Palermo, 12 th of June 2014 SOUTHERN & EASTERN MEDITERRANEAN REGION

Transcription

1 Palermo, 12 th of June 2014 SOUTHERN & EASTERN MEDITERRANEAN REGION

2 Contents EBRD: Introduction to EBRD EBRD: in the Southern and Eastern Mediterranean region (SEMED) and Turkey EBRD: LEF, Local Enterprise Facility EBRD: Case Studies 2

3 What is the EBRD? International financial institution, promotes transition to market economies in 34 countries from central Europe to central Asia Cumulative business volume of 86bn In 2011, the Bank expanded its operations to include Egypt, Morocco, Tunisia and Jordan (Southern and Eastern Mediterranean SEMED region) Owned by 64 countries and two inter-governmental institutions Capital base of 30 billion* Note: Unaudited as at 30 April June, 2014 European Bank for Reconstruction and Development

4 EBRD: Shareholding Structure and AAA Rating EBRD has a AAA rating from all three main rating agencies (S&P, Moody s and Fitch) Shareholding Structure As at 13th July 2012 (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) Russia at 4% 5 June, 2014 European Bank for Reconstruction and Development

5 EBRD finances diverse range of enterprises Note: Unaudited as at 30 April 2014 Net cumulative business volume 86bn 5 June, 2014 European Bank for Reconstruction and Development

6 Where we operate

7 The EBRD and its objectives The EBRD is: Your engaged partner Operates in business time Private sector focused Wide product, currency, tenor range Facilitates inward and cross border investments in the region Promotes policy dialogue with regards to investment climate business environment and policy matter AAA rating profitable, commercial focus 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 5 June, 2014 European Bank for Reconstruction and Development

8 EBRD s objectives achieved through financing the private sector Invested over 86 billion in more than 4,007 projects since 1991 As at end of April 2014: 2.2 billion invested in 97 projects Private sector accounted for 73% share Debt 81%, Equity 14% & Guarantee 5% billion Note: Unaudited as at 30 April June, 2014 European Bank for Reconstruction and Development

9 EBRD Product Flexibility tailored to project needs Equity Common stock or preferred Minority position only (up to 35%) Mezzanine Other guarantees currency swaps Loans Senior, subordinated, convertible LT (up to 10y or more) or ST revolving Floating/ Fixed rates Choice of currencies (, US$, RUB etc.) 5 June, 2014 European Bank for Reconstruction and Development

10 Operational Strengths of EBRD High-risk taking capacity: EBRD is willing to share risks, including political risks. Provides finance to both private and public sector clients. EBRD finance can be a catalyst to access additional equity, debt and trade finance, mobilising up to 2.5 times from other sources. Very good knowledge of local economy, business environment and practices, through extensive local presence. Focus on corporate governance including protection of minority interests.

11 EBRD is Additional to the Commercial Banking Sector 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, cofinancing). 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.

12 Italy and EBRD joint cooperation Total value of projects with Italian-EBRD involvement: billion (which includes further investment from other countries and sources). The majority of these deals were in the private sector. Value of joint Italian-EBRD investment: billion as of December 2012 EBRD investment: 8.94 billion Italian investment: 7.31 billion Major beneficiary regions: Russia, Poland, Bulgaria Dominant investment sectors: Industry, Commerce and Agribusiness: 6.51 billion Energy: 6.32 billion Infrastructure: 2.28 billion Financial Institutions: 1.14 billion 5 June, 2014 European Bank for Reconstruction and Development

13 Contents EBRD: Introduction to EBRD EBRD: in the Southern and Eastern Mediterranean region (SEMED) and Turkey EBRD: LEF, Local Enterprise Facility EBRD: Case Studies 13

14 EBRD in Turkey Catalyzing Private Sector Investment Operations began in early 2009 Initial focus on sustainable energy, MSMEs in remote regions, agribusiness, Utilities and Infrastructure As of Dec 2013; Number of operations signed: 116 Net cumulative business volume: 3,487m Cumulative disbursements: 2,887m The targeted business volume for 2014 is 1,500m 5 June 2014 European Bank for Reconstruction and Development

