Sustainable Financing

Transcription

1 Sustainable Financing June 2018

2 European Bank for Reconstruction and Development! International financial institution, promoting transition to market economies by investing mainly in private sector development and entrepreneurship Owned by 66 countries and two intergovernmental institutions Largest single investor in the region of operations (38 countries from central Europe to central Asia and the southern and eastern Mediterranean) EBRD at a glance Established in resident offices, 6 regional offices, HQ in London AAA-rated (S&P, Moody s, Fitch) Capital base of EUR 30 billion EUR 120 billion invested in more than 5,000 projects since Data at end December

3 Where the EBRD invests! 12 June

4 Mission and Vision! Three Key Principles! Promotes transition to market economies, private ownership and good governance with respect for people and environment Invests in financially viable projects, together with the private sector Transition Impact EBRD Supports, but does not replace, private investment. Provides financing otherwise not available, at reasonable terms Sound Banking Additionality 4

5 Projects in all key business sectors! Transport Municipal & Environmental Infrastructure Property & Tourism Nuclear Safety Financial Institutions Natural Resources Telecommunications, Informatics & Media Climate Finance Manufacturing & Services Power & Energy Agribusiness Equity Funds 5

6 Extensive offer of tailored financial products! Debt Loans to the private sector (up to 35% syndicating the rest), including SME Sovereign, sovereign guaranteed and loans to state owned companies Debt co-financing, working with commercial banks and IFIs Project finance loans (incl. PPP) Hard/local currency. Fixed/floating rates Syndication under preferred creditor status Access to capital markets Equity Investing with majority sponsor to reduce equity burden and add partnership value. No more than 25% Common or preferred stock Privatisation and initial public offering (IPO) Mezzanine equity and subordinated debt Infrastructure funds PPP Technical Cooperation EBRD brings in additional financial capital and technical assistance (TC) to economically viable projects 6

7 Greece as an EBRD Country of Operation! EBRD s engagement is to tackle the consequences of the financial and economic crisis and assist in addressing the structural challenges embedded in the country s economy EBRD s activities are intended to contribute to the momentum of its recovery and strengthen the reform process of Greece s economy EBRD activity in Greece to date: 32 projects 1.6 billion Cumulative EBRD investment 100% Private sector EBRD has a primary focus to: o o o o encourage foreign and domestic investment strengthen the role of the private sector deepen regional integration help to build economies which are competitive, integrated, well-governed, green, resilient and inclusive 7

8 EBRD s Strategy in Greece! Our country strategy was approved by the Bank s BoD in June 2016: Corporate Sector Support the resurgence and enhance the resilience of the corporate sector through a shift to a more exportoriented growth model. Financial Sector Support the stabilisation of the financial sector and deepen intermediation to unlock private sector access to finance. Energy & Infrastructure Sector Support private sector participation and commercialisation in the energy and infrastructure sectors to enhance regional integration and improve quality of utility services. 8

9 Corporate Sector! EBRD Priorities Selectively engage with corporates and SMEs, in particular those with export potential, sound core business and strong growth potential. Promote resource efficiency, improve governance standards, support innovation and skills enhancement. Rebuild capacity by supporting institutional quality fund managers that target high-growth, export-oriented sectors. 9

10 Corporate Sector (cont d)! Investments to date Invested in million 50m participation in the 350m Eurobond issue to support capital expenditures Invested in million 20m equity commitment to Diorama Hellenic Growth Fund to support investing in SMEs Invested in million 15m participation in the 250m Eurobond issue to support capital expenditures Invested in million 150m, part of 339m syndicated loan to support ongoing investment plans Invested in million 5.9m participation in the 40m first Corporate bond ever issued and listed on Athex Invested in million 10m bond loan to finance additional working capital and refinance part of existing loan obligations Invested in million 10m equity commitment to support investing in growth-stage SMEs in Greece Invested in million 85m, part of 150m syndicated loan to support sustainable energy solutions Invested in million 6m loan to support Company s geographical and market share expansion Invested in million 30m participation in the Mytilineos debut 300m bond issued and listed on Athex Invested in million 10m as part of 250m Eurobond to support the first 7 years issuance of the company Invested in million 21.5m joint venture to invest in brownfield redevelopment and urban regeneration projects Invested in million 3m equity investment into preferred shares to a mobile-only do-ityourself market research company Invested in million 25m loan financed Sarantis acquisition of Ergopack LLC in Ukraine Invested in million 70m equity investment in D Marine, operating a network of 10 marinas of which 4 in Greece Invested in million 15mparticipation in the 120m bond issued and listed on Athex 10

