Private Sector Liaison Officer Network

EBRD Retreat – 31st January 2011

Teresa Green

Business Development

Logistics

Fire exits

Toilets

Sessions in Lee Jackson Room – 8th floor

Lunch in Board Ante Room – 10th floor

Business Development Unit – 4th floor

Moving around the building

The day ahead…

Introduction and welcome

What is the EBRD?

Macroeconomic Overview of EBRD Region

Coffee

Investment priorities 2011

Lunch

Procurement

Consultancy

Coffee

Best practice sharing session

Dinner

What is happening tomorrow?

Overview of The EBRD

What is the EBRD?

0

4

8

12

16

20

24

28

32

36

40

44

48

52

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

€ b

illio

n

International financial

institution, promotes

transition to market

economies in 30 countries

from central Europe to

central Asia

Owned by 61 countries and

two inter-governmental

institutions

Capital base of €30 billion*

*At the Annual Meeting in Zagreb in May

2010, the Board of Governors approved

the Bank’s capital increase from €20bn

to €30bn authorised capital.Cumulative commitments of €52.7 billion

Unaudited as at 30 September 2010

What are the EBRD’s objectives?

To promote transition to market economies by

investing mainly in the private sector

To mobilise significant foreign direct investment

To support privatisation, restructuring and better

municipal services to improve people’s lives

To encourage environmentally sound and

sustainable development

3

A Network of 36 Offices in 29 Countries

Cumulative commitments by sector

Agribusiness,

9%Equity Funds,

5%

Financial

Institutions, 28%

Manufacturing

and Services,

12%

Municipal & Env

Inf, 6%

Natural

resources, 7%

Power and

Energy, 10%

Property and

Tourism, 4%

Telecoms

Informatics &

Media, 5%

Transport, 14%

Unaudited as at 30 September 2010

The EBRD is active in all its countries

of operations

Turkey became a country of operation in Dec 2008

and the Bank financed its first investment operations there in 2009.

Central Asia

Central Europe and

Baltics

Eastern Europe and

Caucasus

Russia

South-Eastern

Europe

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 10

% o

f A

nn

ua

l B

usin

ess V

olu

me

Turkey

Unaudited as at 30 September 2010

Shareholders of the EBRD

USA

10.1%Others

11.3%Japan

8.6%EBRD region

7.3%

(excluding EU)

(2) EU 27 countries

62.7% (1)

(1) Includes European Community and European

Investment Bank each at 3%; France, Germany,

Italy, UK each at 8.6%

(2) Russia at 4%

As at 1 September 2010

Senior, subordinated, convertible

LT (up to 10y or more) or ST revolving

Floating/ Fixed rates

Choice of currencies

(EUR, USD, RUB etc.)

Syndication Loan

Common stock or preferred

Minority position only (up to 35%)

Mezzanine

11

EquityLoans

EBRD Financing Solutions

Operational Strengths of the EBRD

Willing to share risks, including political risks

Provides finance to both private and public sector clients

Catalyst to access additional equity, debt and trade finance

Extensive knowledge of local economy, business environment and practices

Focus corporate governance incl. protection of minority interests

Institutional Strengths of the EBRD

Strong, internationally recognised financial partner

with long-term perspective

Close working relationships with governments and

shareholders

Political leverage due to EBRD’s unique mandate

and shareholder structure

Preferred Creditor Status

1:1 gearing ratio at €26 Billion

Environmental mandate

Every project is screened for environmental impact

Around 17% of total commitments are designed to

make environmental improvements

EBRD takes account of the

environment in all its operations

EBRD does not lend or invest when commercial

banks or private investors can do it alone

EBRD invites other banks to participate in its

operations (syndication, co-financing)

EBRD leads the market with innovative products,

local currency and longer tenors

EBRD provides technical assistance for project

preparation and implementation where such

assistance is required.

EBRD is Additional to Commercial

Banking Sector

EBRD’s Approach to Financing Small

and Medium Enterprises (SMEs)

SME and micro financing is a priority area

EBRD provides long term financing to financial intermediaries which are prepared to on-lend to SMEs

Through equity, loans, equity funds and leasing

Loan sizes from $1,000 to $1 million

In Russia, the EBRD works through 29 financial intermediaries

SME related portfolio of over $650 million in Russia

SME lending is on a commercial and sustainable basis

Technical cooperation to assist the development of SME lending skills is available

EBRD’s Micro Small Enterprises

(MSE) programmes

Objective: to provide financial services to private

micro and small enterprises through financial

intermediaries (banks/non-banks).

