Amounts mobilised from the private sector by official development finance interventions in 2017-18 Highlights February 2020 (Update)

PRIVATE FINANCE FOR SUSTAINABLE DEVELOPMENT CONFERENCE 2020 Aligning Finance with the Sustainable Development Goals

Private finance mobilised reached USD 48.4 billion in 2018, a 28% increase compared to 2017 Amounts mobilised by year and instrument, 2012-18 USD billion

48.4 33.9

36.3

37.8

80.9

27.7 19.4

15.3

(18%)

29.8

(39%)

22.7

(15%)

36.1 (18%)

15.6

6.4 (3%)

(8%) 2012

2013

Credit lines

2014

2015

Simple co-financing

2016

2017

Shares in CIVs

2018 Direct investment in companies and SPVs

Syndicated loans

Guarantees

In 2012-18, USD 205.1 billion was mobilised from the private sector by official development finance interventions. The data show an upward trend over the period, which significantly accelerated between 2017 and 2018. Overall, guarantees mobilised the most private finance (39% of the total), followed by syndicated loans and direct investment in companies (DICs) or special purpose vehicles (SPVs), accounting for 18% of the total each. NB: Reporting on private mobilisation is part of regular OECD DAC data collection since 2017 but information is still collected through ad-hoc surveys for a few institutions. The increases in the amounts mobilised through syndications in 2014 and DIC/SPVs in 2016 are mainly explained by improved data coverage.

Source: OECD DAC Statistics

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While private finance mobilised was evenly distributed across regions, only 5.3% went to LDCs and other LICs Amounts mobilised by region, 2017-18 average USD billion

EUROPE incl. Turkey

7.2 (17%) Geographic breakdown not provided*

ASIA & OCEANIA 8.6

AFRICA 8.9 (21%)

8.8 (21%)

(20%)

AMERICA 9.5 (22%) Credit lines

Simple co-financing

Shares in CIVs

Direct investment in companies and SPVs

Syndicated loans

Guarantees

* Of which USD 6.9 billion (78%) relates to the International Finance Corporation (IFC) that provided data at an aggregate level due to confidentiality constraints.

By income group, 2017-18 average

Top recipients, 2017-18 average 3.4

1.1

MADCTs

17.5

UMICs 10.0

LMICs Other LICs LDCs

0.1 2.2

2.8

2.2

1.6

1.6

1.5

1.3

1.1

1.0

0.8

5.3%

Source: OECD DAC Statistics

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55.5% of the amounts mobilised targeted energy and financial sectors, only 5.6% social sectors Amounts mobilised by sector, 2017-18 average USD billion

Economic infrastructure and services (61.6%)

ENERGY BANKING & FINANCIAL SERVICES TRANSPORT & STORAGE COMMUNICATIONS

Production Sectors (14.0%)

INDUSTRY, MINING, CONSTRUCTION AGRICULTURE, FORESTRY, FISHING TOURISM TRADE POLICIES AND REGULATIONS

Social infrastructure and services (5.6%)

WATER SUPPLY & SANITATION HEALTH & POPULATION AND REPROD. HEALTH OTHER SOCIAL INFRASTRUCTURE & SERVICES GOVERNMENT & CIVIL SOCIETY EDUCATION

Cross-cutting (1.1%)

OTHER MULTISECTOR GENERAL ENVIRONMENT PROTECTION

Other, unspecified* (17.7%)

Sectoral breakdown not provided*

Credit lines

Simple co-financing

Shares in CIVs

12.1 (28.0%) 11.8 (27.5%) 2.0 (4.7%) 0.6 (1.3%)

55.5%

4.5 (10.4%) 1.4 (3.3%) 0.1 (0.2%) 0.1 (0.2%) 0.9 (2.1%) 0.8 (1.8%) 0.3 (0.7%) 0.2 (0.5%) 0.2 (0.4%) 0.3 (0.7%) 0.2 (0.5%)

Direct investment in companies and SPVs

7.6 (17.7%) Syndicated loans

Guarantees

* Of which USD 6.9 billion (91%) relates to the International Finance Corporation (IFC) that provided data at an aggregate level due to confidentiality constraints.

