Bank Sh.A. Finance & Insurance FY00 2.0 -- -- 2.0 2.0 ProCredit Bank Albania Finance & Insurance FY00 1.1 -- -- 1.0 1.0 Vodafone Albania SH.A Information FY04 28.1 6.1 29.9 -- 29.9 60.1 9.2 69.3 Armenia ACBA Leasing Finance & Insurance FY03 2.3 -- 2.0 0.3 2.3 Armeconombank Finance & Insurance FY04 2.0 -- 2.0 -- 2.0 Armenia Hotel Closed Joint Stock Accommodation & Tourism Services FY01, 04 4.8 -- -- 4.8 4.8 Company 4.0 5.1 9.1 Azerbaijan Amerada Hess Corporation Oil, Gas, & Mining FY04 1.7 1.7 1.7 -- 1.7 Amoco Caspian Sea (Phase 1) Oil, Gas, & Mining FY04 10.0 10.0 10.0 -- 10.0 Finance Ltd. AzeriGazbank Finance & Insurance FY98, 03 1.6 -- 1.1 -- 1.1 Baku Hotel Company Accommodation & Tourism Services FY00 17.5 -- 4.4 -- 4.4 Kocbank (Azerbaijan) Limited Finance & Insurance FY99, 04 1.4 -- -- 1.4 1.4 Microfinance Bank Azerbaijan Finance & Insurance FY02 1.8 -- -- 1.8 1.8 Rabitabank Finance & Insurance FY98, 03 1.6 -- 1.1 -- 1.1 Statoil Oil, Gas, & Mining FY04 8.8 8.8 8.8 -- 8.8 Unocal--Union Oil Company Oil, Gas, & Mining FY04 10.0 10.0 10.0 -- 10.0 of California 37.0 3.2 40.2 Belarus Detroit Belarus Brewing Company Food & Beverages FY04 10.0 -- 7.0 3.0 10.0 JSC Belgazprombank Finance & Insurance FY05 5.0 -- 5.0 -- 5.0 Priorbank Joint Stock Company Finance & Insurance FY03, 05 14.0 -- 32.8 -- 32.8 44.8 3.0 47.8 Bosnia and Herzegovina Akova Impex, d.o.o. Food & Beverages FY99 2.1 -- 0.6 -- 0.6 Bosnalijek, d.d. Sarajevo Chemicals FY99, 01, 05 13.9 -- 10.1 1.8 11.9 Bosnia and Herzegovina--Wood Sector Industrial & Consumer Products FY98 14.1 -- 5.5 -- 5.5 Agency Credit Line Fabrika Cementa Lukavac Nonmetallic Mineral Product FY03 9.8 2.4 12.1 -- 12.1 Manufacturing HVB Central Profit Banka d.d. Finance & Insurance FY02, 04, 05 23.2 -- 12.1 15.5 27.6 Horizonte Bosnia and Herzegovina Collective Investment Vehicles FY98 1.9 -- -- 1.9 1.9 Enterprise Fund Konjuh d.d. Industrial & Consumer Products FY98 -- -- 2.2 -- 2.2 Kozara d.d. Industrial & Consumer Products FY98 -- -- 2.0 -- 2.0 Lijanovici d.o.o. Food & Beverages FY99 2.5 -- 0.9 -- 0.9 MDD Lignosper Industrial & Consumer Products FY98 2.3 -- 2.6 -- 2.6 Podgradci d.d. Industrial & Consumer Products FY98 -- -- 1.3 -- 1.3 ProCredit Bank d.d. Finance & Insurance FY98, 99, 01, 03 4.2 -- 3.6 1.2 4.9 Raiffeisen Bank d.d. Bosnia Finance & Insurance FY03, 05 32.1 -- 29.8 -- 29.8 and Herzegovina Sarajevo Privatization Venture Ltd. Collective Investment Vehicles FY02, 03 11.5 -- 0.7 + 0.7 Sour Energoinvest Industrial & Consumer Products FY85 11.7 -- 9.5 -- 9.5 Tvornica Kartona I Ambalaze Cazin Pulp & Paper FY77 8.0 7.1 4.1 -- 4.1 Wood Agency Credit Line Vrbas m.d.p. Industrial & Consumer Products FY98 -- -- 2.0 -- 2.0 99.0 20.5 119.5 112 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Bulgaria Bulbank AD Finance & Insurance FY01 17.3 -- -- 17.5 17.5 Bulgarian-American Credit Bank A.D. Finance & Insurance FY99, 03 10.0 -- 5.0 -- 5.0 Drujba A.D. Nonmetallic Mineral Product FY04 24.3 -- 24.2 -- 24.2 Manufacturing Epiq Electronic Assembly EOOD Industrial & Consumer Products FY01 5.5 -- 5.2 -- 5.2 Euromerchant Balkan Fund SICAV Collective Investment Vehicles FY95 5.0 -- -- 3.5 3.5 Florina Bulgaria S.A. Food & Beverages FY01 3.4 -- 4.6 -- 4.6 Kronospan Bulgaria EOOD Industrial & Consumer Products FY00, 01 19.7 12.3 20.2 -- 20.2 Paper Factory Stambolijski Pulp & Paper FY02 25.5 -- 20.6 2.0 22.6 ProCredit Bank (Bulgaria) AD Finance & Insurance FY01, 03, 04 15.7 -- 12.1 3.6 15.7 Sofia Hilton Accommodation & Tourism Services FY98 13.0 9.5 11.1 -- 11.1 Stomana Industry A.D. Primary Metals FY04 21.2 -- 22.4 -- 22.4 Trakya Glass Bulgaria EAD Nonmetallic Mineral Product FY04 42.7 65.1 35.0 7.5 42.5 Manufacturing Unionbank AD Finance & Insurance FY03, 05 11.3 -- 11.1 -- 11.1 171.5 34.0 205.5 Croatia Alpe Jadran Banka d.d. Finance & Insurance FY98 3.1 -- 2.2 -- 2.2 Belisce d.d. Pulp & Paper FY73, 81, 98, 03 60.7 64.1 17.6 6.0 23.6 Brodogradiliste Industrial & Consumer Products FY00 12.1 9.0 6.0 6.1 12.1 The CC Partnership L.P. Collective Investment Vehicles FY99 5.0 -- -- 4.9 4.9 Croatia Banka d.d. Finance & Insurance FY02 1.1 -- 1.8 -- 1.8 Erste & Steiermarkische Bank d.d. Finance & Insurance FY00, 03 36.4 -- 27.9 -- 27.9 Pliva d.d. Chemicals FY01 35.0 12.5 10.0 -- 10.0 Privredna Banka Zagreb d.d. Finance & Insurance FY05 99.4 -- 90.8 -- 90.8 156.4 17.0 173.4 Czech Republic CDV-1 Holding Company, L.P. Finance & Insurance FY01, 03 17.3 -- -- 1.2 1.2 The Czech and Slovak Private Equity Collective Investment Vehicles FY95 2.5 -- -- 2.4 2.4 Fund, L.P. Duff & Phelps CZ, a.s. Finance & Insurance FY99 + -- -- + + Hayes Wheels Autokola Nová Hut, a.s. Industrial & Consumer Products FY94 16.1 21.5 3.1 -- 3.1 Ispat Nova Hut a.s. Primary Metals FY97, 98 72.4 161.8 + -- + 3.1 3.7 6.8 Estonia Horizon Tselluloosi Ja Paberi Aktsiaselts Pulp & Paper FY98, 00 13.1 -- 6.1 1.5 7.6 Kreenholmi Valduse AS Textiles, Apparel, & Leather FY01, 04 8.4 11.9 10.0 -- 10.0 16.1 1.5 17.6 Georgia Bank of Georgia Finance & Insurance FY00, 03 7.2 -- 6.0 -- 6.0 JSC Saatksio Szagadoeba MINA Nonmetallic Mineral Product FY99 8.8 -- 5.6 2.5 8.1 Manufacturing ProCredit Bank Finance & Insurance FY99, 00, 01, 02, 04 12.1 -- 9.1 2.2 11.3 TBC Bank Finance & Insurance FY98, 00, 02, 04, 05 10.9 -- 6.2 0.9 7.0 TBC Leasing Finance & Insurance FY05 3.0 -- 3.0 -- 3.0 TbilComBank Finance & Insurance FY99 1.0 -- 0.5 -- 0.5 30.5 5.5 36.0 Greece Asbestos Mines of Northern Greece, Oil, Gas, & Mining FY80 11.1 -- -- 2.8 2.8 Mining S.A. -- 2.8 2.8 IFC 2005 ANNUAL REPORT 113 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Hungary First Hungary Fund Limited Collective Investment Vehicles FY90 7.5 -- -- 2.2 2.2 Honeywell ESCO Hungary Utilities FY00 0.4 -- -- 0.4 0.4 Mirelite Budapest Frozen Food Food & Beverages FY94 3.0 -- -- 3.0 3.0 Company Inc. (Mirelite) -- 5.6 5.6 Kazakhstan ABN-AMRO Bank Kazakhstan Finance & Insurance FY94, 96, 98, 03 15.3 1.0 10.0 4.6 14.6 BTA Leasing Finance & Insurance FY05 1.1 -- -- 1.1 1.1 Bank CenterCredit Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 CASPI Limited Accommodation & Tourism Services FY01 2.5 -- 1.8 -- 1.8 Ispat Karmet SME Resource TOO Collective Investment Vehicles FY02 3.4 -- 3.3 0.1 3.4 Joint Stock Company Ispat Karmet Primary Metals FY98, 99 30.7 -- 6.8 -- 6.8 Kazgermunai Oil, Gas, & Mining FY98 41.0 -- 18.0 0.7 18.7 Kazkommertsbank Finance & Insurance FY97, 00, 03 12.5 -- -- 1.0 1.0 Lukoil Overseas Karachaganak B.V. Oil, Gas, & Mining FY03 75.0 75.0 66.7 -- 66.7 Nelson Resources Limited Oil, Gas, & Mining FY97, 98, 03, 04 7.3 -- -- 1.1 1.1 OJSC NefteBank Finance & Insurance FY01 2.5 -- 2.5 -- 2.5 Rambutya Limited Liability Partnership Wholesale & Retail Trade FY00, 02 12.9 -- 6.7 -- 6.7 TuranAlem Bank Finance & Insurance FY00, 03 15.0 -- -- 4.9 4.9 125.8 13.4 139.2 Kyrgyz Republic Akun Ltd. Food & Beverages FY02 2.4 -- 2.3 -- 2.3 Demirbank Kyrgyz International Bank Finance & Insurance FY97, 03 0.6 -- -- 0.6 0.6 FINCA Microfinance Resource Finance & Insurance FY02 1.0 -- -- 1.0 1.0 Joint Stock Commercial Bank Kyrgyzstan Finance & Insurance FY04 1.5 -- 1.5 -- 1.5 Joint-Stock Company Investment Finance & Insurance FY04 1.5 -- 1.5 -- 1.5 Export-Import Bank (Inexim) Kyrgyz-Chinese Joint Venture Pulp & Paper FY00, 05 1.7 -- 1.5 -- 1.5 Altyn-Ajydar Kyrgyz Investment & Credit Bank Finance & Insurance FY01, 05 3.9 -- 2.5 1.4 3.9 9.3 3.0 12.3 Latvia Baltic-American Enterprise Fund Finance & Insurance FY05 7.1 -- 5.0 -- 5.0 5.0 -- 5.0 Lithuania AB Drobe Wool Textiles, Apparel, & Leather FY00 6.6 -- 5.4 0.5 5.9 Viesbutis Lietuva Accommodation & Tourism Services FY02 9.3 9.3 11.7 -- 11.7 17.1 0.5 17.6 Macedonia, Former Yugoslav Republic of Komercijalna Banka A.D. Skopje Finance & Insurance FY01 3.1 -- 2.0 -- 2.0 Makedonski Telekomunikacii AD Skopje Information FY98 25.0 25.0 -- 11.3 11.3 Nikol-Fert Primary Metals FY98 3.8 -- 0.7 -- 0.7 ProCredit Bank Macedonia Finance & Insurance FY03 1.0 -- -- 1.1 1.1 Small Enterprise Assistance Collective Investment Vehicles FY00 1.8 -- -- 0.5 0.5 Fund--Macedonia Fund L.L.C. Stopanska Banka a.d. Skopje Finance & Insurance FY98, 00, 01, 03 12.4 -- -- 10.5 10.5 Teteks A.D. Tetovo Textiles, Apparel, & Leather FY98, 02 6.8 -- 4.1 -- 4.1 6.7 23.5 30.2 114 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Moldova FinComBank S.A. Finance & Insurance FY03, 04 3.0 -- 2.6 -- 2.6 INCON JSC, Cupchin JSC, Ungheni Food & Beverages FY97 7.4 -- 5.2 2.0 7.2 JSC, and Floresti JSC Moldinconbank S.A. Finance & Insurance FY01, 04 7.0 -- 5.3 -- 5.3 ProCredit Bank Moldova Finance & Insurance FY00 1.0 -- 0.9 0.1 1.0 RED Chisinau, RED Centru & RED Sud Utilities FY02 25.0 -- 22.9 -- 22.9 Victoriabank Finance & Insurance FY02, 04 9.0 -- 6.7 -- 6.7 Voxtel S.A. Information FY99, 00, 01 15.3 21.8 -- 1.6 1.6 43.6 3.7 47.3 Poland Baltic Malt Sp. z o.o. Food & Beverages FY97 8.6 -- -- 2.0 2.0 Central Poland Fund, L.L.C. Collective Investment Vehicles FY98 1.6 -- -- 1.6 1.6 Global Hotels Development Group Accommodation & Tourism Services FY99 10.4 -- 9.1 3.2 12.3 Poland S.A. Honeywell ESCO Polska Utilities FY00 0.2 -- -- 0.1 0.1 Intercell S.A. Pulp & Paper FY95, 97, 98, 01, 04 9.5 -- -- + 0.0 Peters Fleischindustrie und Handel Food & Beverages FY94 6.5 -- 4.4 0.9 5.2 Aktiengesellschaft Pilkington Polska Sp. z o.o. Nonmetallic Mineral Product FY93 42.4 22.1 1.1 -- 1.1 Manufacturing The Poland Investment Fund L.P. Collective Investment Vehicles FY95 2.5 -- -- 1.2 1.2 14.6 8.9 23.5 Romania Ambro S.A. Pulp & Paper FY00 6.2 -- 1.5 -- 1.5 Banc Post S.A. Finance & Insurance FY99, 02 20.0 -- -- 8.0 8.0 Banca Comerciala Romana S. A. Finance & Insurance FY03, 04 186.0 -- 67.5 111.0 178.5 Banca Pentru Mica Industrie si Finance & Insurance FY05 7.0 -- 7.0 -- 7.0 Libera Initiativa Banca Romaneasca S.A. Finance & Insurance FY01 5.9 -- 2.6 -- 2.6 Banca Tiriac Priveste inainte Finance & Insurance FY05 27.5 -- 25.7 -- 25.7 Banca Transilvania Finance & Insurance FY04, 05 69.4 -- 68.6 -- 68.6 Danube Fund Limited Collective Investment Vehicles FY97 2.0 -- -- + + Distrigaz Sud Utilities FY05 54.4 -- -- 48.4 48.4 Domenia Credit S.A. Finance & Insurance FY04 5.0 -- 5.0 -- 5.0 ICME Primary Metals FY02 8.7 -- 8.9 -- 8.9 ProCredit Bank S.A. Finance & Insurance FY02, 03, 04 7.6 -- 5.0 2.6 7.6 Raiffeisen Bank S.A. Finance & Insurance FY05 -- -- 23.5 -- 23.5 Romanian-American Enterprise Fund Finance & Insurance FY04 3.0 -- 3.0 -- 3.0 S.C. Arctic S.A. Industrial & Consumer Products FY03 11.0 -- 10.9 -- 10.9 Unicredit Leasing Romania S.A. Finance & Insurance FY95, 98, 01 9.8 -- 1.5 -- 1.5 Unicredit Leasing S.A. Finance & Insurance FY05 9.4 -- 9.1 -- 9.1 239.7 170.0 409.7 Russian Federation A.O. Mosenergo Utilities FY98 20.0 -- 10.1 -- 10.1 ABOLmed Chemicals FY05 8.0 -- 8.0 -- 8.0 Agro-Industrial Finance Company Finance & Insurance FY03 5.5 10.0 5.0 0.5 5.5 BCEN Eurobank Finance & Insurance FY03 100.0 -- 75.0 -- 75.0 BSGV Leasing Finance & Insurance FY04 19.5 -- 19.9 -- 19.9 Banque Société Générale Vostok Finance & Insurance FY04 75.0 -- 75.0 -- 75.0 Baring Vostok Private Equity Fund III Collective Investment Vehicles FY05 12.5 -- -- 12.5 12.5 Baring Vostok Private Equity Fund, L.P. 2 Collective Investment Vehicles FY01 15.0 -- -- 7.6 7.6 Bauxite Timana (SUAL) Primary Metals FY05 45.0 30.0 45.0 -- 45.0 Commercial Bank DeltaCredit Finance & Insurance FY02, 03 50.0 -- 46.5 -- 46.5 Egar Technology Professional, Scientific, & FY02 1.5 -- -- 1.5 1.5 Technical Services Eurosib SPB--Transportation Systems Transportation & Warehousing FY05 30.0 -- 30.0 -- 30.0 IFC 2005 ANNUAL REPORT 115 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Russian Federation (continued) First Russia-NIS Fund Collective Investment Vehicles FY95 15.0 -- -- + + IBS Group Holdings Limited Information FY03 8.0 -- 8.0 -- 8.0 IKEA MOS (Retail and Property) OOO Wholesale & Retail Trade FY00 15.0 -- 13.1 -- 13.1 Independent Network Television Information FY04 10.5 -- 7.0 3.5 10.5 Holdings, Ltd. Industry & Construction Bank Finance & Insurance FY02 10.0 -- 7.1 -- 7.1 JSC Lebedyansky Food & Beverages FY04 35.0 -- 35.0 -- 35.0 JSC Novatek Oil, Gas, & Mining FY05 35.0 -- -- 35.0 35.0 JSC SFAT; JSC RUSWORLD Transportation & Warehousing FY04, 05 60.0 55.0 57.9 -- 57.9 JSC Volga-Dnepr Airlines Transportation & Warehousing FY02 16.9 13.0 16.9 -- 16.9 Kronospan Russia Industrial & Consumer Products FY04, 05 141.5 -- 135.6 -- 135.6 KuibyshevAzot JSC Chemicals FY05 15.0 -- 15.0 -- 15.0 Limited Liability Company Accommodation & Tourism Services FY05 15.0 50.0 15.0 -- 15.0 Esanna Holdings Moscow Credit Bank Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 Moscow Narodny Bank, Ltd. Finance & Insurance FY03 100.0 -- 57.1 -- 57.1 NBD Bank Finance & Insurance FY02, 03 9.5 -- 8.2 -- 8.2 New Medical Center Health Care FY01 2.1 -- 2.0 -- 2.0 North-Western Shipping Company Transportation & Warehousing FY05 23.0 23.5 23.0 -- 23.0 OAO TogliattiAzot Chemicals FY05 30.0 45.0 30.0 -- 30.0 OOO Kronostar Industrial & Consumer Products FY04, 05 94.3 49.3 95.0 -- 95.0 OOO Raiffeisen Leasing Finance & Insurance FY05 -- -- 20.0 -- 20.0 OOO Ruscam Nonmetallic Mineral Product FY02, 03, 04 40.5 -- 37.5 -- 37.5 Manufacturing OOO Stora Enso Packaging BB Pulp & Paper FY00, 02 14.5 -- 6.1 -- 6.1 OOO Swedwood Tichvin Industrial & Consumer Products FY02 5.6 -- 5.9 -- 5.9 Omsukchansk Mining and Oil, Gas, & Mining FY01 10.0 -- 1.5 -- 1.5 Geological Company Open Joint Stock Company Commercial Finance & Insurance FY02, 05 12.0 -- 9.9 -- 9.9 Bank "Center-invest" Peter Hambro Mining Plc Oil, Gas, & Mining FY05 15.0 -- -- 15.0 15.0 Pilkington Float Glass Russia Nonmetallic Mineral Product FY04 53.7 -- 51.5 -- 51.5 Manufacturing Probusiness Bank Finance & Insurance FY02 5.0 -- 5.0 -- 5.0 Quadriga Capital Russia Fund Collective Investment Vehicles FY05 17.7 -- -- 17.7 17.7 Ramenka Ltd. Wholesale & Retail Trade FY99, 01, 03 100.5 30.0 63.5 -- 63.5 Ru-Net Holdings Professional, Scientific, & FY03 6.0 -- 3.0 3.0 6.0 Technical Services Russia Partners II, LP Collective Investment Vehicles FY05 10.0 -- -- 10.0 10.0 Russia Women's Microfinance Network Finance & Insurance FY05 1.0 -- 1.0 -- 1.0 Russian Standard Bank Finance & Insurance FY02, 04 70.0 -- 59.4 10.0 69.4 The Russian Technology Fund, L.P. Collective Investment Vehicles FY96 1.0 -- -- 0.9 0.9 Sector Investment Holding Company Collective Investment Vehicles FY96 -- -- -- 0.6 0.6 Limited Severstaltrans; Balttranservis; Transportation & Warehousing FY04 40.0 -- 40.0 -- 40.0 Sevtekhnotrans Sibakadembank Finance & Insurance FY05 7.0 -- 7.0 -- 7.0 Small Business Credit Bank (KMB Bank) Finance & Insurance FY02 7.0 -- 5.6 -- 5.6 Stavropolsky Broiler Agriculture & Forestry FY03 15.0 -- 15.0 -- 15.0 Sveza Holding Industrial & Consumer Products FY04 40.5 -- 40.5 -- 40.5 UralTransBank Finance & Insurance FY03 10.0 -- 10.0 -- 10.0 Volga Shipping Company Transportation & Warehousing FY05 25.2 17.3 25.2 -- 25.2 ZAO DeltaLeasing Finance & Insurance FY04 4.0 -- 3.5 -- 3.5 ZAO Europlan Finance & Insurance FY02 10.0 -- 5.7 -- 5.7 ZAO Kulon Development, Transportation & Warehousing FY04 7.5 -- 7.4 -- 7.4 ZAO Kulon Estate ZAO Raiffeisenbank Austria Finance & Insurance FY03, 05 80.0 -- 34.4 -- 34.4 ZAO Sonic Duo Information FY02 30.0 10.0 6.0 -- 6.0 1,315.2 117.8 1,432.9 116 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Serbia and Montenegro Continental Banka A.D. Finance & Insurance FY04 -- -- 3.8 -- 3.8 HVB Central Profit Banka d.d. Finance & Insurance FY05 37.6 -- 36.3 -- 36.3 Institut Za Fizikalnu Medicinu I Health Care FY82, 88 22.0 -- 10.2 -- 10.2 Rehabilitaciju ("Dr. Simo Milosevic") Igalo Investiciona Banka Titograd-Udruzena Accommodation & Tourism Services FY80 21.0 -- 2.0 -- 2.0 Banka Jugobanka--Udruzena Banka Beograd Finance & Insurance FY86 23.0 9.8 5.1 -- 5.1 Loan to Eight Banks for Small-Scale Finance & Insurance FY80 26.0 5.7 1.1 -- 1.1 Enterprises Novosadska Bank A.D. Finance & Insurance FY04 -- -- 14.0 -- 14.0 Opportunity Bank Montenegro Finance & Insurance FY05 5.2 -- 4.8 -- 4.8 Panonska Banka A.D. Finance & Insurance FY04 -- -- 6.0 -- 6.0 Podgoricka Banka a.d. Finance & Insurance FY05 8.5 -- 6.1 1.8 7.9 Privredna Banka A.D. Pancevo Finance & Insurance FY04 -- -- 1.9 -- 1.9 ProCredit Bank Kosovo Finance & Insurance FY02 1.1 -- -- 1.1 1.1 ProCredit Bank Serbia Finance & Insurance FY02, 03 14.0 -- 10.4 2.0 12.5 Radoje Dakic Industrial & Consumer Products FY80 18.7 -- 1.2 -- 1.2 Raiffeisenbank Yugoslavija a.d. Finance & Insurance FY02, 05 5.1 -- -- 5.1 5.1 Tigar M.H. Plastics & Rubber FY02, 05 21.7 -- 18.0 8.0 26.0 Vojvodjanska Banka--Udruzena Banka Finance & Insurance FY87, 89, 04 54.6 29.5 9.5 -- 9.5 130.3 18.1 148.5 Slovenia Poteza Adriatic Fund B.V. Collective Investment Vehicles FY04 13.7 -- -- 13.7 13.7 -- 13.7 13.7 Tajikistan First Microfinance Bank Tajikistan Finance & Insurance FY05 0.7 -- -- 0.7 0.7 Giavoni Textiles, Apparel, & Leather FY03 3.0 -- -- 3.0 3.0 Open Joint Stock Company Pamir Utilities FY03 8.0 -- 4.5 3.5 8.0 Energy Company SugdAgroServ Agriculture & Forestry FY02, 04 0.8 -- 0.7 -- 0.7 Telecom Technology Ltd. Information FY02 0.4 -- 0.2 -- 0.2 5.4 7.2 12.6 Turkey Acibadem Saglik Hizmetleri Ve Health Care FY05 20.0 -- 20.0 -- 20.0 Ticaret A.S. Alternatif Bank, A.S. Finance & Insurance FY99, 00 12.0 15.0 0.3 -- 0.3 Arçelik, A.S. Industrial & Consumer Products FY96, 01, 03, 05 198.0 193.1 158.9 -- 158.9 Arçelik-LG Klima Sanayi ve Ticaret A.S. Industrial & Consumer Products FY00 15.3 10.2 7.8 -- 7.8 Assan Demir ve Sac Sanayii A.S. Primary Metals FY94, 97, 02, 05 85.3 10.0 52.5 -- 52.5 Atilim University Education Services FY02 6.5 -- 6.5 -- 6.5 Banvit Bandirma Vitaminli Yem Agriculture & Forestry FY01 25.0 -- 8.3 5.0 13.3 Sanayi A.S. Bayindirbank A.S. Finance & Insurance FY94, 97, 00 30.0 60.0 1.5 -- 1.5 Beko Elektronik A.S. Industrial & Consumer Products FY03 25.0 25.1 30.7 -- 30.7 Borçelik Çelik Sanayii ve Ticaret A.S. Primary Metals FY95, 96, 97 47.1 -- 8.2 9.7 17.8 Borusan Holding A.S. Primary Metals FY04 40.0 -- 37.9 -- 37.9 CBS Holding A.S. Chemicals FY94 15.5 -- 3.5 -- 3.5 Eczacibasi Karo Seramik Construction & Real Estate FY02 9.9 -- 10.3 -- 10.3 Ege Liman Isletmeleri A.S. Transportation & Warehousing FY04 10.0 8.0 10.0 -- 10.0 Entek Elektrik Uretimi A.S. Utilities FY98 25.0 26.5 18.0 -- 18.0 Finansbank, A.S. Finance & Insurance FY92, 00 20.0 55.6 2.2 -- 2.2 Garanti Finansal Kiralama A.S. Finance & Insurance FY95, 98, 00, 04 29.3 43.4 10.0 -- 10.0 Gümüssuyu Hali ve Yer Kaplamalari Textiles, Apparel, & Leather FY99 7.0 -- 7.4 -- 7.4 Sanayi ve Ticaret A.S. Gunkol/TEBA Industrial & Consumer Products FY02 10.2 -- 4.2 6.2 10.5 Indorama Iplik Sanayi ve Ticaret A.S. Textiles, Apparel, & Leather FY99 10.7 -- 4.4 -- 4.4 Intercity Fleet Management Finance & Insurance FY05 20.0 27.8 15.0 5.0 20.0 IFC 2005 ANNUAL REPORT 117 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Turkey (continued) Ipek Kagit Sanayii ve Ticaret A.S. Pulp & Paper FY98, 00, 02 45.0 33.0 22.9 -- 22.9 Istanbul Bilgi University Education Services FY01 12.0 -- 8.0 -- 8.0 Kepez Elektrik, T.A.S. Utilities FY91 20.2 -- 1.6 -- 1.6 Kiris Otelcilik ve Turizm A.S. Accommodation & Tourism Services FY89, 90 23.8 -- 26.3 -- 26.3 Koc Finansal Kiralama A.S. Finance & Insurance FY97, 04 45.0 -- 30.0 -- 30.0 Kula Mensucat Fabrikasi A.S. Textiles, Apparel, & Leather FY91 20.1 -- 5.0 -- 5.0 MESA Health and Education Institutions Health Care FY04 11.0 -- 11.0 -- 11.0 Management, Inc. & MESA Housing Industries, Inc. Medya Holding A.S. Information FY93, 96 28.6 -- 5.0 -- 5.0 Meteksan Sistem ve Bilgisayar Professional, Scientific, & FY04 8.5 -- 8.5 -- 8.5 Teknolojileri A.S. Technical Services Milli Reasurans T.A.S. Finance & Insurance FY02 50.0 -- 50.0 -- 50.0 Modern Karton Sanayii ve Ticaret A.S. Pulp & Paper FY98, 02 30.0 10.0 13.8 -- 13.8 Nasco Nasreddin Holding A.S. Textiles, Apparel, & Leather FY92 17.5 5.0 4.0 -- 4.0 Opet Petrolcülük A.S. Chemicals FY04 25.0 40.0 25.0 -- 25.0 Oyak Bank A.S. Finance & Insurance FY98, 04 65.0 25.0 50.0 -- 50.0 PALEN Enerji Dogal Gaz Dagitim Endustri Utilities FY05 2.0 -- 2.0 -- 2.0 PALGAZ Dogal Gaz Dagitim Sanayi Utilities FY05 10.0 -- 10.0 -- 10.0 Pasabahce-Schott Cam Sanayi ve Nonmetallic Mineral Product FY99, 02 23.6 16.1 1.9 -- 1.9 Ticaret A.S. Manufacturing Pinar Entegre Et ve Yem Sanayii A.S. Food & Beverages FY84, 94, 98 21.9 -- 3.1 -- 3.1 Pinar Süt Mamülleri Sanayii A.S. Food & Beverages FY94, 00 22.5 -- 11.0 -- 11.0 Sakosa Sabanci-Kosa Endnstriyel Iplik Textiles, Apparel, & Leather FY99 24.8 24.3 15.5 -- 15.5 Ve Kord Bezi Sanayi ve Ticaret A.S. Silkar Turizm Yatirim ve Isletmeleri A.S. Accommodation & Tourism Services FY86, 90 18.6 9.5 1.6 -- 1.6 Söktas Pamuk ve Tarim Ürunlerini Textiles, Apparel, & Leather FY98, 02 17.0 -- 2.0 -- 2.0 Degerlendirme Ticaret ve Sanayi A.S. Trakya Cam Sanayii A.S. Nonmetallic Mineral Product FY79, 83, 84, 89, 67.7 31.0 -- 0.6 0.6 Manufacturing 91, 96, 99 Türk Ekonomi Bankasi A.S. Finance & Insurance FY95, 99, 03, 05 112.5 32.5 76.1 -- 76.1 Turkish Private Equity Fund I L.P. Collective Investment Vehicles FY02 10.0 -- -- 10.0 10.0 Turkiye Sinai Kalkinma Finance & Insurance FY64, 67, 69, 72, 73, 70.1 45.0 50.0 -- 50.0 Bankasi, A.S. 75, 76, 80, 83, 92, 05 Türkiye Sise ve Cam Fabrikalari, A.S. Nonmetallic Mineral Product FY93, 97, 02, 03 137.0 88.5 71.0 -- 71.0 Manufacturing Unye Cimento Sanayi ve Ticaret A.S. Nonmetallic Mineral Product FY00 22.5 -- 5.1 -- 5.1 Manufacturing Uzel Makina Sanayii A.S. Industrial & Consumer Products FY99 11.4 8.5 8.4 -- 8.4 Viking Kagit ve Seluloz, A.S. Pulp & Paper FY70, 71, 82, 83, 98 15.3 -- 7.4 -- 7.4 Yeditepe Beynelmilel Otelcilik Turizm ve Accommodation & Tourism Services FY90, 94, 02 31.8 27.5 8.1 -- 8.1 Ticaret A.S. (Conrad Istanbul Hotel) Yuce Ozel Egitim VE Kulturel Education Services FY05 4.5 -- 4.5 -- 4.5 Hizmetler A.S. 956.4 36.5 992.9 Ukraine AvalBank Finance & Insurance FY05 35.0 -- 35.0 -- 35.0 CJSC AES Kyivoblenergo Utilities FY05 30.0 -- 30.0 -- 30.0 CJSC AES RivneEnergo Utilities FY05 15.0 -- 15.0 -- 15.0 CJSC Myronivsky Khliboprodukt Agriculture & Forestry FY04, 05 110.0 -- 90.0 20.0 110.0 First Lease Finance & Insurance FY04 2.0 -- 1.7 -- 1.7 Joint Stock Commercial Bank HVB Finance & Insurance FY98, 03, 04 2.8 -- -- + + Bank Ukraine Nova Liniya Wholesale & Retail Trade FY04 5.0 -- 5.0 -- 5.0 ProCredit Bank Ukraine Finance & Insurance FY01, 04 14.7 -- 11.0 2.7 13.7 Raiffeisenbank Ukraine Finance & Insurance FY05 -- -- 30.0 -- 30.0 Sandora Limited Liability Company Food & Beverages FY04 10.0 -- 10.0 -- 10.0 Ukraine Venture Capital Fund II Collective Investment Vehicles FY94, 97 3.2 -- -- 1.7 1.7 227.7 24.4 252.2 118 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity EUROPE AND CENTRAL ASIA Uzbekistan ABN AMRO Bank Uzbekistan Finance & Insurance FY96 1.0 -- -- 1.0 1.0 Asaka Bank Finance & Insurance FY00, 03 15.0 -- 9.0 -- 9.0 Fayz Holding Joint Stock Company Industrial & Consumer Products FY98 2.4 -- 0.3 0.5 0.8 of the Open Type Hamkorbank, Joint Stock Finance & Insurance FY01 1.0 -- 0.8 -- 0.8 Commercial Bank National Bank of Uzbekistan Finance & Insurance FY00 15.0 -- 11.6 -- 11.6 Osiyo Granite Ltd. Nonmetallic Mineral Product FY01 1.7 -- 1.3 -- 1.3 Manufacturing Parvina Bank, Private Closed Joint Finance & Insurance FY01 1.0 -- 0.9 -- 0.9 Stock Commercial Bank Uzbek Leasing International A.O. Finance & Insurance FY96, 01, 03 3.4 -- 2.2 0.9 3.1 Uzdutch Cheese Ltd. Food & Beverages FY00 0.6 -- 0.5 -- 0.5 26.7 2.4 29.1 Regional Investment ABC Medicover Holdings B.V. Health Care FY99 7.0 -- 2.0 -- 2.0 AIG Emerging Europe Infrastructure Collective Investment Vehicles FY00 30.0 -- -- 14.4 14.4 Fund L.P. and Emerging Europe Infrastructure Fund C.V. Advent Central and Eastern Collective Investment Vehicles FY98 15.0 -- -- 11.6 11.6 Europe II L.P. Advent Central and Eastern Collective Investment Vehicles FY04 15.1 -- -- 15.1 15.1 Europe III L.P. Advent Central Europe Collective Investment Vehicles FY95 + -- -- + + Management L.P. Advent Private Equity Fund-- Collective Investment Vehicles FY95 10.0 -- -- 4.8 4.8 Central Europe L.P. Alliance ScanEast Fund, L.P. Collective Investment Vehicles FY94 4.9 -- -- 0.4 0.4 Baltic American Enterprise Fund Finance & Insurance FY03 50.0 -- 49.5 -- 49.5 Bancroft II, L.P. Collective Investment Vehicles FY03 19.8 -- -- 24.2 24.2 Black Sea Fund L.P. Collective Investment Vehicles FY99, 02 14.5 -- -- 8.4 8.4 Central Asia Small Enterprise Fund LLC Collective Investment Vehicles FY03 2.5 -- -- 2.5 2.5 Euromedic Diagnostics B.V. & Health Care FY02, 04 25.6 -- 26.5 -- 26.5 International Hemodialysis Centers B.V. European Renaissance Capital, L.P. Collective Investment Vehicles FY94 5.0 -- -- 2.3 2.3 Hanseatic Capital, LLC Finance & Insurance FY03 7.4 -- 9.1 -- 9.1 Intra-Regional Trade Enhancement Finance & Insurance FY96, 99 0.9 -- + -- + Facility (IRTEF)--Dalrybbank MFI Facility--Central Asia Finance & Insurance FY03 45.0 -- 45.0 -- 45.0 NIS Restructuring Facility, L.P. Collective Investment Vehicles FY00 10.0 -- -- 1.7 1.7 New Europe-East Investment Fund Collective Investment Vehicles FY93 10.0 -- -- + + Raiffeisen International Bank-- Finance & Insurance FY04 241.6 -- -- 115.1 115.1 Holding AG Raiffeisen International Banking Finance & Insurance FY05 200.1 -- 198.4 -- 198.4 The Romania & Moldova Direct Collective Investment Vehicles FY99 4.0 -- -- 1.1 1.1 Fund, L.P. SEAF Central and Eastern Europe Collective Investment Vehicles FY01, 04 3.7 -- -- 2.7 2.7 Growth Fund LLC SEAF Trans-Balkan Fund LLC Collective Investment Vehicles FY01 4.8 -- -- 2.1 2.1 Societe Generale, S.A. Finance & Insurance FY05 265.0 -- 265.0 -- 265.0 595.5 206.4 801.9 Total equity and loans 4,341.7 760.6 5,102.3 Total guarantees and risk management products 102.0 Total IFC portfolio for Europe and Central Asia 5,204.3 IFC 2005 ANNUAL REPORT 119 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Argentina Aceitera General Deheza S.A. Food & Beverages FY95, 02, 04 125.0 60.0 70.0 -- 70.0 Acindar Industria Argentina de Primary Metals FY60, 95, 97, 99 119.4 65.7 16.7 -- 16.7 Aceros, S.A. Aguas Argentinas S.A. Utilities FY95, 96 85.0 307.5 37.2 7.0 44.1 Aguas Provinciales de Santa Fe S.A. Utilities FY01 20.0 20.5 8.0 -- 8.0 Alpargatas, S.A.I.C. Textiles, Apparel, & Leather FY77, 84, 86, 88, 94, 97 76.3 77.0 0.5 -- 0.5 American Plast, S.A. Plastics & Rubber FY99 10.0 -- 1.0 -- 1.0 Asociación Unión Tamberos Cooperativa Food & Beverages FY99 6.0 -- 3.6 -- 3.6 Limitada (AUTCL) BACS Banco de Crédito y Finance & Insurance FY00, 05 84.1 -- 25.0 12.5 37.5 Securitización, S.A. Banco de Galicia y Buenos Aires, S.A. Finance & Insurance FY97, 99, 00, 04, 05 127.5 245.0 109.1 -- 109.1 Banco del Suquia Finance & Insurance FY98, 99, 03 45.0 25.0 10.5 -- 10.5 Banco General de Negocios S.A. Finance & Insurance FY94, 99 48.0 -- 33.0 -- 33.0 Banco Hipotecario S.A. Finance & Insurance FY00 25.0 102.5 15.5 -- 15.5 Bunge Argentina S.A. Food & Beverages FY97 20.0 -- 5.0 -- 5.0 Cerámica Zanón S.A.C.I.y M. Nonmetallic Mineral Product FY96 20.0 -- 17.7 -- 17.7 Manufacturing Chevron San Jorge SRL (Neuquen Oil, Gas, & Mining FY92, 93, 97, 99 73.4 35.0 -- 58.4* 58.4 Basin, Huantraico) Compañía Elaboradora de Productos Food & Beverages FY95 15.0 6.0 9.7 -- 9.7 Alimenticios S.A. (CEPA) Compañías Asociadas Petroleras S.A. Oil, Gas, & Mining FY97 17.0 33.0 4.0 -- 4.0 Concesiones y Construcciones Transportation & Warehousing FY00 26.0 -- 6.0 20.0 26.0 de Infraestructura S.A. Correo Argentino S.A. Transportation & Warehousing FY99 75.0 -- 57.4 6.8 64.2 Editorial Codex Sociedad Anonima Information FY69 6.6 0.4 -- 1.6 1.6 Empresa Distribuidora y Utilities FY94, 95 45.0 128.0 18.8 -- 18.8 Comercializadora del Norte S.A. (EDENOR) FRIAR S.A. Food & Beverages FY98 12.5 7.0 1.3 -- 1.3 FV S.A. Industrial & Consumer Products FY99 16.0 -- 7.8 -- 7.8 Frigorifico Rioplatense S.A.I.C.I.F. Food & Beverages FY92 13.0 4.0 0.9 -- 0.9 Grunbaum, Rico y Daucourt S.A.I.C. Textiles, Apparel, & Leather FY96 10.0 5.0 8.0 -- 8.0 Grupo Financiero Galicia S.A. Finance & Insurance FY99 -- -- -- 3.1 3.1 Hospital Privado Centro Médico Health Care FY99 9.6 -- 8.2 -- 8.2 de Córdoba S.A. Jumbo Argentina S.A. Wholesale & Retail Trade FY04 40.0 -- -- 40.0 40.0 Louis Dreyfus Manufacturing S.A. Industrial & Consumer Products FY00 -- -- 13.5 -- 13.5 Maltería Pampa, S.A. Food & Beverages FY93, 96 19.0 12.0 2.0 -- 2.0 Milkaut S.A. Food & Beverages FY97, 98 20.0 5.0 15.4 5.0 20.4 Molinos Rio de la Plata S.A. Food & Beverages FY93, 94, 03 32.3 30.0 30.0 5.5 35.5 Nahuelsat S.A. Information FY95 35.0 -- 2.1 -- 2.1 Nuevo Central Argentino S.A. Transportation & Warehousing FY93 13.0 15.0 -- 3.0 3.0 Patagonia Fund, L.P. Collective Investment Vehicles FY98 20.0 -- -- 15.0 15.0 Patagonia Mint S.A. Food & Beverages FY98 6.0 -- 2.8 -- 2.8 Petroquimica Comodoro Rivadavia