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Access to Finance:
Working with the EBRD in Greece
Return to Growth: New Jobs, New Business Opportunities Organized by SEV with the support of the European Commission
23 April 2015, Athens
What is the EBRD?
28 April, 2015 © European Bank for Reconstruction and Development 2012 2
• An international financial institution that
promotes transition to market economies in
36 countries from Central Europe to Central
Asia and the Southern and Eastern
Mediterranean region
• Owned by 65 countries and 2
inter-governmental institutions (EU, EIB)
• AAA rating by all three main rating agencies
(S&P, Moody’s and Fitch)
• Capital base of €30 billion
• Invested over €95 billion in more than
4000 projects since 1991
• Portfolio of ~ €37 billion
In March 2015, Greece obtained country of
operation status until 2020
0
50
100
150
200
250
300
350
400
450
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
ABI (reported rate) Number of operations (#)
Note: Unaudited as at 31 December 2014
The EBRD fosters private sector development
28 April, 2015 3
Objectives:
• To promote transition to market
economies by investing mainly in the
private sector on commercial terms
• To mobilize foreign direct investment
(FDI)
• To support privatization, restructuring
and better municipal services to
improve people’s lives
• To encourage environmentally sound
and sustainable development
Results in 2013:
• Investments: €8.5 billion
• Projects: 392
• Private sector: 72%
• Equity: 22%
Results in 2014:
• Investments: €8.85 billion
• Projects: 377
• Private sector: 72%
• Equity: 20%
Greece as EBRD Country of Operation
28 April, 2015 © European Bank for Reconstruction and Development 2012 4
• The Greek Government requested EBRD’s engagement in Greece to
tackle the consequences of the financial and economic crisis and
address the structural challenges that the Greek economy is
exposed to
• EBRD Shareholders granted Greece recipient country status in
February 2015
• On 3 March 2015, EBRD announced that it will start investing in
Greece for the period until end 2020
• EBRD’s activities are intended to strengthen progress in the reform
of Greece’s economy and contribute to the momentum of its
recovery
• The Bank shall establish its local presence in Athens in 2015
engaging a multidisciplinary team of local and international bankers
EBRD envisaged priorities for Greece
28 April, 2015 © European Bank for Reconstruction and Development 2012 5
• Unlock private sector’s access to finance:
‒ The Bank will help address the issue of insufficient capital for Greek
private companies, especially small and medium-sized enterprises
‒ Through its Trade Facilitation Programme it will provide guarantees
for pre-export and post-import finance
‒ A wider investor base will be mobilised
‒ NPL resolution will be supported
• Support private sector participation in and
commercialisation of infrastructure to enable regional
integration and improve quality of utility services
What can EBRD offer to you
28 April, 2015 © European Bank for Reconstruction and Development 2012 6
Loans
Senior, subordinated, convertible
Long term (up to 10y or more) or short
term revolving
Floating/Fixed rates
Choice of currencies (€, US$, etc.)
Equity
Common stock or preferred
Minority position only
(up to 25%)
Mezzanine debt
Private equity, VCs
Technical Cooperation As a Multilateral Development Bank, EBRD brings in additional financing
and technical assistance to economically viable projects
Other: PPPs, guarantees, swaps, etc.
Potential to complement some EBRD products/programmes with those from other IFIs
What more can EBRD offer
28 April, 2015 © European Bank for Reconstruction and Development 2012 7
• Since the start of EBRD’s Sustainable Energy Initiative over 13 billion were invested to address
the twin challenges of energy efficiency and climate change in the region.
Market segments include: large-scale industrial energy efficiency, sustainable energy financing
facilities through financial intermediaries, power sector energy efficiency, renewable energy,
municipal infrastructure energy efficiency, including district heating and public transport
network rehabilitation and carbon market support.
• The Trade Facilitation Programme (TFP) was developed to promote and facilitate international
trade to, from and within our countries of operation.
Under the TFP, guarantees provided by EBRD to international commercial banks cover the
political and commercial payment risk of transactions undertaken by participating banks
(issuing banks) in the EBRD’s countries of operations.
