European Bank for Reconstruction and Development

European Bank for Reconstruction and Development 12 th Annual Syndications and Co-financiers Meeting London 16 th March 2010 Presentations will be posted to http://www.ebrd.com/oppor/syndi/meeting/index.htm

Kevin Bortz Director, Natural Resources EBRD in Power, Energy and Natural Resources London 16 th March 2010

Agenda 1. Power and Energy Bank s priorities in 2009 and showcase syndicated loan Bank s priorities in 2010 and syndication/co-financing pipeline 2. Natural Resources Bank s priorities in 2009 and showcase syndicated loan Bank s priorities in 2010 and syndication/co-financing pipeline 3. Current and Future Financing Requirements in the Power and Natural Resources Sectors 3

Power and Energy EBRD s Priorities in 2009 2009 was characterised by a focus on renewables and filling the financing gap left by the financial crisis 14 transactions in 9 countries were signed in 2009 representing a record 843 million in debt and equity investments Total volume increase of 41% over 2008 levels Renewables volume increase of 75% over 2008 levels First transactions in Mongolia and Turkey (both wind farms) One loan was syndicated despite generally difficult loan markets: Turceni thermal power plant in Romania In 2010, one loan has been syndicated (Suvorovo wind farm) and one is currently being finalised

2009 Showcase Syndicated Loan Turceni TPP (Romania) Overview Key Figures Rehabilitation and modernisation of Unit 6 (330 MW) of lignite fired Turceni power plant in Romania After the transaction was restructured due to the financial crisis, it was oversubscribed and offering increased to satisfy demand 150 mln syndicated A/B Senior facility 80 mln A Loan for 13 years 70 mln B Loan for 10 years through 4 commercial banks Black Sea Trade Development Bank parallel loan of 20 mln Signed July 2009 5

2010 Showcase Syndicated Loan Suvorovo Wind Farm (Bulgaria) Overview Key Figures Project finance for construction of a 60 MW wind farm second largest after St Nikola wind farm Contributes to country targets of 16% of its electricity consumed from renewable sources by 2020 Expected to be operational in the fourth quarter of 2010 Total project cost of 108 mln 60 mln syndicated A/B Senior facility 42.5 mln A Loan for 15 years 17.5 mln B Loan for 12.5 years through Unicredit Black Sea Trade Development Bank parallel loan of 11 mln Signed January 2010 6

Power and Energy EBRD s Priorities in 2010 In 2010 EBRD priorities for the Power sector will remain very much the same as before: Supporting the transition to a low carbon economy; Promoting energy efficiency; Facilitating liberalisation and sector reform.

Power and Energy Syndication/Co-Financing Pipeline in 2010 Energa Power Distribution Federal Grid Company Loan to finance the Polish distribution network owned by Energa Debt financing of PLN 2.0 bln PLN 1.0 bln from EIB PLN 800 mln A/B loan from EBRD PLN 200 mln from NIB Long-term financing; Financial closing 2010. Loan to finance the Federal Grid s transmission line investment program Up to RUB 10 bln, RUB 5 bln to be syndicated; Commercial banks to participate either on a parallel or A/B structure; 10-12 year RUB financing; Financial closing 2010.

Power and Energy Syndication/Co-Financing Pipeline in 2010 Margonin Wind Farm Gebze CCGT Project financing for 120MW wind farm in Poland; Co-financing through a club deal structure; Long-term financing; Financial closing 2010. 850MW merchant CCGT in Turkey Project financing of c. USD 850 mln; Debt to be provided together ECAs and other commercial banks under and A/B loan structure; Long-term financing; Financial closing 2010.

Power and Energy Syndication/Co-Financing Pipeline in 2010 Sostanj TPP Modernisation of the Slovenian Sostanj coal fired TPP owned by Holding Slovenske Elektrane HSE to refurbish 600 MW of capacity Total project cost of EUR 1.1 bln EBRD A Loan of EUR 100 mln and B Loan of EUR 100 mln EIB also expected to provide debt financing of up to EUR 550 mln Long-term financing of 15 years; Financial closing 2010.

Natural Resources EBRD s Priorities in 2009 In recent years EBRD has increasingly focused on projects that improved environmental standards and promoted energy efficiency within the Natural Resources sector. In 2009, such projects were joined by: Loans to ease the pressure of the financial crisis on natural resource companies, and Loans to address energy security concerns provoked by interruptions to gas supplies to central and south-eastern Europe in January 2009. Thirteen transactions were signed in 2009 representing a record 671 million in debt and equity investments. Two loans were syndicated despite generally difficult loan market: Integra (Russia) and Petrom Environmental Loan (Romania).

2009 Showcase Syndicated Loan Petrom Environmental Loan Overview Key Figures Dedicated source of finance for Petrom s group environmental enhancement program: pollution clean-up, pipeline replacement, health and safety measures, energy efficiency improvements; Implementation of two safety programmes at corporate level. $300 mln syndicated A/B Senior facility Corporate unsecured facility $150 mln A Loan for 7 years $125 mln B Loan for 5 years $25 mln BSTDB parallel loan B Loan fully subscribed Nine participant banks 12

Natural Resources EBRD s Priorities in 2010 In 2010 EBRD priorities for the Natural Resources sector will remain very much the same as before: Improving environmental standards; Promoting energy efficiency; Addressing energy security.

Natural Resources Syndication/Co-Financing in 2010 Monolit МОНОЛИТ Polskie LNG Project financing of gas processing plant in Western Siberia (Russia), sponsor Monolit, a subsidiary of Roza Mira group; A/B loan with parallel financing from other IFIs; Long-term; Total project cost of USD 185 mln; Financial closing in Q2 2010. Project financing of a liquefied natural gas regasification terminal in the city of Swinoujscie, Poland; Large club deal (8-10 commercial banks); Structuring banks: PKO BP and Bank Pekao; Long-term Total project cost of ca 900 mln; Financial close likely in Q3 2010.

Natural Resources Syndication/Co-Financing in 2010 The Natural Resources Team is working on several large projects, which are at early stage, but may come to market in second half of 2010.

Financing Requirements in the Power and Natural Resources Both sectors are very active in CIS/CEE, and there is a strong need for further capital expenditures: Power and Energy: strong focus on renewables investments and rehabilitation/replacement of obsolete assets Natural Resources: massive capital expenditures are needed in upstream, midstream and downstream in short to medium term. Cash strapped governments and sector companies are unable to meet these needs with own resources, so continued flow of external financing is essential.