Opportunities With theOpportunities With theEuropean Bank for European Bank for

Reconstruction & DevelopmentReconstruction & Development

Malcolm BurkeMalcolm Burke

Trade Advocacy & Multilateral Trade Advocacy & Multilateral Development Bank CenterDevelopment Bank Center

The largest investor in the regionThe largest investor in the region

AAA-rated owned by 62 AAA-rated owned by 62 shareholdersshareholders

Promotes transition to market Promotes transition to market economies in 29 countrieseconomies in 29 countries

€€20 B capital base20 B capital base

€€5 B Annual loan/equity 5 B Annual loan/equity commitmentscommitments

U.S. is the largest single U.S. is the largest single shareholder, with a capital shareholder, with a capital subscription of €2 billion or subscription of €2 billion or 10% (EU is 56%)10% (EU is 56%)

A growing portfolioA growing portfolio

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006

Cumulative commitments €33.3 billion

To promote:To promote:

Transition to free, market-based economies by Transition to free, market-based economies by supporting private and entrepreneurial initiativesupporting private and entrepreneurial initiative

A better investment climateA better investment climate

Good corporate governance at project, corporate Good corporate governance at project, corporate levels and in marketslevels and in markets

Environmentally sound and sustainable Environmentally sound and sustainable developmentdevelopment

EBRD ObjectivesEBRD Objectives

A large field networkA large field network

29 Countries

32 Offices

What makes EBRD different than What makes EBRD different than other IFIs?other IFIs?

Unique mandate - both political and economicUnique mandate - both political and economic

Largest single financial investor in the regionLargest single financial investor in the region

Invests primarily in private sector projectsInvests primarily in private sector projects

Specialized knowledge of central and eastern Specialized knowledge of central and eastern Europe, Caucasus, Russia and Central AsiaEurope, Caucasus, Russia and Central Asia

Multi-national staff from member countriesMulti-national staff from member countries

Dedicated teams with expertise in a variety of Dedicated teams with expertise in a variety of sectors and in-depth legal know-howsectors and in-depth legal know-how

Financing instrumentsFinancing instruments

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

Direct Indirect

How the EBRD Shares the RiskHow the EBRD Shares the Risk

Private Sector Business Risk

Helps Mitigate Political Risk

Will Assume Equity or Loan Risk

Can Provide Support to Mitigate Risk

EBRD

Trade Facilitation ProgramTrade Facilitation ProgramHow does it mitigate risk?How 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

Case Study: Export of Equipment to Case Study: Export of Equipment to KazakhstanKazakhstan

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)

Confirming Banks in the USA 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 AlaskaBanco Bilbao Vizcaya Argentaria National Bank of CanadaBanco Espanol de Credito National City BankBank of New York Societe GeneraleBank of Nova Scotia SEBBNP Paribas Wachovia BankCitibank Wells Fargo HSBC Trade BankCommerzbankDeutsche BankHSBC Bank USA

U.S. - 216 transactions U.S. - 216 transactions EUR 186 millEUR 186 mill

(TRANSACTIONS RANGE FROM 30K TO 10.6 m)(TRANSACTIONS RANGE FROM 30K TO 10.6 m)

www.ebrd.com/tfpwww.ebrd.com/tfp

Export Transactions from U.S. Export Transactions from U.S. 2000-2006 2000-2006

Transactions covered for U.S. Transactions covered for U.S. Companies/ExportersCompanies/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

Check-List for U.S. CompaniesCheck-List for U.S. Companies

Check under Check under www.ebrd.com/tfp www.ebrd.com/tfp for Issuing Banks for Issuing Banks and tenors EBRD may guarantee payment; and tenors EBRD may guarantee payment;

Ask your buyers/suppliers to check if an Issuing Ask your buyers/suppliers to check if an Issuing Bank under the TFP qualifies to issue the required Bank under the TFP qualifies to issue the required trade finance instrument;trade finance instrument;

Ask the Confirming Bank of your choice to confirm Ask the Confirming Bank of your choice to confirm payment instrument under the guarantee of EBRDpayment instrument under the guarantee of EBRD

Contact U.S. Commercial Service/AC-EBRD StaffContact U.S. Commercial Service/AC-EBRD Staff

EBRD’s Procurement PoliciesEBRD’s Procurement Policies

www.ebrd.com/oppor/procure/index.htmwww.ebrd.com/oppor/procure/index.htm

AC-EBRD – join e-mail listAC-EBRD – join e-mail list

Public Sector

Detailed rules/open tendering/EBRD oversees the

process

Private Sector

Good commercial practice/clients not required to use EBRD

tendering process

Consultancies 75% of consultancies are in Private Sector

How we support U.S. business: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

US Commercial Service/Advocacy US Commercial Service/Advocacy Center Liaison to the EBRDCenter Liaison to the EBRD

Contact Information:Contact Information:

Sanford Owens, Senior Commercial Officer

Gurjit Bassi, Commercial Specialist

U.S. Commercial Liaison/Advocacy Center - EBRDOne Exchange Square

London, EC2A 2JN

Tel: +44 20 7588 8490 Fax: +44 20 7588 8443

Email: Sanford.Owens@mail.doc.gov

Gurjit.Bassi@mail.doc.gov

Web: www.buyusa.gov/ebrd

Trade FinanceTrade FinanceBank: IFC IDB ADB EBRD Ex-Im

Ceiling $1Billion $ 400 Million $200 M $1 Billion $10 Million

Cover 100% 100% 80% 100 % 85%

Maturity Up to 3 Yrs Up to 3 Yrs 5 years Up to 3 years Up to 5 yrs (10 yrs Env. Med.)

