Working with the European Bank for Reconstruction and Development

OFFICIAL USE

Paulo Sousa

Acting VP, Chief Financial Officer

November 2019

EBRD - An overview

2

EU 28 Countries1

63%

EBRD region

excluding EU 8%

Others 11%

USA 10%

Japan 9%

Shareholding structure

1. Includes European Community and European Investment Bank

(EIB) each at 3%. Among other EU countries: France, Germany,

Italy, and the UK each holds 8.6%

An international financial institution supporting the development of sustainable well-functioning market economies

Highest credit rating (AAA/Aaa)

71 shareholders, of

which:

69 countries and 2 inter-governmental institutions (the EU and EIB)

€30 billion authorised capital

1991 Established

1992 Russia and 11 other

members of the former

Soviet Union join

2007 The Czech Republic

becomes the first country

to “graduate” from the

EBRD

2012 Starts investing in Egypt,

Jordan, Morocco and

Tunisia

2016 25th anniversary;

China becomes 67th

member

2017 Lebanon became a

country of operation and

the Bank also

commenced operations

in West Bank and Gaza

2018

2019

India and San Marino

become members

Libya becomes member

country

OFFICIAL USE

Portugal

0.42%

Capital

(EBRD is presently not undertaking any new business in Russia)

Kazakhstan Mongolia

—Kyrgyz Republic

—Tajikistan

—Moldova

—Jordan

Azerbaijan

—Morocco

Belarus

Ukraine

—Romania —Serbia

—Kosovo Georgia—

Armenia—

Tunisia—

Croatia— Bosnia and

Herzegovina— Montenegro—

Albania—

FYR Macedonia

—Turkmenistan

—Bulgaria

Estonia—

Latvia—

Lithuania—

Poland

Slovenia—

Czech

Republic— (graduated in 2008)

—Slovakia

—Hungary

Uzbekistan—

Egypt—

Greece Cyprus

Turkey

3

Where we invest EBRD’s increasing footprint

Central

Eastern Europe

SEMED Western Balkans Turkey

Armenia, Azerbaijan, Belarus,

Georgia, Moldova, Ukraine

Central Asia

(incl. Mongolia)

Cyprus, Greece

West Bank

and Gaza

Lebanon

—Lebanon

West Bank & Gaza—

OFFICIAL USE

Over €130 billion invested since 1991 in around 5,325 projects

4

In 2018

€9.5 bn

395 projects

EBRD Top 10 investee countries in 2018 (€m)

Private sector accounted for share of

73%

1 Egypt 1,148

2 Turkey 1,001

3 Greece 846

4 Poland 556

5 Ukraine 543

6 Kazakhstan 472

7 Romania 443

8 Uzbekistan 397

9 Serbia 396

10 Belarus 360

EBRD Portfolio

(December 2018): €

43.3 billion

Sector

Debt: 83%

Equity: 9%

Guarantee: 8%

8,5 8,1 8,7 9,2 8,7

1,0 1,3 0,7 0,4 0,8

95 103

112 121

131

0

20

40

60

80

100

120

140

0

2

4

6

8

10

12

14

2014 2015 2016 2017 2018

Net

cum

ula

tive b

ank

invest

ment

Annual

busi

ness

invest

ment

(ABI)

(EU

R b

n)

Equity Debt Net Cumulative Bank Investment

C.Asia 10%

CEE 14%

Cyp/Greece 4%

EEC 18%

Russia 5%

SEE 19%

SEMED 14%

Turkey 14%

Region

FI 22%

Corporate 25% Infra

29%

Energy 24%

OFFICIAL USE

EBRD Multi-dimensional approach

5

EBRD

COMMERCIAL

FINANCING

CONCESSIONAL

CO-FINANCING

POLICY

DIALOGUE

TECHNICAL

ASSISTANCE

• EBRD direct finance (debt &

equity)

• EBRD Indirect finance (SME loans)

• Mobilising external finance

• Working with

governments on

improved

legislation and

regulation in

support of

improved business

environment

For selected eligible

investments to develop markets

• Resource efficiency audits

• Climate vulnerability

assessment

• Capacity building for local

financial institutions

• Project preparation support

(including tendering) OFFICIAL USE

Projects in all key business sectors

6

Information & CommunicationTechnologies

Property & Tourism

Industry, Commerce & Agribusiness

Transport Municipal & Environmental Infrastructure

Financial Institutions

Natural Resources

Power & Energy

Manufacturing & Services

OFFICIAL USE

Taking into account the various dynamics in CA

7 OFFICIAL USE

• Geographical position at the crossroad of numerous trade routes (Western Europe – Western China; China-Iran; Russia- South Asia) creates unique transit potential for the region.