S.A. Oil, Gas, & Mining FY00 -- -- 5.5 -- 5.5 Roberts Participaciones S.A. Collective Investment Vehicles FY86 0.1 -- -- 0.1 0.1 S.A. San Miguel A.G.I.C.I. y F. Agriculture & Forestry FY99, 05 32.2 10.0 25.3 -- 25.3 SanCor Cooperativas Unidas Ltda. Food & Beverages FY95 40.0 30.0 29.9 -- 29.9 Sideco Americana S.A. Transportation & Warehousing FY95 -- -- -- 15.0 15.0 Socma Americana S.A. Transportation & Warehousing FY95 40.0 60.0 6.3 -- 6.3 T6 Industrial S.A. Food & Beverages FY98 15.0 30.0 9.4 -- 9.4 Terminal 6, S.A. Transportation & Warehousing FY87, 90, 91, 96, 98 33.0 19.5 4.4 -- 4.4 Terminales Portuarias Argentinas S.A. Transportation & Warehousing FY96 12.0 -- 1.5 -- 1.5 The Tower Fund, L.P. Collective Investment Vehicles FY95 25.0 -- -- 14.9 14.9 The Tower Investment Management Collective Investment Vehicles FY95 0.2 -- -- + + Company Transportadora de Gas del Norte S.A. Transportation & Warehousing FY97 45.0 210.0 38.2 -- 38.2 Universidad del Salvador Education Services FY01 10.0 -- 9.3 -- 9.3 120 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Argentina (continued) Vicentin S.A.I.C. Food & Beverages FY97, 03, 05 90.0 40.0 66.9 -- 66.9 Yacylec S.A. Utilities FY94 20.0 45.0 -- 5.0 5.0 736.9 212.9 949.8 Barbados Caribbean Financial Services Finance & Insurance FY84 0.3 -- -- 0.3 0.3 Corporation -- 0.3 0.3 Belize Nova Companies (Belize) Ltd. and Agriculture & Forestry FY98 5.5 -- 4.3 -- 4.3 Ambergris Aquaculture Ltd. 4.3 -- 4.3 Bolivia Aguas del Illimani S.A. Utilities FY00 7.1 -- 4.4 1.0 5.4 Banco Bisa S.A. Finance & Insurance FY76, 88, 91, 92, 95, 98 28.7 -- -- 3.2 3.2 Banco Los Andes ProCredit Finance & Insurance FY99, 01, 03 10.0 -- 8.0 -- 8.0 Banco Mercantil S.A. Finance & Insurance FY96 10.0 -- 1.4 -- 1.4 Banco Sol Finance & Insurance FY04 6.0 -- 5.0 -- 5.0 CB Transporte e Infraestructura Transportation & Warehousing FY99 2.0 -- 0.8 -- 0.8 S.A. (CBTI) Central Aguirre Portuaria, S.A. Transportation & Warehousing FY92, 02 4.7 -- 1.9 0.3 2.2 Compañía Boliviana de Gas Natural Chemicals FY93 2.3 -- 0.2 -- 0.2 Comprimido S.A. (GENEX) Compañía Minera del Sur, S.A. Oil, Gas, & Mining FY90, 94, 96, 00 40.6 5.0 1.3 -- 1.3 Electropaz S.A. Utilities FY00 25.0 -- 19.3 -- 19.3 Fondo Financiero Privado F.I.E. S.A. Finance & Insurance FY03 2.5 -- 1.9 -- 1.9 Minera S.A. Oil, Gas, & Mining FY87, 90 -- -- -- 3.4 3.4 Minproc Bolivia S.A. Oil, Gas, & Mining FY92 1.0 -- -- 0.7 0.7 PRODEM Finance & Insurance FY04 3.0 -- 3.0 -- 3.0 Telefónica Celular de Bolivia S.A. Information FY97, 01 26.7 23.3 9.4 -- 9.4 Transierra S.A. Transportation & Warehousing FY05 50.0 100.0 48.5 -- 48.5 Transportadora de Electricidad S.A. Utilities FY03 30.0 -- 28.9 -- 28.9 Transportes Ferroviarios S.A. Transportation & Warehousing FY99 -- -- -- 4.4 4.4 Trenes Continentales S.A. Transportation & Warehousing FY99 -- -- -- 2.9 2.9 134.0 15.9 149.9 Brazil ABN AMRO REAL S.A. Finance & Insurance FY05 125.0 -- 125.0 -- 125.0 AgCert International, LLC Agriculture & Forestry FY05 15.0 -- -- 14.8 14.8 Amaggi Exportaçao e Importaçao Food & Beverages FY03, 05 60.0 -- 55.7 -- 55.7 Limitada Andrade Gutierrez S.A. Construction & Real Estate FY03 40.0 20.0 35.7 -- 35.7 Andrade Gutierrez Concessoes S.A. Utilities FY02 30.0 -- 15.0 15.0 30.0 Apolo Produtos de Aço SA Primary Metals FY02 8.0 -- 7.2 -- 7.2 Aracruz Celulose S.A. Pulp & Paper FY05 50.0 -- 50.0 -- 50.0 Banco Bradesco, S.A. Finance & Insurance FY97, 03 26.8 85.2 0.7 -- 0.7 Banco Itaú-BBA S.A. Finance & Insurance FY01, 02, 03 130.0 60.0 84.1 -- 84.1 Brazil Corporate Governance Fund Collective Investment Vehicles FY05 20.0 -- -- 20.0 20.0 Bulk Services Corporation Transportation & Warehousing FY98 14.0 7.5 1.0 -- 1.0 CPFL Energía S.A. Utilities FY03 40.0 -- 31.0 9.0 40.0 CRP-Caderi Capital de Risco S.A. Collective Investment Vehicles FY95 0.8 -- -- 0.3 0.3 CTBC Telecom Information FY97 43.2 -- 9.0 18.2 27.2 Chapecó Companhia Industrial Food & Beverages FY94, 96 43.9 5.3 27.8 -- 27.8 de Alimentos (CHAPECO) Cimetal Siderurgia, S.A. Primary Metals FY78 11.4 -- -- 3.0 3.0 Comgas Utilities FY04 45.0 45.0 45.0 -- 45.0 Companhia Brasileira de Securitizacao Finance & Insurance FY05 3.1 -- -- 3.3 3.3 Companhia de Tecidos Norte de Textiles, Apparel, & Leather FY93, 98, 00 25.5 20.0 4.7 5.4 10.1 Minas (Coteminas) IFC 2005 ANNUAL REPORT 121 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Brazil (continued) Concessionária do Sistema Transportation & Warehousing FY00 29.2 25.9 21.1 -- 21.1 Anhanguera Bandeirantes S.A. Construtora Norberto Odebrecht Construction & Real Estate FY02, 04, 05 105.0 165.0 74.0 -- 74.0 Cosan S.A. Industria e Comercio Agriculture & Forestry FY05 70.0 -- 70.0 -- 70.0 Dendo do para S.A. Agricultura, Food & Beverages FY80, 94 5.3 -- -- 1.1 1.1 Indùstria e Comércio de Oleaginosas Dixie Toga S.A. Plastics & Rubber FY98, 05 15.4 -- -- 15.1 15.1 Duratex S.A. Industrial & Consumer Products FY88, 97 29.4 78.0 6.2 -- 6.2 El Paso Rio Claro Limitada Utilities FY03 75.0 50.0 48.3 -- 48.3 Empesca S.A. Construçoes Navais, Food & Beverages FY98 15.0 -- 15.0 -- 15.0 Pesca e Exportaçao Empresa Brasileira de Aeronautica S.A. Industrial & Consumer Products FY05 35.0 145.0 35.0 -- 35.0 Empresa de Desenvolvimento de Oil, Gas, & Mining FY73, 78 9.3 54.0 -- + + Recursos Minerais (CODEMIN) S.A. Fertilizantes Fosfatado S.A. Chemicals FY99 20.0 45.0 4.5 -- 4.5 Fras-le, S.A. Industrial & Consumer Products FY99 20.0 -- 5.3 10.0 15.3 GP Capital Partners III, L.P. Collective Investment Vehicles FY05 15.0 -- -- 15.0 15.0 Gavea Hotelaria e Turismo S.A. Accommodation & Tourism Services FY94 16.8 -- 5.5 -- 5.5 Grupo Peixoto de Castro Chemicals FY02 9.0 -- 9.0 -- 9.0 Participaçôes S.A. Icatu Equity Partners L.P. Collective Investment Vehicles FY98 14.0 -- -- 14.0 14.0 Industrias Arteb S.A. Industrial & Consumer Products FY98 27.0 20.0 20.0 7.0 27.0 Innova SA Chemicals FY00 25.0 60.0 5.0 5.0 10.0 Ipiranga Petroquímica S.A. Chemicals FY80, 87, 98 61.3 178.0 -- 6.3 6.3 Itaberaba Participaçôes S.A. Health Care FY00 5.3 -- -- 4.6 4.6 Joaquim Oliveira S.A. Participaçôes Agriculture & Forestry FY01 15.0 -- 14.6 -- 14.6 Laboratorio Fleury Health Care FY00, 04 35.0 -- 31.8 -- 31.8 Lojas Americanas S.A. Wholesale & Retail Trade FY96, 05 68.0 20.0 35.0 -- 35.0 Mallory Limitada Industrial & Consumer Products FY96 12.0 -- -- 4.0 4.0 Maximilano Gaidzinski S.A.-- Nonmetallic Mineral Product FY00 45.0 -- 32.2 -- 32.2 Indústria de Azulejos Eliane Manufacturing Microinvest S.A. Sociedade de Finance & Insurance FY03 1.3 -- -- 1.3 1.3 Credito Ao Microempreendedor Mineraçôes Brasileiras Reunidas S.A. Oil, Gas, & Mining FY88, 93, 01 75.0 27.0 20.0 -- 20.0 Net Serviços de Comunicaçao S.A. Information FY95, 02, 05 12.0 -- -- 43.8 43.8 New GP Capital Partner B L.P. Collective Investment Vehicles FY94 -- -- -- 6.2 6.2 Pará Pigmentos S.A. Oil, Gas, & Mining FY95 39.0 33.5 6.5 9.0 15.5 Perdigao S.A. Comércio e Indústria Food & Beverages FY88, 96 57.9 20.0 2.2 -- 2.2 Petroquimica Triunfo S.A. Chemicals FY81, 87 13.7 14.9 -- + + Portobello S.A. Nonmetallic Mineral Product FY95, 00, 02 38.4 -- 12.5 6.1 18.7 Manufacturing Puras do Brasil S.A. Accommodation & Tourism Services FY00 5.0 -- 2.3 -- 2.3 Queiroz Galvao Perfuraçôes S.A. Oil, Gas, & Mining FY03, 04 40.0 -- 39.6 -- 39.6 Randon S.A. Implementos Industrial & Consumer Products FY99 -- -- 6.3 -- 6.3 e Participaçoes Sadia Concórdia S.A. Indústria Food & Beverages FY94, 95, 97 80.0 222.0 9.1 -- 9.1 e Comércio Salutia Health Care FY02, 04 2.9 -- -- 2.9 2.9 Samarco Mineraçâo S.A. Oil, Gas, & Mining FY97 18.0 16.0 5.4 -- 5.4 São Paulo Alpargatas S.A. Textiles, Apparel, & Leather FY87, 97, 03 90.0 -- 35.0 -- 35.0 Saraiva S.A. Livreiros Editores Wholesale & Retail Trade FY98 18.0 -- 2.3 3.0 5.3 Satipel Industrial S.A. Industrial & Consumer Products FY03 25.0 -- 22.9 -- 22.9 Sepetiba Terminal de Contêineres S.A. Transportation & Warehousing FY02 32.0 8.0 31.7 -- 31.7 Sotave Amazonia Quimica E Mineral S/A Chemicals FY80, 83 18.2 -- 14.2 4.0 18.2 Sudamerica en Fiesta, S.A. de C.V. Accommodation & Tourism Services FY00 15.0 -- -- 15.0 15.0 Synteko Produtos Químicos S.A. Chemicals FY02 18.0 -- 15.4 -- 15.4 Tecon Rio Grande S.A. Transportation & Warehousing FY99, 04 20.2 24.1 17.9 -- 17.9 Tecon Salvador S.A. Transportation & Warehousing FY01, 03 5.0 5.0 3.2 1.6 4.8 TriBanco Brazil Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 UP Offshore Apoio Maritimo Ltda.-- Transportation & Warehousing FY03 21.6 30.0 11.6 10.0 21.6 UP Offshore (Bahamas) Ltd. 122 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Brazil (continued) Unibanco--Uniao de Bancos Finance & Insurance FY88, 96, 02, 03, 04 144.8 250.0 22.7 -- 22.7 Brasileiros S.A. Usina Hidrelétrica Guilman-Amorim S.A. Utilities FY98 30.0 91.0 21.0 -- 21.0 Wiest S.A. Industrial & Consumer Products FY99 8.0 -- 8.0 -- 8.0 1,244.4 273.8 1,518.1 Chile Aguas Nuevo Sur Maule S.A. Utilities FY04 33.0 33.0 33.0 -- 33.0 Bosques y Maderas S.A. (BOMASA) Industrial & Consumer Products FY92, 94 10.3 6.0 -- 4.8 4.8 Certifica.com Information FY01 1.5 -- -- 1.5 1.5 Factorline S.A Finance & Insurance FY05 5.0 -- 5.0 -- 5.0 Ferrocarril del Pacífico S.A. Transportation & Warehousing FY97 20.5 6.0 -- 5.6 5.6 HQI Transelec Chile S.A. Utilities FY03 60.0 -- -- 60.0 60.0 Hidroeléctrica Aconcagua S.A. Utilities FY92, 93 14.5 6.0 -- 6.5 6.5 Lan Chile S.A. Transportation & Warehousing FY03 30.0 -- 30.0 -- 30.0 Minera Escondida Limitada Oil, Gas, & Mining FY89, 93, 99 87.6 -- 15.0 7.5 22.5 Moneda Asset Management S.A. Collective Investment Vehicles FY94, 96, 97 0.5 -- -- 0.5 0.5 Proa Fondo de Inversión de Collective Investment Vehicles FY96 8.3 -- -- 3.6 3.6 Desarrollo de Empresas San Antonio Terminal Internacional S.A. Transportation & Warehousing FY01 38.7 65.0 33.3 3.7 37.0 San Vicente Terminal Internacional S.A. Transportation & Warehousing FY04 15.0 -- 15.0 -- 15.0 Sociedad Nacional de Procesamiento Information FY04 10.0 -- -- 10.0 10.0 de Datos S.A. 131.3 103.6 234.9 Colombia Banco Caja Social S.A. Finance & Insurance FY02 7.0 -- -- 7.0 7.0 Bavaria S.A. Food & Beverages FY02 100.0 145.0 61.8 30.0 91.8 Cales y Cementos de Toluviejo, S.A. Nonmetallic Mineral Product FY01 3.3 7.1 3.3 -- 3.3 Manufacturing Cartones America, S.A. Industrial & Consumer Products FY04 22.0 -- 22.0 -- 22.0 Carvajal S.A. Pulp & Paper FY05 50.0 -- 50.0 -- 50.0 Cementos del Caribe, S.A. Nonmetallic Mineral Product FY75, 01 17.6 13.0 2.7 3.9 6.6 Manufacturing Colombian Home Mortgage Finance & Insurance FY02, 04 10.6 -- 2.1 8.8 10.9 Corp. (CHMC) Corporación Financiera del Valle Finance & Insurance FY69, 85, 93, 95 51.1 60.0 -- 7.4 7.4 Corporación Financiera Nacional Finance & Insurance FY96, 00 63.9 -- -- 20.5 20.5 y Suramericana, S.A. Forjas de Colombia, S.A. Industrial & Consumer Products FY64, 68 1.3 -- -- 1.1 1.1 Inversura S.A. Finance & Insurance FY02 15.0 -- -- 15.0 15.0 Omimex de Colombia, Ltd. Oil, Gas, & Mining FY03 35.0 -- 29.0 -- 29.0 Productora de Derivados de la Sal, Chemicals FY87 7.2 -- -- 0.6 0.6 S.A. (PRODESAL) Promigas S.A. E.S.P. Transportation & Warehousing FY77, 89, 93, 94, 97 38.3 69.5 1.3 1.1 2.3 Promotora de Inversiones Finance & Insurance FY94, 95 6.4 -- -- 0.2 0.2 de Santander, S.A Protección S.A. Finance & Insurance FY02 10.0 -- -- 10.0 10.0 Proteinas del Pacifico, S.A. Food & Beverages FY90 0.2 -- -- 0.2 0.2 Suramericana de Inversiones Finance & Insurance FY02 75.0 -- 56.0 -- 56.0 S.A. Suramericana 228.1 105.8 333.9 Costa Rica Alterra Partners Costa Rica S.A. Transportation & Warehousing FY01 35.0 85.0 33.8 -- 33.8 Banco Banex, S.A. Finance & Insurance FY05 40.0 -- 40.0 -- 40.0 Banco Cuscatlán de Costa Rica Finance & Insurance FY03 5.0 -- 5.0 -- 5.0 Banco Interfín S.A. Finance & Insurance FY93, 01, 04 40.0 -- 28.8 -- 28.8 Consorcio Hospitalario Internacional, S.A. Health Care FY99 1.2 -- -- 1.2 1.2 Corporación Supermercados Unidos S.A. Wholesale & Retail Trade FY99 40.0 -- 20.4 10.0 30.4 Hidroelèctrica Aguas Zarcas, S.A. Utilities FY94 4.0 6.1 0.7 -- 0.7 IFC 2005 ANNUAL REPORT 123 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Costa Rica (continued) Maricultura, S.A. Agriculture & Forestry FY79 1.7 -- -- 0.7 0.7 Productos Gutis S.A. Health Care FY03 7.0 -- 7.0 -- 7.0 135.6 11.9 147.5 Dominican Republic Aeropuertos Dominicanos Siglo XXI, S.A. Transportation & Warehousing FY05 45.0 15.0 45.0 -- 45.0 Banco BHD, S.A. Finance & Insurance FY03 20.0 -- 20.0 -- 20.0 Caucedo Investments Inc. Transportation & Warehousing FY02 30.0 -- 30.0 -- 30.0 Consorcio Energetico Punta Utilities FY05 10.0 -- 10.0 -- 10.0 Cana-Macao S.A. Domicem S.A. Nonmetallic Mineral Product FY04, 05 27.8 24.0 27.8 -- 27.8 Manufacturing Grupo M Textiles, Apparel, & Leather FY04 20.0 -- 20.0 -- 20.0 Inversora Internacional Hotelera, S.A. Accommodation & Tourism Services FY99 14.0 21.7 10.1 -- 10.1 Occidental Hotels Management B.V. Accommodation & Tourism Services FY05 20.0 -- 20.0 -- 20.0 Occidom, B.V. Accommodation & Tourism Services FY05 10.0 40.0 10.0 -- 10.0 Orange Dominicana S.A. Information FY02 47.5 46.5 44.6 -- 44.6 Pasteurizadora Rica C. por A. Food & Beverages FY00 15.0 -- 10.9 -- 10.9 Red Sanitaria Hospiten Health Care FY00, 03 14.0 10.0 13.5 -- 13.5 Smith-Enron Cogeneration Utilities FY95, 96 32.3 50.0 8.5 -- 8.5 Limited Partnership 270.3 -- 270.3 Ecuador Banco ProCredit Ecuador Finance & Insurance FY04 2.0 -- 2.0 -- 2.0 Compañía Financiera Ecuatoriana Finance & Insurance FY69, 73, 77, 81, 82, 88 3.0 -- -- 0.3 0.3 de Desarollo, S.A. Concesionaria DHM, S.A. Transportation & Warehousing FY99 12.8 15.0 11.5 1.3 12.8 Ecuacobre-FV S.A. Nonmetallic Mineral Product FY00 9.0 -- 6.5 -- 6.5 Manufacturing Favorita Fruit Company, Ltd. Agriculture & Forestry FY99, 03 30.0 -- 17.9 5.0 22.9 La Universal S.A. Agriculture & Forestry FY99 13.2 -- 6.6 5.0 11.6 Procesadora Nacional de Alimentos Food & Beverages FY04 20.0 -- 20.0 -- 20.0 C.A.