Fees None None None None $ 150

Pricing 75 BPs (min)

400 BPs (max)

75% of confirmation fee

90 days: 75-200 bps,

1 year: 125-250 bps

3 years: up to 350 bps

Flexible On-line calculator

Country

LimitationsNone

IDB Member Countries

Member countries (Asia Pacific & 6 in Central Asia)

EBRD countries of operation

Many & varied

Product Limitations

Vice, PCBs, child- labor, asbestos, drift

nets, etc

Vice, Environ., (Any involvement, even if unrelated to IDB financing)

Arms, ammunition, radioactive materials, nuclear reactors and fuel

variousMinimum U.S. Content

No Defense Articles

Party Limitations Public Sector Buyers

Issuing and Confirming Banks

Public and private sectors

Public & Private

No Military Buyers (except: Humanitarian, Drug interdiction, Dual use)

Rated (S&P) AAA AAA AAA AAA Full Faith & Credit

Trade Finance ApplicationsTrade Finance ApplicationsIFC IDB AfDB ADB EBRD Ex-Im

Import Finance Pre-Export Finance Equipment Bid Bonds

SBA up to $2M

Performance Bonds Advance Payments

Project FinanceProject FinanceBank: IFC IDB AfDB ADB EBRD Ex-Im

Ceiling25% Greenfield 50% Expansion

$200 Million 33%Negotiated w/ borrowing countries

35% total project value

85% Plus Local …….....Costs

Maturity 7-12 years 8-15 years 15 years

Up to 4 year grace period

Up to 20 yrs Up to 20 yrs

Aircraft: 12 yrs Power Plant :15 yrs Ships: 10 yrs >$25M: 5 yrs, C-1 >$25M: 10 yrs, C-2

Fees1% front-end .5% per annum

Market driven; case-by-case basis

Variable

Up to 2%

1% front end, 0.75% commitment fee

Commercial rates

Evaluation Fee Exposure Fee Due Diligence Fees

Commitment Fee (12.5 bp)

PricingFixed or floating market rate

Fixed or floating market rate

Fixed or floating market rate

Fixed or floating market rate

Fixed or floating market rate

Fixed or floating market rate

Country Limitations

Developing Country, IFC member

Member countries Member countries Member countriesEBRD country of operations

Country Limitation Schedule

Project Limitations

Env., Social, Procurement Requirements

Env., Social, Procurement Requirements

Env., Social, Procurement Requirements

Env., Social, Procurement Requirements

Env, Social, No gaming

Environmental No Defense items U.S Ships if $20M+

Party Limitations

Private Sector Borrowers

Private Sector Borrowers

Private Sector Borrower

Public and Private sector Borrowers None No Military Buyers

Rated (S&P) AAA AAA AAA AAA AAA Full Faith & Credit

AADVOCACY DVOCACY CCENTERENTER MDB MDB LLIAISONIAISON O OFFICESFFICES

IFC: Will Center, will.center@mail.doc.gov

U.S. Trade Advocacy Center- World Bank

1818 H St. NW – Room 13- 525

Washington, DC 20002

Tel: 202- 458- 0120 Fax: 202-477-2969

IDB: Miguel Romano, miguel.romano@mail.doc.gov

U.S. Trade Advocacy Center- IDB

1300 New York Ave., NW, Room NE- 465

Washington, DC 20577

Tel: (202) 623-2598 Fax: (202) 623-2039

AfDB: Christel Fredrikson, christel.fredrikson@mail.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: 011 216-71- 830 - 244

ADB: Kenneth Reidbord, kenneth.reidbord@mail.doc.gov

U.S. Trade Advocacy Center- ADB

25th Floor, Ayala Life – FGU Center

6811 Ayala Avenue, Makati City 1226, Metro Manila

Tel: 011 (63-2) 887-1345 Fax: 011 (63-2) 887-1164

EBRD: Sanford Owens, sanford.owens@mail.doc.gov

U.S. Trade Advocacy Center- EBRD

One Exchange Square

London, EC2A 2JN

Tel: 011 44 20 7588 8490 Fax: 011 44 20 7588 8443

AADVOCACY DVOCACY CCENTERENTER MDB MDB LLIAISONIAISON O OFFICESFFICES

AADVOCACY DVOCACY CCENTERENTER MDB MDB LLIAISONIAISON O OFFICESFFICES