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EBRD – General introduction Aimana Hoskins

Principal, Business Development Business Finland

Wednesday, 11th of April 2018, Helsinki , Finland

Contents

Introduction to EBRD

Working with the EBRD

EBRD –Finland cooperation

Contacts and Useful links

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What is the EBRD?

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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, with

the mandate to promote transition to

modern and well-functioning markets in 38

countries

• Owned by 66 countries and 2

inter-governmental institutions (EU, EIB).

• Capital base of €30 billion.

• Highest credit rating (AAA/Aaa) from all

three main rating agencies (S&P, Moody’s

and Fitch)

EU 28

Countries (1)

63% EBRD region

excluding EU

7%

Others

11%

USA

10%

Japan

9%

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EBRD – IFI with a private sector mandate Over 25 years of supporting companies in Central and Eastern Europe & SEMED

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History AAA-rated International Financial Institution founded in 1991 to meet the challenge of rebuilding the post-communist economies of Central and Eastern Europe

Mission Foster the transition towards market-oriented economies and to promote private initiatives in countries committed to the principles of democracy

Core values Investments must meet strict environmental, social, governance and integrity standards, supporting sustainable development and transparency

Shareholders Includes 66 countries from the Central and Eastern Europe and Southern and Eastern Mediterranean regions, EU member states, G7 members, as well as EIB and EU.

Client sectors All key economic sectors including financial institutions, infrastructure, energy and corporate sector, including agribusiness and ICT

Instruments Long-term market based debt and growth equity financing and technical assistance

Staff Over 1,900 employees from all member countries, working in sector, product, regional, support and control functions, including about 30% staff in Countries of Operations1

Locations Headquarters in London, with 43 resident offices in its 38 countries of operations in Central and Eastern Europe, Central Asia and the Southern and Eastern Mediterranean region

The EBRD fosters transition to market economies in countries from Central and Eastern Europe to Central Asia and the Southern

and Eastern Mediterranean region:

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Russia

Kazakhstan Mongolia

—Kyrgyz Republic

—Tajikistan

—Moldova

—Jordan

Azerbaijan

—Morocco

Belarus

—Romania —Serbia

—Kosovo Georgia—

Armenia—

Tunisia—

Croatia— Bosnia and Herzegovina—

Montenegro—

Albania—

FYR Macedonia

—Turkmenistan

—Bulgaria

Estonia—

Latvia—

Lithuania—

Poland

Slovenia—

Czech Republic—

—Slovakia

—Hungary

Uzbekistan—

Egypt—

Greece

Cyprus

Turkey

Where we invest Increasing footprint

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EBRD Largest investor in the region

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Since 1991, EBRD invested over

€119 billion in around 5,035

projects

In 2017

€9.7 billion

412 projects

EBRD Top 10 investee countries in 2017 (€m)

Private sector accounted for share of

71%

Debt

84%

Equity

5%

Guarantee

11%

1 Turkey 1,540

2 Egypt 1,413

3 Ukraine 740

4 Poland 659

5 Greece 614

6 Kazakhstan 586

7 Romania 546

8 Azerbaijan 456

9 Serbia 382

10 Tunisia 324

6.9

8.5 8.2 8.7

9.3

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1.0 1.4 0.7 0.4

0

20

40

60

80

100

120

0

1

2

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2013 2014 2015 2016 2017

Ne

t Cu

mu

lative

ba

nk

inve

stm

en

t An

nu

al b

usin

ess in

vestm

en

t (A

BI)

Equity ABI

Debt ABI (and guarantees)

Net Cumulative Bank Investment

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Portfolio distribution by sector and region

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EBRD Portfolio (at 31 December 2017): € 41,435 million

Sector Region

10%

3%

14%

18%

7% 19%

12%

18%

Central Asia 10%

Central Europe & Baltics 3%

Cyprus & Greece 14%

Eastern Europe & Caucasus 18%

Russia 7%

South-Eastern Europe 19%

Southern Eastern Mediterranean 12%

Turkey 18%

22%

25% 29%

24%

Financial Institutions 22% (Depository credit (banks),

Leasing finance, non-depository credit (non-bank),

Insurance, Pension, Mutual Funds)Corporate 25% (Manufacturing/Services,

Agribusiness, Equity funds, Property & Tourism,

Information & Communication technology)Infrastructure 29% (Municipal & Environmental

infrastructure, Transport)

Energy 24% (Power & Energy, Natural Resources)

Note: unaudited as at 31 December 2017 OFFICIAL USE

EBRD Principles

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Transition Impact

Sound Banking

EBRD

Additionality

Promotes transition to market-based

solutions, ‘commercialized’

approaches, good corporate

governance, international standards,

private ownership where appropriate

Invests in financially viable

projects, prefer revenue

generating projects, co-

financing with private

sector (banks/sponsors)

Supports, but does not

replace/underprice private

investment and/or

commercial finance

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EBRD Core themes

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Innovation

Access to Finance

Regional Development

Resource Efficiency and Environment

Inclusion

Contents

Working with the EBRD

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Financial investments with

Finnish sponsors and/or

banks for projects (debt,

mezzanine and equity)

Guarantees to Finnish

banks covering political

and payment risks. TFP

has supported 180

export and import

transactions for Finnish

companies for a total of

€94.03 million together

with 5 Finnish

confirming banks

Supply of Finnish equipment

and/or services to EBRD

financed projects

Investment

Trade Facilitation

Procurement

Working with the EBRD

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Project finance

What we finance

Projects may be considered for EBRD

assistance if they:

• are located in an country where the

EBRD works

• have good prospects of being

profitable

• have significant equity

contributions in cash or in kind

from the project sponsor

• would benefit the local economy

• satisfy the EBRD's environmental

standards as well as those of the

host country

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What we don’t finance

• Defence-related activities

• Tobacco industry

• Substances banned by

international law

• Stand-alone gambling facilities.