--PRONACA 64.5 11.6 76.1 El Salvador Atlantic Aircraft Holding Ltd Transportation & Warehousing FY05 30.0 -- 30.0 -- 30.0 Banco Agricola S.A. Finance & Insurance FY04 50.0 -- 50.0 -- 50.0 Banco Cuscatlán, S.A. Finance & Insurance FY99, 03 40.0 -- 24.3 -- 24.3 Banco ProCredit S.A. Finance & Insurance FY03, 04 12.0 -- 9.5 2.0 11.5 Banco Uno El Salvador S.A. Finance & Insurance FY05 -- -- 10.0 -- 10.0 Compañía de Alumbrado Eléctrico Utilities FY02 45.0 75.0 40.8 -- 40.8 de San Salvador, S.A. de C.V. Confia AFP S.A. Collective Investment Vehicles FY04 7.5 -- -- 7.5 7.5 Implementos Agrícolas Industrial & Consumer Products FY98, 99 2.2 -- -- 0.2 0.2 Centroamericanos, S.A. Metrocentro, S.A. de C.V. Wholesale & Retail Trade FY04 25.0 -- 25.0 -- 25.0 189.6 9.7 199.3 Grenada Bel Air Plantation Limited Accommodation & Tourism Services FY02 2.0 -- 2.0 -- 2.0 2.0 -- 2.0 Guatemala Banco Cuscatlán de Guatemala Finance & Insurance FY03 10.0 -- 10.0 -- 10.0 Banco de Occidente. S.A. Finance & Insurance FY03 10.0 -- 10.0 -- 10.0 Fabrigas, S.A. Utilities FY95 7.0 -- 1.0 -- 1.0 Frutera del Pacífico, S.A. Agriculture & Forestry FY00 7.0 -- 2.8 -- 2.8 Generadora de Occidente Limitada Utilities FY03 15.0 12.0 13.6 -- 13.6 124 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Guatemala (continued) Montana Exploradora de Guatemala S.A. Oil, Gas, & Mining FY04 45.0 -- 45.0 -- 45.0 Operadora de Tiendas, S.A. Wholesale & Retail Trade FY99 20.0 -- 11.6 -- 11.6 (La Fragua, S.A.) Orzunil I de Electricidad, Limitada Utilities FY98, 00 14.3 15.0 8.7 1.2 9.9 Pantaleón, S.A. Food & Beverages FY97 20.0 -- 1.3 -- 1.3 104.0 1.2 105.2 Guyana Guyana Americas Merchant Bank Finance & Insurance FY00 1.0 -- -- 1.0 1.0 -- 1.0 1.0 Haiti Micro Crédit National S.A. Finance & Insurance FY00 0.4 -- -- 0.4 0.4 -- 0.4 0.4 Honduras Compania Pino Celulosa De Centro Pulp & Paper FY69, 70 0.1 -- -- 0.1 0.1 America, S.A. Grupo Granjas Marinas, S.A. de C.V. Agriculture & Forestry FY87, 99 6.6 -- 3.0 -- 3.0 3.0 0.1 3.0 Jamaica Jamaica Energy Partners Utilities FY97 23.9 48.0 7.1 -- 7.1 Jamaica Energy Partners Utilities FY05 28.0 -- 28.0 -- 28.0 Jamaica Public Service Company Utilities FY03 45.0 -- 45.0 -- 45.0 MBJ Airports Limited Transportation & Warehousing FY02 20.0 25.0 20.0 -- 20.0 100.1 -- 100.1 Mexico AES Mérida III S. de R.L. de C.V. Utilities FY98 30.0 74.0 26.0 -- 26.0 Agropecuaria Sanfandila S.A. de C.V. Agriculture & Forestry FY99 8.7 4.3 4.8 -- 4.8 Banco BBVA--Bancomer Finance & Insurance FY97 -- -- 16.0 -- 16.0 Baring Mexico Private Equity Fund L.P. Collective Investment Vehicles FY96, 99 11.8 -- -- 4.6 4.6 Central Anáhuac S.A. de C.V Utilities FY00 50.0 59.5 45.5 -- 45.5 Central Lomas de Real S.A. de C.V. Utilities FY04 70.0 106.2 69.2 -- 69.2 Central Saltillo S.A. de C.V. Utilities FY00 35.0 43.0 32.2 -- 32.2 Central Valle Hermoso S.A. de C.V. Utilities FY04 70.0 107.1 70.0 -- 70.0 Combustibles Ecológicos Mexicanos, Chemicals FY02 6.5 -- 4.3 1.5 5.8 S.A. de C.V. Consorcio International Hospital, Health Care FY99 4.8 -- -- 4.8 4.8 S.A. de C.V. Controladora de Servicios Medicos Education Services FY05 14.5 -- 14.5 -- 14.5 S.A. de C.V Coppel S.A. de C.V. Wholesale & Retail Trade FY02 30.0 -- 30.0 -- 30.0 Desarrolladora Homex S.A. de C.V. Construction & Real Estate FY99 -- -- -- 5.6 5.6 Desarrollo Terrestre Mexicano, S.A. de C.V. Transportation & Warehousing FY04 37.0 -- 34.9 -- 34.9 Financiera Compartamos, S.A. Finance & Insurance FY01, 05 1.7 -- 1.0 0.7 1.7 de C.V., S.F.O.L. Financiera Educativa de Mexico Finance & Insurance FY05 15.8 -- 15.3 0.7 16.0 S.A. de C.V. Fomento Económico Mexicano Food & Beverages FY89 107.6 -- -- + + S.A. de C.V. Fondo Chiapas, S.A. de C.V. Sociedad Collective Investment Vehicles FY98 5.0 -- -- 3.1 3.1 de Inversión de Capitales Forja de Monterrey, S.A. de C.V. Industrial & Consumer Products FY99 16.0 13.0 5.6 3.0 8.6 Fundidora Monterrey, S.A. Primary Metals FY62, 65, 66, 68 22.9 0.5 -- 1.4 1.4 GMAC Financiera Finance & Insurance FY05 64.1 -- 65.8 -- 65.8 GW Servicios, S.A. de C.V. Transportation & Warehousing FY01 12.4 10.0 6.8 1.9 8.7 Girsa, S.A. de C.V. Chemicals FY97, 00 85.0 175.0 30.4 -- 30.4 Grupo Aceros Corsa, S.A. de C.V. Primary Metals FY00 16.0 -- 5.6 3.0 8.6 IFC 2005 ANNUAL REPORT 125 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Mexico (continued) Grupo Bimbo, S.A. de C.V. Food & Beverages FY92, 96 65.0 175.0 8.1 -- 8.1 Grupo Calidra, S.A. de C.V. Oil, Gas, & Mining FY98, 04 38.0 10.0 26.0 6.0 32.0 Grupo Financiero Banorte, S. A. de C.V. Finance & Insurance FY03 100.0 -- 100.0 -- 100.0 Grupo Industrial Ayvi S.A. de C.V. Agriculture & Forestry FY99 10.0 -- 4.3 -- 4.3 Grupo Industrial Durango, S.A. de C.V. Pulp & Paper FY86, 89 13.1 -- -- 3.1 3.1 Grupo Mexmal Industrial & Consumer Products FY03 10.0 -- 10.0 -- 10.0 Grupo Minsa S.A. de C.V. Food & Beverages FY97 30.0 30.0 4.8 -- 4.8 Grupo Posadas, S.A. de C.V. Accommodation & Tourism Services FY92, 93, 95, 96, 00 83.7 68.5 10.0 5.0 15.0 Grupo Su Casita Finance & Insurance FY01 -- -- -- 8.8 8.8 Hipotecaria Credito y Casa Finance & Insurance FY05 20.6 -- 21.4 -- 21.4 Hipotecaria Nacional, S.A. de C.V. Finance & Insurance FY04 99.7 -- 105.7 -- 105.7 Hipotecaria Su Casita, S.A. Finance & Insurance FY01, 04, 05 79.4 -- 69.2 -- 69.2 de C.V.--SOFOL Industrias Innopack S.A. de C.V. Plastics & Rubber FY01 15.0 -- -- 15.0 15.0 Interoyal Hotelera, S.L. Accommodation & Tourism Services FY03 -- -- -- + + Medicus, S.A. de C.V. Health Care FY99 3.5 -- 3.3 -- 3.3 Mexplus Puertos S.A. de C.V. Transportation & Warehousing FY93, 95, 96, 99 4.5 -- -- 4.5 4.5 Occidental Hotels Mexico, S.A. de C.V. Accommodation & Tourism Services FY03 40.0 40.0 27.9 -- 27.9 Occihold International, S.L. Accommodation & Tourism Services FY03 -- -- -- 10.0 10.0 Pan American Silver Corporation Oil, Gas, & Mining FY00, 02 10.9 -- -- 4.3 4.3 Polomex S.A. de C.V. Industrial & Consumer Products FY03 8.0 -- 5.6 -- 5.6 Promotora de Centros Educativos Education Services FY01 6.5 -- 5.7 -- 5.7 S.A. de C.V. Propalma Fondo Chiapas Equity Food & Beverages FY98 -- -- -- 1.0 1.0 Agency Line Subinvestment Proteison, S.A. de C.V. Agriculture & Forestry FY85 2.8 -- -- 0.8 0.8 Puertas Finas de Madera Montealbán, Industrial & Consumer Products FY02 13.0 -- 10.6 -- 10.6 S.A. de C.V. Qualitá, Inc. Information FY02 6.0 -- 3.5 2.5 6.0 SSA Mexico Holdings, S.A. de C.V. Transportation & Warehousing FY04 45.0 -- 45.0 -- 45.0 Tenedora Nemak, S.A. de C.V. Industrial & Consumer Products FY96, 99, 00, 01 33.0 35.0 + -- + Terminal Maritima de Altamira, Transportation & Warehousing FY97 5.1 10.4 4.4 -- 4.4 S.A. de C.V. Turborreactores S.A. de C.V. Industrial & Consumer Products FY00 14.0 4.0 8.0 -- 8.0 ZN Mexico Capital Growth Fund Ltd. Collective Investment Vehicles FY99 15.3 -- -- 1.7 1.7 ZN Mexico II, LP Collective Investment Vehicles FY99 10.0 -- -- 10.0 10.0 951.3 103.1 1,054.3 Nicaragua Casa Mantica S.A. and Inmuebles Wholesale & Retail Trade FY99 2.5 -- 1.4 -- 1.4 Diano Marina, S.A. Distribuidora Cesar Guerrero S.A. Wholesale & Retail Trade FY99 1.0 -- 0.3 -- 0.3 Financiera Procredit S.A. Finance & Insurance FY04 5.0 -- 4.5 -- 4.5 Frutales del San Juan, S.A. Agriculture & Forestry FY99 2.0 -- 0.3 0.4 0.7 6.4 0.4 6.8 Panama Aguas de Panamá S.A. Utilities FY03 6.0 10.0 5.2 -- 5.2 Banco Continental de Panamá, S.A. Finance & Insurance FY93, 04 41.7 -- 40.0 -- 40.0 Banco Del Istmo, S.A. (Banistmo) Finance & Insurance FY00 20.0 38.0 11.8 -- 11.8 Banco General S.A. Finance & Insurance FY98, 00 40.0 -- 31.8 -- 31.8 Banco Uno Panama S.A. Finance & Insurance FY05 -- -- 20.0 -- 20.0 Compania Panamena de Aviacion, S.A. Transportation & Warehousing FY05 15.0 -- 15.0 -- 15.0 Corporación UBC Internacional, S.A. Finance & Insurance FY03, 04 10.3 -- -- 10.3 10.3 La Hipotecaria Finance & Insurance FY04, 05 35.0 -- 27.5 -- 27.5 Manzanillo International Terminal-- Transportation & Warehousing FY95, 00, 05 90.0 35.0 69.2 -- 69.2 Panama, S.A. Panama Canal Railway Company Transportation, & Warehousing FY00 20.0 30.0 12.6 -- 12.6 Suleasing Internacional S.A. Finance & Insurance FY00 2.5 -- 2.8 -- 2.8 UP Offshore (Panama) S.A. Transportation & Warehousing FY03 13.1 5.3 10.1 -- 10.1 246.0 10.3 256.4 126 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Paraguay Telefonica Celular del Paraguay SA Information FY05 15.0 -- 15.0 -- 15.0 15.0 -- 15.0 Peru Agraria El Escoria S.A. Food & Beverages FY00 7.0 -- 7.0 -- 7.0 Agro Industrial Paramonga S.A. Food & Beverages FY98 14.2 14.8 11.6 -- 11.6 Alicorp S.A. Food & Beverages FY00 40.0 20.0 20.0 -- 20.0 Banco Internacional del Peru Finance & Insurance FY98, 04 60.0 100.0 40.0 -- 40.0 Edpyme Edyficar S.A. Finance & Insurance FY04 4.0 -- 3.6 -- 3.6 Empresa Agroindustrial Laredo S.A.A. Food & Beverages FY00, 05 15.0 -- 10.7 -- 10.7 Ferrocarril Transandino S.A. Transportation & Warehousing FY02 9.0 -- 8.5 -- 8.5 Global Microcredit Facility Finance & Insurance FY04 4.0 -- 4.0 -- 4.0 Gloria S.A. Food & Beverages FY04 25.0 -- 25.0 -- 25.0 Inka Terra, Peru S.A.C. Accommodation & Tourism Services FY01 5.0 -- 5.0 -- 5.0 Interconexión Eléctrica ISA Perú S.A. Utilities FY02, 03 18.0 8.0 16.2 -- 16.2 Interseguro Compania de Seguros Finance & Insurance FY02, 03, 05 5.2 -- -- 5.2 5.2 de Vida S.A. Inversiones Malecón de Accommodation & Tourism Services FY05 10.0 -- 10.0 -- 10.0 la Reserva S.A. Latino Leasing, S.A. Finance & Insurance FY98 12.5 -- 4.9 -- 4.9 MIBANCO, Banco de la Finance & Insurance FY02 3.0 -- 1.0 -- 1.0 Microempresa, S.A. Minera Quellaveco S.A. Oil, Gas, & Mining FY93, 96, 00, 01 12.9 -- -- 12.9 12.9 Minera Yanacocha S.A. Oil, Gas, & Mining FY94, 95, 00 32.7 59.0 9.0 0.3 9.3 Norvial S.A. Transportation & Warehousing FY03 18.0 -- 18.0 -- 18.0 Peru Orient Express Hotel Accommodation & Tourism Services FY01 10.0 -- 9.4 -- 9.4 Peru Privatization Fund L.P. Collective Investment Vehicles FY95 13.9 -- -- 7.4 7.4 The Peru Privatization Fund Management Collective Investment Vehicles FY95 + -- -- + + Services Company Limited Ransa Comercial S.A. Transportation & Warehousing FY00, 05 20.0 -- 15.6 -- 15.6 TIM Peru S.A.C. Information FY03 70.0 -- 63.0 -- 63.0 Tecnofil S.A. Industrial & Consumer Products FY02 7.4 -- 4.1 2.0 6.1 286.5 27.8 314.2 Trinidad and Tobago Caribe Hospitality Trinidad & Tobago Accommodation & Tourism Services FY04 3.8 -- 3.8 -- 3.8 RBTT Merchant Bank Limited Finance & Insurance FY02 20.0 -- 16.3 -- 16.3 Republic Bank Limited Finance & Insurance FY02, 03 70.0 -- 67.4 -- 67.4 Trinidad Cement Company Nonmetallic Mineral Product FY05 35.0 -- 35.0 -- 35.0 Manufacturing U.W.I., St. Augustine--Institute of Education Services FY04 5.0 -- 5.0 -- 5.0 Business Unicell Paper Mills Caribbean Ltd. Pulp & Paper FY02 9.0 -- 9.0 -- 9.0 (UPMCL) 136.4 -- 136.4 Uruguay Azucitrus S.A. Food & Beverages FY85, 93 11.9 -- -- 3.4 3.4 Banco Montevideo S.A. Finance & Insurance FY02 18.0 -- -- 9.0 9.0 Consorcio Aeropuertos Internacionales Transportation & Warehousing FY96 8.0 10.0 0.9 -- 0.9 S.A. Cooperativa Nacional de Productores Food & Beverages FY03 30.0 -- 27.5 -- 27.5 de Leche Surinvest International Limited Finance & Insurance FY80, 87, 89, 97, 02, 05 20.5 10.0 4.9 3.3 8.2 Universidad de Montevideo Education Services FY01 3.3 -- 2.6 -- 2.6 35.9 15.7 51.7 IFC 2005 ANNUAL REPORT 127 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity LATIN AMERICA AND THE CARIBBEAN Venezuela Compañía Anónima Nacional Teléfonos Information FY96 43.4 131.6 25.0 -- 25.0 de Venezuela Complejo Siderurgico de Guayana, C.A. Primary Metals FY97, 98 45.0 121.0 -- 10.0 10.0 Corporación de Cemento Andino, C.A. Nonmetallic Mineral Product FY01 7.6 21.3 6.0 -- 6.0 Manufacturing Forestal Trillium Industrial & Consumer Products FY00 22.8 10.0 16.8 6.0 22.8 Global Materials Services Venezuela, Transportation & Warehousing FY02 3.2 -- 1.1 -- 1.1 C.A./ACBL Riverside Terminals C.A. Intersea Farms de Venezuela, C.A. Agriculture & Forestry FY02 3.0 -- -- 3.0 3.0 Metanol de Oriente, Metor, S.A. Chemicals FY93 37.9 93.3 -- 6.8 6.8 Minera Loma de Niquel, C.A. Oil, Gas, & Mining FY98, 00 75.2 50.0 1.8 4.4 6.2 Petrobras Energía Venezuela Oil, Gas, & Mining FY04 105.0 -- 90.0 -- 90.0 Propileno de Falcón, C. A. (Profalca) Chemicals FY00 24.0 23.0 14.3 -- 14.3 Sistema Electrónico de Transacciones Finance & Insurance FY96, 00 0.5 -- -- 0.5 0.5 C.A. (SET) Telecomunicaciones Movilnet, C.A. Information FY98 35.0 60.0 10.9 -- 10.9 Vinccler Oil & Gas C.A. Oil, Gas, & Mining FY05 12.0 -- 12.0 -- 12.0 177.8 30.7 208.5 Regional Investment Advent Latin American Private Equity Collective Investment Vehicles FY02 15.0 -- -- 15.0 15.0 Fund II B Limited Partnership Aureos Central America Fund, L.L.C. Collective Investment Vehicles FY03 8.3 -- -- 8.2 8.2 Convergence Communications, Inc. Information FY00, 01, 02 7.1 -- -- 7.1 7.1 Darby-BBVA Latin America Collective Investment Vehicles FY03 10.0 -- -- 10.0 10.0 Private Equity Fund, L.P. Eastern Caribbean Home Mortgage Finance & Insurance FY97 0.4 -- -- 0.4 0.4 Bank (ECHMB) HSBC Private Equity Latin America Collective Investment Vehicles FY01 -- -- -- 0.3 0.3 (Cayman) L.P. HSBC Tower II Equity Partners Collective Investment Vehicles FY01 20.0 -- -- 15.3 15.3 (Cayman) L.P. The Latin America Enterprise Fund, L.P. Collective Investment Vehicles FY95 20.0 -- -- 8.2 8.2 The Latin America Enterprise Fund II, L.P. Collective Investment Vehicles FY98 13.1 -- -- 12.3 12.3 Latin American Agribusiness Finance & Insurance FY02 20.0 -- 16.7 -- 16.7 Development Corporation S.A. Latin Power I L.D.C. Collective Investment Vehicles FY93 25.0 -- -- 14.8 14.8 Latin Power II L.D.C. Collective Investment Vehicles FY98 7.0 -- -- 2.7 2.7 Marcopolo S.A. Industrial & Consumer Products FY03 30.0 -- 29.4 -- 29.4 PriceSmart, Inc. Wholesale & Retail Trade FY01, 02 42.0 -- 22.9 11.4 34.3 Proa II Fondo de Inversion Collective Investment Vehicles FY05 11.0 -- -- 11.0 11.0 Profund Internacional, S.A. Collective Investment Vehicles FY96 3.0 -- -- + + Scotiabank Multicountry Loan Facility Finance & Insurance FY01 25.0 25.0 25.0 -- 25.0 TCW/Latin America Offshore Private Collective Investment Vehicles FY00 20.0 -- -- 19.0 19.0 Equity Partners I, L.P. Terra Capital Investors Ltd. Collective Investment Vehicles FY99 5.0 -- -- 5.0 5.0 Trans Union Central America Finance & Insurance FY03, 04 0.5 -- -- 0.5 0.5 UABL Limited Transportation & Warehousing FY03 25.0 10.0 18.9 -- 18.9 UPR Holdings Transportation & Warehousing FY03 -- -- -- 5.0 5.0 112.8 146.2 259.0 Total equity and loans 5,316.3 1,082.3 6,398.6 Total guarantees and risk management products 213.1 Total IFC portfolio for Latin America and the Caribbean 6,611.7 128 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity MIDDLE EAST AND NORTH AFRICA Afghanistan First Microfinance Bank of Afghanistan Finance & Insurance FY04 1.0 -- -- 1.0 1.0 Tourism Promotion Services Accommodation & Tourism Services FY04 7.0 -- 7.0 -- 7.0 (Afghanistan) LTD. 7.0 1.0 8.0 Algeria Algerian Cement Company Nonmetallic Mineral Product