An overview of the European Bank for

Reconstruction and Development

(EBRD)

Thursday 18th of June 2015, Lisbon, Portugal

Hildegard Gacek, Managing Director SEMED

Contents

EBRD: Snapshot

EBRD: Operations

EBRD: in the Southern and Eastern Mediterranean region (SEMED)

EBRD: Case studies in the SEMED region

EBRD: EBRD in Turkey, Bulgaria, Romania and Poland

EBRD: EBRD and Portugal

Case studies with Portuguese companies

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EBRD’s objectives achieved through

financing the private sector

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Debt ABV Equity ABV Net Cumulative Business Volume

€ billion

Net cumulative business volume €100bn

• An international financial institution, promotes transition to market economies in 36 countries from central Europe to central Asia

• In 2011, the Bank expanded its operations to include Egypt, Morocco, Tunisia and Jordan (Southern and Eastern Mediterranean – SEMED region)

• Owned by 65 countries and 2 inter-governmental institutions (EU, EIB).

• Capital base of €30 billion.

• In 2014, the EBRD welcomed Cyprus as a recipient country*

• In 2015 it was also agreed that we will be investing in Greece on a temporary basis in response to a request from the Greek authorities to support reforms and a return to economic growth.

*Libya is yet to become a fully ratified member of the EBRD

EBRD: Shareholding Structure

and triple-A rating

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The EBRD has a triple-A rating from all three main rating agencies (S&P, Moody’s and Fitch)

Shareholding Structure

As at 13th July 2012

(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%

(2) Russia at 4%

EU 27 Countries 63% (1)

EBRD region excluding EU

7% (2)

Others 11%

USA 10%

Japan 9%

The EBRD and its objectives

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• Invested nearly €100 billion in more

than 4,000 projects since 1991

• Results in 2014: €8.85 billion invested

in 377 projects

• Private sector accounted for 70% share

• As at end May 2015: €1.6 billion

invested in 95 projects

Note: Unaudited as at end of May 2015

Objectives:

• To promote transition to market

economies by investing mainly in the

private sector

• To mobilise significant foreign direct

investment

• To support privatisation, restructuring

and better municipal services to

improve

people’s lives

• To encourage environmentally sound

and sustainable development

Where we invest

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Contents

EBRD: Snapshot

EBRD: Operations

EBRD: in the Southern and Eastern Mediterranean region (SEMED)

EBRD: Case studies in the SEMED region

EBRD: EBRD in Turkey, Bulgaria, Romania and Poland

EBRD: EBRD and Portugal

Case studies with Portuguese companies

7

EBRD finances diverse range

of enterprises

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Note: as at 31 December 2014

Financial Institutions 32% Bank lending, Bank equity, Small

business finance, Insurance and

financial services

Corporate 26% Manufacturing and services,

Agribusiness, Equity Funds,

Property and tourism,

Information and

communication technologies

Energy 19% Power and energy,

Natural resources

Infrastructure 23% Municipal and environmental

infrastructure, Transport

Country group portfolio distribution

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Note: Unaudited as at 31 December 2013

18%

22%

21% 16%

8%

11%

4%

Russia

Turkey

Central Asia

Central Europe Eastern Europe & Caucasus

South-eastern Europe

Southern and eastern

Mediterranean

EBRD Product Flexibility tailored

to project needs

Equity

• Common stock or preferred

• Minority position only (up to 35%)

• Mezzanine

• Other

• guarantees

• currency swaps

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Loans

• Senior, subordinated, convertible

• LT (up to 10y or more) or

ST revolving

• Floating/ Fixed rates

• Choice of currencies

(€, US$, some local currencies are

available)

Key strengths of the EBRD

Operational

• Extensive knowledge of local economy,

business environment and practices,

local presence

• Engaged minority partner for business

• A business partner who shares risks,

including political

• Catalyst to access additional equity,

debt and trade finance

• Provides finance to both private and

public sector clients

• High standards for corporate

governance and compliance

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Institutional

• Strong, internationally recognised

financial partner with long-term

perspective

• Close working relationships with

governments and shareholders

• Political leverage due to EBRD’s unique

mandate and shareholder structure

• Preferred Creditor Status

• Triple-A credit rating

• Work closely with market sources of

capital to fill “market gaps”

Contents

EBRD: Snapshot

EBRD: Operations

EBRD: in the Southern and Eastern Mediterranean region (SEMED)

EBRD: Case studies in the SEMED region

EBRD: EBRD in Turkey, Bulgaria, Romania and Poland

EBRD: EBRD and Portugal

Case studies with Portuguese companies

12

EBRD: Expansion into SEMED

The civil uprising of 2011 created major new transition challenges in the

SEMED region.

