financing opportunities through the ebrd. what is the ebrd?
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Financing Opportunities Financing Opportunities through thethrough the
EBRDEBRD
What is the EBRD?What is the EBRD?
What is the EBRD?What is the EBRD?
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International financial institution, owned by 60 countries and two inter-governmental institutions
Promotes transition to market-based economies in 27 countries from central Europe to central Asia
AAA Institution/Capital base of € 20 billion
Cumulative commitments € 22.7 billion
A network of 32 offices in 27 countriesA network of 32 offices in 27 countries
What EBRD Delivers What EBRD Delivers
Strong Partner - EBRD Mandate– Support transition to market-based economies through
private/entrepreneurial initiative
– Improve investment climate
– Promote good corporate governance
– Encourage environmentally sound and sustainable development
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Mobilised
EBRD
What EBRD DeliversWhat EBRD Delivers
EBRD investments have attracted an additional € 47 billion from domestic and foreign investors
The EBRD uses donor funding to assist project preparation and catalyse foreign investment
Cumulative additional funds mobilised € 45.8 billion
Varied Financing Instruments Varied Financing Instruments
Loans Loan Syndications (A/B structures) Equity investments (straight / portage) Partial Risk Guarantee Specified Event Guarantee Lengthening maturity of debt Mezzanine / subordinated debt
EBRD risk profileEBRD risk profile
Takes political risks Shares financial risks Takes long maturity Shares equity risk
Have sound management
Take operational risks
EBRD Sponsors
EBRD in RomaniaEBRD in Romania
Sector Distribution of EBRD PortfolioSector Distribution of EBRD Portfolioin Romaniain Romania
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€ 2.4 billion across more than 100 projects
Success through Partnerships in Success through Partnerships in Romania Romania
Selected Transactions in RomaniaSelected Transactions in Romania
Total commitments in Romania € 2.4 billion over more than 100 projects
Client Amount Type of Financing
(Eur m)
BCR 163 Debt and pre-privatisation equity
Danone 7 Equity: regional multi project facility
Lafarge 70 Equity: regional multi project facility
LNM Holdings: Sidex 84 Debt: post-privatisation
Michelin 25 Equity
Petrom 84 Debt: pre-privatisation
Romanian Development Bank 65Debt and equity: privatisation to Societe Generale
Terapia 4 Equity
United Romanian Breweries 28 Debt
Victoria Office Building 5 Debt
Wienerberger 2 Equity: regional multi project facility
EBRD EBRD Financing GuidelinesFinancing Guidelines
EBRD Direct Investment GuidelinesEBRD Direct Investment Guidelines
Investments with strategic investors with proven sector experience.
Maximum project exposure of 35% of total project cost.
Minimum project exposure of €8 million when debt is sought and €5 million in the case of equity investments.
Debt: no more than two thirds debt to one third equity.
Equity: contribution may be in-kind (equipment, plant, and machinery) or cash.
Advantages of EBRD involvementAdvantages of EBRD involvement
Extensive knowledge of the country and business climate.
DEBT Long maturity periods of up to 12 years. Private sector
projects usually up to 8 years with 2 years grace period. Availability of financing for working capital.
EQUITY Long term partner committed to the country, its lasting
development and prosperity. Substantial political and investor influence in Romania.
EBRD EBRD Strategic Priorities Strategic Priorities
The Challenges Ahead for the EBRDThe Challenges Ahead for the EBRD
To increase the depth and quality of financing available for the private industrial sector in Romania.
To contribute to the further growth of foreign direct investment with strategic partners.
To extend the coverage of financing for SMEs.
To meet the growing demand of financing for infrastructure projects with preference for private infrastructure projects (concessions, BOT schemes).
To promote the development of the non-banking financial sector (leasing, mortgage, insurance, pensions, equity).
EBRD Strategic Priorities for 2004EBRD Strategic Priorities for 2004
Infrastructure development including privatization /commercialization of public utilities in the energy and transport sectors; co-financing with EU pre-accession funds.
Private sector development, including improvement of investment climate, level playing conditions, completion of privatization.
Further strengthening of the financial sector (including non-banking) and SMEs.
Contact Information Contact Information
James Hyslop; Deputy Head of Office
EBRD Romania; Gina Patrichi 8; Sector 1; Bucharest +40 21 202 7100