11 Financial Sector! EBRD Priorities Contribute to bringing back confidence in the banking sector, and facilitate efficient private sector credit creation. Support banks in returning to a more normal funding structure supporting covered bonds and securitisations. Invest in specialised NPL servicing, and/or workout platforms which will provide direct support to single, large corporate restructurings and portfolios. To date 474 million provided to the Greek banks through EBRD s Trade Facilitation Programme. 11

12 Financial Sector (cont d)! Investments to date Invested in million Financial package supporting recapitalisation to strengthen the banking sector Invested in million Financial package supporting recapitalisation to strengthen the banking sector Invested in million Financial package supporting recapitalisation to strengthen the banking sector Invested in million Financial package supporting recapitalisation to strengthen the banking sector Invested in million Maximum approved amount. Acquisition of a stake in European Reliance Invested in million Invested in million Invested in million Invested in million Invested in million 50m investment in a securitisation structure of SME loans originated by NBG 50m investment in a securitisation structure of SME loans originated by Alpha Bank 30m investment in covered bonds issued by NBG 40m investment in covered bonds issued by Piraeus Bank 40m investment in covered bond issued by Alpha Bank 12

13 Energy & Infrastructure Sector! EBRD Priorities Support further integration of Greece in the region through promoting commercial solutions to developing key transport links and logistics infrastructure. Support energy market restructuring, increased regional interconnectivity, lower carbon emission, and more efficiently managed assets. Improve quality of municipal services through commercialisation, better governance and improved operational and resource efficiency. Support private renewable energy producers by financing their investment plans. Investments to date Invested in2016 $ 95 million $75m senior loan & $20m subordinated loan to support ongoing investment plans Invested in million 50m bond loan to support development, construction and operation of new renewable energy projects Invested in million 187m long-term financing for the modernisation, maintenance and operation of 14 regional airports Invested in million 28.3m participation in the 74.5m Eurobond issue to support company s capex in renewable energy projects Invested in million 10m participation in the 90m bond issued and listed on Athex 13

14 Transport at a glance 1! 15.0 billion invested Total project value: 58.4 billion 311 projects 36 of the EBRD s countries of operation Number of projects per sector Country presence per sector Aviation Intermodal Ports and Shipping Rail Road 1. Data at end December

15 EBRD in the Maritime Sector! Terminal and port structures and development of state-owned infrastructure Pre-and post-delivery financing of fleet modernisation and retrofitting Promotion of short sea shipping Policy dialogue with regional governments on the commercialisation of port infrastructure and the separation of its management from the state Active encouragement of private sector involvement in greenfield projects Introduction of environmental and energy efficiency best practices and compliance with IMO regulations 15

16 Some references in the Maritime Sector! Pre and post delivery financing of Fleet modernisation and capacity development (Fesco, VBTH, BSSM, Circle Maritime Invest, ER Deniz etc.) Partnering with IMO to build capacity about environmental protection in the shipping industry (ballast water management) Expanding port infrastructure (Albania, Romania, Lithuania, Turkey etc.) contributing to more efficient and sustainable transport routes Support to greenfield projects under concession terminal and port structures Contributing to greening port activity through capacity building in equity participation (Globalports) or the introduction of innovative technologies (Klaipeda) Supporting a more efficient maritime navigation system in the Gulf of Finland Some clients in the maritime sector 16

17 EBRD in the Maritime Sector! What we look for! Our preference is for senior secured debt, although selectively we can consider mezzanine and equity We prefer to partner up with commercial banks and seek to align our terms of financing (structure, pricing) with those of commercial banks A project needs to comply with EBRD offshore jurisdictions policy We prefer capex to refinancing Fleet employment is Key and Projects related to Spot market are rarely considered We are conservative in terms to loan to value (eg debt level as a benchmark for starting discussions and due diligence) We prefer new vessels (if second hand vessels, then their age should be no older than 5-7 years in case a long-term financing is sought) The Bank is keen to support Projects with strong links to greening the fleet or infrastructure. These can include : 1) Electric equipment and fleets 2) Financing of Ro-Ro vessels 3) Climate adaptation financing 4) On shore power 5) Wider array of Technologies to reduce vessel fuel consumption/emissions (LNG, scrubbers, wind technology etc) 17

