Opportunities With the European Bank for Reconstruction

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Opportunities With theEuropean Bank for
Reconstruction Development

• Malcolm Burke
• Trade Advocacy Multilateral Development Bank
  Center

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The largest investor in the region

• AAA-rated owned by 62 shareholders
• Promotes transition to market economies in 29
  countries
• 20 B capital base
• 5 B Annual loan/equity commitments
• U.S. is the largest single shareholder, with a
  capital subscription of 2 billion or 10 (EU is
  56)

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A growing portfolio
Cumulative commitments 33.3 billion
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EBRD Objectives

• To promote
• Transition to free, market-based economies by
  supporting private and entrepreneurial initiative
• A better investment climate
• Good corporate governance at project, corporate
  levels and in markets
• Environmentally sound and sustainable development

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A large field network
29 Countries 32 Offices
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What makes EBRD different than other IFIs?

• Unique mandate - both political and economic
• Largest single financial investor in the region
• Invests primarily in private sector projects
• Specialized knowledge of central and eastern
  Europe, Caucasus, Russia and Central Asia
• Multi-national staff from member countries
• Dedicated teams with expertise in a variety of
  sectors and in-depth legal know-how

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Financing instruments
Direct
Indirect

• Loans
• Equity and Quasi-equity
• Guarantees, including credit enhancements
  (performance bonds etc.)

• SME loans
• Equity funds
• Micro/small business programs
• Credit lines
• Trade Facilitation Program
• Co-financings

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How the EBRD Shares the Risk
EBRD

• Private Sector Business Risk
• Helps Mitigate Political Risk
• Will Assume Equity or Loan Risk
• Can Provide Support to Mitigate Risk

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Trade Facilitation ProgramHow does it mitigate
risk?

• EBRD supports trade by providing
• guarantees that cover risks arising from project
  finance transactions
• short-term advances/financing to banks in the
  Countries of Operation for trade finance purposes
• TC funded trade finance training and advisory
  services to local banks

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Case Study Export of Equipment to Kazakhstan

• Caterpillar sells equipment to Kazakhstan
• A Kazakh Issuing Bank under the TFP opens a
  Letter of Credit to a foreign Confirming Bank,
  payable in several instalments before, at and
  after delivery
• EBRD guarantees payment of amounts or tenors
  which are not covered by ECAs (max. 3-5 years)

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Confirming Banks in the USA
600 Confirming Banks and subsidiaries in 66
countries, e.g. including 41 banks in the
US American Express Bank JP Morgan Chase Bank
Banca Intesa National Bank of Alaska Banco
Bilbao Vizcaya Argentaria National Bank of
Canada Banco Espanol de Credito National City
Bank Bank of New York Societe Generale Bank of
Nova Scotia SEB BNP Paribas Wachovia
Bank Citibank Wells Fargo HSBC Trade
Bank Commerzbank Deutsche Bank HSBC Bank USA
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Export Transactions from U.S.
2000-2006

• U.S. - 216 transactions EUR 186 mill
• (TRANSACTIONS RANGE FROM 30K TO 10.6 m)
• www.ebrd.com/tfp

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Transactions covered for U.S. Companies/Exporters

• Examples Exports from U.S.
• Industrial machinery/equipment to Russia
• Cars and machinery to Ukraine
• Equipment and machinery to Kazakhstan
• Telecom equipment to Uzbekistan
• Electrical equipment to Yugoslavia
• Soy beans to Azerbaijan
• Foodstuffs to Georgia

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Check-List for U.S. Companies

• Check under www.ebrd.com/tfp for Issuing Banks
  and tenors EBRD may guarantee payment
• Ask your buyers/suppliers to check if an Issuing
  Bank under the TFP qualifies to issue the
  required trade finance instrument
• Ask the Confirming Bank of your choice to confirm
  payment instrument under the guarantee of EBRD
• Contact U.S. Commercial Service/AC-EBRD Staff

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EBRDs Procurement Policies

• www.ebrd.com/oppor/procure/index.htm
• AC-EBRD join e-mail list

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US Commercial Service/Advocacy Center Liaison to
the EBRD

• How we support U.S. business
• Increase awareness of investment opportunities
• Develop opportunities for TC participation
• Identify/source EBRD procurement opportunities
• Provide guidance to U.S. firms
• Ensure EBRD policies and procedures are followed
  in a fair and transparent manner

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Contact Information

• Sanford Owens, Senior Commercial Officer
• Gurjit Bassi, Commercial Specialist
• U.S. Commercial Liaison/Advocacy Center - EBRD
• One Exchange Square
• London, EC2A 2JN
• Tel [phone] Fax [phone]
• Email Sanford.Owens_at_mail.doc.gov
• Gurjit.Bassi_at_mail.doc.gov
• Web www.buyusa.gov/ebrd

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Trade Finance
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Trade Finance Applications
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Project Finance
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ADVOCACY CENTER MDB LIAISON OFFICES

• IFC Will Center, will.center_at_mail.doc.gov
• U.S. Trade Advocacy Center- World Bank
• 1818 H St. NW Room 13- 525
• Washington, DC 20002
• Tel [phone] Fax [phone]
• IDB Miguel Romano, miguel.romano_at_mail.doc.gov
• U.S. Trade Advocacy Center- IDB
• 1300 New York Ave., NW, Room NE- 465
• Washington, DC 20577
• Tel [phone] Fax [phone]

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ADVOCACY CENTER MDB LIAISON OFFICES

• AfDB Christel Fredrikson, christel.fredrikson_at_mai
  l.doc.gov
• U.S. Trade Advocacy Center- AfDB
• ATR BAD, 16, rue de Syrie
• EPI A 3/A, 1002 Tunis Belvedere, Tunisia
• Tel 011 216 - 71- 831- 117 Fax [phone]-
  830 - 244
• ADB Kenneth Reidbord, kenneth.reidbord_at_mail.doc.g
  ov
• U.S. Trade Advocacy Center- ADB
• 25th Floor, Ayala Life FGU Center
• 6811 Ayala Avenue, Makati City 1226, Metro
  Manila
• Tel [phone] Fax 011 (63-2)
  887-1164
• EBRD Sanford Owens, sanford.owens_at_mail.doc.gov
• U.S. Trade Advocacy Center- EBRD
• One Exchange Square
• London, EC2A 2JN
• Tel [phone] Fax [phone]
  8443