Source: OECD DAC Statistics

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MDBs remained major actors, but bilateral providers played an important role too Amounts mobilised by provider, 2017-18 average USD billion Bilateral providers United States France United Kingdom Denmark Netherlands* Germany Spain Finland Sweden Canada Norway Switzerland Austria Belgium Portugal Korea Other bilateral

0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.0 0.0 0.0 0.0

0.7 0.7 0.6

4.4

2.1

0.9

Multilateral providers 32.5 (75%)

Bilateral providers 10.6 (25%)

Multilateral providers IFC** MIGA EU Institutions EBRD World Bank (IBRD/IDA) AsDB IADB Group*** AfDB PIDG CGIF CoEB IFAD Other multilateral

0.2 0.2 0.1 0.2

1.4 1.3

1.9

3.0

3.9

4.3 4.3

4.6

6.9

Guarantees Syndicated loans Direct investment in companies and SPVs Shares in CIVs Simple co-financing Credit lines

* For the purpose of the OECD statistics on amounts mobilised from the private sector, FMO is considered official, in line with the OECD DAC definition of official transactions. However, in the National Accounts System (NAS) of the Netherlands, FMO is registered as a private, independent bank. ** The International Finance Corporation (IFC) does not consider guarantees as part of its core mobilisation but rather as financing from its own account. For comprehensiveness and comparability purposes, however, it was agreed that the information would be presented in the OECD analyses along other institutions’ mobilisation effect through guarantees. *** The IDB Invest (the private sector arm of the IADB Group) did not report data on the amounts mobilised in 2018 due to confidentiality constraints. The AfDB did not report 2018 mobilisation data either.

Source: OECD DAC Statistics

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Focus on European DFIs: USD 4.0 billion mobilised per year in 2017-18 Amounts mobilised by European DFIs, 2017-18 average USD million 871

Proparco IFU

722

FMO*

719

616

CDC 313

DEG 244

Finnfund 119

COFIDES

100

Norfund OeEB

83

SIFEM

79 55

Swedfund BIO SOFID Credit lines

35 17

Simple co-financing

Shares in CIVs

Direct investment in companies and SPVs

Syndicated loans

Guarantees

* For the purpose of the OECD statistics on amounts mobilised from the private sector, FMO is considered official, in line with the OECD DAC definition of official transactions. However, in the National Accounts System (NAS) of the Netherlands, FMO is registered as a private, independent bank.

Source: OECD DAC Statistics

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Focus on banking and financial services: USD 11.8 billion mobilised per year in 2017-18 Amounts mobilised for the banking and financial services sector, 2017-18 average USD million

By provider

By leveraging mechanism

Multilateral providers MIGA EU Institutions IADB Group AsDB EBRD World Bank (IBRD/IDA) PIDG CGIF Other multilateral Bilateral providers United States France Denmark Netherlands United Kingdom Spain Finland Germany Sweden Norway Belgium Austria Other bilateral

Credit lines

2,669 2,621 634 501 483

23%

203 125 54 17

52%

6% 11% 7% 2,251 862

434 244 210 163 121 74 55 47 30 26 22

Simple co-financing

Top recipients 1,203 914

876

802 510

Shares in CIVs

Direct investment in companies and SPVs

423

365

301

Syndicated loans

292

277

Guarantees

N.B.: The International Finance Corporation (IFC) provided data at an aggregate level due to confidentiality constraints and could therefore not be included in this analysis.

Source: OECD DAC Statistics

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Focus on LDCs and other LICs: USD 2.3 billion mobilised per year in 2017-18 Amounts mobilised for the LDCs and other LICs, 2017-18 average USD million

By provider

By leveraging mechanism

Bilateral providers France United States United Kingdom Finland Netherlands Sweden Denmark Other bilateral

268 232

7%

151 119

16%

72 71 61 98

Multilateral providers

MIGA World Bank (IBRD/IDA)) EU Institutions IFAD Other multilateral

679

7% 4% 8%

58%

Guarantees Syndicated loans Shares in CIVs Simple co-financing Direct investment in companies and SPVs Credit lines

303 86 73 82

Top recipients

Top sectors ENERGY BANKING AND FINANCIAL SERVICES INDUSTRY, MINING, CONSTRUCTION COMMUNICATIONS AGRICULTURE, FORESTRY, FISHING TRANSPORT AND STORAGE GOVERNMENT AND CIVIL SOCIETY EDUCATION HEALTH Other sectors

677 503 303 211 194 153

307

270

231 168

130 124 112

97

91

83

70 40 31 112

N.B.: The International Finance Corporation (IFC) provided data at an aggregate level due to confidentiality constraints and could therefore not be included in this analysis.

Source: OECD DAC Statistics

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USD 24.5 billion mobilised for climate over 2016-17 In 2017-18, European DFIs mobilised USD 3.7 billion per year

By leveraging mechanism 12% 21% 9% 52%

3% 3%

Guarantees Syndicated loans Direct investment in companies and SPVs Shares in CIVs Simple co-financing Credit lines

By climate theme Adaptation 3%

Mitigation 94% Both 3%

Source: OECD (2019), Climate Finance Provided and Mobilised by Developed Countries in 2013-17, OECD Publishing, Paris, https://doi.org/10.1787/39faf4a7-en.

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For more information oe.cd/privfin http://www.oecd.org/dac/financing-sustainable-development/development-financestandards/mobilisation.htm

Contact cecile.SANGARE@oecd.org tomas.HOS@oecd.org

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