Private Sector Liaison Officer Network EBRD Retreat 31 st January Teresa Green Business Development

Transcription

1 Private Sector Liaison Officer Network EBRD Retreat 31 st January 2011 Teresa Green Business Development

2 Logistics Fire exits Toilets Sessions in Lee Jackson Room 8 th floor Lunch in Board Ante Room 10 th floor Business Development Unit 4 th floor Moving around the building

3 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?

4 Overview of The EBRD

5 billion What is the EBRD? '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Cumulative commitments of 52.7 billion 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. Unaudited as at 30 September 2010

6 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

7 A Network of 36 Offices in 29 Countries 3

8 Cumulative commitments by sector Telecoms Informatics & Media, 5% Transport, 14% Agribusiness, 9% Equity Funds, 5% Property and Tourism, 4% Power and Energy, 10% Financial Institutions, 28% Natural resources, 7% Municipal & Env Inf, 6% Manufacturing and Services, 12% Unaudited as at 30 September 2010

9 % of Annual Business Volume The EBRD is active in all its countries of operations 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% South-Eastern Europe Russia Eastern Europe and Caucasus Central Europe and Baltics Central Asia '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 10 Turkey became a country of operation in Dec 2008 and the Bank financed its first investment operations there in Turkey Unaudited as at 30 September 2010

10 Shareholders of the EBRD EBRD region 7.3% (excluding EU) Others 11.3% USA 10.1% Japan 8.6% (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

11 EBRD Financing Solutions Loans Senior, subordinated, convertible LT (up to 10y or more) or ST revolving Floating/ Fixed rates Choice of currencies (EUR, USD, RUB etc.) Syndication Loan Equity Common stock or preferred Minority position only (up to 35%) Mezzanine 11

12 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

13 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

14 Environmental mandate EBRD takes account of the environment in all its operations Every project is screened for environmental impact Around 17% of total commitments are designed to make environmental improvements

15 EBRD is Additional to 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, 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.

16 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

17 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

18 Trade Facilitation Programme (TFP) 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

19 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

20 TurnAround Management (TAM) Programme and Business Advisory Services (BAS) 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

21 Case Study Examples

22 Petrom Environmental Loan Signed in 2009 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

23 Bor Glass Factory (Russia) 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. Signed in 1997 and 2003 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

24 Konzum d.o.o. Sarajevo Signed in 2009 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

25 Bankers Petroleum - Albania Signed in 2009 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 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 area

26 Derbes Brewery in Kazakhstan 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$ mln Tenor: 6 years Use of Proceeds: capacity increase at existing brewery Signed in 2007 EBRD added value: providing long-term financing for Derbes market expansion

27 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. Signed in 2006 EBRD Value Added: foster the growth of automotive manufacturing plant in Russia

28 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 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 Signed in 2007 EBRD added value: MPF as an important umbrella for new investments in the forest product sector

29 Renault Technologies Romania - Titu Test Centre Signed in 2009 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

30 Kamaz Equity (Russia) Signed in 2010 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

31 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 Signed in 2004 EBRD added value: financial partner in a market with limited opportunities to raise finance for small transactions

32 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 Signed in 2003 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

33 LG Russia Signed in 2006 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

34 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 Signed in 2002 EBRD added value: demonstration effect and transfer of skills in Polish chemical sector

35 Magyar Wind Signed in 2008 Signed in 2010 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

36 Raven Russia Logistics Signed in 2009 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 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 financing

37 How to contact us Teresa Green Business Development One Exchange Square London EC2A 2JN United Kingdom Tel: Fax: New Project Enquiries Tel: Trade Facilitation Programme Tel: Procurement Opportunities and General Information Via web site: Publications Tel:

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