Impact: support start-ups, small businesses, provide

access to formal financial sector; growth of local

economy; increase banking sector stability; outreach

to rural agricultural enterprises

Microfinance Banks: supported establishment of 12

microfinance banks

Objectives

Support and develop trade, both inter- and intra-regional

Help local banks create tracks records with foreign banks

Provide liquidity to the trade finance system

Strengthen EBRD relationships with local banks, develop opportunities for further operations

Institutional development is a key goal

TFP and the USA

44 American Banks have joined the TFP as Confirming Banks

308 export transactions of American companies with a total volume of €223.4m have been financed since 1999

Trade Facilitation Programme (TFP)

Export of Equipment to Kazakhstan

Caterpillar sells equipment to Kazakhstan

A Kazakh Issuing Bank under the TFP opens a Letter of Credit to a foreign Confirming Bank, payable in several instalments before, at and after delivery

EBRD guarantees payment of amounts or tenors which are not covered by ECAs (max. 3-5 years)

EBRD guarantees up to 100% of the political and commercial payment risk

Programme consists of complementary schemes that aim to help private enterprises to adapt to the demands of a market economy

TAM: started in 1993; it has undertaken over 1,830 projects in all countries of operations involving over € 116 million in donor funding

BAS: since 1995, BAS has worked in 22 countries, undertaking about 9,500 projects and utilising over € 95 million of donor funding

Private enterprises with 100–2,000 employees

Uses industry specific management expertise from developed countries

Works at senior management level

Maintains a database of over 3,000 advisors

TurnAround Management (TAM)

Programme and Business Advisory

Services (BAS)

Case Study Examples

Petrom Environmental Loan

Client: Petrom, 51% owned by OMV A.G., Austria-based integrated oil and gas company

Previous transaction: pre-privatisation loan and equity investment (signed in '02)

EBRD Finance: EUR 300 million. The loan comprises an “A Loan” of up to EUR 150 million for EBRD’s account, and a “B Loan” of up to EUR 150 million to be syndicated

Tenor: 9 years

Use of Proceeds: corporate environmental remediation investments

EBRD added Value: demonstration effect to other oil and gas companies to tackle environmental weaknesses

Signed in 2009

Client: Bor Glass Works, leading producer of

float glass in Russia

EBRD Finance: EBRD Equity of USD 15 mln

(1997); EBRD Loan of USD 25 mln (2003)

Use of Proceeds: acquisition of a 75%

controlling interest in the Company by a

Asahi (Japan)/Glaverbel (Belgium)-led

consortium, which is to be followed by the

completion of a short-term capital investment

program in order to improve productivity.

EBRD added value: support Bor and

Russian glass industry; improvement of skills

and increased competition; increase the

competitiveness in auto-glass market and

Russian automotive exports

Signed in 1997 and 2003

Bor Glass Factory (Russia)

Konzum d.o.o. Sarajevo

Client: Konzum d.o.o. Sarajevo,fully owned by

Konzum d.d. Croatia - subsidiary of Agrokor,

leading producer and distributor of food and

beverage products and one of the leading retailers

in the South Eastern Europe

EBRD Finance: EUR 25 million loan, alongside

additional financing of EUR 25 million from other

participating banks

Use of proceeds: support expansion of the

Company’s retail network in BiH and financial

restructuring

EBRD added value: contribution to the BiH’s

retail sector through development of modern retail

formats; backward linkages with local

manufacturing; strengthen commercial and

business relations between Croatia and BiH

Signed in 2009

Bankers Petroleum - Albania

Client: Bankers Petroleum Albania, subsidiary of Bankers Petroleum in Canada

EBRD Finance: US$55 million loan, US$9.5 million in equity investment

Tenor: 7 years

Co-financing: US$130 million with IFC (International Finance Corporation) on a 50-50 basis

Use of Proceeds: Development and remediation of the Patos Marinza oil field in Albania

EBRD added Value: US$5 million loan allocated to support the redevelopment & environmental remediation of the areaSigned in 2009

Derbes Brewery in Kazakhstan

Signed in 2007

Client: Derbes Brewery, 98% owned by

Baltic Beverages Holding AB

Previous transactions: Baltika (Russia),

Slavutich (Ukraine), Olivaria (Belarus)

EBRD finance: US$ 41.7 mln loan, US$

88.8 mln syndicated to commercial banks.

Total Project Value: US$ 130.5 mln

Tenor: 6 years

Use of Proceeds: capacity increase at

existing brewery

EBRD added value: providing long-term

financing for Derbes’ market expansion

Volkswagen AG

• Client: Volkswagen Russia

• EBRD finance: EUR 30 million equity participation

Use of proceeds: Construct and operate an automobile assembly plant for a total investment of EUR 425 million. Start production in late 2007 with assembly of 20,000 units per year, increasing to the production of complete vehicles in 2009 at a rate of 115,000 per year.

EBRD Value Added: foster the growth of automotive manufacturing plant in Russia

Signed in 2006

Stora Enso: implementing micro-flute

packaging plant project in Russia

Client: Stora Enso Packaging BB

EBRD Finance: EUR 5.85 million loan

Tenor: 9 years

Co-financing: total €17.25 million

syndicated loan with Handelsbanken,

Nordea and SEB bank

Use of Proceeds: construction of a

greenfield offset printed micro-flute

packaging plant in Kaluga region

EBRD added value: MPF as an important

umbrella for new investments in the forest

product sector

Signed in 2007

Renault Technologies Romania -

Titu Test Centre

Client: Renault Technologies Roumanie is Renault’s regional engineering centre, designing and developing vehicles