• The Small Business Initiative to provide financing to micro small and medium size enterprises
to support entrepreneurship
Initiatives / Programmes
EBRD financing with Greek Sponsors to date
28 April, 2015 © European Bank for Reconstruction and Development 2012 8
• Above €2.5 billion of EBRD investment
along Greek clients and co-financiers
over the years
• Dominant investment sectors include:
Industry and Agribusiness (61%),
Financial Institutions (30%),
Energy (7%) and
Infrastructure (2%)
• Current or past clients include: all
major Greek banks, Titan Cement,
OTE, Hellenic Petroleum, Germanos,
Copelouzos, Mornos, Yioula Glass,
Elbisco, Loulis, Viohalco, Global
Finance (and some more in current
pipeline)
20%
17%
10%
53%
Geographical Distribution of EBRD
financing
with Greek Sponsors
Romania
Bulgaria
Albania
Others
Contacts
28 April 2015 @European Bank for Reconstruction & Development 21
For further enquiries, please
contact:
Jean-Marc Peterschmitt
Managing Director, Central and
South Eastern Europe
Email: peterscj@ebrd.com
For project inquiries, please
contact:
E:mail: newbusiness@ebrd.com
Annex 1
Further information on EBRD
28 April, 2015 © European Bank for Reconstruction and Development 2012 10
EBRD Portfolio by Sector and Region
28 April, 2015 11
18%
22%
21%
8%
11%
16%
4%
Russia - 18%
South-eastern Europe -22%Eastern Europe &Caucasus -21%Central Asia - 8%
Turkey - 11%
Central Europe &Baltics - 16%Southern & EasternMediterranean - 4%
Net cumulative business volume €95bn
Note: Unaudited as at end December 2014
Financial Institutions
32% Bank lending, Bank equity,
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
Where we invest
28 April, 2015 12
Key strengths of 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
28 April, 2015 © European Bank for Reconstruction and Development 2012 13
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
• AAA credit rating
• Work closely with market sources of
capital to fill “market gaps”
Annex 2
Further information on EBRD
Case studies of projects with Greek sponsors outside Greece
28 April, 2015 © European Bank for Reconstruction and Development 2012 14
Sofia Med Bulgaria
28 April, 2015 © European Bank for Reconstruction and Development 2012 15
• Client: Sofia Med, is the leading copper processing facility in Eastern Europe with 20%
market share in Europe, ultimately owned by the industrial Greece based Group
Viohalco.
• Project size: EUR 160 million out of which the Sponsor provided equity of EUR 40
million and other commercial banks 80 million in LT and ST loans.
• EBRD Finance: EUR 40 million loan, senior debt.
• Use of Proceeds: EUR 30 million for company’s LT working capital financing and
EUR10 million to finance energy efficiency measures and increase capacity for higher
value products.
• Context: Given its importance for the Bulgarian economy, Sofia Med’s further
development will also boost growth of its numerous up-stream and down-stream
clients.
• EBRD added value: This investment will enable Sofia Med to gain stability of the
operations via LT committed working capital and via additional CAPEX to increase
energy efficiency, cut down production costs and shift production towards higher
value-added products.
• EBRD Role: support companies with good underlying business to manage the roll-over
risk by providing new LT committed funds; mobilize the market and play a constructive
role in creditors co-ordination leading the process and aligning the interests.
Signed in
2013
Hygeia Hospital Tirana
28 April, 2015 © European Bank for Reconstruction and Development 2012 16
Signed in 2010
• Client: Hygeia Hospital Tirana, part of the Hygeia Group
(a leading health care provider in Greece)
• EBRD Finance: EUR 10 million senior loan. The Black Sea
Trade and Development Bank provided a parallel loan of
EUR 10 million.
• Use of Proceeds: The construction and operation of a
greenfield private hospital in Tirana designed for 220
beds.
• Context: Albania’s need for modern, high quality and
comprehensive medical services. The hospital provides a
wide range of services and technologies, some of which
were previously unavailable in Albania, e.g. linear
accelerators.
• EBRD added value: The hospital represents the largest
private health care investment in Albania to date and one
of the largest direct investments in the country. The
Bank’s role was instrumental due to the limited
availability of long-term financing in Albania and the
greenfield nature of the project.
Sveti Stefan Hotel Complex (Montenegro)
28 April, 2015 © European Bank for Reconstruction and Development 2012 17
Signed in 2010
• Client: Adriatic Properties D.O.O., owned by the
Restis Group (Greece)
• EBRD Finance: EUR 37 million long term debt
facility under A/B structure, with two separate
tranches.
• Use of Proceeds: re-development of a landmark
tourist site on the Montenegro’s coast into a
prime resort. Project is located on a land plot of
68,000 m2 which includes the Sveti Stefan
peninsular village and additional area along the
Montenegrin Adriatic coast.
• EBRD added value: due to its high visibility, the
Project’s impact is expected to reach beyond
Montenegro’s borders and set quality standards
for the tourism industry in the Southern and
Eastern Mediterranean region. Furthermore,
through its Public Private Partnership structure,
the project will set an example for future tourism
privatisations in the region.
Pulkovo Airport Concession Finance
28 April, 2015 © European Bank for Reconstruction and Development 2012 18
Signed in 2010
“European Airport Deal of the Year
2010” (Project Finance Magazine)
• Client: Northern Capital Gateway, owned by VTB Capital,
Fraport AG Frankfurt Airport Services Worldwide and the
Copelouzos Group
• Total project cost: EUR 1.2 billion;
Financiers: VEB, EBRD, IFC, NIB, Eurasian Bank, Black
Sea Trade and Development Bank and commercial banks
• Project Description: Building, expanding, operating the
Pulkovo airport facilities (except cargo) under the terms of
a PPP agreement with the City of St Petersburg and
Pulkovo Airport Company, for a period of 30 years.
• As the first PPP in the airport sector in Russia involving a
well known international airport partner, this is a
landmark transaction and the Bank's role in structuring
this project is widely acknowledged and appreciated by
the Russian authorities.
• Project Impact: Flagship project for St Petersburg that
addresses key transport needs; high standards in terms
of building energy efficiency and energy management
that go beyond what is required under current legislation.
28 April, 2015 © European Bank for Reconstruction and Development 2012 19
28 April, 2015 20
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