In addition, we may not finance

certain products or processes due to

their environmentally harmful nature

or if adverse impact cannot be

adequately mitigated.

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EBRD Product Flexibility tailored to

project needs

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Typical size

Term

Approach

Currency

Applications

Structures

5-7 years

(up to 10-15 years in case of

infrastructure investments)

€10mln +

(less in less advanced

countries)

Finance up to 35% of the

project (60% with syndication)

Major foreign currencies as well as local currency

• Greenfield/Brownfield, JVs,

• Capex for expansion/modernization, including resource

efficiency improvements

• Ownership change: acquisition, consolidation, privatisation

• PPPs, etc.

Typically from 3-7 years

€5-7mln +

(less in less advanced

countries)

Typically €50 ths – €50mln

1.5-2 (up to 3) years

• Issues to international banks

• Takes the risk of transactions of

the banks in the EBRD’s

countries of operations

Mainly through Trade Facilitation

Programme

• Senior, subordinated or

convertible,

• Project finance

• Floating or fixed rates

• Portage equity finance

• Risk equity

• Import/export operations

• Pure guarantees, cash

advance trade finance

Minority stake

Debt Equity Guarantees

Exact terms depend on specific needs and market conditions

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Investment

Technical Cooperation

Policy dialogue

EBRD Support and Value Added:

Technical Cooperation

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• Promoting best international practices

• Improve business climate

• Improved transparency & governance

• Development equity

• Mezzanine

• Project finance

• Corporate loan

• Equity

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Contents

EBRD –Finland cooperation

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Finland and EBRD joint cooperation

• Value of joint Finnish-EBRD investment: € 2.56 billion as of December 2017:

€1.38 billion from EBRD and €1.18 billion from Finland

• Major beneficiary countries: Poland, Lithuania and Estonia

• Dominant investment sectors:

• Industry, Commerce & Agribusiness : €1.4 billion

• Energy : €718 million

• Infrastructure: €230 million

• Financial Institutions: €206 million

Procurement

From 2013 to December 2017, entities from Finland participated in 2 tenders and two Requests for

Proposals, under our public sector projects worth €57.0 million and won two contracts worth €1.9

million.

Entities from Finland won a Supply and Installation contract worth €7.4 million, under Nuclear Safety

Grant.

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DFF – OMA DIY Belarus

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OMA is a DIY retail chain and part of Kesko

Corporation, the Finnish retailing

conglomerate with its headquarters in

Katajanokka, Helsinki and listed on the

Nasdaq Nordic Stock Exchange.

Signed in 2017

EBRD finance

Use of proceeds and EBRD value added/impact

OMA, the leading domestic DIY retail chain (joint venture with UAB Kesko Senukai & Kesko OYJ) plans to expand its retail chain by opening up nine new stores across Belarus. It also plans to upgrade its logistic, IT and back-office operations to support the expansion.

7-year senior secured loan

for up to

EUR 24mn (equivalent to USD 25.7mn)

The investment will strengthen competition and customer choice. It will also promote cross-border cooperation by bringing best industry standards and technologies to the Belarusian market. EBRD transition quality: inclusion

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Metsa Tissue – Copernicus Poland and Russia

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Metsa Tissue Oyj., based in Finland, one of the leading European suppliers of tissue and cooking paper.

Signed in 2012

EBRD finance

Use of proceeds and EBRD value added/impact

To finance Energy Efficiency CAPEX as a part of the operational restructuring and consolidation of Metsa’s Polish operations and follow-on CAPEX to its Russian operations.

The Bank’s long term funding helped to close the financial gap and facilitated better match of the longer maturity of the CAPEX programme in Poland and Russia.

€ 35mn senior debt

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Contents

Contacts and Useful links

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Contact

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Aimana Hoskins

Principal, Business Development

Tel: + 44 20 7338 6820

Email: hoskinsa@ebrd.com

EBRD

One Exchange Square

London, EC2A 2JN

United Kingdom

www.ebrd.com

Find us on social media

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Annex: Useful links

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EBRD website:

www.ebrd.com

Information about the countries of operations of EBRD:

www.ebrd.com/where-we-are.html

Information about the sectors of EBRD

www.ebrd.com/what-we-do/sectors-and-topics.html

Project Summary Documents, details of the projects signed with EBRD:

www.ebrd.com/work-with-us/project-finance/project-summary-documents.html

Sending your project financing request online:

http://www.ebrd.com/work-with-us/project-finance/funding-adviser.html

Team dedicated for SMEs :

http://www.ebrd.com/work-with-us/advice-for-small-businesses/overview.html

Trade Facilitation Programme:

http://www.ebrd.com/work-with-us/trade-facilitation-programme.html

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