• Abundance of natural resources, incl. oil & gas, copper, zink, gold, agricultural land, renewable energy resources, provides opportunities in extractive industries, manufacturing, renewable generation, agribusiness, as well as in infrastructure, transportation and logistics.

• Growing young work force with high literacy rates and increasing openness to western education, is an important factor for investors.

• Efforts to improve investment climate and attract investors are continuing, with Kazakhstan and Uzbekistan named among top reformers in the WB Doing Business list.

Our priorities for Central Asia are:

8 OFFICIAL USE

Private sector development; balancing the roles of the state and the private sector; attracting foreign investors

SME development and improving private sector competitiveness

Broadening access to finance , strengthening the banking sector; developing local capital markets

Sustainable municipal services

Renewable energy and power and Green Transition

Promoting gender inclusive growth

Improvement of business climate: institutional reform, capacity building of

the public sector and corporate governance

Regional integration

EBRD in Central Asia

9

56%

4%

9%

1%

11%

19%

Kazakhstan 56% Kyrgyz Republic 4% Tajikistan 9%

Turkmenistan 1% Uzbekistan 11% Mongolia 19%

Region

9%

37% 54%

Bank Lending, Bank Equity, Insurance and Financial Services - 9%

Ind., Comm & Agrib - 37%

Sustainable Infrastructure 54%

Sector

EBRD portfolio in Central Asia (at 31 December 2018):

€ 4.2 billion

OFFICIAL USE

Some reasons to work with us:

10 OFFICIAL USE

Strong presence in Central Asia and extensive knowledge of the local economies

and business environments

Dedicated teams of experts with specific sectoral, legal and environmental skills

Unmatched policy experience in support of transition to open market economies

Close working relationship with local governments

High standards of corporate governance and compliance

Strong appetite for risk

Donor grants for technical assistance and blended finance for investments

Assistance in structuring and executing green investments

Triple A credit rating

Preferred creditor status

Local currencies financing in selected countries

• EBRD presence in Kazakhstan since 1993. Two Resident Offices in

Almaty and Nur-Sultan cities and five representative offices across the

regions of Kazakhstan.

• Funded 262 projects worth in total EUR 8.2 billion: 65% private

investments share, 96% debt share, EUR 2.6 billion portfolio.

• Promotes stronger investment climate, private sector development,

strengthening of local capital markets, green economy transition and

development of inter-regional connectivity.

• Provides medium/long-term local currency financing.

• As of July 2019, 17 projects signed for EUR 420 million: 44% private

sector share, GET share of ABI 44%, EUR 365 million investments in

sustainable infrastructure, which includes renewable energy projects.

Bank

investment,

EUR m

Number of

projects

EBRD Investments by Sector

EBRD Investments, 2013-2019 (July)

328

576

709

1.051

586 472

420

13 19 30 33 25 26 17

2013 2014 2015 2016 2017 2018 2019July

40%

25%

22%

5%

4%

1%

3%

Infrastructure

Energy

Natural Resources

Agribusiness

FI

M&S

Other

EBRD in Kazakhstan: at glance

Portfolio by Volume

11 OFFICIAL USE

EBRD in Uzbekistan: at glance • Resident Office in Tashkent operational since 1994

• Prior to reengagement in 2017, EBRD supported various sectors

including ICA, MEI, Transport and Energy with total cumulative

investment of EUR 900 million

• Promotes private sector development, green transition and

connectivity

• Supports key reform initiatives (PPP, Foreign Investors Council,

privatisation of SOEs, capital market development)

• Total cumulative investment to date is nearly EUR 1.6 billion,

funding 72 projects

• Current portfolio EUR 709 million with 22 projects

Bank

investment,

EUR m

Number of

projects

EBRD Investments by Sector

EBRD Investments 2013-2019(July)

MEI; 23%

FI; 27%

ICA; 41%

Energy; 9%

MEI; 38%

FI; 17% ICA; 4%

Energy; 41%

711 797 883 906 875

1.311

1.588

54 54 54 54 60 70 72

Portfolio by Volume

Portfolio by No of Projects

12 OFFICIAL USE

• EBRD presence in Kirgiz Republic since 1992. Resident Offices in

Bishkek and two representative offices across the regions of the

country.