FY03, 04 45.0 -- 45.0 -- 45.0 Manufacturing Algiers Investment Partnership S.P.A. Finance & Insurance FY00 0.2 -- -- 0.2 0.2 Arab Banking Corporation Algeria Finance & Insurance FY98, 02 1.9 -- -- 1.9 1.9 Arab Leasing Corporation Finance & Insurance FY02 0.7 -- -- 0.7 0.7 Sider-Alfasid Primary Metals FY03 25.0 -- 25.0 -- 25.0 70.0 2.8 72.8 Egypt Al-Amir for Sanitary Ware Nonmetallic Mineral Product FY02 5.0 -- 4.1 -- 4.1 Production, S.A.E. Manufacturing Alexandria Carbon Black Company S.A.E. Chemicals FY93, 97, 99, 03 27.5 -- 10.3 3.0 13.2 Alexandria Fiber Co., SAE Textiles, Apparel, & Leather FY04 8.0 -- 8.0 -- 8.0 Alexandria National Iron & Steel Primary Metals FY84, 91, 93, 94, 96, 99 42.6 -- -- -- -- Company S.A.E. (ANSDK) Amreya Casting Company Industrial & Consumer Products FY02 5.0 -- 5.2 -- 5.2 Commercial International Bank S.A.E. Finance & Insurance FY94, 01 15.6 -- -- 0.8 0.8 Commercial International Life Insurance Finance & Insurance FY00, 04 2.1 -- -- 2.0 2.0 Company S.A.E E.D.F. Port Said East Power S.A.E. Utilities FY01 45.0 152.5 42.5 -- 42.5 E.D.F. Suez Gulf Power S.A.E. Utilities FY01 45.0 152.5 41.9 -- 41.9 EFG Hermes Holding SAE Finance & Insurance FY01 15.0 -- 3.1 -- 3.1 Egypt Factors Finance & Insurance FY05 3.0 -- -- 3.0 3.0 Egyptian Housing Finance Company Finance & Insurance FY04 1.6 -- -- 1.7 1.7 IT Worx, Inc. Professional, Scientific, & FY01 2.5 -- -- 2.5 2.5 Technical Services Ismailia Fish Farming Company, S.A.E. Agriculture & Forestry FY80, 83 2.2 -- 1.9 0.5 2.4 Lecico Egypt (S.A.E.) Nonmetallic Mineral Product FY04 15.0 -- 15.0 -- 15.0 Manufacturing Meleiha Oil Development and Oil, Gas, & Mining FY87, 88, 93 41.7 -- -- 30.8* 30.8 Exploration Project Merlon Petroleum Company of Egypt Oil, Gas, & Mining FY04, 05 30.0 -- 30.0 -- 30.0 Metro Markets Wholesale & Retail Trade FY03 15.0 -- 13.5 -- 13.5 Misr Compressor Manufacturing Industrial & Consumer Products FY92 13.5 -- 9.7 3.8 13.5 Company, S.A.E. ORIX Leasing Finance & Insurance FY97, 02 3.9 -- 1.6 0.9 2.5 Orascom Construction Industries S.A.E. Nonmetallic Mineral Product FY02 25.0 30.5 22.5 -- 22.5 Manufacturing Sekem Holdings Chemicals FY03 5.0 -- 4.8 -- 4.8 Sokhna Port Development Company Transportation & Warehousing FY04 20.0 -- 20.0 -- 20.0 Unipak Nile Limited Pulp & Paper FY98, 01 8.0 -- 5.2 -- 5.2 Wadi Holdings Agriculture & Forestry FY05 15.0 -- 15.0 -- 15.0 254.3 48.8 303.1 Iran, Islamic Republic of Gorouh Sanaye Kaghas Pars Sherkate Pulp & Paper FY72 12.0 2.0 -- 1.8 1.8 Sahami AAM Karafarin Bank Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 Karafarin Leasing Company Finance & Insurance FY05 2.0 -- -- 2.0 2.0 Rak Ceramics Joint Stock Company Nonmetallic Mineral Product FY04 7.0 -- 7.0 -- 7.0 Manufacturing Saman Bank JSC Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 27.0 3.8 30.8 IFC 2005 ANNUAL REPORT 129 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity MIDDLE EAST AND NORTH AFRICA Iraq Iraq National Bank Finance & Insurance FY05 8.0 -- 8.0 -- 8.0 National Bank of Kuwait--Iraq Finance & Insurance FY05 1.9 -- -- 1.9 1.9 8.0 1.9 9.9 Jordan Arab International Hotels Company Accommodation & Tourism Services FY00 3.6 -- -- 3.6 3.6 Business Tourism Company Limited Accommodation & Tourism Services FY98 5.0 -- 2.0 -- 2.0 El-Zay Ready Wear Manufacturing Co. Textiles, Apparel, & Leather FY98 5.0 -- 0.7 -- 0.7 Hikma Investment Company Ltd. Chemicals FY87, 91, 93, 95, 03 24.5 -- 12.5 1.4 14.0 International Luggage Manufacturing Textiles, Apparel, & Leather FY01 8.0 -- 7.2 -- 7.2 Company Jordan Gateway Projects Co. Construction & Real Estate FY01 3.0 -- 2.8 -- 2.8 Jordan Lime and Silicate Brick Industries Nonmetallic Mineral Product FY79, 85 3.8 -- -- 1.3 1.3 Company Limited Manufacturing Middle East Regional Development Nonmetallic Mineral Product FY02 5.0 -- 4.4 0.6 5.0 Enterprise Manufacturing Modern Agricultural Investment Transportation & Warehousing FY99 1.0 -- -- 1.0 1.0 Company Societe Generale de Banque Jordanie Finance & Insurance FY01 4.4 -- -- 4.4 4.4 Zara Investment Holding Company Accommodation & Tourism Services FY97 18.0 -- -- 3.0 3.0 Limited 29.7 15.3 45.0 Lebanon Agricultural Development Co. S.A.L. Food & Beverages FY98 5.0 -- 0.6 -- 0.6 Bank of Beirut S.A.L. Finance & Insurance FY98 17.1 -- 7.5 -- 7.5 Banque Saradar S.A.L. Finance & Insurance FY98, 99 21.0 -- 1.9 -- 1.9 Byblos Bank S.A.L. Finance & Insurance FY93, 97, 01, 03 38.8 40.2 14.3 -- 14.3 Fransabank SAL (Fransabank) Finance & Insurance FY93, 94, 97, 01 16.5 15.4 0.6 -- 0.6 Lebanese Leasing Company S.A.L. Finance & Insurance FY95, 99, 01 16.2 10.8 0.7 -- 0.7 Middle East Capital Group Finance & Insurance FY96 3.0 -- -- 3.0 3.0 SABIS International School--Adma Education Services FY05 8.0 -- 8.0 -- 8.0 Société Générale de Banque Au Liban Finance & Insurance FY94, 97 13.5 17.5 0.9 -- 0.9 Société Hôtelière "De Vinci" S.A.L. Accommodation & Tourism Services FY99 3.0 -- 1.3 -- 1.3 35.8 3.0 38.8 Morocco Cerame Afrique Industries Nonmetallic Mineral Product FY91 5.2 -- -- 1.7 1.7 Manufacturing Maghreb Management Limited Collective Investment Vehicles FY00 + -- -- + + Maghreb Private Equity Fund Limited Collective Investment Vehicles FY00 5.0 -- -- 5.0 5.0 Medi Telecom S.A. Information FY01 88.5 309.7 76.6 -- 76.6 Settat Filature (SETAFIL) Textiles, Apparel, & Leather FY88, 93 4.4 -- 2.4 1.2 3.6 79.0 7.9 86.9 Oman Alliance Housing Bank Finance & Insurance FY05 45.0 -- 45.0 -- 45.0 Mazoon Petrogas SAOC Oil, Gas, & Mining FY05 40.0 -- 40.0 -- 40.0 Taageer Finance Company Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 United Power Company S.A.O.G. Utilities FY95, 00 20.5 57.0 4.4 5.5 9.9 99.4 5.5 104.9 Pakistan AES Lal Pir (Private) Limited Utilities FY95 49.4 -- 19.6 9.5 29.1 AES Pak Gen (Private) Company Utilities FY96 29.5 48.3 11.0 9.5 20.5 Abamco Composite Fund Collective Investment Vehicles FY05 5.0 -- -- 5.0 5.0 Abamco Limited Collective Investment Vehicles FY95 0.3 -- -- 0.3 0.3 BRR International Modaraba Finance & Insurance FY92, 94, 96 15.8 -- + 0.8 0.8 130 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity MIDDLE EAST AND NORTH AFRICA Pakistan (continued) BSJS Balance Fund Collective Investment Vehicles FY96, 04 1.1 -- -- 1.1 1.1 Crescent Bahuman Limited Textiles, Apparel, & Leather FY94, 97, 02 23.4 11.5 2.5 5.1 7.6 Dewan Investment and Finance Finance & Insurance FY04 1.0 -- -- 1.0 1.0 Company Dewan Salman Fibres Limited Textiles, Apparel, & Leather FY03, 04 35.0 -- 35.0 -- 35.0 Engro Chemical Pakistan Limited Chemicals FY91, 97 54.7 14.0 -- 3.7 3.7 Eni Pakistan Limited Oil, Gas, & Mining FY02 30.0 -- 18.0 -- 18.0 Fauji Cement Nonmetallic Mineral Product FY94, 02 32.7 20.0 -- + + Manufacturing First International Investment Bank Finance & Insurance FY90, 92, 96 4.7 -- -- 1.5 1.5 Limited First MicroFinanceBank Limited Finance & Insurance FY02 2.7 -- -- 2.7 2.7 First UDL Modaraba Finance & Insurance FY96, 04 10.0 -- 3.3 -- 3.3 Gul Ahmed Energy Limited Utilities FY96 31.1 35.0 10.8 4.1 14.9 Kohinoor Energy Limited Utilities FY95 31.3 36.6 8.8 6.3 15.1 NBFI Credit Finance & Insurance FY05 7.0 -- 7.0 -- 7.0 Orix Investment Bank Pakistan Limited Finance & Insurance FY96 0.6 -- -- 0.4 0.4 Packages Limited Pulp & Paper FY65, 80, 82, 87, 88, 45.6 20.1 -- 0.8 0.8 92, 94, 95, 05 Pakistan International Container Terminal Transportation & Warehousing FY03 9.3 -- 8.8 -- 8.8 Pakistan Petroleum Limited Oil, Gas, & Mining FY83, 85, 95, 02 47.6 86.0 -- 8.2 8.2 Premier Mercantile Services Limited Transportation & Warehousing FY05 6.0 -- 6.0 -- 6.0 Sarah Textiles Textiles, Apparel, & Leather FY93, 96, 02 7.8 -- 1.1 -- 1.1 TRG Pakistan II Limited Information FY04 5.0 -- -- 5.0 5.0 Uch Power Limited Utilities FY96 35.0 60.0 23.6 -- 23.6 155.6 65.0 220.5 Saudi Arabia Saudi British Bank Finance & Insurance FY05 50.0 -- 50.0 -- 50.0 Saudi Orix Leasing Company (SOLC) Finance & Insurance FY00, 03, 05 5.3 -- -- 5.3 5.3 50.0 5.3 55.3 Syrian Arab Republic Arab Drip Irrigation Technology Plastics & Rubber FY01 1.0 -- -- 1.0 1.0 Company Limited (Adritec) Bank of Syria and Overseas Finance & Insurance FY02, 04 6.1 -- -- 5.9 5.9 Daaboul Company for Petrochemicals Chemicals FY02 13.2 -- 13.2 -- 13.2 Industries 13.2 6.9 20.1 Tunisia Banque Internationale Arabe de Tunisie Finance & Insurance FY98, 00, 01, 04 57.6 -- 50.3 -- 50.3 Société Miniere de Bougrine (SMB) Oil, Gas, & Mining FY92, 94 17.0 -- -- 2.3 2.3 Société des Industries Textiles Textiles, Apparel, & Leather FY88 1.7 -- -- 2.1 2.1 Reunis, S.A. Société Industrielle des Textiles (SITEX) Textiles, Apparel, & Leather FY86, 92, 98 14.5 -- -- 2.9 2.9 Société Monastirienne Internationale Textiles, Apparel, & Leather FY91 5.6 -- 2.9 1.9 4.8 des Textiles Tuninvest International Limited Collective Investment Vehicles FY98 4.7 -- -- 4.2 4.2 53.1 13.4 66.5 IFC 2005 ANNUAL REPORT 131 Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity MIDDLE EAST AND NORTH AFRICA West Bank and Gaza Arab Bank PLC--Microentreprise Facility Finance & Insurance FY97 + -- + -- + Arab Concrete Products Company Nonmetallic Mineral Product FY98 0.8 -- 0.8 -- 0.8 Manufacturing Arab Palestinian Investment Bank Finance & Insurance FY96 3.7 -- -- 3.7 3.7 Commercial Bank of Palestine-- Finance & Insurance FY97 6.6 -- 0.1 -- 0.1 Microentreprise Credit Facility Jericho Motels Company Ltd. Accommodation & Tourism Services FY99 1.2 -- 1.1 -- 1.1 Jordan National Bank--Microentreprise Finance & Insurance FY97 + -- 0.3 -- 0.3 Credit Facility Nabahin Industry and Trading Company Plastics & Rubber FY98 0.5 -- 0.5 -- 0.5 Palestine Industrial Estates Development Construction & Real Estate FY98 2.0 -- 1.0 1.0 2.0 and Management Company Palestine Mortgage and Housing Finance & Insurance FY99 3.0 -- -- 3.0 3.0 Corporation Limited Palestine Tourism Investment Company Accommodation & Tourism Services FY99 9.4 -- -- 0.5 0.5 Peace Technology Fund Ltd. Collective Investment Vehicles FY99 12.6 -- -- 12.5 12.5 Peace Technology Management Ltd. Collective Investment Vehicles FY98 0.2 -- -- 0.2 0.2 3.8 20.9 24.7 Yemen, Republic of Aden Company for Silos and Mills Food & Beverages FY99 8.0 -- 7.4 -- 7.4 Al-Ahila Mineral Water Company Food & Beverages FY03 1.5 -- 1.5 -- 1.5 Marib Agriculture Company, Y.S.C. Agriculture & Forestry FY87 2.8 -- 2.4 0.3 2.7 Radfan Ceramics and Porcelain Nonmetallic Mineral Product FY98 3.8 -- 0.6 -- 0.6 Manufacturing Co. Ltd. Manufacturing Yemen Battery Manufacturing Industrial & Consumer Products FY84, 85 4.0 0.4 3.3 0.5 3.8 Company, Y.S.C. 15.2 0.9 16.1 Regional Investment Arab Insurance Group Finance & Insurance FY98 6.2 -- -- 1.9 1.9 Nuqul Group Pulp & Paper FY05 25.0 -- 25.0 -- 25.0 25.0 1.9 26.9 Total equity and loans 926.1 204.2 1,130.3 Total guarantees and risk management products 111.3 Total IFC portfolio for Middle East and North Africa 1,241.6 132 IFC 2005 ANNUAL REPORT Original Commitments1 Investments Held for IFC2 (US$ millions) (US$ millions) Fiscal Year in Which Commitments Total Total Loans Country, Region or Other Area, and Obligor Sector Were Made Total IFC Syndications Loans Equity and Equity GLOBAL ACCION Investments in Microfinance, Finance & Insurance FY03 3.0 -- -- 3.0 3.0 SPC AIG Global Emerging Markets Collective Investment Vehicles FY04 45.0 -- -- 45.0 45.0 Fund II, L.P. Baku-Tiblisi-Ceyhan Pipeline Oil, Gas, & Mining FY04 125.0 125.0 125.0 -- 125.0 Capital International Private Equity Collective Investment Vehicles FY04 30.0 -- -- 30.0 30.0 Fund IV, L.P. Centerra Gold Inc. Oil, Gas, & Mining FY95 -- -- -- 7.1 7.1 Emerging Markets Global Small Collective Investment Vehicles FY04 10.0 -- -- 10.0 10.0 Capitalization Fund First International Merchant Bank plc Finance & Insurance FY05 10.0 -- 10.0 -- 10.0 GEM VII Targeted Value Income Fund Collective Investment Vehicles FY05 30.0 -- -- 29.4 29.4 InfrastructureWorld.com Information FY01 5.0 -- -- 5.0 5.0 Melrose Resources plc Oil, Gas, & Mining FY05 25.0 -- 25.0 -- 25.0 Novica United, Inc. Information FY03 1.5 -- -- 1.5 1.5 Olam International Agriculture & Forestry FY04 15.0 -- -- 15.0 15.0 Orient Express Hotels Accommodation & Tourism Services FY05 25.0 -- 25.0 -- 25.0 ProCredit Holding Finance & Insurance FY01, 02, 03 6.7 -- -- 6.7 6.7 Santiago CDO Ltd. Collective Investment Vehicles FY05 30.0 -- 15.0 15.0 30.0 Schwarz Group Wholesale & Retail Trade FY04, 05 149.5 -- 145.3 -- 145.3 ShoreCap International Finance & Insurance FY04 2.5 -- -- 2.5 2.5 State Street Bank and Trust Company Collective Investment Vehicles FY94 10.0 -- -- 9.0 9.0 IFC Emerging Markets Common Trust Fund Stora Enso Oyj Agriculture & Forestry FY05 50.0 25.0 50.0 -- 50.0 TCW GEM II, Limited Collective Investment Vehicles FY98 10.0 -- -- 3.7 3.7 395.3 182.9 578.2 Total equity and loans 395.3 182.9 578.2 Total guarantees and risk management products 110.0 Total IFC portfolio for Global 688.2 TOTAL EQUITY AND LOANS 15,153.4 3,953.0 19,106.4 TOTAL EQUITY AND LOANS FOR IFC (NET OF WRITE-OFF ADJUSTMENTS)3 14,781.2 3,326.6 18,107.8 TOTAL GUARANTEES AND RISK MANAGEMENT PRODUCTS 1,166.6 TOTAL IFC PORTFOLIO FOR ITS OWN ACCOUNT 19,274.4 * The Corporation's investments in unincorporated oil and gas joint ventures (UJVs) are accounted for under the cost recovery method, as more fully described in Note A to the Corporation's FY05 financial statements. For the UJVs, investments held for IFC comprises the sum of the inception to date cash disbursements, net of cash receipts (until cost is recovered) plus the undisbursed balance of signed commitments, net of cancellations. "+" Less than $50,000. 1. Commitments include funds to be provided by IFC for its own account, funds to be provided by participants through the purchase of an interest in IFC's investment, and funds to be provided by other financial institutions in association with IFC, where IFC has rendered material assistance in mobilizing these funds. Original commitments are composed of disbursed and undisbursed balances. The undisbursed portion is revalued at current exchange rate, while the disbursed portion represents the cost of the commitment at the time of disbursement. Loans held for the Corporation are revalued at the current exchange rate. Amounts shown are for commitments outstanding at June 30, 2005, net of cancellations. 2. Investments held for IFC comprises the sum of the disbursed and outstanding balance together and the undisbursed balance of signed commitments, net of cancellations and before write-off adjustments. 