Working with the European Bank for Reconstruction and Development Matti Hyyrynen 15 th March 2018
EBRD Introduction An international financial institution supporting the development of sustainable well-functioning market economies Shareholding structure Highest credit rating 1991 Established (AAA/Aaa) 1992 Russia and 11 other members of the former Japan EU 28 9% Soviet Union join Countries 1 USA 63% 10% 2007 The Czech Republic becomes the first country to “graduate” from the EBRD Owned by 66 Others 11% countries and 2 2012 Starts investing in Egypt, Jordan, Morocco and inter-governmental Tunisia institutions (the EU and EIB) EBRD 2016 25th anniversary; region China becomes 67th excluding member EU Capital base of 7% 2017 Lebanon and the West €30 billion Bank and Gaza become countries of operations 1. Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8.6% 2
EBRD introduction – option 2 IFI with a private sector mandate 25 years of supporting companies in Central and Eastern Europe AAA-rated International Financial Institution founded in 1991 to meet the challenge of rebuilding the History post-communist economies of Central and Eastern Europe Foster the transition towards market-oriented economies and to promote private initiatives in countries Mission committed to the principles of democracy Investments must meet strict environmental, social, governance and integrity standards, supporting Core values sustainable development and transparency Includes 65 countries from the Central and Eastern Europe and Southern and Eastern Mediterranean Shareholders regions, EU member states, G7 members, as well as EIB and EU. China has become the latest shareholder of the Bank in December 2015 All key economic sectors including financial institutions, infrastructure, energy and the general corporate Client sectors sector, including agribusiness and ICT Instruments Long-term market based debt and growth equity financing and technical assistance Over 1,900 employees from all member countries, working in sector, product, regional, support and Staff control functions, including about 30% staff in Countries of Operations 1 Headquarters in London, with 43 resident offices in its 36 countries of operations in Central and Locations Eastern Europe, Central Asia and the Southern and Eastern Mediterranean region Notes: 1 Total number of staff includes regular and fixed term employees, but excludes the President and Vice Presidents, Board members and externally funded positions. Data as of 31 December 2016 3
EBRD Basic Principles Transaction Impact Sound Additionality Banking 4
Our Transition Qualities Well- Competitive Inclusive governed Integrated Resilient Green 5
Where we invest Increasing footprint Estonia— Latvia— Russia Lithuania— Belarus Poland Czech Republic— Ukraine —Slovakia Kazakhstan —Moldova Mongolia —Hungary Slovenia— —Romania Croatia— —Serbia Bosnia and Herzegovina— Uzbekistan— —Bulgaria —Kosovo Montenegro— Georgia— —Kyrgyz Republic Albania— Armenia— FYR Macedonia —Tajikistan Turkey Tunisia— Azerbaijan —Turkmenistan Greece Cyprus —Lebanon —Morocco West Bank & Gaza— —Jordan SEMED Western Balkans Cyprus, Greece Turkey Armenia, Azerbaijan, Belarus, Central Asia Egypt— Georgia, Moldova, Ukraine (incl. Mongolia) Central West Bank Lebanon Eastern Europe and Gaza 6
EBRD Largest investor in the region Since 1991, EBRD invested EBRD Top 10 In 2017 investee countries over €119 billion in around €9.6 in 2017 (€m) 5,035 projects billion 1 Turkey 1,540 12 130 412 Net c 2 Egypt 1,413 110 investment (ABI) 10 cumulat 1,4 1,0 0,7 3 Ukraine 740 projects 90 0,4 8 lative B 1,2 4 Poland 659 70 Private sector accounted Bank Investment for share of 6 71% 5 Greece 614 al business 50 8,7 8,5 8,5 8,2 4 6 Kazakhstan 586 6,9 30 Annual b Debt 88% 2 7 Romania 546 10 8 Azerbaijan 456 Equity 0 -10 5% 2013 2014 2015 2016 2017 9 Serbia 382 Equity ABI Guarantee Debt ABI (and guarantees) 7% 10 Tunisia 324 Net Cumulative Bank Investment 7 Note: unaudited as at 31 December 2017
