The Black Sea Trade and Development Bank: Financing Real Sector of the Black Sea Economies

1
The Black Sea Trade and Development Bank
Financing Real Sector of the Black Sea Economies
Tbilisi, November 11, 2009
2
BSTDB at a Glance

• Location Thessaloniki, Greece
• First Operation November 1999
• Employees 100
• Shareholders 11 countries of the Black Sea
  Region
• Subscribed Capital USD 1.5 billion (starting
  from 2010 to be increased to USD 3 billion)
• Active Portfolio (Signed, 01.10.09) USD 1303
  million
• Credit Rating by Moodys (October 2006) Baa1
  (outlook positive)

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Shareholding Structure
4
Mandate

• Foster economic and social development of the
  Black Sea region
• Provide financing to public and private
  enterprises of the region
• Promote co-operation and integration among
  Member States
• Mobilize resources for the Black Sea region

5
Development Impact

• Creation of jobs
• Productivity improvement
• Export development
• Import substitution
• Environment protection
• Public infrastructure development

6
Project Cycle

• Preliminary Eligibility Review
• Due Diligence
• Term Sheet
• Credit Committee Approval
• Board of Directors Approval
• Loan Agreement
• Disbursement
• Monitoring

7
Main Products and Services

• Project Finance (up to 35 of total project
  cost)
• Corporate Finance
• Credit Lines to Financial Institutions
• Trade Finance
• SME Financing
• General Purpose Lines
• Mortgage Financing
• Subordinated Loans
• Leasing
• Equity Investments (up to 33 of the total
  equity)
• Direct
• Investment Funds
• Guarantees

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Active Portfolio
9
Operations by Product Type(signed)

• Project Finance 59.61
• SME Financing 27.42
• Trade Finance 10.81
• Equity Participation 2.17

10
Sectoral Distribution of Projects (signed)

• Manufacturing 21.23
• Financial Institutions 39.99
• Energy 16.07
• Transport and Public Utilities 13.99
• Telecommunications 7.37
• Agriculture, Forestry and Fishing 1.35

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Terms of Financing

• Amount
• Private entities minimum USD 3-5 million,
  maximum USD 40 million
• Public entities no ceiling on sovereign loans
  potentially can go up to the country limit
• Maturity
• Private entities 5 to 7 years on average
• Public entities up to 15 years
• Grace period 24 years
• Flexible and competitive market-oriented pricing
  policy commensurate with project and country
  risks

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Georgia at the Bank

• Share in Authorized Capital 0.5
• Contribution to Paid-In Capital USD 4.6 mn
• BOD Approved Projects (Cumulative) 14
• Amount of BOD Projects (Cumulative) USD 66
  mn
• Georgias Share in Cumulative Portfolio 2.61
• Projects in Active Portfolio 7
• Amount of Active Portfolio USD 36 mn
• Georgias Share in Active Portfolio 2.40

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BSTDB Projects in Georgia

• TBC Bank USD 5 mn Trade Finance
• VTB Bank Georgia USD 3 mn Trade Finance
• TBC Bank USD 3 mn SME Line
• Lomisi Beer USD 5 mn
• Cartu Bank USD 5 mn Trade Finance
• TBC Leasing USD 3 mn
• Procredit Bank Georgia USD 10 mn micro and SME
  Line

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Why BSTDB?

• No political or macroeconomic conditionality
  attached to financing
• Focus on development impact, not on maximization
  of profits
• Professional team blending international and
  local expertise
• Fast approval process (usually 3-6 months)
• Flexible demand-driven, market-oriented approach
• Technical assistance available for project
  preparation (business plans, audit etc.)

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Black Sea Trade and Development Bank 1 Komninon
Street 54624 Thessaloniki, Greece Tel
30-2310-290400 Fax [phone] E-mail
info_at_bstdb.org Website www.bstdb.org