3. Write-off adjustments are $372,190,679 in loans and $626,393,720 in equity for a total of $998,584,399. Note: The operational investments are represented by loans and equity, as stated. In addition, in certain investments, the Corporation has the right to acquire shares and/or participate in the profits of the enterprise. IFC 2005 ANNUAL REPORT 133 Board of Governors Governors and Alternates As of June 30, 2005 Member Governor Alternate A Afghanistan Anwar ul-Haq Ahady Wahidullah Shahrani Albania Arben Malaj Fatos Ibrahimi Algeria Mourad Medelci Abdelhak Bedjaoui Angola Ana Dias Lourenco Job Graca Antigua and Barbuda Errol Cort Asot A. Michael Argentina Roberto Lavagna Martin Redrado Armenia Vahram Nercissiantz Karen Chshmarityan Australia Peter Costello Bruce Billson Austria Karl-Heinz Grasser Kurt Bayer Azerbaijan Elman S. Rustamov Farhad Aliyev B Bahamas, The James H. Smith Ruth R. Millar Bahrain Ahmed Bin Mohammed Al-Khalifa Zakaria Ahmed Hejres Bangladesh M. Saifur Rahman Md. Ismail Zabihullah Barbados Owen S. Arthur Grantley W. Smith Belarus Andrei V. Kobyakov Anatoly I. Sverzh Belgium Didier Reynders Guy Quaden Belize Said W. Musa Carla Barnett Benin Zul-Kifl Salami Massiyatou Latoundji Lauriano Bhutan Lyonpo Wangdi Norbu (vacant) Bolivia Luis Carlos Jemio Mollinedo Rodrigo Castro Otto Bosnia and Herzegovina Adnan Terzic Dragan Doko Botswana Baledzi Gaolathe Serwalo S.G. Tumelo Brazil Antonio Palocci Henrique de Campos Meirelles Bulgaria Milen Veltchev Dimitar Kostov Burkina Faso Jean Baptiste Compaore Lene Sebgo Burundi Athanase Gahungu Leon Nimbona C Cambodia Keat Chhon Aun Porn Moniroth Cameroon Polycarpe Abah Abah Daniel Njankouo Lamere Canada Ralph Goodale Paul Thibault Cape Verde Joao Pinto Serra Victor A.G. Fidalgo Central African Republic Daniel Nditifei-Boysembe Mohamed Mahdi Marboua Chad Mahamat Ali Hassan Sobdibet Hinsalbet Chile Nicolas Eyzaguirre Mario Marcel China Jin Renqing Li Yong Colombia Alberto Carrasquilla Santiago Montenegro Trujillo Comoros Younoussa Imani Moindjie Saadi Congo, Democratic Republic of Andre-Philippe Futa Jean-Claude Masangu Mulongo Congo, Republic of Pierre Moussa Pacifique Issoibeka Costa Rica Federico Carrillo Zurcher Francisco de Paula Gutierrez Côte d'Ivoire Bohoun Bouabre Boniface Britto Croatia Ivan Suker Martina Dalic Cyprus Makis Keravnos Christos Patsalides Czech Republic Bohuslav Sobotka Miroslav Singer D Denmark Ulla Toernaes Carsten Staur Djibouti Ali Farah Assoweh Simon Mibrathu Dominica Swinburne Lestrade Rosamund Edwards Dominican Republic Hector Manuel Valdez Albizu Juan Temistocles Montas 134 IFC 2005 ANNUAL REPORT Member Governor Alternate E Ecuador Rafael Correa Delgado Magdalena Barreiro Riofrio Egypt, Arab Republic of Mahmoud Mohieldin Fayza Abulnaga El Salvador Eduardo Zablah-Touche Guillermo Lopez-Suarez Equatorial Guinea Jaime Ela Ndong Jose Ela Oyana Eritrea Berhane Abrehe Martha Woldegiorghis Estonia Aivar Soerd Renaldo Mandmets Ethiopia Sufian Ahmed Mekonnen Manyazewal F Fiji Jone Yavala Kubuabola Tevita Banuve Finland Antti Kalliomaki Paula Lehtomaki France Thierry Breton Xavier Musca G Gabon Casimir Oye-Mba Christian Bongo Gambia, The Alieu M. Ngum Abdou B. Touray Georgia Valeri Chechelashvili Aleksi Aleksishvili Germany Heidemarie Wieczorek-Zeul Caio K. Koch-Weser Ghana Kwadwo Baah-Wiredu Anthony Akoto Osei Greece George Alogoskoufis Plutarchos Sakellaris Grenada Anthony Boatswain Timothy Antoine Guatemala Maria Antonieta de Bonilla Lizardo Sosa Lopez Guinea Madikaba Camara Eugene Camara Guinea-Bissau Joao Aladje Mamadu Fadia Issufo Sanha Guyana Bharrat Jagdeo Saisnarine Kowlessar H Haiti Henri Bazin Raymond Magloire Honduras William Chong Wong Maria Elena Mondragon de Villar Hungary Janos Veres Tamas Katona I Iceland David Oddsson Geir Hilmar Haarde India P. Chidambaram Rakesh Mohan Indonesia Jusuf Anwar Hartadi A. Sarwono Iran, Islamic Republic of Safdar Hosseini Mohammad Khazaee Torshizi Iraq Ali Abdul Ameer Allawi Mehdi Hafedh Ireland Brian Cowen Tom Considine Israel Stanley Fischer Yossi Bachar Italy Antonio Fazio Ignazio Angeloni J Jamaica Omar Lloyd Davies Wesley George Hughes Japan Sadakazu Tanigaki Toshihiko Fukui Jordan Suhair Al-Ali Maher Madadha K Kazakhstan Kayrat Nematovich Kelimbetov Gani N. Uzbekov Kenya Daudi Mwiraria Joseph Kanja Kinyua Kiribati Nabuti Mwemwenikarawa Taneti Maamau Korea, Republic of Duck-Soo Han Seung Park Kuwait Bader Meshari Al-Humaidhi Abdulwahab Ahmed Al-Bader Kyrgyz Republic Akylbek Japarov Kubat A. Kanimetov IFC 2005 ANNUAL REPORT 135 Member Governor Alternate L Lao People's Democratic Republic Chansy Phosikham Phouphet Khamphounvong Latvia Oskars Spurdzins Juris Lujans Lebanon Elias S. Saba Alain A. Bifani Lesotho Timothy T. Thahane Moeketsi Majoro Liberia Christian D. Herbert Harry A. Greaves, Jr. Libya Mohamed Ali Elhuwej Ali Ramadan Shnebesh Lithuania Zigmantas Balcytis Ramune Vilija Zabuliene Luxembourg Luc Frieden Jean Guill M Macedonia, former Yugoslav Republic of Nikola Popovski Maksud Ali Madagascar Haja Nirina Razafinjatovo Henri Bernard Razakariasa Malawi Goodall E. Gondwe David Faiti Malaysia Abdullah Ahmad Badawi Izzuddin bin Dali Maldives Fathulla Jameel (vacant) Mali Abou-Bakar Traore Marimantia Diarra Malta Tonio Fenech Paul Zahra Marshall Islands Brenson S. Wase Jefferson Barton Mauritania Sidi Ould Didi Mohamed Ould El Abed Mauritius Pravind Kumar Jugnauth Krishnanand Guptar Mexico Francisco Gil Diaz Alonso Pascual Garcia Tames Micronesia, Federated States of Nick L. Andon Lorin Robert Moldova Zinaida Grecianii Dumitru Ursu Mongolia Norov Altankhuyag Ochirbat Chuluunbat Morocco Fathallah Oualalou Rachid Talbi Alami Mozambique Aiuba Cuereneia (vacant) Myanmar Hla Tun Myo Nwe N Namibia Helmut Angula Carl-Hermann G. Schlettwein Nepal Madhukar S.J.B. Rana Bhanu Prasad Acharya Netherlands Gerrit Zalm Agnes van Ardenne New Zealand Michael Cullen John Whitehead Nicaragua Mario Arana Sevilla Mario Alonso Icabalceta Niger Ali M. Lamine Zeine Ramatou Diamballa Nigeria Ngozi N. Okonjo-Iweala Olusegun O.O. Ogunkua Norway Hilde Frafjord Johnson Leiv Lunde O Oman Ahmed Bin Abdulnabi Macki Mohammed bin Nasser Al-Khasibi P Pakistan Salman Shah Khalid Saeed Palau Casmir E. Remengesau Lawrence Alan Goddard Panama Ricaurte Vasquez M. Rolando Mirones Papua New Guinea Bart Philemon Simon Tosali Paraguay Ernest F. Bergen S. Jorge von Horoch Peru Pedro Pablo Kuczynski Luis Ju Carranza Ugarte Philippines Cesar V. Purisima Rafael B. Buenaventura Poland Leszek Balcerowicz Jerzy Pruski Portugal Luis Campos e Cunha Maria dos Anjos Nunes Capote R Romania Ionel Popescu Cristian Popa Russian Federation Aleksei Kudrin German O. Gref Rwanda Donald Kaberuka Francois Kanimba 136 IFC 2005 ANNUAL REPORT Member Governor Alternate S St. Kitts and Nevis Denzil Douglas Wendell E. Lawrence St. Lucia Kenny D. Anthony Len Ishmael Samoa Misa Telefoni Retzlaff Hinauri Petana Saudi Arabia Ibrahim A. Al-Assaf Hamad Al-Sayari Senegal Abdoulaye Diop Cheikh Hadjibou Soumare Serbia and Montenegro Igor Luksic Mladjan Dinkic Seychelles Patrick Pillay Vivianne Simone Fock Tave Sierra Leone Joseph Bandabla Dauda Samura Kamara Singapore Raymond Lim Lim Siong Guan Slovak Republic Ivan Miklos Elena Kohutikova Slovenia Andrej Bajuk Andrej Kavcic Solomon Islands Peter Boyers Shadrach Fanega Somalia (vacant) (vacant) South Africa Trevor Andrew Manuel Elias Lesetja Kganyago Spain Pedro Solbes M. David Vegara Figueras Sri Lanka Sarath Leelananda Bandara Amunugama P. B. Jayasundera Sudan El Zubair Ahmed El Hassan Hassan Ahamed Taha Swaziland Absalom M.C. Dlamini Musa D. Fakudze Sweden Par Nuder Carin Jamtin Switzerland Joseph Deiss Micheline Calmy-Rey Syrian Arab Republic Amer Hosni Lotfi Mohammad Hamandosh T Tajikistan Safarali Najmuddinov Abdulaziz Sharipov Tanzania Abdallah Omar Kigoda Gray S. Mgonja Thailand Somkid Jatusripitak Suparut Kawatkul Timor-Leste Maria Madalena Brites Boavida Aicha Bassarewan Togo Yandja Yentchabre Baliki Mewunesso Pini Tonga Siosiua T.T. `Utoikamanu `Aisake V. Eke Trinidad and Tobago Conrad Enill Alison Lewis Tunisia Mohamed Nouri Jouini Abdelhamid Triki Turkey Ibrahim H. Canakci Memduh Aslan Akcay Turkmenistan Jumaniyaz Annaorazov (vacant) U Uganda Ezra Suruma C. M. Kassami Ukraine Oleg Rybachuk Serhiy Teryokhin United Arab Emirates Hamdan bin Rashid Al-Maktoum Mohammed Khalfan Bin Khirbash United Kingdom Hilary Benn Gordon Brown United States John W. Snow (vacant) Uruguay Danilo Astori Carlos Viera Uzbekistan Rustam S. Azimov (vacant) V Vanuatu Moana Kalosil Carcasses Simeon Athy Venezuela, Republica Bolivariana de Jorge Giordani Nelson Jose Merentes Diaz Vietnam Le Duc Thuy Phung Khac Ke Y Yemen, Republic of Ahmed Mohammed Sofan Mohammed Al-Sabbry Z Zambia N'gandu Peter Magande Situmbeko Musokotwane Zimbabwe Herbert M. Murerwa Gideon Gono IFC 2005 ANNUAL REPORT 137 Board of Directors Directors and Alternates and Their Voting Power As of June 30, 2005 Director Alternate Director Casting Votes of Total Votes Percent of Total Appointed (vacant) Robert B. Holland, III United States 569,629 23.66 Yoshio Okubo Toshio Oya Japan 141,424 5.87 Eckhard Deutscher Walter Hermann Germany 129,158 5.36 Pierre Duquesne Anthony Requin France 121,265 5.04 Tom Scholar Caroline Sergeant United Kingdom 121,265 5.04 Elected Gino Alzetta Melih Nemli Austria, Belarus, Belgium, Czech Republic, Hungary, 125,221 5.20 (Belgium) (Turkey) Kazakhstan, Luxembourg, Slovak Republic, Slovenia, Turkey Biagio Bossone Nuno Mota Pinto Albania, Greece, Italy, Malta, Portugal, Timor-Leste 101,758 4.23 (Italy) (Portugal) Chander Mohan Vasudev Akbar Ali Khan Bangladesh, Bhutan, India, Sri Lanka 99,234 4.12 (India) (Bangladesh) Luis Marti Jorge Familiar Costa Rica, El Salvador, Guatemala, Honduras, Mexico, 97,478 4.05 (Spain) (Mexico) Nicaragua, Spain, Venezuela (Republica Bolivariana de) Marcel Masse Gobind Ganga Antigua and Barbuda, The Bahamas, Barbados, Belize, 92,944 3.86 (Canada) (Guyana) Canada, Dominica, Grenada, Guyana, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia Ad Melkert Tamara Solyanyk Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, 87,113 3.62 (Netherlands) (Ukraine) Cyprus, Georgia, Israel, Macedonia (former Yugoslav Republic of), Moldova, Netherlands, Romania, Ukraine Thorsteinn Ingolfsson Svein Aass Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, 86,693 3.60 (Iceland) (Norway) Norway, Sweden Alexey G. Kvasov Eugene Miagkov Russian Federation 81,592 3.39 (Russian Federation) (Russian Federation) Otaviano Canuto Jeremias N. Paul, Jr. Brazil, Colombia, Dominican Republic, Ecuador, Haiti, 75,980 3.16 (Brazil) (Philippines) Panama, Philippines, Trinidad and Tobago John Austin Terry O'Brien Australia, Cambodia, Kiribati, Korea (Republic of), 73,309 3.04 (New Zealand) (Australia) Marshall Islands, Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Jaime Quijandria Alieto Guadagni Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay 64,144 2.66 (Peru) (Argentina) Pietro Veglio Jakub Karnowski Azerbaijan, Kyrgyz Republic, Poland, Serbia 62,601 2.60 (Switzerland) (Poland) and Montenegro, Switzerland, Tajikistan, Turkmenistan, Uzbekistan Herwidayatmo Nursiah Arshad Fiji, Indonesia, Lao People's Democratic Republic, 59,912 2.49 (Indonesia) (Malaysia) Malaysia, Myanmar, Nepal, Singapore, Thailand, Tonga, Vietnam 138 IFC 2005 ANNUAL REPORT Director Alternate Director Casting Votes of Total Votes Percent of Total Elected (continued) Mathias Sinamenye Mulu Ketsela Angola, Botswana, Burundi, Eritrea, Ethiopia, 58,873 2.44 (Burundi) (Ethiopia) The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Nigeria, Seychelles, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe Sid Ahmed Dib Shuja Shah Afghanistan, Algeria, Ghana, Iran (Islamic Republic of), 45,980 1.91 (Algeria) (Pakistan) Morocco, Pakistan, Tunisia Mahdy Ismail Aljazzaf Mohamed Kamel Amr Bahrain, Egypt (Arab Republic of), Iraq, Jordan, Kuwait, 34,476 1.43 (Kuwait) (Arab Republic of Egypt) Lebanon, Libya, Maldives, Oman, Syrian Arab Republic, United Arab Emirates, Yemen (Republic of) Yahya Abdullah M. Alyahya Abdulrahman M. Almofadhi Saudi Arabia 30,312 1.26 (Saudi Arabia) (Saudi Arabia) Zou Jiayi Yang Jinlin China 24,750 1.03 (China) (China) Paulo F. Gomes Louis Philippe Ong Seng Benin, Burkina Faso, Cameroon, Cape Verde, 22,947 .95 (Guinea-Bissau) (Mauritius) Central African Republic, Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), Côte d'Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Senegal, Togo In addition to the directors and alternates shown above, the following also served after November 1, 2004: Director End of Period of Service Alternate Director End of Period of Service Rapee Asumpinpong November 14, 2004 Tanwir Ali Agha June 14, 2005 (Thailand) (Pakistan) Carole Brookins January 14, 2005 Gil Beltran January 14, 2005 (United States) (Philippines) Zhu Guangyao February 15, 2005 Hadiyanto February 2, 2005 (China) (Indonesia) J. Mills Jones February 14, 2005 (Liberia) Wu Jinkang February 14, 2005 (China) Note: Somalia (333 votes) did not participate in the 2004 Regular Election of Directors. IFC 2005 ANNUAL REPORT 139 IFC Organization and Management See page 75 for a list of acronyms. As of July 2005 President1 Paul D. Wolfowitz General Manager, PEDF (Sydney) Mary Elizabeth Ward Executive Vice President Assaad J. Jabre (Acting) (effective October 2005) Vice President and Corporate Secretary1 W. Paatii Ofosu-Amaah Country Manager, Indonesia (Jakarta) German Vegarra Compliance Advisor/Ombudsman2 Meg Taylor Country Manager, Philippines Vipul Bhagat and Thailand (Manila) Vice President, Human Resources Dorothy H. Berry and Administration Country Manager, Vietnam, (vacant) Cambodia, Laos (Hanoi) Vice President, Operations Assaad J. Jabre Manager, Portfolio (Hong Kong) S. Balasubramanian Vice President, Portfolio Farida Khambata and Risk Management Manager, Strategy and Coordination Amitava Banerjee Vice President, World Bank/IFC Michael Klein Private Sector Development South Asia and IFC Chief Economist Director Iyad Malas Vice President, Finance and Treasurer Nina Shapiro Senior Manager, India (New Delhi) Vipul C. Prakash General Manager, SEDF (Dhaka) Anil Sinha REGIONAL DEPARTMENTS Manager, Portfolio (New Delhi) Colin Warren Manager, Strategy and Coordination Neil Gregory Sub-Saharan Africa Director (Johannesburg) Richard Ranken Central and Eastern Europe Associate Director (Johannesburg) Thierry Tanoh Director (Moscow) Edward Nassim Senior Manager, Portfolio George M. Tiller Director, Private Enterprise Christian Grossmann (Johannesburg) Partnership (Moscow) General Manager, Bernard Chidzero Manager, Strategy and Coordination Kutlay Ebiri PEP-Africa (Johannesburg) Manager Tania Lozansky SME Solutions Center, Ibrahima Diong Manager (Johannesburg) Country Manager, East Africa (Nairobi) Jean Philippe Prosper Southern Europe and Central Asia Country Manager, Central Africa (Douala) Cheikh Oumar Seydi Acting Director (Istanbul) Shahbaz Mavaddat Country Manager, Ghana, Benin, Imoni Akpofure General Manager (Private Sector Development), Alex Paine Burkina Faso, Côte d'Ivoire, Guinea, PEP-SE (Sarajevo) Liberia, Niger, Sierra Leone, Togo (Accra) Manager (Istanbul) Snezana Stoiljkovic Country Manager, Madagascar, Comoros, Henri Rabarijohn Manager, Portfolio (Istanbul) Antonio David Mauritius, Seychelles (Antananarivo) Country Manager, Nigeria (Lagos) Andrew Alli Latin America and the Caribbean Country Manager, Senegal, Cape Verde, Aida Der Hovanessian Director (Rio de Janeiro) Atul Mehta the Gambia, Guinea-Bissau, Mali, Mauritania (Dakar) Associate Director (São Paulo) Saran Kebet-Koulibaly Country Manager, Mozambique and Babatunde Onitiri Senior Manager (Buenos Aires) Yolande Duhem Angola (Maputo) Senior Manager (Mexico City) Paolo Martelli Senior Portfolio Manager Stanley Greig East Asia and the Pacific General Manager, LAC Facility (Lima) Anita Bhatia Director Javed Hamid Country Manager and Regional Serge Devieux Associate Director, China and Mongolia (Beijing) Karin Finkelston Representative, Andean Region (Bogotá) Senior Manager, Business Timothy Krause Manager, New Business Loy Pires Development (Hong Kong) (effective September 2005) General Manager, CPDF (Chengdu) Mario Fischel Manager, Strategy and Coordination Eduardo Wallentin General Manager, PENSA (Bali) Chris Richards Resident Representative (Santo Domingo) Salem Rohana General Manager, MPDF (Hanoi) Adam Sack Resident Representative (Port of Spain) Kirk Ifill 140 IFC 2005 ANNUAL REPORT Middle East and North Africa Head, Regional Coordinator Rosy Khanna Director (Cairo) (vacant) for Europe and Central Asia Associate Director (Islamabad) Michael Essex Head, Regional Coordinator James Scriven and Acting Director for Latin America and the Caribbean Associate Director Abdelkader H. Allaoua Head, Special Projects Jean-Marie Masse Senior Manager (Dubai) Azmat Taufique General Manager, PEP-MENA (Cairo) Jesper Kjaer Global Information and Communication Technologies3 Manager Gulrez Hoda Director Mohsen Khalil Manager, Business Development (vacant) Senior Manager, Portfolio and Credit Review Joseph Solan Head, Strategy and Coordination (vacant) Manager, New Investments Stephanie von Friedeburg INDUSTRY DEPARTMENTS Global Manufacturing and Services Director Dimitris Tsitsiragos Agribusiness Senior Manager, Sector Group I Sujoy Bose Director Jean-Paul Pinard Senior Manager, Sector Group III Ritva Laukkanen Associate Director, Portfolio and Macadou N'Daw Senior Manager, Sector Group IV Sergio Pimenta Credit Review Manager, Sector Group II Stephanie Freymann Senior Manager, New Investments Oscar Chemerinski Manager, Global Transaction Group Milton Wanyama Portfolio Head, MENA Carsten Mueller Global Financial Markets Director Jyrki Koskelo Health and Education Associate Director, Field and Portfolio Mark Alloway Director Guy Ellena Manager, Field and Portfolio (Hong Kong) William Haworth Manager, Credit Review and Portfolio Sybile Lazar Portfolio Manager, Central Alireza Zavar Manager, New Business Patrick Leahy and Eastern Europe (Moscow) Portfolio Manager, Latin America Shamsher Singh and the Caribbean (Rio de Janeiro) Infrastructure Portfolio Manager, South Asia Jan Van Bilsen Director Francisco Tourreilles and MENA Region (Dubai) Senior Manager, Infrastructure Amnon Mates Portfolio Manager, Southern Europe Martin Kimmig Senior Manager, Portfolio and Credit Review Apinya Suebsaeng and Central Asia (Istanbul) Senior Manager, Transport Services Ravinder Bugga Portfolio Manager, Sub-Saharan Dolika Banda Manager, New Investments Darius Lilaoonwala Africa (Johannesburg) Manager, Portfolio Pierre Bouvery Associate Director, Financial Engineering Shidan Derakhshani Manager, Public-Private Partnerships Morgan Landy Senior Manager, Institution Building Georgina Baker and Renewable Energy and New Product Development Manager, Utilities Usha Rao-Monari Senior Manager, Microfinance S. Aftab Ahmed Senior Manager, Nonbank Marcos Brujis Financial Institutions Oil, Gas, Mining, and Chemicals3 Head, Banking Joao Lucas Duchene Director Rashad-Rudolf Kaldany Head, Global Financial Markets Strategy (vacant) Senior Manager, Mining Kent E. Lupberger Head, Financial Infrastructure Peer Stein Senior Manager, Oil and Gas Somit Varma and Institution Building Senior Manager, Portfolio and Credit Review Kalada Harry Associate Director, Operations Mamta Shah Manager, Chemicals Lance Crist Manager, Global Financial Ayaan Adam Markets Transaction Group Private Equity and Investment Funds Head, Regional Coordinator (vacant) for Africa and South Asia Director Haydée Celaya Head, Regional Coordinator Hans-Jorg Paris Manager, Portfolio Operations David Wilton for East Asia and MENA Manager, New Business Maria Kozloski IFC 2005 ANNUAL REPORT 141 Small and Medium Enterprises4 Corporate Relations Director Laurence Carter Senior Manager Joseph O'Keefe Senior Manager Max Aitken Manager, Donor-Funded Operations Mariann Kurtz-Weber Credit Review Manager, Linkages Sujata Lamba Director Sakdiyiam Kupasrimonkol Manager Sita Ramaswami Chief Credit Officer Paul Baribeau Chief Credit Officer Monish Dutt Trust Funds Chief Credit Officer Flavio Guimaraes Director Mwaghazi Mwachofi Chief Credit Officer Manuel E. Nunez Manager Mariko Higashi Chief Credit Officer Vincent Polizatto Chief Credit Officer Richard P. Roulier DEPARTMENTS Chief Credit Officer C. John Wilson Senior Manager, Training and Development Robin Glantz Advisory Services4 Director Bernard Sheahan Environment and Social Development Manager, Privatization Policy and David Donaldson Director Rachel Kyte Transactions Associate Director, Investment Support William Bulmer Manager, Environmental Finance Shilpa Patel Business Risk Group Manager, Insurance Services Merunisha Ahmid Director Uday Wagle (Johannesburg) Manager, Knowledge and Innovation Richard Caines Controller's and Budgeting Director Allen F. Shapiro Financial Operations Senior Manager, Budgeting Richard J. Moss Director Avi Hofman Manager, Financial Reporting Paul B. Bravery and Accounting Policy Senior Manager, Loan and Equity Soon-Wan Ooi Operations Support Manager, Internal Controls Nicholas Pardoe and Special Projects Manager, Investment Accounting, Karen Jones Compliance, and Custody Senior Adviser, Loss Provisioning Guy A. de Clercq Manager, Project Risk Management Edward Strawderman Corporate Business Informatics Grassroots Business Organizations4 Chief Information Officer Guy-Pierre de Poerck Director Harold Rosen Senior Manager, Development Wajdi Bustani and Informatics Manager, Business Informatics Paul Standen Human Resources and Administration Vice President Dorothy H. Berry Corporate Governance5 Associate Director, HR Development Esteban Altschul Director Teresa Barger Manager, Client Services Anne Sahl Manager, Compensation and Special Projects Daniel Tytiun Corporate Portfolio Management Manager, Facilities and Administration Elizabeth Casqueiro Director Marc Babin Manager, Human Resources Eva Mennel Head, Equity and Portfolio Management Sebastian Thiriez Manager, Leadership Development Helen Frick 142 IFC 2005 ANNUAL REPORT Legal Department Resource Mobilization General Counsel Jennifer Sullivan Director (vacant) Deputy General Counsel David McLean Manager, B-Loan Management Mary Elizabeth Ward Chief Counsel, Finance Victoria C. Choy Manager, Syndications Stefania Berla Chief Counsel (Istanbul) David Harris Chief Counsel Christian Philip Risk Management and Financial Policy Chief Counsel George Springsteen Director Lakshmi Shyam-Sunder Municipal Fund Special Operations Director Declan J. Duff Director Maria Da Graça Domingues Associate Director Vincent Gouarne Treasury Operational Strategy4 Deputy Treasurer--Head of Funding John Borthwick Senior Manager Toshiya Masuoka Deputy Treasurer--Head of Liquid Mark Spindel Asset and Cash Management Operations Evaluation Group6 Deputy Treasurer--Head of Derivative Shanker Krishnan Products and Asset Liability Management Director William E. Stevenson Deputy Treasurer--Head of Takehisa Eguchi Quantitative Analysis Private Sector Development Deputy Treasurer--Global Head Lee Meddin Director, Investment Climate, (vacant) of Structured Finance and General Manager, FIAS Senior Manager, FIAS Thomas Davenport OTHER Manager, Monitoring and Analysis Simeon Djankov Manager, Development Effectiveness Roland Michelitsch Director, Tokyo Office Hiroshi Arichi Lead Economist (Sydney) Russell Muir Special Representative in Europe (Paris) Wolfgang Bertelsmeier Special Representative in Europe (Frankfurt) Oltmann G. Siemens 1. These officers hold the same position in the World Bank. 2. Reports directly to World Bank Group President. 3. Reports to World Bank Vice President, Infrastructure, as well as IFC Vice President, Operations, and IFC Vice President, Portfolio and Risk Management, on portfolio matters. 4. Reports to IFC Vice President, Operations, as well as to World Bank/IFC Vice President, Private Sector Development and IFC Chief Economist. 5. Reports to IFC Vice President, Portfolio and Risk Management, as well as to World Bank/IFC Vice President, Private Sector Development and IFC Chief Economist. 6. Reports to Director-General, Operations Evaluation, World Bank Group; to IFC Executive Vice President for administrative purposes. IFC 2005 ANNUAL REPORT 143 IFC Field Representatives and Contacts Country City Name Title Albania Tirana Elira Sakiqi Country Officer Argentina Buenos Aires Yolande Duhem Senior Manager Armenia Yerevan Nerses Karamanukyan Senior Project Officer Australia (PEDF) Sydney Mary Beth Ward PEDF General Manager Azerbaijan Baku Aliya Nuriyeva Country Officer Bangladesh Dhaka Hafeezuddin Ahmad Regional Representative Belarus Minsk Ivan Ivanov Project Manager Bolivia La Paz Serge Devieux Country Manager Bolivia La Paz Paolo Martelli Country Manager Bosnia and Herzegovina (PEP-SE) Sarajevo Alexander Paine PEP-SE General Manager (Private Sector Development) Brazil Rio de Janeiro Atul Mehta Director Brazil São Paulo Saran Kebet-Koulibaly Associate Director Bulgaria Sofia Vladimir Mihailovski Country Officer Bulgaria (PEP-SE) Sofia Angelo Dellatti PEP-SE General Manager (Infrastructure) Cambodia Phnom Penh Timothy M. Krause Country Manager Cambodia (MPDF) Phnom Penh Adam Sack MPDF General Manager Cameroon Douala Oumar Seydi Country Manager Chad N'Djamena Cheick Kante Business Development Officer/ Program Coordinator Chile Santiago Yolande Duhem Country Manager China Beijing Karin Finkelston Associate Director China Hong Kong Javed Hamid Regional Director China (CPDF) Chengdu Mario Fischel CPDF General Manager Colombia Bogotá Serge Devieux Country Manager Croatia Zagreb Magdalena Soljakova Country Officer Dominican Republic Santo Domingo Salem Rohana Resident Representative Ecuador Quito Serge Devieux Country Manager Egypt Cairo Michael Essex Acting Director Georgia Tbilisi Thea Gigiberia Program Coordinator Ghana Accra Imoni Akpofure Country Manager Guyana Georgetown Kirk Ifill Resident Representative Haiti Port-au-Prince Salem Rohana Resident Representative India New Delhi Iyad Malas Country Director India New Delhi Vipul Prakash Regional Manager India Mumbai Nicholas Vickery Regional Representative Indonesia Jakarta German Vegarra Country Manager Indonesia (PENSA) Jakarta Christopher Richards PENSA General Manager Kazakhstan Almaty Gorton De Mond Regional Representative Kenya Nairobi Jean Philippe Prosper Country Manager Korea Seoul Tae-Hee Yoon Adviser Kyrgyz Republic Bishkek Gulnoura Djuzenova Country Officer Lao PDR Vientiane Timothy M. Krause Country Manager Lao PDR (MPDF) Vientiane Adam Sack MPDF General Manager 144 IFC 2005 ANNUAL REPORT Country City Name Title FYR Macedonia (PEP SE) Skopje Zoran Martinovski Operations Officer Madagascar Antananarivo Henri Rabarijohn Country Manager Mexico and Central America Mexico D.F. Paolo Martelli Country Manager Moldova Chisinau Roberto Albisetti Country Manager Mongolia Ulaanbaatar Karin Finkelston Associate Director Mozambique Maputo Babatunde Onitiri Country Manager Nigeria Lagos Andrew Alli Country Manager Pakistan Karachi Zunee Muhtashim Investment Officer Paraguay Asuncion Yolande Duhem Country Manager Peru Lima Marcene Broadwater Principal Investment Officer Philippines Manila Vipul Bhagat Country Manager Poland Warsaw Mary Lystad Senior Investment Officer Romania Bucharest Ana Maria Mihaescu Chief of Mission Russia Moscow Edward Nassim Director Russia (PEP) Moscow Christian Grossmann Director, Private Enterprise Partnership Senegal Dakar Aida Der Hovanessian Country Manager Serbia and Montenegro Belgrade Roberto Albisetti Resident Representative South Africa Johannesburg Dick Ranken Country Director South Africa Johannesburg Thierry Tanoh Associate Director Sri Lanka Colombo Sanjiva Senanayake Regional Representative Tajikistan Dushanbe Olim Khomidov Investment Officer Thailand Bangkok Vipul Bhagat Country Manager Trinidad and Tobago Port of Spain Kirk Ifill Resident Representative Turkey Istanbul Shahbaz Mavaddat Acting Director Ukraine Kyiv Elena Voloshina Program Officer United Arab Emirates Dubai Azmat H. Taufique Regional Manager Uruguay Montevideo Yolande Duhem Country Manager Uzbekistan Tashkent Elbek Rikhsiyev Country Officer Venezuela Caracas Serge Devieux Country Manager Vietnam Hanoi Timothy M. Krause Country Manager Vietnam (MPDF) Hanoi Trang Nguyen Program Manager Vietnam (MPDF) Ho Chi Minh City Adam Sack MPDF General Manager West Bank and Gaza Jerusalem Youssef Habesch Associate Investment Officer IFC 2005 ANNUAL REPORT 145 IFC Addresses Headquarters Bolivia, La Paz Chad, N'Djamena Dominican Republic, Santo Domingo 2121 Pennsylvania Avenue, N.W. Calle Fernando Guachalla No. 342 IFC--Local Enterprise Development Calle Virgilio Diaz Ordoñez #36 Washington, DC 20433, U.S.A. Edificio Victor, Piso 9 c/o The World Bank