DEG We finance opportunities in future markets DEG Deutsche Investitions- und Entwicklungsgesellschaft mbh 18. October 2017
DEG: Deutsche Investitions- und Entwicklungsgesellschaft mbh 2
Part of a strong group DEG, a subsidiary of KfW Domestic Promotion International Financing We promote Germany We ensure internationalisation We promote development Business area Mittelstandsbank Business area Privatkundenbank Business area Kommunalbank KfW IPEX-Bank Business areakfw Development Bank DEG Promotion of SMEs, business start-ups Funding housing construction and refurbishment as well as education Financing of municipal infrastructure projects and global loans Germany/Europe Agency Business for the Federal Government International project and export finance Developing and emerging-market countries: Financial cooperation Developing and emerging-market countries: Private sector promotion Promotion of environmental and climate protection DEG company presentation 3
DEG at a glance Facts and figures Founded 1962 Employees 539 Headquarters Shareholder New business Portfolio Equity Balance sheet total Cologne KfW, Frankfurt EUR 1.6 billion EUR 8.6 billion EUR 2.4 billion EUR 5.8 billion DEG company presentation 4
DEG portfolio 14 locations. 8.6bn euros invested worldwide. Europe: 0.9bn euros Cologne Moscow Istanbul Asia: 2.7bn euros New Delhi Beijing Mexico City Accra Nairobi Africa: 2.3bn euros Johannesburg Bangkok Singapore Jakarta Latin America: 2.4bn euros Lima São Paulo Supraregional: 0.3bn euros DEG company presentation 5
DEG in Europe, Middle East and Central Asia Target Countries Southeast Europe Central Asia / Caucasus Middle East Albania, Bosnia and Herzegovina, Montenegro, Serbia, Kosovo, Macedonia, Moldova Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Armenia, Azerbaijan, Georgia Iran, Iraq, Yemen, Jordan, Lebanon, Syria, Palestinian Territory Russia, Ukraine, Belarus Turkey DEG Portfolio in Georgia: EUR 70 million 6
DEG-Financial Instruments
DEG Financial Instruments Tailor-made Finance Solutions suited to individual projects and risks Terms suited to the individual project Market-oriented conditions fortheprivate Sector Financial sector Insurance Companies Manufacturing Industry and Services Agricultural Sector Private infrastructure 8
DEG Financial Instruments Overview of DEG's Financial Products I Long-term loans Guarantees Mezzanine finance Equity capital Special Programmes Financings developpp Feasibility studies Accompanying measures Climate partnerships Our tailor-made finance is long-term reliable and facilitates entrepreneurial investments. With our special programmes we support measures and projects relevant for economic development in addition to climate protection initiatives. 9
DEG Financial Instruments Overview of DEG's Financial Products II Equity Investment Equity participation in the project company in the country of investment Minority stake, usually over a limited period Similar interest of the partners In certain cases, voting rights and seat on the board Exit strategies, such as - IPO - Selling to a strategic investor - Put/Call options - Tag-along and Drag-along rights 10
DEG Financial Instruments Overview of DEG's Financial Products III Mezzanine Finance Financing combining elements of equity and debt: Project-specific arrangement Cash flow-oriented More equity-oriented or more debt-oriented Subordination Conversion options Risk-oriented yield 11
DEG Financial Instruments Overview of DEG's Financial Products IV Long-term loans Currency: Term: Grace Period: Interest rate: Collateral: Amount: Euro, US-Dollar, in exceptional cases in local currency Usually between four and ten years Depending on cash flow Fixed or variable; market-oriented according to project and country risks Usually security as fixed assets in the country of investment, project-specific arrangements Max. approx. EUR 30 million; larger volumes through cooperation with EDFI 12
DEG Financing Instruments For what? - Long term capital investment; financing of working capital is partly possible - Expansion / modernisation or green field projects - Acquisition financing - Partial refinancing of existing liabilities case by case How much? - Volume of DEG s participation generally between 5 Mio EUR - 40 Mio EUR; case by case (DEG share of finance: <35% of total finance by green field projects and up to 100% by brown field projects) - For bigger volumes a syndication with other Development Financial Institutions to be considered Some important criteria for the eligibility of the Partner - Good Corporate governance - Transparent shareholders structure - Transparent accounting system, IFRS / IAS; consolidated accounts - Qualified management - Proven track record - Sound business plan, market analysis, audited financial statements, financial budget - Appropriate environmental and social standards DEG-Unternehmenspräsentation 13
Special Programmes Co-Financings for Entrepreneurial Measures and Pilot Projects Special programme Co-financed measures developpp.de Developmentally and economically feasible projects Partner Feasibility studies External feasibility and market studies in preparation of a specific investment measure in a DEG partner country Technical assistance Measures with specific structural effects Example: increased energy efficiency or optimised production processes (minimisation of production waste, controlling etc.) Climate partnerships with the private sector Up-Scaling Measures in the field of climate protection Example: pilot plants, qualification measures, introduction of innovative climate protection technologies etc. Pioneering investments of SMEs planning to further develop innovative business models 14
Your contact Bild Europe / Middle East / Central Asia Corporates & Funds Irina Schmidt Vice President DEG Deutsche Investitions-und Entwicklungsgesellschaft mbh Kämmergasse 22 50676 Köln Tel 02214986-1590 Fax 02214986-1104 irina.schmidt@deginvest.de 15