EBRD Finance: EUR 44 million portage equity finance. European Investment Bank will also provide financing to the project. Total project cost: EUR 166 million

Use of Proceeds: construction of a Test Centre at Titu, between Bucharest and the main production site of Renault’s subsidiary, Dacia, at Pitesti

EBRD added value: only comprehensive automotive testing centre out of France for Renault; links with local universities and other academic institutions; improve the technological level and quality of components produced by local suppliers through closer contact and more rapid feedback

Signed in 2009

Kamaz Equity (Russia)

Client: OJSC Kamaz, located in Tatarstan, is Russia’s largest truck manufacturer. Daimler AG owns 10 per cent of Kamaz since December 2008

EBRD Finance: investment into ordinary shares of Kamaz

Use of Proceeds: Daimler Trucks began a strategic partnership with Kamaz in December 2008 when Daimler acquired a 10 percent stake in Kamaz. Daimler intended to strengthen its role in Kamaz, through the acquisition of Kamaz shares held by Troika Dialog. EBRD supports this process by acquiring part of the Kamaz shares from Troika

EBRD value added: through this transaction, EBRD supports Daimler, the global market leader in heavy- and medium-duty trucks, in its progressive cooperation with Kamaz, bringing with it strong technology, know-how and high standards of business conduct that are expected to contribute to further improvements in the operations of Kamaz

Signed in 2010

Filippou Group - Elbisco

Client: Zitoluks, subsidiary of Elbisco

Holding (one of 4 main divisions of

Filippou Group)

EBRD Finance: €8 million under the

Regional Facility

Tenor: 8 years

Use of Proceeds: finance the

expansion of existing operations and

refurbishment of the company's network

of bakery shops

EBRD added value: financial partner in

a market with limited opportunities to

raise finance for small transactionsSigned in 2004

Polonia Property Fund

Client: AIB Capital (Fund Manager), a

wholly owned subsidiary of Allied Irish

Bank (AIB) encompassing its investment

banking, treasury and corporate banking

activities

EBRD Finance: €25 million equity

investment

Use of Proceeds: providing investors with superior returns through investments in property projects (office buildings, warehousing, distribution and retail shopping centres) in Poland

EBRD added value: development of sector-focused funds; introduction of world-class investors to the regional real estate market

Signed in 2003

LG Russia

Client: OOO LG Electronics RUS, subsidiary of LG Electronics Inc, Korea

EBRD Finance: USD 10 million long term senior loan. Total project cost: USD 120 million

Use of proceeds: construction and operation of a greenfield production facility for digital electronic equipment (TVs and audio equipment) and white goods (washing machines and refrigerators) in the Ruza region of Russia, 70 km from Moscow

EBRD value added: develop the domestic component manufacturing industry; skills transfer to local employees; greater competition and demonstration effect; foster market efficiency, innovation and higher standards ; improve corporate governance and business standards

Signed in 2006

SK Eurochem (Poland)

Client: SK Chemicals (main sponsor), LG

International (off-taker) and Anwil (Poland)

EBRD finance: EUR 15.2 million (EUR 13

mln loan, EUR 2.2 mln equity investment)

Total project value: EUR54.9 million

Co-financing: parallel loan from Raiffeisen,

Nordea Bank and Export-Import Bank of

Korea

Use of Proceeds: Construction and

operation of a 120,000 tpa PET resin

manufacturing facility in Poland

EBRD added value: demonstration effect

and transfer of skills in Polish chemical

sectorSigned in 2002

Magyar Wind

Client: Iberdrola Renovables Magyarország, a fully-owned Hungarian subsidiary of Iberdrola Renovables, a world leading developer in renewable energy industry

EBRD Finance: 25% equity investment in IBR Magyar of the HUF equivalent to up to EUR 50 million, by subscribing for shares following a capital increase

Use of Proceeds: development, construction and operation of the Company’s current portfolio of wind power projects in Hungary

EBRD Added Value: By financing one of the most visible wind farm portfolios in Hungary, investment will provide comfort to project developers and other private investors and will demonstrate confidence in Hungary’s renewable energy framework

Signed in 2008

Signed in 2010

Raven Russia Logistics

Client: Logopark Ob LLC, subsidiary of Megalogix Ob, owned by Raven Russia

EBRD Finance: EUR 35 million senior loan, EUR 5 million subordinated loan

Co-financing: €80 mln debt financing with IFC on a 50-50 basis

Tenor: 9 years with 1 ¼ year grace period for senior loan

Use of Proceeds: development, construction & operation of a Class A logistics park

EBRD added value: preferred creditor in the region; capable of addressing the shortage of liquidity and long-term financingSigned in 2009

How to contact us

Teresa Green

Business Development

One Exchange Square

London EC2A 2JN

United Kingdom

Tel: +44 20 7338 6502

Fax: +44 20 7338 7848

E-mail: greent@ebrd.com

www.ebrd.com

New Project Enquiries Tel: +44-20-7338-7168

Trade Facilitation Programme Tel: +44-20-7338-6813

Procurement Opportunities

and General Information Via web site: www.ebrd.com

Publications Tel: +44-20-7338-7553