• Funded 182 projects worth in total EUR 767 million: 73% private

investments share, EUR 193 million portfolio.

• Promotes stronger investment climate, strengthening of local capital

markets, supports competitiveness and sustainable growth of SMEs,

green economy transition, economic and trade cooperation and

integration within the region.

• Provides medium/long-term local currency financing.

• As of July 2019, 9 projects signed for EUR 22 million: 73% private

sector share, GET share of ABI 45%, EUR 6 million investments in

sustainable infrastructure.

EBRD Investments by Sector

52%

4% 2%

29%

12%

1%

Infrastructure

Energy

Agribusiness

FI

M&S

Property and tourism

EBRD Investments, 2013-2019 (July)

Bank

investment,

EUR m

Number of

projects

134

35 48

111

33 38 22

17 19 18 24 15 16 9

2013 2014 2015 2016 2017 2018 2019July

EBRD in Kyrgyz Republic: at glance

Portfolio by Volume

13 OFFICIAL USE

EBRD in Turkmenistan: at glance • EBRD presence in Turkmenistan since 1994. A Resident Office in

Ashgabat.

• Funded 72 projects worth in total EUR 282 million: 90% private

investments share, EUR 49 million portfolio.

• Promotes stronger role of SMEs, strengthened capacity of private sector

companies, increased trade and investment flows, improved business

environment, increased energy and resource efficiency and enhanced

environmental protection.

• Provides long term financing to local private sector, extends MSME

credit lines and TFP via local banks, expands ASB programme, conducts

training and seminars for local SMEs and consultants.

• As of end August 2019, 3 projects signed for EUR 3 million: 100% private

sector share.

Bank

investment,

EUR m

Number of

projects

EBRD Investments by Sector

Portfolio by Volume

EBRD Investments, 2013-2019 (August)

8

12 12 9

29

12

3 6 7

5 7 8 7

3

2013 2014 2015 2016 2017 2018 2019

40%

52%

4% 4%

Manufacturing and Services

Agribusiness

Transport

Property and Tourism

14 OFFICIAL USE

• Resident Office in Ulaanbaatar operational since 2006

• Funded 103 projects in private sector and 1 MEI project with the

government: 92% is Debt and 6% is Equity

• Promotes a sound investment climate, good corporate governance

and stronger institutions

• Provides Technical Assistance

• Total cumulative investment to date is nearly EUR 1.7 billion,

funding 106 projects

• Current portfolio EUR 867 million with over 35 clients

Bank

investment,

EUR m

Number of

projects

EBRD Investments by Sector

Portfolio by No of Projects

Portfolio by Volume

EBRD Investments 2013-2019(Mar)

681 867

1.330 1.498 1.450

1.723

60 68 78 83 92 103

Energy; 28%

FI; 20% Agribusiness;

14%

M&S; 31%

Other; 7%

Energy; 62%

FI; 18%

Agribusiness;

8%

M&S; 11%

Other; 2%

EBRD in Mongolia: at glance

15 OFFICIAL USE

Portuguese Clients Snapshot

16 OFFICIAL USE

What the EBRD can and cannot finance

17

We finance projects

that: are located in an country

where the EBRD works (but flexibility)

are bankable projects

meet satisfactory integrity &

operational standards

would benefit the local economy

satisfy the EBRDs environmental

standards as well as those of

the host country

And each project must be relevant from, at

least , two of the following dimensions:

competitiveness; inclusion; good

governance; resilience; integration and

environmental sustainability

Defence-related activities

Tobacco industry

Substances banned by

international law

Gambling facilities

Environmental harmful

projects (or if adverse impact

cannot be adequately

mitigated)

Nuclear energy

OFFICIAL USE

What we cannot

finance:

EBRD’s financing instruments

NB: Exact terms depend on specific needs and market conditions

Typical size

Maturity

Approach

Currency/term

s

Structures

Applications

Typically 5-7 years

Up to 15 years in case of

infrastructure investments

€1 – 300 mln (average € 20 mln)

