ebrd agribusiness and western balkans
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EBRD Agribusiness and Western Balkans. Serbia, November 2007. What is the EBRD?. International financial institution established in 1991 with headquarters in London Promotes transition to market economies in 29 countries from central Europe to central Asia - PowerPoint PPT PresentationTRANSCRIPT
EBRD EBRD Agribusiness and Western BalkansAgribusiness and Western Balkans
Serbia, NovemberSerbia, November 2007 2007
What is the EBRD?What is the EBRD?
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International financial institution established in 1991 with headquarters in London
Promotes transition to market economies in 29 countries from central Europe to central Asia
Owned by 61 countries and two inter-governmental institutions
Capital base of €20 billion
Cumulative commitments €34.9 billion
Unaudited June 2007
Active in all countries of operationsActive in all countries of operations
Cumulative commitments €34.9 billion
Unaudited June 2007
Central Asia7%
Southeast Europe22%
Russia 26%
Eastern Europe & Caucasus13%
Central Europe & Baltics 32%
Serbia: Bank’s activitiesSerbia: Bank’s activities
Country of operation since 2001
Local presence with fully fledged Resident Office and a resident Director
Total commitments of € 1,164M
Total of 72 approved projects
Serbia: Project portfolio - Serbia: Project portfolio - € 987.8M€ 987.8M
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Private sector State sector
Undrawn commitments
€ million
433
555
115
339
As of 31 August 2007
Portfolio
Serbia: Commitments by sector – Serbia: Commitments by sector – €€ 1,164M1,164M
Financial Institutions 24%General Industry
8%
Agribusiness 9%
Property & Tourism 5%
Telecoms 2%
MEI 11%Power & Energy 15%
Transport 25%
As of 31 August 2007
Serbia: List of Bank’s major projectsSerbia: List of Bank’s major projects
Private Sector– Hemofarm, pharmaceuticals– Financial institutions (Komercijalna banka, Raiffeisenbank a.d., Societe Generale Yugoslav Bank,
Procredit Bank, Volksbank a.d., Metals Banka, Cacanska Banka, UniCredit Bank, Opportunity Banka) – Ball Packaging – GTC Belgrade– Sevojno Rolling Mill – Soko Stark – Nectar– JKR Resource– Victoria Group (Sojaprotein)– SBB – Serbian Cable Operator – Frikom A.D.
Public Sector- Serbia Railways: Rolingstock- Sava river crossing - Road recovery and Novi Sad to Belgrade Motorway project - EPS- Municipal Infrastructure Reconstruction Programme (Belgrade, Subotica, Nis, Novi Sad, Kragujevac)- Future Air Traffic Management Modernisation & Upgrading System
Update on Agribusiness
333 projects signed with value of €4.7 bln
Growing annual commitments 28 bankers from 19 counties 8 bankers based / or to be
based in ROs
The EBRD annual investments in the Agribusiness sector (Million EUR)
101
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207
352
298
425409
481 500
330
273232
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250
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400
450
500
95 96 97 98 99 00 01 02 03 04 05 6
Agricultural inputs& production
Primary & secondary processing
Packaging & distribution
Retail &Food Service
DownstreamUpstream
EBRD & Agribusiness: Food Chain
Agribusiness Portfolio by sub-sector
Extensive experience in cooperating with the leading Agribusiness and FMCG corporates of the entire food chain. We are working with local and international clients with many follow on projects.
Agribusiness Clients
Agribusiness in WB – Cumulative Volume
WB vs. other regionsRegion Volume (EUR mil) Percentage
Western Balkans 485.9 16%
Central Europe (without Croatia)
453.5 15%
South Eastern Europe, Central Asia & Caucuses
1,353.8 45%
Russia 724.6 24%
Total 3,017.8 100%
Agribusiness in WB – Past Success
The Agribusiness team has always worked with the leaders in each sub-sector, understanding the markets and the client needs
Successful transactions include :
Agrokor, Croatia EUR 110 million equity
Victoria Group, Serbia EUR 45 million debt
Vitaminka, Macedonia EUR 4 million debt
Soko Stark – Droga Kolinksa EUR 10 million debt
Relatively few failures – Fresh & Co, Serbia
EBRD 3 Key FundamentalsEBRD 3 Key Fundamentals
Sound Banking
Transition Impact
Additionality
At the same time EBRD helps...At the same time EBRD helps...
To establish and comply with high enviornmental standards (EU/WB)
To promote and achieve energy efficiency savings (EE audit for free and financing EE sustainable projects)
Governments with improvement of regulatory framework to enhance market economy (e.g. Warehouse Receipt Law, free trade regime etc.)
How to Grow Successfully?How to Grow Successfully?
High Business Standards
Establish high business standards at an early stage to make the business attractive for potential investors
Flexible financing platform
Develop a flexible financing platform (debt & equity) to fulfil company’s corporate strategy
Right financing for your business
Choose the appropriate financial instruments and sources to fund your current and future business needs
Financing Growth: Opportunistic ApproachFinancing Growth: Opportunistic Approach
Lack of Strategic
Objectives
Short-term
growth opportunities
Inefficient operations
Poor corporate governance
Complex corporate structure
Quick sale / Restructuring
Financing Growth: Strategic ApproachFinancing Growth: Strategic Approach
Clear Strategic
Objectives
Long-term
growth opportunities
Operational efficiency
Sound corporate governance
Transparent corporate structure
Flexible platform
for further growth
Financial Instruments-EBRD unique institution as a Financial Instruments-EBRD unique institution as a provider of both debt and equity financingprovider of both debt and equity financing
Debt
Bilateral DCM
Equity
Strategic Financial IPO
Hybrid Products
Portage Equity LBO/MBO Mezzanine
ContactContact
EBRD, Agribusiness
Gilles Mettetal, Director, Agribusiness TeamTel.: +44 20 7338 7122E-mail: [email protected]
Miljan Zdrale, Banker, Agribusiness TeamTel.: +44 20 7338 7871E-mail: [email protected]
Questions and AnswersQuestions and Answers
Discussion