Opportunities with the European Bank for Reconstruction

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Opportunities with theEuropean Bank for
Reconstruction Development

• Sanford Owens
• Banking on Development
• New Orleans
• March 16, 2007

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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

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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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Shareholding of the EBRD
Japan 8.6
CEE CIS 12.4
USA 10.1
Others 12.7
EU 56.2
US is the largest shareholder of the Bank with a
capital subscription of 2 billion.
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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
• Specialised knowledge of central and eastern
  Europe, Caucasus, Russia and Central Asia
  
• Multi-national staff from our member countries
• Dedicated teams with expertise in a variety of
  sectors
  
• 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
  service 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 37 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 C
ity Bank Bank of New York Societe Generale Ba
nk 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

• US - 214 transactions EUR 156.6m
• (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
• telecommunications equipment to Uzbekistan
• electrical equipment to Yugoslavia
• soya beans to Azerbaijan
• chicken and meat 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 and Rules

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

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US Commercial Service/Advocacy Center Liaison to
the EBRD

• How we support U.S. business
• Increase U.S. 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 44
20 7588 8490 Fax [phone]
Email Sanford.Owens_at_mail.doc.gov
Gurjit.Bassi_at_mail.doc.gov
Web www.buyusa.gov/ebrd
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Register on-line www.ebrd.com