Corporate loans

Project loans (max 35%)

Major foreign currencies or local currency; floating/fixed

Typically from 3-7 years

Typically €50 k – €50 mln

1 month to 3 years

Trade Facilitation Programme

with banks

• Senior, subordinated,

convertible loans or bonds

• Project finance

• Pure or “structured”

equity

• Trade finance guarantees &

cash advances

Minority stake

• Capex for expansion/modernization, including resource

efficiency improvements

• Ownership change: acquisition, consolidation, privatisation

• PPPs

• Working capital

• Guarantee of issuing banks in

countries of operations in

favour of confirming banks in

the rest of the world

Debt Equity Guarantees

OFFICIAL USE

Grant or Bank funded consultancy contracts 2017-2018

In total

Number of contracts won: 4,631

For a value of EUR 249.8 million

Since 1992, Portugal has

contributed about €2 million in

grants for technical cooperation

projects. Priority sectors include

energy, municipal and

environmental infrastructure and

small business. For example,

Portugal supported the Belgrade

Bus Renewal programme in

Serbia.

Portugal

Number of contracts won: 30 (0.6%)

For a value of EUR 1.21 million

(0.5%)

All 30 contracts were directly awarded.

Portuguese consultancy companies submitted 18

expressions of interests/proposals in competitive

selection processes, resulting in no contract

awards.

Preliminary figures for 2019:

18 contracts (of 2,424 in total) for a

value of EUR 0.85 million (of EUR

148.5 million in total) awarded to

Portuguese consultants. 26/11/2019 OFFICIAL USE

EDPR Solar Romania

20

EDP Renováveis (EDPR). EDPR is a global leader in the renewable energy sector.

Signed in 2014

EBRD finance

EBRD: EUR 20mn BTSB: parallel facility of EUR 10mn

Use of proceeds and EBRD value added/impact

The finance was

used for the

construction and

operation of six

photovoltaic (PV)

parks totalling 50

MW in southern

Romania.

The investment is

supporting Romania to

increase its renewable

energy capacity and to

meet the EU’s

renewable energy

targets.

Pow

er &

Energ

y

OFFICIAL USE

Bank Millennium S.A. Poland Poland

21

Bank Millennium S.A. is the sixth-largest commercial bank in Poland by total assets with a 5.2% market share.

Signed in 2015

EBRD finance

Up to PLN 270 mn (EUR 63mn equivalent) for the purchase of shares in Millennium Bank S.A.

Use of proceeds and EBRD value added/impact

The operation will contribute to a

transition of the Bank Millennium

S.A. ownership into a broader base

of institutional investors through an

Accelerated Book Building process

while endorsing the bank’s future

prospects under its growth strategy.

OFFICIAL USE

Fin

ancia

l Institu

tions

22

Baikonur Solar Power Plant Kazakhstan

EBRD finance

$30 mn senior loan

Baikonur Solar LLP, 100 % owned

subsidiary of United Green Group

(UK ), is the recipient of the loan.

Use of proceeds and EBRD value added/impact

The investment includes the development, construction and operation of a ground-mounted fixed-installed solar photovoltaic power plant with a total capacity of up to 50MWp (megawatt peak) and an associated new substation in the Kyzylorda region of south Kazakhstan.

To date, the EBRD has been

the sole project finance

provider for renewable

projects in Kazakhstan. The

new plant will lead to the

reduction of annual CO2

emissions by 75,000 tonnes.

Signed in 2018 OFFICIAL USE

23

FoodMaster is one of the leading

dairy producers in Kazakhstan and

an affiliate of Lactalis, the leading

dairy products group in the world.

Signed in 2016

EBRD finance

Use of proceeds and EBRD value added/impact

The EBRD will provide a loan of up to €15m equivalent in Kazakh Tenge to finance capital expenditures in its dairy processing plants and dairy farms.

The project will enable FoodMaster to increase the output and quality of locally-produced dairy products in line with the best international practices.

In addition to the financing, together with the Food and Agriculture Organization of the United Nations (FAO), the EBRD has initiated a technical cooperation programme with the private sector to improve milk production and collection, thus boosting milk supply and product quality in Kazakhstan.

