EBRD: Financing possibilities Vinja Mrakov i -Supek, Josip Lasi , - PowerPoint PPT Presentation

EBRD: Financing possibilities Višnja Mrakov č i ć -Supek, Josip Lasi ć , EBRD

Introduction to EBRD EBRD financing ENEF 2

Who we are Introdu duction t to EBRD EBRD in in Croat atia ia Equity Eq ty a at t EB EBRD ENEF EN EF • International financial institution, promotes Sha hareho holdin ing S Structure transition to market economies in 38 38 countries from Central Europe to Central Asia. Others 11% EBRD region excl. EU • The single largest investor in its existing region. members*** 7% Japan • Owned by 66 66 countries and 2 inter-governmental 9% institutions. EU 28 United States members** of America 63% 10% • Capital base of € 30 30 billion. • 1,300 300+ staf aff in 61 regional offices. As at 31 December 2015 ** Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each hold 8.6% *** Russia at 4% 3

Where we invest 4

EBRD in Croatia • The EBRD is one of the largest investors in Croatia with realized investments of over € Portfolio Composition 3.6 billi llion in 19 198 proje jects since 1994. • The Bank has proved its commitment to Energy 3% development of market oriented economy as 23% Fin. Institutions € 2.49 49 billi llion (69 69%) of its realized investments is comprised of private corpo porate Ind., Comm. & 53% Agrib. inv nvestment nts. Infrastructure 21% • Further, equity investments amount to more than € 571 milli llion (16 16%) of its realized Annual Bank Investment investments. • In In 201 016 the EBRD realized € 31 311 milli llion 400 386 311 298 investments in 12 12 pr projects with € 107 07 milli llion 288 300 248 210 of additional financing mobilized through 203 200 158 commercial banks. 105 100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 in € million at reported rates 9 March, 2018 5

Introduction to EBRD EBRD financing ENEF 6

EBRD direct financing: Capital Structure Pyramid COMMON EQUITY • Redeemable (convertible) Higher return Higher risk PREFERRED EQUITY preference shares • Secured debt with a “kicker” • Loans convertible into equity MEZZANINE DEBT • Subordinated/unsecured loans with higher interest rates, often capitalised (“PIK”) SENIOR DEBT 9 March, 2018 7

EBRD Financial Instruments Main EBRD i instr trumen ments • Senior, subordinated, convertible Debt • Long term (up to 10y or more) or short term financial revolving instruments • Floating/Fixed rates • Choice of currencies (€, US$ etc.) Equity & • Common stock or preferred Quasi • Minority position only (up to 35%) Equity • Mezzanine debt • “Portage Equity“ • Used with more complex projects Loan • Syndication department syndication • Lender of record • AAA credit rating 8

EBRD indirect financing through commercial banks MS MSME ME credit l lines s - loans to micro, small & medium enterprises – financing of all • business needs (capex i working capital). Wo Women in B Busi siness ss credit li lines • REENOVA+ + credit li lines - Financing of working capital, procurement financing for • products, materials and equipment that meets the set technical requirements for energy efficiency. The program is intended for suppliers, manufacturers, installers, or sellers of energy-efficient products. Users of this funding program can also request free technical assistance from consultants, including all the explanations on energy- efficient equipment, possible savings, optimal combination of energy efficiency measures, required project documentation, and all implementation steps. MS MSME ME le leasing – financing the procurement of equipment and vehicles for business • purposes through leasing. Designed for micro, small and medium-sized businesses. 9

EBRD Support Throughout Financing Life- Cycle of SMEs Cash balance  Direct equity  ENEF  Venture financing  Debt financing  Private equity  Angel investors  Angel investors  VCIP  Government grants  VCIP  Personal financing  Funderbeam Expansion Early growth Pre-seed Seed Start-up Time High Risk EBRD secured support to Financial support to ZSE to assess the Funderbeam SE SEE, a crowdfunding Low risk feasibility of establishing an exchange- platform for start-up companies operated regional SME E growth th m market t in that is based on blockchai ain Croat atia ia an and Sl Slovenia. technology.

Introduction to EBRD EBRD financing ENEF 9 March, 2018 11

ENEF Overview: EUR 97m fund dedicated to Western Balkans Established in 2014 and financed jointly by the EBRD, E , EU, , EIF, D , DEG, G, OeE eEB and the Italian  Governm nment nt - EBRD acts as Investment Advisor.  Total of €48.5 million capital provided by EBRD (€21 million), EIF, DEG, OeEB (€5 million each), EU (€9.5 million) and the Italian Government (€3 million), and matched one-for-one by a co-financing facility provided by the EBRD for a total of €97.0 million  Technical Cooperation funds provided by the EU for project preparation, pre- and post- investment technical assistance A team of dedicated bankers at the EBRD located in London and the EBRD’s resident  offices in Belgrade, Podgorica, Pristina, Sarajevo, Skopje, Tirana and Zagreb 9 March, 2018 12

ENEF Investment Criteria  Quasi-equity instruments: subordinated unsecured loans, mezzanine loans, convertible Eligible loans and loans having a performance-related remuneration Instruments  Equity instruments: straight equity, warrants and rights for acquiring shares, preferred shares  Eligible sectors in line with EBRD policy  Prohibition of financing of gambling, weapons etc. Eligible Sectors  Individual investment range from €1 million up to €14 million (including the co-financing Investment provided by the EBRD) size  All private companies operating in eligible sectors irrespective of the size (including, Target medium and large enterprises and SMEs) Investees  At least EUR €15 million to be invested in SMEs based on EU definition (up to €50 million sales or €43 million assets)  Period between 3 and 10 years (usually 5 to 7 years) Investment Horizon 9 March, 2018 13

Contacts For all further enquiries, please contact: Zagreb R b Resident O Office Ent nterprise E Expansion F n Fund und Miramarska 23, 5 th Floor Aida Mujičić, F&D SME 10000 Zagreb Josip Lasić, F&D SME Croatia t: + 385 1 6000 310 t: + 385 1 6000 310 e:mujicica@ebrd.com e: lasicj@ebrd.com Advice for Small B Bus usine nesses C Croatia, Women i n in n Bus usine ness Miramarska cesta 23/5, Zagreb Tel. 01 6000 310 www.ebrd.com/womeninbusiness Višnja Mrakovčić Supek supekv@ebrd.com EBRD, O One E Excha hange S Square Londo don, EC2 C2A 2 2JN United K d Kingdo dom www.e .ebrd rd.c .com http:/ ://www.e .ebrd rd.com/croatia.html 21