Financing Opportunities through the EBRD

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Financing Opportunities through theEBRD
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What is the EBRD?
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What is the EBRD?

• 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
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A network of 32 offices in 27 countries
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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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What 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
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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

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EBRD risk profile
EBRD
Sponsors

• Have sound management
• Take operational risks

• Takes political risks
• Shares financial risks
• Takes long maturity
• Shares equity risk

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EBRD in Romania
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Sector Distribution of EBRD Portfolioin Romania
2.4 billion across more than 100 projects
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Success through Partnerships in Romania
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Selected Transactions in Romania
Total commitments in Romania 2.4 billion over
more than 100 projects
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EBRD Financing Guidelines
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EBRD 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.

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Advantages 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.

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EBRD Strategic Priorities
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The 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).

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EBRD 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.

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Contact Information

• James Hyslop Deputy Head of Office
• EBRD Romania Gina Patrichi 8 Sector 1
  Bucharest
• 40 21 202 7100