The May 2011 G8 Summit launched the Deauville Partnership to support

democratic transition, transparent government and sustainable growth.

In 2011 EBRD shareholders approved an expansion of EBRD’s mandate

to include four SEMED Countries (Egypt, Jordan, Morocco and Tunisia).

In November 2013, EBRD Board of Governors granted full Country of

Operation status to Jordan, Morocco and Tunisia. The status of Egypt will

be reviewed in 2015.

In 2013 Host Country Agreements were signed with Egypt, Tunisia and

Jordan; and in September 2014 with Morocco.

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SEMED: Progress to Date

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• Permanent offices were opened in Tunis and Amman in 2013.

The opening of a permanent offices in Egypt took place in 2014 and

in Morocco in 2015.

• Overall the Bank has increased its staff by 107 employees.

• 96 Projects have been signed to date for a total value of €1.84

billion.

• As of end-May 2015, over 150 TC projects totalling €80.5 million

have received funding.

• Local currencies are available in Jordan and Egypt. In Morocco a

swap agreement has been signed and a local currency investment

has been done. The Bank is negotiating currency swap

arrangements in Tunisia.

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Egypt - €820 million Morocco - €420 million Tunisia - €254million Jordan - €351million

Total: €1.84 billion

Total Signed Projects by Country

EBRD: SEMED Investment Projects

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EBRD: Operational priorities in

SEMED

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• Support for the private sector with particular emphasis on small and

medium-sized enterprises (SMEs).

• Developing non sovereign financing solutions for infrastructure

including PPP structures.

• Promoting sustainable energy and energy efficiency initiatives.

• Supporting and developing local capital markets.

Contents

EBRD: Snapshot

EBRD: Operations

EBRD: in the Southern and Eastern Mediterranean region (SEMED)

EBRD: Case studies in the SEMED region

EBRD: EBRD in Turkey, Bulgaria, Romania and Poland

EBRD: EBRD and Portugal

Case studies with Portuguese companies

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Project

Summary

Case Study:

IPP4 Al-Manakher Power Project

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Client

AES Levant Holding BV Jordan PSC , owned 60% by AES

Corporation (US) and 40% by Mitsui and Co. Ltd (Japan).

EBRD Finance

A secured limited recourse loan of up to US$ 100 million.

The remainder of the required funding is being provided by a

mixture of debt financing from the US Overseas Private

Investment Corporation and the sponsors.

Use of Proceeds

To fund the development of a 240MW peaking power plant,

15 km east of Amman in Jordan.

EBRD value added

EBRD financing will help to meet Jordan’s urgent needs for

power in the short-term and in the longer-term support

Jordan’s transition towards a sustainable, low carbon

economy through the provision of the flexible, responsive

backup capacity needed for the widespread development of

intermittent renewable energy generation such as solar and

wind.

2012 Signed in

Project

Summary

Universal: EBRD finances new

washing machine factory in Egypt

Client

Universal Washing Machines is part of the Universal Group

which is now the largest domestic appliance group in Egypt.

EBRD Finance

A long-term secured senior loan of US$ 24.3 million (around

EGP 150 million).

Use of proceeds

To finance the completion of a new manufacturing facility,

including the acquisition of production equipment, with a

capacity of up to 3 million washing machines a year

This will be the first facility to manufacture, as opposed to

assemble, washing machines in Egypt and will be fully

automated.

EBRD value added

The project will have a strong transition impact by introducing

modern technology in large scale washing machines

production in Egypt, which will enhance the know-how and

skills of the workers in the Company.

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Signed in

2013

Company Information

• Joint stock company listed on the Casablanca

Stock Exchange since 1972

• Leading Moroccan producer of edible oil and soap

EBRD Finance

• EUR 2.5 million loan

Purpose of investment

• Construction and launch of a biomass boiler to

improve energy efficiency and overall profitability

Lesieur Cristal – Morocco

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2012

Signed in

Project

Summary

Serinus Energy – Tunisia

Oil & Gas field development

• Serinus Energy is an medium sized

independent oil & gas group incorporated in

Alberta, Canada, listed on WSE and TSE.