€15mn financing

FoodMaster (Lactalis) Financing expansion of the leading dairy group in Kazakhstan

OFFICIAL USE

Tajikistan Bottlers Tajikistan

24

Coca-Cola Beverages Tajikistan, a

company incorporated under the laws of

Tajikistan and 100% directly owned by

Coca-Cola Icecek (CCI). CCI is a publicly

traded Turkish Company and owns 23

production facilities with operations in

ten countries, including Turkey, Pakistan,

Kazakhstan, Azerbaijan, Kyrgyzstan,

Turkmenistan, Jordan, Iraq and as well as

exports to Tajikistan and Syria.

Signed in 2016

EBRD finance

Use of proceeds and EBRD value added/impact

The loan will finance capital expenditures related to the construction of a green-field soft drinks bottling plant in Dushanbe, Tajikistan.

Up to

EUR 45mn loan

OFFICIAL USE

Transport Sector Pipeline: Almaty Ring Road PPP, Kazakhstan

26 November, 2019 25

Project

description:

The Big Almaty Ring Road will be implemented as a 20-

years BTO (Build-Transfer-Operate) PPP where the

concessionaire will be responsible for building, financing,

operating, collecting tolls, and maintaining the six-lane

66 km road.

Total Project

cost:

~USD 750 million

Type of finance: Senior Loan

Financial close: 2020

Status: In January 2015 the Ministry of Investments and

Development of Kazakhstan announced the tender for

Almaty Ring Road PPP.

The tender has drawn a lot of interest from participants

recording nine PQ applications; in April, six consortia

were prequalified. In November 2015 three financial bids

were submitted and the preferred bidder (Alarko-Makyol-

SK E&C-KEC) was announced in February 2016.

The Concession Agreement was signed in February 2018

and the financial close is scheduled for Q1 2020.

Project

highlights:

No traffic risk, availability payments with currency risk

mitigation mechanism, ‘bankable’ termination and step-

in arrangements.

Almaty,

Kazakhstan

Project location

Expected signing

2020

Kazakhstan

OFFICIAL USE

Project

Summary

SUU JSC Mongolia

26

Client

Suu JSC was established in 1958 as the main state dairy

processing company in Mongolia. It was privatized in 1991

through the Mongolian Stock Exchanges (MSE) and the

majority of the company’s shareholding was acquired by Max

Group in 2006.

EBRD Finance

Long term senior secured loan in local currency equivalent of

USD 12m provided under the Risk Sharing Facility with

Xacbank, local partner bank

Use of Proceeds

Expansion of milk production capacity by purchasing

additional equipment and longer term working capital

financing.

EBRD value added/ impact

• Improvement of competitiveness through capital

investments, as well as training of staff

• The company sources its raw milk from over 2,500 local

herders. The proceeds for the capacity expansion will

support the herders and overall regional economy across

• The Bank’s is providing Equal Opportunities Technical

Cooperation assistance of up to EUR 50,000 to review

SUU’s policies and practices and adopt improvements

through the development and implementation of a Gender

Action Plan.

Signed in

2019

OFFICIAL USE

Project

Summary

Isfana Water Project

Kyrgyz Republic

27

Client

Municipal Enterprise Isfana Taza Suu provides water

directly to 3,750 people and to 2,064 people through

water pumping wells. Most of the enterprise’s fixed

assets were built between 1962 and 1987.

EBRD Finance

EBRD loan – EUR 1.6m

EU/IFCA grant – EUR 2.4m

EU TC grant – EUR 1.0m

Use of proceeds

Renovation of the network, operational and

maintenance equipment purchases as well as household

metering in the South of the country.

Associated Grants, TC and non-TC

The project benefits from EU/IFCA grants.

EBRD value added/ impact

• Rehabilitation of reservoirs and of water supply

networks;

• Improved access to clean water for 11,000 people;

• Reduction of water losses;

• Optimisation of operating costs;

• Reduction of public health risks by improving the

quality of the drinking water through on-site

disinfection.

Signed

in

2019

Source of TC funds: EU IFCA

OFFICIAL USE

Contacts

Antonio Ocaña Marin

Analyst, Business Development ocanaa@ebrd.com

EBRD

One Exchange Square

London, EC2A 2JN

United Kingdom

www.ebrd.com

Find us on social media 28 OFFICIAL USE