15 Why Invest in Turkey? Introduction to EBRD EBRD s operations in Turkey TURKEY = LONG TERM GROWTH PROSPECTS 15th largest economy in the World by GDP on PPP basis and 6th largest economy in Europe. Over 10 years, GDP/per capita has tripled to US$ Over the last decade, level on inflation has dramatically come down to 6-8 % level. Investment grade rating by Fitch and Moody s in Investor Exports increased almost five fold from US$ 35 billion to US$ 150 billion in Central Bank s FX Reserves increased to US$ 110 billion in 2013 from US$ 20 billion in Between , successful privatization of state assets of US$ 51 billion. Low level of Government debt stock (36% of GDP in 2013). More then US$135 billion of FDI attracted between 2002 and Strong Banking Sector which was hardly affected by recent global financial crisis. 75 million strong market with good demographics and connectivity with EU. Data: WDI World Bank, IMF, Turkish Statistics Institute, Central Bank of Turkey, Privatization Agency of Turkey 5 June Bank for Reconstruction & Development

16 EBRD: Expansion into SEMED The May 2011 G8 Summit launched the Deauville Partnership to support democratic transition, transparent government and sustainable growth. EBRD shareholders later that year approved an expansion of EBRD s mandate to include 4 SEMED Countries (Egypt, Jordan, Morocco and Tunisia). In November 2013, EBRD Board of Governors granted full Country of Operation status to Jordan, Morocco and Tunisia. The review of Egypt s political situation has been scheduled for In 2013 Host Country Agreements were signed with Egypt, Tunisia and Jordan; negotiations are in progress with Morocco.

17 SEMED: Progress to Date Permanent offices in Tunis and Amman were opened on The opening of permanent offices in Egypt and Morocco is planned for Projects have been signed to date for a total value of 1,011 billion. Over 60 million in donor funding has been made available for Technical Assistance. 87 Technical Cooperation projects received funding 46.2 million. Local currencies are available in Jordan and Egypt. The bank is negotiating currency swap arrangements in Morocco and Tunisia.

18 EBRD: Operational priorities in SEMED Support for the private sector with particular emphasis on SMEs. Developing non sovereign financing solutions for infrastructure including PPP structures. Promoting sustainable energy and energy efficiency initiatives. Supporting and developing local capital markets.

19 EBRD: Priority Sectors in SEMED 1. Financial Sector Working through local banks to finance the SME sector. Trade facilitation and other services. Support for restructuring and institutional building of selected banks. Microfinance and other specialised institutions.

20 EBRD: Priority Sectors in SEMED (continued) 2. Infrastructure Support reform agenda for state enterprises including corporatisation, subsidy reduction and privatisation. Introduction of legal and regulatory framework for PPPs and concessions. Direct investment in selected projects (ports, transport, waste management, etc.).

21 EBRD: Priority Sectors in SEMED (continued) 3. Financing Private Enterprises Manufacturing and Services including large corporates. Agribusiness and related industries (food chain). Direct support for the SME sector. Financial restructuring in selected cases.

22 EBRD: Priority Sectors in SEMED (continued) 4. Energy efficiency Power sector reform (liberalisation, commercialisation, unbundling). Development of renewable energy. Natural resources, preferably in less favoured regions.

23 SEMED: 2014 Project Pipeline There are 44 projects in the pipeline, valued at 1.1 billion: Egypt: 12 projects representing 527 million. Jordan: 9 projects representing 123 million. Morocco: 11 projects representing 259 million. Tunisia: 10 projects representing 176 million. Regional SEMED: 2 projects representing 59 million

24 EBRD: SEMED Investment Projects 24

25 Conclusion To Achieve Political, Economic and Financial Sustainability in the t Mediterranean Region: Political Stability. Predictable business environment. Continuation of the reform processes. Job creation based on investments through FDI but also local investments by the private sector 25

26 Contents EBRD: Introduction to EBRD EBRD: in the Southern and Eastern Mediterranean region (SEMED) and Turkey EBRD: LEF, Local Enterprise Facility EBRD: Case Studies 26

27 What is LEF The Local Enterprise Facility LEF LEF is: A delegated facility for equity and quasi-equity investments, as well as tailor-made debt financing. Established jointly by the EBRD and the Italian Government in For investments in the Balkans (Albania, Bosnia & Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania and Serbia), Turkey and the SEMED region (Egypt, Jordan, Morocco and Tunisia). To meet the growing financing needs of dynamic local SMEs, not sufficiently supported by other financing sources.

28 LEF Resources 405 million of capital provided jointly by the EBRD ( 385 million) and the Italian government ( 20 million). A team of dedicated bankers in EBRD s resident offices in Amman, Belgrade, Bucharest, Cairo, Casablanca, Istanbul, Podgorica, Pristina, Sarajevo, Skopje, Sofia, Tirana and Zagreb, as well as soon in Tunis. Supported by Technical Cooperation funds ( 20( million) for project development, pre- and post-investment technical assistance. Streamlined investment approval process (carried by EBRD in London).

