EVENTS
IN THEIR OWN WORDS: DFIs AND RISK AVERSION The OPEC Fund Quarterly asked delegates to share their take on the discussions in the context of geopolitical – and economic – uncertainty
Marife Apilado Portfolio Management Director at ADB
Guido Bichisao Director Portfolio Management at EIB
“I’ve never seen a crisis as layered and complex as the current situation: from COVID-19 to the Russian invasion of Ukraine to geopolitical tensions – it’s just layers and layers of complexity for our clients. At the same time we’ve seen greater risk aversion and reduced risk appetite in markets, which provides a huge opportunity for DFIs to step in and address market gaps.”
“Portfolio managers now have to track not only credit risk but also compliance, climate and project risk, while accommodating a greater push for impact assessments. At the EIB, we’re setting up new procedures for risk management, from inception to completion, in order to better prepare for difficult times and potential restructurings.”
Holger Muent Director of Corporate Debt, Banking Portfolio Department at EBRD
Cecilia Prieto de Rabassa Managing Director, Division Chief Portfolio Management at IDB Invest
Stefka Ignatov Acting Manager, Global Debt Portfolio at IFC
at IDB Invest and Eva Gonzalez Calvo, Head of Infrastructure and Energy Portfolio Management at IDB Invest as well as OPEC Fund Senior Investment Manager Olumuyiwa Osibanjo. Together they discussed how DFIs can leverage technology, streamline processes and adopt best practices to drive operational efficiency. Day Two was kicked off by a panel on “Portfolio Self-evaluation” hosted by the European Bank for Reconstruction and Development (EBRD) and featuring counterparts from the African “Self-evaluation is one of the challenges that we’re working on at IFC and right now we’re reforming our methodology. The conversations we had today with EBRD and FMO among others were particularly useful in terms of sharing best practice.”
Development Bank, Development Bank of Southern Africa and FMO, moderated by OPEC Fund Investment Manager Malik Faraoun. Delegates discussed the role of portfolio units in the evaluation spectrum from project inception to long-term impact. Mr. Ridha summed up by calling on everyone to learn lessons, maintain momentum and not be afraid to think out of the box saying: “The 2023 DFI Portfolio Management Conference provided a unique opportunity for all participants to generate collective “I think this conference series is going in the right direction. What I would like to see is continuity in terms of tackling the issues. It’s not enough just to discuss themes; we should create working groups, continue efforts throughout the year and present results at the next conference.”
insights that will help navigate current and future challenges. As we contemplate future interventions, each challenge brings the opportunity to explore further improvements by learning from our successes and shortcomings and by considering alternative approaches.” This DFI conference series has been held on multiple occasions in the past, most recently at FMO in the Dutch capital, the Hague, in 2019. The next event in 2024 is set to be hosted by the EBRD in London, UK. “Our challenges at IDB Invest are similar to other regions, including problems related to the war in Ukraine, high interest rates and climate change. We also have difficult macroeconomic conditions, although perhaps they’re more specific to the Latin American region.”
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