Financing Opportunities Financing Opportunities through thethrough the

EBRDEBRD

What is the EBRD?What is the EBRD?

What is the EBRD?What is the EBRD?

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International financial institution, owned by 60 countries and two inter-governmental institutions

Promotes transition to market-based economies in 27 countries from central Europe to central Asia

AAA Institution/Capital base of € 20 billion

Cumulative commitments € 22.7 billion

A network of 32 offices in 27 countriesA network of 32 offices in 27 countries

What EBRD Delivers What EBRD Delivers

Strong Partner - EBRD Mandate– Support transition to market-based economies through

private/entrepreneurial initiative

– Improve investment climate

– Promote good corporate governance

– Encourage environmentally sound and sustainable development

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Mobilised

EBRD

What EBRD DeliversWhat EBRD Delivers

EBRD investments have attracted an additional € 47 billion from domestic and foreign investors

The EBRD uses donor funding to assist project preparation and catalyse foreign investment

Cumulative additional funds mobilised € 45.8 billion

Varied Financing Instruments Varied Financing Instruments

Loans Loan Syndications (A/B structures) Equity investments (straight / portage) Partial Risk Guarantee Specified Event Guarantee Lengthening maturity of debt Mezzanine / subordinated debt

EBRD risk profileEBRD risk profile

Takes political risks Shares financial risks Takes long maturity Shares equity risk

Have sound management

Take operational risks

EBRD Sponsors

EBRD in RomaniaEBRD in Romania

Sector Distribution of EBRD PortfolioSector Distribution of EBRD Portfolioin Romaniain Romania

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€ 2.4 billion across more than 100 projects

Success through Partnerships in Success through Partnerships in Romania Romania

Selected Transactions in RomaniaSelected Transactions in Romania

Total commitments in Romania € 2.4 billion over more than 100 projects

Client Amount Type of Financing

(Eur m)

BCR 163 Debt and pre-privatisation equity

Danone 7 Equity: regional multi project facility

Lafarge 70 Equity: regional multi project facility

LNM Holdings: Sidex 84 Debt: post-privatisation

Michelin 25 Equity

Petrom 84 Debt: pre-privatisation

Romanian Development Bank 65Debt and equity: privatisation to Societe Generale

Terapia 4 Equity

United Romanian Breweries 28 Debt

Victoria Office Building 5 Debt

Wienerberger 2 Equity: regional multi project facility

EBRD EBRD Financing GuidelinesFinancing Guidelines

EBRD Direct Investment GuidelinesEBRD Direct Investment Guidelines

Investments with strategic investors with proven sector experience.

Maximum project exposure of 35% of total project cost.

Minimum project exposure of €8 million when debt is sought and €5 million in the case of equity investments.

Debt: no more than two thirds debt to one third equity.

Equity: contribution may be in-kind (equipment, plant, and machinery) or cash.

Advantages of EBRD involvementAdvantages of EBRD involvement

Extensive knowledge of the country and business climate.

DEBT Long maturity periods of up to 12 years. Private sector

projects usually up to 8 years with 2 years grace period. Availability of financing for working capital.

EQUITY Long term partner committed to the country, its lasting

development and prosperity. Substantial political and investor influence in Romania.

EBRD EBRD Strategic Priorities Strategic Priorities

The Challenges Ahead for the EBRDThe Challenges Ahead for the EBRD

To increase the depth and quality of financing available for the private industrial sector in Romania.

To contribute to the further growth of foreign direct investment with strategic partners.

To extend the coverage of financing for SMEs.

To meet the growing demand of financing for infrastructure projects with preference for private infrastructure projects (concessions, BOT schemes).

To promote the development of the non-banking financial sector (leasing, mortgage, insurance, pensions, equity).

EBRD Strategic Priorities for 2004EBRD Strategic Priorities for 2004

Infrastructure development including privatization /commercialization of public utilities in the energy and transport sectors; co-financing with EU pre-accession funds.

Private sector development, including improvement of investment climate, level playing conditions, completion of privatization.

Further strengthening of the financial sector (including non-banking) and SMEs.

Contact Information Contact Information

James Hyslop; Deputy Head of Office

EBRD Romania; Gina Patrichi 8; Sector 1; Bucharest +40 21 202 7100