esq, Gustavo Mejía Ricart Telephone: (202) 473-3800 La Paz, Bolivia Avenue Charles de Gaulle Edificio Mezzo Tempo, Suite 401 Fax: (202) 973-4384 Telephone: (591-2) 244-3133 et Avenue du Commandant Lamy Santo Domingo, Dominican Republic Fax: (591-2) 212-5065 Quartier Bololo Telephone: (809) 566-6815 Albania, Tirana P.O. Box 146 Fax: (809) 566-7746 "Deshmoret e 4 Shkurtit" Str., No. 34 Bosnia and Herzegovina, Sarajevo N'Djamena, Chad Tirana, Albania H. Kresevljakovica 19 Telephone: (235-52) 3247 Egypt, Cairo Telephone: (355-4) 240587/8/9, 71000 Sarajevo Fax: (235 52) 44 84 World Trade Centre 230016/7 Bosnia and Herzegovina 12th Floor Fax: (355-4) 240590 Telephone: (387-33) 440-293 China, Beijing 1191 Corniche El Nil, Boulac Fax: (387-33) 440-108 15/F, China World Tower 2 Cairo, Egypt Algeria, Algiers (PEP-MENA) China World Trade Center Telephone: (20-2) 579-5353/6565/9900 19, Rue Emile Marquis (drenan El Malik) Brazil, Rio de Janeiro No. 1 Jian Guo Men Wai Avenue Fax: (20-2) 579-2211 16035 Hydra Rua Redentor, 14-Ipanema Beijing, China 100004 Algiers, Algeria Rio de Janeiro 22421-030, Brazil Telephone: (86-10) 6505-8686 Egypt, Cairo (PEP-MENA) Telephone: (213-21) 54-80-10 Telephone: (55-21) 2525-5850/5851 Fax: (86-10) 6505-9808 World Trade Centre Fax: (55-21) 2525-5879 19th Floor Argentina, Buenos Aires China, Hong Kong 1191 Corniche El Nil, Boulac Bouchard 680, piso 11° Brazil, São Paulo Two International Finance Centre Cairo, Egypt Torre Fortabat Av. Roque Petroni Junior, 999 Suite 7903 Telephone: (20-2) 574-8150/8170/8189 1106 Buenos Aires, Argentina 8th Floor, Rooms 81/82 8 Finance Street, Central Fax: (20-2) 579-6447 Telephone: (54-11) 4114-7200 04707-910 São Paulo SP, Brazil Hong Kong Fax: (54-11) 4312-7184 Telephone: (55-11) 5185-6888 Telephone: (852) 2509-8100 France, Paris Fax: (55-11) 51818252 Fax: (852) 2509-9363 66, avenue d'Iéna Armenia, Yerevan 75116 Paris, France Republic Square Bulgaria, Sofia Colombia, Bogotá Telephone: (33-1) 4069-3060 9 V. Sargsyan Str. 36 Dragan Tsankov Blvd. Cra. 7 No. 71-21 Torre A, Oficina 1401 Fax: (33-1) 4720-7771 Yerevan 375010, Armenia World Trade Centre/ INTERPRED Edificio Fiduagraria Telephone: (374-10) 545-241/242/243 1057 Sofia, Bulgaria Bogotá, Colombia Georgia, Tbilisi Fax: (374-10) 545-245 Telephone: (359 2) 96 97 225 Telephone: (571) 319-2330 5A, 1st Drive, Chavchavadze Avenue Fax: (359 2) 96 97 222 Fax: (571) 319-2359 Tbilisi 0179, Georgia Australia, Sydney (FIAS) Telephone: (995-32) 912-689/659/498/ Level 18, CML Building Burkina Faso, Ouagadougou Republic of Congo, Brazzaville 436/356, 913-096 GPO Box 1612 c/o The World Bank Banque de Développement des Fax: (995-32) 913-478/480 14 Martin Place Rue Raoul Follereau Etats de l'Afrique Centrale Sydney, NSW 2000, Australia 3-eme Etage Place du Gouvernement Germany, Frankfurt Telephone: (61-2) 9223-7773 Boite Postale 622 B.P. 1177 Bockenheimer Landstrasse 109 Fax: (61-2) 9223-2533 Ouagadougou, Burkina Faso Brazzaville 60325 Frankfurt am Main, Germany Telephone: (226) 306 237 République du Congo Telephone: (49-69) 7434-8230 Azerbaijan, Baku Telephone: (242) 81 17 61 Fax: (49-69) 7434-8239 91-92 Mirza Mansur Str., Icheri Sheher Cambodia, Phnom Penh Baku 370 004, Azerbaijan Number 113, Norodom Blvd. Côte d'Ivoire, Abidján Ghana, Accra Telephone: (994-12) 921-941/922-807 Sangkat Chaktomuk Corner of Booker Washington & 150A Roman Road Fax: (994-12) 921-479/926-873 P.O. Box 1115 Jacques Aka Streets Roman Ridge Phnom Penh, Cambodia Cocody P.O. Box CT 2638 Bangladesh, Dhaka Telephone: (855 23) 210 922 Abidján 01, Côte d'Ivoire Accra, Ghana United House, 10 Gulshan Avenue Fax: (855-23) 222 347 Telephone: (225 22) 40 04 00 Telephone: (233 21) 779 804 4th Floor, Gulshan 1 Fax: (233 21) 776-245/774-961 Dhaka 1212, Bangladesh Cameroon, Douala Croatia, Zagreb Telephone: (880-2) 9899334 96 Rue Flatters, Suite 305 c/o The World Bank India, Mumbai Fax: (880-2) 9899255 Bonanjo Trg. Kennedya 6A, 3rd floor Godrej Bhavan, 3rd Floor P.O. Box 4616 HR-10000 Zagreb, Croatia Murzban Road, Fort Belarus, Minsk Douala, Cameroon Telephone: (385-1) 2357-222 Mumbai 400 001 India 6A Partizansky Prospekt, 4th Floor Telephone: (237) 342 80 33 Fax: (385-1) 2357-200 Telephone: (91-22) 56652000 Minsk 220033, Belarus Fax: (237) 342 80 14 Fax: (91-22) 56652001 Telephone: (375-17) 228-1838/1779/2524 Czech Republic, Prague Fax: (375-17) 222-7440 Na Rybnicku 5 12000 Prague, Czech Republic Telephone: (420-2) 9636-8400 Fax: (420-2) 9636-8410 146 IFC 2005 ANNUAL REPORT India, New Delhi Mexico, Mexico City Romania, Bucharest Trinidad and Tobago, Port of Spain 50-M, Shanti Path, Gate No. 3 Prado Sur 240, Suite 402 83, Dacia Boulevard, Sector 2 SW Penthouse, SAGICOR Building Niti Marg, Chanakyapuri Lomas de Chapultepec Bucharest, Romania 16 Queen's Park West, 3rd floor New Delhi 110 021 India Del. Miguel Hidalgo Telephone: (40-21) 211-2866/201-0365/ Port of Spain, Trinidad and Tobago Telephone: (91-11) 5111-1000, Mexico D.F., 11000, Mexico 201-0366 Telephone: (868) 628-5074 2611-1306 Telephone: (52-55) 5520-6191 Fax: (40-21) 201-0364/211-3141 Fax: (868) 622-1003 Fax: (91-11) 5111-1001- 02, Fax: (52-55) 5520-5659 2611-1281/2278 Russian Federation, Moscow Turkey, Istanbul Mongolia, Ulaanbaatar 36, bldg. 1, Bolshaya Molchanovka str., Is Kuleleri, Kule II, kat 3 Indonesia, Jakarta c/o The World Bank 3rd Floor 34330 4. Levent Jakarta Stock Exchange Tower II 11-A Peace Avenue Moscow 121069, Russian Federation Istanbul, Turkey 13th Floor Ulaanbaatar, 210648 Mongolia Telephone: (7-095) 411-7555 Telephone: (90-212) 282 4001 Jalan Jenderal Sudirman Kav. 52-53 Telephone: (976-11) 312-694 Fax: (7-095) 411-7556 Fax: (90-212) 282 4002 Jakarta 12190, Indonesia Fax: (967-11) 312-696 Telephone: (62-21) 5299-3001 Senegal, Dakar Ukraine, Kyiv Fax: (62-21) 5299-3002/3141 Morocco, Rabat (PEP-MENA) 6, Avenue Franklin Roosevelt and 30A Spaska Street 7 Rue Larbi Ben Abdellah Rue Kléber Podil Plaza, Block 2, 6th Floor Japan, Tokyo Souissi Trilenium Building Kyiv 04070, Ukraine 10th Floor, Fukoku Seimei Building Rabat, Morocco Dakar, Senegal Telephone: (38-044) 490-6400 2-2-2, Uchisaiwai-cho, Chiyoda-ku Telephone: (212-37) 65 24 79 Telephone: (221) 849 5049 Fax: (38-044) 490-6420 Tokyo 100-0011, Japan Fax: (212-37) 65 28 93 Fax: (221) 849-5044/823-7993 Telephone: (81-3) 3597-6657 United Arab Emirates, Dubai Fax: (81-3) 3597-6698 Mozambique, Maputo Serbia and Montenegro, Belgrade Al-Attar Business Tower Av. Kenneth Kaunda 1224 Kneginje Zorke 96, Mezzanine Floor Office # 902 Kazakhstan, Almaty P.O. Box 4053 11000 Belgrade, Serbia and Montenegro Sheikh Zayed Rd. 41, Kazybek Bi Street, blg. A, 4th floor Maputo, Mozambique Telephone: (381-11) 3023-760 P.O. Box 73256 Almaty 480 100 Telephone: (258 1) 494 650 Fax: (381-11) 3023-733 Dubai, United Arab Emirates Republic of Kazakhstan Fax: (258 1) 492 893 Telephone: (971-4) 331-2139/ Telephone: (7-3272) 980-580 South Africa, Cape Town 329-1880/332-975/ 332-6593 Fax: (7-3272) 980-581/4 Nigeria, Lagos 1 Thibault Square Fax: (971-4) 329 1500 Maersk House Long Street, Cape Town 8001 Kenya, Nairobi Plot 121 Louis Solomon Way P.O. Box 2452 United Kingdom, London Hill Park Building Off Ahmadu Bello Way Cape Town, South Africa 4 Millbank Upper Hill Victoria Island Telephone: (27 21) 418 7180 London SW1P 3JA, England Nairobi, Kenya Lagos, Nigeria Fax: (27 21) 418 7183 Telephone: (44-20) 7222-7711 Telephone: (254 20) 322 6340 Telephone: (234 1) 262 6455 Fax: (254 20) 322 6383 Fax: (234 1) 262 6465/66 South Africa, Johannesburg Uzbekistan, Tashkent 14 Fricker Road 107B. Amir Temur Street, 15th floor Korea, Seoul Pakistan, Islamabad Illovo, 2196 Tashkent 700084, Uzbekistan Seoul University of Foreign Studies 20 A, Shahrah-e-Jamhuriat Ramna 5 Johannesburg, South Africa Telephone: (998-71) 1385950 Yang Jae-dong 17-7 (G5/1) Islamabad, Pakistan Telephone: (27 11) 731 3000 Fax: (998-71) 1385951/52 Seocho-gu, Seoul 137-130, Korea Telephone: (92-51) 227-9631-33 Fax: (27 11) 268 0074 Telephone: (82-11) 273-0007 Fax: (92-51) 2824335/2824166/ Vietnam, Hanoi 2825037 Sri Lanka, Colombo 7th Floor 63 Ly Thai To Kyrgyz Republic, Bishkek 15th Floor, DHPL Building Hoan Kiem District 214 Moskosvskaya Street Pakistan, Karachi 40 Navam Mawatha Hanoi, Vietnam Bishkek 720010, Kyrgyz Republic 1st Floor, Bahria Complex II Colombo 2, Sri Lanka Telephone: (84-4) 934-2282 Telephone: (996-312) 610-650 M.T. Khan Rd. Telephone: (94-11) 4740957/4740958/ Fax: (84-4) 934-2289 Fax: (996-312) 610-356/481 Karachi, Pakistan 4740959 Telephone: (92-21) 561-0098/0065 Fax: (94-11) 4795017 West Bank and Gaza Lao PDR, Vientiane Fax: (92-21) 561 0153 P.O. Box 54842 c/o MPDF Tajikistan, Dushanbe Jerusalem, Israel Novotel Hotel Peru, Lima 91-10, Shevchenko str. 734025 Telephone: (972-2) 236-6517, Unit 9, Samsen Thai Road Av. Alvarez Calderon 185 Dushanbe, Tajikistan 236-6500/10 Vientiane, LAO PDR Piso 7 San Isidro Telephone: (992-372) 210-756/211-518 Fax: (972-2) 236-6521 Telephone: (856-21) 219-099 Lima, Peru Fax: (992-372) 210-756/211-518 Fax: (856-21) 219-098 Telephone: (511) 615-0660 Yemen, Sana'a (PEP-MENA) Fax: (511) 421-724 Tanzania, Dar-es-Salaam c/o The World Bank FYR Macedonia, Skopje c/o The World Bank P.O. Box 18152 bul. Makedonija 9-11/III Philippines, Manila Tanzania Leasing Project Haddah, St. No. 40 (off Damascus Road) 1000 Skopje, FYR Macedonia 11th Floor, Tower One 50 Mirambo Street Sana'a, Republic of Yemen Telephone: (389-2) 3223 306 Ayala Triangle, Ayala Avenue Dar-es-Salaam, Tanzania Telephone: (967-1) 413 708-259, Fax: (389 2) 3223 298 Makati City, 1226 Philippines Telephone: (255) 22 211 4575/7 413 710-259 Telephone: (63-2) 848-7333 to 38 Fax: (967-1) 413 709 Madagascar, Antananarivo Fax: (63-2) 848-7339 Thailand, Bangkok Rue Andriamifidy c/o The World Bank Zimbabwe, Harare Anosy Poland, Warsaw 30th Floor, Siam Tower c/o The World Bank Antananarivo 101 53 Emilii Plater 989 Rama 1 Road, Pathumwan Old Lonrho Building Madagascar Warsaw Financial Center, 9th Floor Bangkok 10330, Thailand 88 Nelson Mandela Avenue Telephone: (261 20) 23 26 000 Warsaw 00-113, Poland Telephone: (66-2) 686-8300 P.O. Box 2960 Fax: (261 20) 23 260 03 Telephone: (48-22) 520-6100 Fax: (66-2) 686-8379 Harare, Zimbabwe Fax: (48-22) 520-6101 Telephone: (263-4) 729-611 IFC 2005 ANNUAL REPORT 147 Project Manager and Editor Paul McClure Corporate Relations Contributors Joseph O'Keefe, Senior Manager Dana Lane, Chief of Publications International Finance Corporation Ariadne Garscadden, Information Assistant Fiona Duggan, Consultant 2005 Annual Report Volume 2 Gemma Lueje, Program Assistant Web site: Stephan Beauchesne, Anna Bottiglieri, Vincent Yemoh Volume 2 Contents IFC and World Bank Contributors Translation Philippe Ahoua Management's Discussion and Analysis David Lawrence Arabic: Al-Ahram Center for 2 Teresa Andaya Irina Likhacheva Translation & Publishing, Cairo AnthonyResponsibility for External Financial Reporting Aylward Michele Lubrano Chinese: China Financial & Economic 28 Stefania Berla Martin Lutalo Publishing, Beijing Paul Bravery Financial StatementsDavid Martz 31 French & Spanish: World Bank Nicholas Burke Pierre Nadji Translation Division, Washington, DC Julia Chiperfield Project Commitments Ali Naqvi 60 Elizabeth Davis Kaikham Onedamdy Japanese: IBT Corporation, Tokyo Participants in Loan Syndications 74 Michael Dompas Lory Camba Opem Russian: Alex Publishing, Moscow David Donaldson Technical Assistance and Advisory Projects Skander Oueslati 75 Frank Douamba Janine Pampolina Design Kutlay Ebiri Investment PortfolioSérgio Pimenta Financial Communications Inc., 92 Sara Gann Beth Power Bethesda, MD Louise Gardiner Board of Governors Fereshteh Raissian 134 Anastasia Gekis Yasmina Sam Printing Stella Gonzales Board of Directors and Voting Power Brian Samuel S&S Graphics, Laurel, MD 138 Darrin Hartzler Hillmare Schulze IFC Organization and Management 140 Peggy Henderson Ellen Schwab Photography Brigid Holleran William V. Todd IFC Field Representatives and Contacts Breton Littlehales 144 Neeraj Jain Marie Valmonte Richard Lord Lisa Kaestner IFC Addresses Erika Veizaga Ou Yangjie 146 Jung Lim Kim Eduardo Wallentin Wang Qingxian Gjergj Konda Wai-Keen Wong Staff of IFC, World Bank, and MIGA Volume 1 of this report includes the theme feature, "Investing in Photo Credits Courtesy of CEPALCO: front cover, 1st row left; inside front cover, top right. Progress"; messages from the president and executive vice president; Hoa Doan: front cover, 4thupdates from the Board of Directors, the Compliance Advisor/Ombudsman, row left. Anastasia Gekis: front cover, 4th row middle. and the Operations Evaluation Group; reports on the IFC's regional Neeraj Jain: front cover, 3rd row left and 4th row right. activities, investments, and technical assistance in FY05; and reviews of Ludwina Joseph: front cover, 1st row middle. the Corporation's financial and portfolio performance during the year. Alice Lin: front cover: 3rd row right. Bryce Meeker: inside front cover, bottom. IFC's Annual Report on the Web, www.ifc.org/ar2005, is a companion Courtesy of Newmont: front cover, 2nd row middle and 3rd row middle. to the printed edition. It provides downloadable files of all content in Ou Yangjie: inside front cover, top left. Ted Pollett: front cover, 1st row right. the two volumes, including several language versions of Volume 1. Courtesy of Samarco: front cover, 2nd row right. Currency is given in U.S. dollars throughout unless otherwise specified. Tang Chhin Sothy: front cover, 2nd row left. All numbers reflect rounding. Kenji Yuhaku: back cover. 2005 ANNUAL REPORT VOLUME 2 At IFC our mandate is to further sustainable economic development through the private sector. We pursue this goal through innovative solutions to the challenges of development, as we invest in companies and financial institutions in emerging markets and as we help build business skills. We consider positive development impact an integral part of good business, and we focus much of our effort on the countries with the greatest need for investment. We recognize that economic growth is sustainable only if it is environmentally and socially sound and helps improve the quality of life for those living in developing countries. INKS -BASED INTERNATIONAL FINANCE CORPORATION SOY 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA WITH Telephone 202-473-3800 APERP Fax 202-974-4384 www.ifc.org RECYCLED ON 0-8213-6422-7 PRINTED ISBN