12-13 June 2012, IFAD Headquarters, Rome
IFAD’s Financial Operations Department, Partnership and Resource Mobilization Office and Office of the General Counsel are pleased to present a technical roundtable discussion on Mobilizing Resources for IFAD Programmes: Alternative Sources and Innovative Modalities.
This learning event constitutes a concrete step in the implementation of the directive from IFAD’s Governing Council to Management “to make every effort to explore the scope for increasing financing from alternative sources and to submit any resulting proposals to the Executive Board for approval.”* Indeed, to meet the rising demand for its services and fulfil its mandate as a specialized agency of the United Nations, IFAD must increase the funds it mobilizes and administers in support of rural poor people.
As the first event of its kind at IFAD, the roundtable will assemble a broad range of experts from the fields of resource mobilization, development finance, government, banking, impact investing, legal practice, and academia to respond to the overarching question: What institutionally and financially viable solutions exist for increasing the funds mobilized and administered by IFAD, in order to lift a maximum number of rural poor out of poverty?
We hope that this roundtable will provide concrete suggestions on how IFAD can work to identify new sources and structures for financing its programme of work, in order to deepen its development impact. Working with partners, our strategic aim is to fully realize our institutional mandate of “mobilizing additional resources to be made available on concessional terms for agricultural development in developing Member States.” (Art. 2, Agreement Establishing IFAD.)
- Inform IFAD’s thinking by exploring best practices and benchmarks developed by other IFIs, development banks, United Nations agencies and vertical funds in their efforts to attract alternative forms of financing from public and private entities
- Examine the channels through which banks and impact investors participate in development and understand how such involvement can figure into their business plans. Explore possibilities for these actors to work with IFAD to implement the Governing Council directive on increasing financing from alternative sources
- Identify new partnerships and structures that could be harnessed to put the Governing Council directive into action and develop preliminary proposals for consideration by Management and, subsequently, IFAD’s Executive Board
- Mohamed Beavogui, Director, Partnership and Resource Mobilization
- Iain Kellet, Chief Financial Officer, Financial Operations Department
- Rutsel Martha, General Counsel, Office of the General Counsel
Panel 1: Trust funds: Learning from experience
Expert participants will review the design and structuring of certain multi-donor trust funds and framework-administered accounts1 established by other agencies. Such vehicles are becoming increasingly popular instruments for channelling development finance. The pros and cons of these vehicles will be explored in detail during the discussion. In this context, IFAD has already begun to explore the scope for increasing financing from non-conventional donor resources: in 2010, the Executive Board approved the establishment of the Spanish Food Security Cofinancing Facility Trust Fund. Administered by IFAD, the Trust Fund borrows money from a third party (the Government of Spain) for on-lending to Member States. The challenges and opportunities presented by this alternative financing mechanism will be discussed, as will the possibilities for replication.
Moderator: Kevin Cleaver, Associate Vice President, IFAD
Bisrat Aklilu, Executive Coordinator, Multi-Partner Trust Fund Office, Bureau of Management, UNDP
Federica Cerulli, Partnership Officer (Supplementary funds), IFAD
Roberto Tarallo, Manager, Global Partnerships and Trust Fund Operations, World Bank
Panel 2: IFAD: An investment opportunity for public institutions
As demonstrated by the renewed attention to agriculture and food security issues across the globe, public institutions are increasingly interested in setting aside resources to invest in agricultural development. In light of the successful fundraising experiences of the International Monetary Fund through the issuance of notes to the official/public sector, participants will discuss the applicability of this approach to IFAD. Bearing in mind the Fund’s mandate, operational model and governance structure, participants will also discuss other mechanisms for borrowing from public institutions.
Moderator: Hugo Beteta, Sub-Regional Director, Economic Commission for Latin America
Antonella Bassani, Director, IDA Resource Mobilization Department – via videoconference
Benoît Chervalier, Head, Resource Mobilization and Allocation Unit, AfDB
Chris Hemus, Deputy Director, Finance Department, IMF
Rutsel Martha, General Counsel, IFAD
Elizabeth Uwaifo, Partner, Sidley Austin LLP
- IMF Factsheet: Financing Concessional Lending
- IMF Factsheet: Standing Borrowing Arrangements
- Comparing IMF / IFAD: Borrowing From and Issuing Notes to Official Sector
Panel 3: Islamic finance
Islamic financing is an area of enormous potential for effective resource mobilization in support of agricultural development. Experts will share their views on the innovative dimensions of Islamic finance, the lessons learned and best practices, and the potential for investors coming from this tradition to engage in financial partnership with an organization such as IFAD.
Moderator: Hafez Ghanem, Senior Fellow, Brookings Institution
Amer Bukviḉ, CEO, Bosna Bank International (BBI)
Antje Kaspurz, Investment Management Officer, IFAD
Dr. Salman Syed Ali, OIC Islamic Economics and Finance Research, IsDB
Mohammad Saeedullah, Principal Capital Markets Specialist, Treasury, IsDB
Panel 4: Exploring opportunities for working with private investors
Drawing on their experiences in banking, impact investing, and innovative financing in other sectors, such as health and climate change, participants will discuss their views as to what constitutes best practice for attracting financing from private sources.2 The strategies and instruments available for mobilizing resources from private investors will be reviewed, including syndicated loans and co-financing with the growing community of impact investors. Participants will discuss the applicability of such approaches to IFAD, bearing in mind the Governing Council directive on alternative resource mobilization, as well as the Fund’s mandate, operational model, and governance structure.
Moderator: Iain Kellet, CFO, IFAD
Deborah Burand, Professor, University of Michigan Law School
Craig Courtney, Senior Independent Consultant
Laura Mecagni, Head, Global Agriculture and Food Security Program, Manufacturing, Agribusiness & Services Department, IFC
Siddharth Tata, Agriculture Portfolio Manager, Acumen Fund India
- IFC Syndicated Lending: An Overview
- Partnering with IFC on Syndications
- Innovative Financing for Development
- Acumen Fund, Executive Summary: From Blueprint to Scale
* Resolution 166/XXXV on the Ninth Replenishment of IFAD’s Resources, adopted by the Governing Council at its thirty-fifth session (23 February 2012).