• Serinus Energy has producing assets in

Ukraine and Tunisia and exploration assets in

Brunei and Romania.

• The Loans are used to finance the

development of four oil & gas fields in Tunisia

between 2013 and 2017.

• Significant operational efficiency and

productivity gains are expected to be achieved

through this project.

• Key figures:

- USD 40 million senior loan

- USD 20 million convertible loan

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2013 Signed in

Contents

EBRD: Snapshot

EBRD: Operations

EBRD: in the Southern and Eastern Mediterranean region (SEMED)

EBRD: Case studies in the SEMED region

EBRD: EBRD in Turkey, Bulgaria, Romania and Poland

EBRD: EBRD and Portugal

Case studies with Portuguese companies

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EBRD in Turkey (1) Key EBRD figures

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The EBRD has been investing in Turkey since 2009 with 140 projects and €5

billion investments signed

Today, Turkey is the biggest country of EBRD operations

In the resident offices in

Istanbul, Ankara and

Gaziantep, EBRD

employs 50 professionals

In 2014, EBRD invested

€1.4 billion for

37 projects in Turkey

EBRD in Turkey

Our operational priorities in Turkey:

developing sustainable energy (including support to on-going reforms

of the energy sector through policy dialogue);

promoting the development of micro, small and medium enterprises

(MSMEs);

enhancing the competitiveness of Turkish industry;

promoting market approaches toward investment in municipal

infrastructure;

support the Turkish government’s privatisation programme in the

enterprise and financial institutions sector.

EBRD in Turkey

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The EBRD has financed various industries and directly provided financing, both

debt and equity with clients ranging from commercial banks to municipalities and

SMEs.

EBRD in Turkey:

Sector and Product Portfolio Distribution

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Project

Summary

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2013 Signed in

Client: Asya Port

EBRD finance: USD 92 million

Type of finance: Senior Loan

Total Project cost: USD 391 million

Year: 2013

Project description: Financing the construction and operation of

the deep sea container terminal, located in

Barbaros, Tekirdag.

Promoting growth in containerisation and development of

logistics services in Turkey and the Black Sea region and drive

development of transhipment activities in the region.

Fostering greater competition in the domestic Turkish port

sector and will reduce existing bottlenecks and improve the

quality of port services in the Bosphorus.

Promoting commercial behaviour in the sector in general and

the adoption of the highest technical and management

standards.

The ability to handle larger container ships at the port will reduce

handling costs and increase the competitiveness of regional

transhipment terminal services for container cargo destined for

Black Sea ports.

EBRD in Turkey: Asya Port Container Terminal

EBRD in Bulgaria

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Since initiating operations in 1993, the Bank has signed 228 projects with cumulative

investment of €2.9 billion. Total project value is more than €8.5 billion.

Number of projects to date 228

Net cumulative Bank investment €2,940m

Private Share of cumulative

investment 88%

Cumulative disbursements €2,717m

Annual Bank Investment and Operations Portfolio Composition

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EBRD is finalising a new Country Strategy

Following public consultations will be approved by EBRD on 8 July

The main focus remains private investments, which account for 90% of Bank ABI.

Three main pillars:

• Enhancing competitiveness through efficiency, governance and innovation:

Bank financing should improve competitiveness, including resource management.

• Strengthen the financial sector through targeted investments and improved governance:

SMEs financed through FIs, funds and the LEF instrument.

• Narrowing the infrastructure gap through commercialisation, reform and efficiency:

The Bank remains available to support infrastructure – municipal, transport, energy – but

requires a constructive dialogue with Government.

Policy advisory assignments, particularly on regulatory issues, are possible.

EBRD business volume impacted by:

• Slow growth, limited FDI, limited FI activities

• Limited sovereign and municipal borrowing capacity

• Access to inexpensive resources from EU and EIB

EBRD in Bulgaria: Strategy

EBRD in Bulgaria: Sofia Water Project

• Client: Sofiyska Voda, currently 77 per cent

owned by Veolia Water and 23 per cent owned by

the City of Sofia

• EBRD Finance: EUR 51.5 million Total project

cost: EUR 147 million

• Investment in Sofiyska Voda’s priority investment

programme, including investment in water and

wastewater treatment

• A well balanced concession contract combined

with efficient project implementation and

necessary tariff increases lead to an increase in

investment and higher service levels.