Portfolio distribution by sector and region EBRD Portfolio (at 31 December 2017): € 41,435 million Sector Region 10% 18% 22 % 22 % 24 % 24 % 3% 14% 12% 25 % 25 % 18% 29 % 29 % 19% 7% Ce Central al A Asia 1 ia 10% Fin inan ancial ial I Instit itutio ions 2 22% ( (Deposit itory c credit dit ( (banks), Centra ral E l Europ rope & & B Balt ltics 3 3% Leas asin ing f fin inan ance, n non-de deposit itory c credit dit ( (non-ban ank), Cypru rus & & G Gre reece 1 14% In Insura rance, P , Pension on, Mu , Mutual F l Funds) Eas astern E Europe & & Cau Caucas asus 1 18% Corp orpora orate 2 25% ( % (Ma Manufa facturi ring/Seri rivc vces, Russi ssia 7 7% Agrib ibusin iness, E Equit ity f funds ds, Pr Property & & T Touris ism, Sou outh-E h-Eastern rn E Europ rope 1 19% Informat atio ion & & Co Communic icatio ion technology) Sou outhe hern rn E Eastern rn Me Mediterra rranean 1 12% Turkey key 1 18% In Infra frastru ructure re 2 29% ( % (Mu Municipal & l & E Envi viron ronmental infra frastru ructure re, T , Tra ransport ort) 8 Note: unaudited as at 31 December 2017
Projects in all key business sectors Transport Property & Municipal & Environmental Tourism Infrastructure Financial Natural Telecomms, Institutions Resources Informatics & Media Power & Manufacturing Industry, Commerce & & Services Energy Agribusiness 9
Working Together Approval process and due diligence • Feasibility study • Reserves report • Completion risk • Management Technical • Production capacity • Energy Audits Signi ning ng Final Documentation • Air / water pollution • Management systems & Public • Discharge • ESAP / Gap Analysis Environ. & Disclosure • Health & Safety • Equal Opportunities / Board A Bo Appr pproval Social Inclusion • Communities / Our approval process Stakeholders EBRD • Historical financials • Credit Ratios (debt) Due • Projections • Valuation (equity) Financial • Financial Model Fin inal R Revie iew Diligence Process Due Diligence • Supply-demand • Price risk & Term Sheet • Competitive • FX risk Stru ructure re Market analysis negotiation Review • Security • Licenses, permits • Incorporation and • Legal agreements Legal & Concept R Co Revie iew Domiciliation • Insurance Contracts • Ownership and title 10
The EBRD Its key strengths and objectives Key strengths Objectives Long-term Commercial perspective basis Invest both in the Commercial private and state basis sectors Regional Policy integration dialogue Work with 25 years governments and Improve people's Private sector experience lives development shareholders Local presence Structuring in 36 countries expertise Foreign direct Innovate investment Catalyst to mobilise finance for both private and public sector clients 11
EBRD working with commercial investors The EBRD does not compete with commercial investors invites other banks to participate in its operations leads the market with innovative products and longer tenors employs donor grant funds to blend with its projects cooperates with other investors (supporting strategic equity investors) investment of €1 “mobilises” another €3 for the project provides assistance in structuring and executing investments with significant energy and resources efficiency gains does not lend or invest when commercial banks or private investors can do it alone 12
Working with the EBRD Policy Investment dialogue Procurement Trade facilitation 13
EBRD Product Flexibility tailored to project needs Exact terms depend on specific needs and market conditions Debt Equity Guarantees €10mln + (less in less €5-7mln + (less in less Typical size Typically €50k – €50mln advanced countries) advanced countries) 5-7 years (up to 10-15 years in Term case of infrastructure Typically from 3-7 years 1.5-2 (up to 3) years investments) Currency Major foreign currencies as well as local currency Finance up to 35% of the Mainly through Trade Facilitation Approach Minority stake project (60% with syndication) Programme • Senior, subordinated or • Import/export operations convertible, • Portage equity finance Structures • Pure guarantees, cash advance • Project finance • Risk equity trade finance • Floating or fixed rates • Greenfield/Brownfield, JVs, • Issues to international banks • Capex for expansion/modernization, including resource • Takes the risk of transactions Applications efficiency improvements of the banks in the EBRD’s • Ownership change: acquisition, consolidation, privatisation countries of operations • PPPs, etc. 14
Recommend
More recommend