29 Who is eligible for investments under LEF? Eligible investments: expansion, restructuring or acquisitions of existing private businesses. Eligible sectors: a wide range of sectors, with only few exceptions (weapons, spirits, tobacco, gambling). All investments must be in line with sound environmental principles. Size of investments: LEF individual investment could amount to up to EUR 10 million. Target Stake: (preferably) in the range of 20 to 35% of the capital of the company. Time horizon: a period of 3 to up to 10 years (15 years for project finance deals).

30 Contents EBRD: Introduction to EBRD EBRD: in the Southern and Eastern Mediterranean region (SEMED) EBRD: LEF, Local Enterprise Facility EBRD: Case Studies 30

31 Turk Traktor Signed in 2013 Client TurkTraktor, an open joint stock company incorporated in Turkey, manufacturer of farm tractors and trades other agricultural machinery. The majority shareholders are Koc Holding (37.5%), leading industrial conglomerate in Turkey and CNH Osterreich GmbH (37.5%). CNH Osterreich GmbH is a subsidiary of CNH Global, a part of the Fiat Group (Italy). EBRD Finance EUR 75 million long-term senior secured A/B loan; of which EUR 30 million will be for the EBRD s own account (A-loan) and EUR 45 million will be syndicated to other lenders (Bloan) Use of Proceeds Finance the construction of a tractor assembly plant in Sakarya, Turkey and investments in R&D, engine and transmission projects in the existing facilities in Ankara. EBRD value added The financing will support innovation through R&D activities which will be transferred from CNH Global to Turkey, promote energy efficiency and has a strong indirect impact on the development and efficiency of agriculture industry. 5 June, 2014 European Bank for Reconstruction and Development

32 Meykar - Turkey Signed in 2011 Company Information Producer of slush concentrates and other frozen beverages EBRD Finance EUR 1.4 million convertible loan Purpose of investment CapEx expansion through purchase of slush dispensers 5 June, 2014 European Bank for Reconstruction and Development

33 Kalibre - Turkey Signed in 2011 Company Information Joint stock company Producer of precision steel tubing for the automotive industry EBRD Finance EUR 7.4 million loan Purpose of investment Refinancing for Capex consisting of: new equipment; and new facilities to produce heavy gauge and small diameter precision tubes. 5 June, 2014 European Bank for Reconstruction and Development

34 Lesieur Cristal - Morocco Signed in 2012 Company Information Joint stock company listed on the Casablanca Stock Exchange since 1972 Leading Moroccan producer of edible oil and soap EBRD Finance EUR 2.5 million loan Purpose of investment Construction and launch of a biomass boiler to improve energy efficiency and overall profitability 5 June, 2014 European Bank for Reconstruction and Development

35 Vermeg - Tunisia Signed in 2013 Company Information Vermeg Solutions, a company incorporated in Tunisia, part of Vermeg Group Software developer providing solutions to financial institutions for their global securities operations EBRD Finance EUR 5.0 million loan Purpose of investment Financing of operational staff expenses as all employees are software developers and their compensation represents the majority of the Company s expenses 5 June, 2014 European Bank for Reconstruction and Development

36 Citruma - Morocco Signed in 2013 Company Information Private enterprise founded in 2006 Packaged juices producer EBRD Finance EUR 3.6 million mezzanine loan Purpose of investment Expansion of the product assortment by introducing new packaging and formats Upgrade of the production facilities and improvement of efficiency and product quality Rationalisation of the balance sheet through strengthening of the equity base 5 June, 2014 European Bank for Reconstruction and Development

37 Contact us Hildegard Gacek Managing Director - SEMED Tel: +44 (0) gacekh@ebrd.com Michael Davey Director, Turkey Tel: : daveym@ebrd.com Egypt: Philip Ter Woort Director, Egypt Tel: + 20 (0) terwoor@ebrd.com Tunisia : Marie-Alexandra Veilleux Head of Office, Tunisia Tel: veilleum@ebrd.com Jordan: Heike Harmgart Head of Office, Amman Tel: harmgart@ebrd.com Morocco: Laurent Chabrier Director, Morocco Tel: chabriel@ebrd.com 37 37

38 Contact us Olena Koval Head of Business Development Tel: +44 (0) Enzo-Sami Helou Manager, Business Development Tel: +44 (0) Luigi Dante Italy: Executive Representative Tel: /