• Project supported the development of the

regulatory framework in the water sector.

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EBRD in Romania

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• Over €7.1 billion invested in Romania in 370 projects, by May 2015

• 24 projects for around €590 million in 2014

• Most of the EBRD’s investments in Romania are in the private sector

• The EBRD’s focus in on:

• the corporate sector (manufacturing, agribusiness and telecoms)

• Financial institutions (SME and energy efficiency loans)

• Infrastructure (including co-financing with EU structural funds)

• The EBRD is keen to support and mobilize foreign direct investments and to

invest both debt and equity in local companies to improve competitiveness,

corporate governance and help meet EU standards.

EBRD in Romania: Arad Urban Transport

(Phase III): efficient and reliable urban

transportation

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Borrower – Arad Municipality

City – 185,000 people

Project:

• acquisition of new energy efficient

rolling stock (up to 6 new tram

vehicles)

• restructuring of the existing loan and

• modernisation of the main tram depot

Total Investments – EUR 20.8m

€ billion

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EBRD in Poland

The EBRD is among the largest investors in Poland. By May 2015 The Bank signed 354

operations in Poland for and total EUR 7.6 billion.

87 % in the private sector:

• 38% corporate sector represents

• Energy 33%

• 23% financial institutions Energy

• 6% infrastructure

The Bank is helping to support the growth of the private sector in Poland, in particular

through privatisation cases, as well as through a support to the stability of the financial

sector, assistance to the energy sector (including renewables and decarbonisation of

the economy), help to reduce the economy’s environment footprint.

of 3.0%-3.5% from 2014-15.

EBRD in Poland Iberdrola Polska Wind

• Client: Iberdrola Renewables Polska Sp. Z.o.o. is a fully-owned Polish subsidiary of Spain-based Iberdrola Renovables, S.A. a world leading developer in the renewable energy industry.

• EBRD Finance: 25% equity investment in IBR Polska of the PLN equivalent to up to EUR 75 mln, by subscribing for shares following a capital increase.

• Use of Proceeds: Proceeds of the investment will fund the development, construction, and operation of the Company’s current portfolio of wind power projects in Poland.

• EBRD added Value: By financing one of the most visible wind farm portfolios in Poland, EBRD’s investment will provide comfort to project developers and other private investors and will demonstrate confidence in Poland’s renewable energy framework. The project will also set appropriate standards for the environmental permitting process and wind assessments in the country.

Signed in 2010

Contents

EBRD: Snapshot

EBRD: Operations

EBRD: in the Southern and Eastern Mediterranean region (SEMED)

EBRD: Case studies in the SEMED region

EBRD: EBRD in Turkey, Bulgaria, Romania and Poland

EBRD: EBRD and Portugal

Case studies with Portuguese companies

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Portugal and EBRD joint cooperation

• Value of joint Portuguese-EBRD investment: €1.67 billion as of January 2015:

• €1.13 billion from EBRD

• €0.54 million from Portugal

• Major beneficiary regions: Romania and Hungary.

• Dominant investment sectors:

• Financial Institutions: €0.69 billion

• Infrastructure: €0.46 billion

• Energy: €0.43 billion

• Industry, Commerce and Agribusiness: €0.08 billion

22 June, 2015 35

Portugal: Consultancy Services,

Procurement

Consultancy Services

• In 2014, there were five consultancy contracts totalling €281,456 awarded to Portuguese consultants by EBRD including one contract for €195,000 for the Small Business Support team for provision of management advice. The remaining four contracts were for provision of specialist industry and procurement advice.

Procurement

• As of December 2014 a total of 168 public sector loan funded and EBRD administered grant contracts were awarded for a total contract value of €1.3 billion. 68 Nuclear Safety Grant funded Contracts worth € 105.5 million were also signed in 2014.

• From 2010 to December 2014, entities from Portugal participated in 17 tenders, and won 1 contract worth € 1.4 million under our public sector projects, and did not participate in any contracts in 2014, under the Nuclear Safety Funds.

22 June, 2015 36

Portugal: Small Business Initiative

Small Business Initiative

• Since 2006, Portugal has provided €520,000, supporting 75 projects

helping small and medium-sized enterprises access business advice

through local consultants and international industry experts in Albania,

Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia and Kosovo.