18 a a Case Study! Tersan Floating Dock Project, Turkey! Client: EBRD finance: Type of finance: Total Project cost: Year: 2017 Project description: Tersan Tersanecilik Taşımacılık Sanayi ve Ticaret A.Ş., a joint stock company incorporated in Turkey. USD 21 million, including USD 1.5 million under NØW programme Senior Secured Loan USD 31.4 million Finance the construction of a new floating dock in Yalova for the servicing, retrofitting, and repairing of commercial maritime vessels. Impact: l Expanding the competitiveness of the Turkish vessel repair and maintenance sector by creating a purpose built, best in class floating dock which will be able to service Panamax sized vessels. l l Optimising the flexibility and reliability of vessel repair services for both Turkish and Western European vessels given the strategic location of the new dock near the Marmara Sea, a high traffic area for container and other types of vessels. Facilitating a healthier shipping industry in the region by eliminating the capacity and capability constraints of the existing shipyards by introducing a new dock offering the most sophisticated retrofits and repair services, including LNG retrofits. The Project will be supported by the Near Zero Waste ( NØW ) programme to promote stateof-the-art waste minimisation technologies. The Project also supports the introduction of energy efficiency and other environmental protection measures in the shipping fleet. 18

19 a a Case Study! Maridive, Egypt! Client: EBRD finance: Type of finance: Total Project cost: Year: 2017 Project description: JSC Maridive & Oil Service ( Maridive ), a leading regional Offshore Support Vessel operator incorporated in the Arab Republic of Egypt. USD 50 million, including a USD 10 million Working Capital Facility Senior Loan USD million Support Maridive s fleet modernisation programme via partially financing the purchase of offshore support vessels, financing working capital needs, and partially refinancing the existing debt. Impact: l Promoting increased efficiency and effectiveness through developing the management system to comply with international standards and introducing an Integrated Management System ( IMS ) as well as IFRS reporting. l l Integrating Maridive s energy performance and management practices through adoption of ISO certification. Aligning the Company s corporate governance standards with international best practices by developing and implementing a Corporate Governance Action Plan ( CGAP ). The Project will have a strong demonstration effect of new replicable behaviour and activities in Egypt following Maridive s compliance with the EU Offshore Safety Directive. 19

20 Case Study! Ekol Ro-Ro Projects I and II, Turkey! Client: a EBRD finance: Type of finance: Total Project cost: Year: Project description: Alternative Tasimacilik AS, with Ekol Lojistik A.S ( Ekol ), one of the largest third party logistics providers operating in Turkey, as the guarantor. EUR 64.5 million (Project I) and EUR 18.5 million (Project II) Senior Loan EUR 84 million (Project I) and EUR 46.5 million (Project II) 2014 (Project I) and 2017 (Project II) Finance the acquisition of three modern Ro-Ro vessels (Project I) and an additional Ro-Ro vessel (Project II) to provide maritime logistic services between the ports of Haydarpasa, Turkey and Trieste, Italy. Impact: l Demonstrating the wider availability of financing to the logistics shipping industry in Turkey by employing an innovative two-stage financing model with an initial market-testing leasing stage followed by acquisition of the operating assets. l Contributing to the development of Motorways of the Sea as an alternative to land transport between Turkey and Europe by expanding the Haydarpasa Trieste corridor capacity and, thus, supporting a cleaner, safer and more efficient transport system. The Project II will also be eligible for a junior facility of up to EUR 4.5 million under the EBRD Green Logistics Program ( GLP ), a special programme administered by the Bank and funded by the Global Environment Facility ( GEF ) to unlock investment opportunities supporting the decarbonisation of the logistics sector. a 12 June

21 The EBRD on the ground in Greece! EBRD established its local presence in Athens in September 2015 and opened its office in March 2016 The regional office in Athens includes a multidisciplinary team of local and international bankers EBRD Regional Office in Athens 5 th floor, Othonos 6, Athens, athens@ebrd.com Support from sector and product teams in EBRD headquarters in London Athens RO Team Sabina Dziurman Regional Head of Greece & Cyprus Harris Damaskos Principal Banker Augusta Vrachnou Principal Banker Angeliki Kalligiannaki Associate Banker George Maltezos Associate Banker Dimitris Chatziiakovou Associate Banker Ioannis Papaleonidopoulos Analyst Eirini Konstantinou Analyst Dimitris Georgiou Analyst Sofia Chrysochoidou Analyst 21