• Portugal’s latest contribution of €180,000 in 2009 in Bulgaria helped SBI

phase out of the country, ensuring sustainability targeting energy

efficiency, renewable energy and energy audits. It involved support to local

SMEs in implementing energy efficiency measures, obtaining certifications

and conducting energy audits with help of local consultants. It also

included two workshops for local consultants on energy efficiency and

renewable energy.

22 June, 2015 37

Portugal: Technical Cooperation and

Trade Facilitation Programme

Technical Cooperation

• Since 1992, Portugal has contributed more than €2 million through its bilateral

fund. Priority sectors include energy, municipal and environmental infrastructure

and small business. In 2013, Portugal renewed its engagement with the Bank’s

mandate and welcomes the SEMED region.

Trade Facilitation Programme

• Since the start of the programme in 1999, EBRD has financed more than 17,295

transactions for a total amount of more than €11 billion.

• Regarding Portugal:

• 25 export and import transactions with Portugal, totalling €16.9 million

• 12 Portuguese Confirming Banks (as at January 2015)

22 June, 2015 38

Project

Summary

EDPR Solar (Romania)

Client

EDP Renováveis (EDPR). EDPR is a global leader in the

renewable energy sector.

EBRD / other Finance

EBRD - EUR 20 million loan

BTSB - parallel facility of EUR 10 million

Use of funds

The finance was used for the construction and operation

of six solar photovoltaic (PV) parks totalling 50 MW in

southern Romania.

EBRD added value / impact

The investment is supporting Romania to increase its

renewable energy capacity and to meet the EU’s

renewable energy targets.

22 June, 2015 39

2014

Project

Summary

Frulact

(Morocco)

22 June 2015 40

Client

Frulact Group, founded in Portugal in 1987, has grown from a small

local enterprise into one of Europe’s five leading fruit-processing

companies. Longstanding clients include Danone, Senoble, Lactalis

and Yoplait. The international expansion of the group started in

1998 when it entered the Moroccan market.

EBRD Finance

EUR 4 million loan

Use of Proceeds

To support the expansion of its activities in Morocco and to help to

develop a new processing factory for strawberries, peaches and

other fruits in the Larache region.

EBRD value added / impact

The investment will help Frulact to increase its fruit-processing

capacity in Morocco by 75 percent and provides an important link in

the value chain between local agricultural producers and large dairy

companies.

Local fruit producers will benefit directly from Frulact’s high quality

standards and know-how and is evidence of Frulact’s successful

integration into global markets and of confidence in the Moroccan

economy to other foreign direct investors.

2013 Signed in

Project

Summary

EDPR Romania Wind Farms

(Sarichioi and Vutcani WPPs)

Client

EDP Renováveis (“EDPR”), the third largest wind energy producer in the world

EBRD Finance

Up to €60 million with an A/B loan structure

Use of Proceeds

to finance the commissioning and operation of Vutcani (24MW) and Sarichioi (33MW) wind farms, located in the Moldova and Dobrogea regions respectively

EBRD value added

EBRD financing will contribute to increasing the generation of renewable energy capacity in Romania meeting EU’s green energy quotas

41

Signed in

2012

Project

Summary

Logoplaste

Client

Logoplaste Ukraine, subsidiary of Logoplaste Group,

one of the world’s largest producers of rigid plastics

packaging

EBRD Finance

Loan of €4.1 million secured by Logoplaste corporate

guarantee

Use of proceeds

The loan will support Logoplaste Ukraine in

acquiring, modernising, and operating the packaging

facilities of SC Johnson Ukraine

EBRD value added

This industrial investment by an international

medium-sized Portuguese company in Ukraine will

set an example for other medium-sized European

companies to consider that market

22 June, 2015 42

2009 Signed in

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Jordan: Heike Harmgart

Head of Office, Amman

Tel: +962 65635030

harmgart@ebrd.com

Morocco: Laurent Chabrier

Director, Morocco

Tel: +212 656605180

chabriel@ebrd.com

Egypt: Philip Ter Woort

Director, Egypt

Tel: + 20 (0) 010 2457 7113

terwoor@ebrd.com

Tunisia : Marie-Alexandra Veilleux

Head of Office, Tunisia

Tel: +216 70011500

veilleum@ebrd.com

Hildegard Gacek

Managing Director - SEMED

Tel: +44 (0)20 7338 8128

gacekh@ebrd.com

Contact us

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