Financing from the Black Sea Trade and Development Bank

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BSTDB - Brief History

• January, 1998 - BSTDB founded with SDR 1 billion (approximately $ 1.4 billion) of subscribed capital

• June, 1999 - BSTDB Inaugural Ceremony and beginning of operations

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BSEC Members - Shareholders of BSTDB

Romania13,5%

Ukraine 13,5%

Russia 16,5%

Moldova 2%

Turkey 16,5%

Bulgaria 13,5%

Albania 2%

Greece 16,5%

Armenia 2%

Azerbaijan 2%

Georgia 2%

This map is for illustrative purposes only.

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Objectives of BSTDB

• To contribute to the transition process of the Member States towards the economic prosperity of the people of the Region.

• To finance regional projects of the public and private sectors in the Member States, and support trade activities in the BSEC region.

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BSTDB Products

• Project finance

• Corporate finance

• Equity

• Guarantee Program

• Trade finance

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Project Finance

• Green field projects

• Capacity expansion programs

• Capital Expenditure and modernization programs

• Working capital needs

• Post-privatization investments

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Trade Finance

• Guarantee Program

• Pre-Export Finance Program

• Single Buyer Credit Program

• Multiple Buyer Credit Program

• Single/ Multiple Supplier Refinancing Program

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Loans

• BSTDB loan: – Min USD 5 million– Max USD 22 million– Up to 35% of the total project costs for

green-field projects– 3-7 years maturity, depending on the

type and structure of project – Competitive pricing and grace period

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Frequently Asked Questions

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Why BSTDB?

• Stringent but quick approval process

• Ability to process “small” projects

• Team blending international and local expertise

• No political or macroeconomic conditionality attached to the financing

• Unique provider of trade finance

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How to apply?

• Send a proposal (business plan) to the contact person at the end of this presentation

• The proposal should be in English and as detailed as possible in order to speed up BSTDB decision

• A pro-forma list of initial information requirements is available for interested parties

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What is BSTDB’s Project Cycle?

Disbursement

Signing

Board Approval

Credit Committee Approval

Concept Clearance

Eligibility Review

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How long does it take from “first call” to “signing”?

Disbursement

Signing

Board Approval

Credit Committee

Approval

Concept Clearance

1-2 months

Eligibility Review

2-4 weeks

3-4 months

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What security does BSTDB require?

Depending on the Project, the following may be required:

• Mortgage / pledge of fixed assets• Standard pledge of shares, bank

accounts, etc.• Off shore security • Guarantee from Sponsors• Sovereign guarantee is not required

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What is the maturity structure of BSTDB loans?

• Preferably 3-7 years

• Possible 10 years

• In exceptional cases more than 10 years

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What has BSTDB achieved so far? (Signed Operations)

TOTAL $ 492,119,315

Project Finance 34 Projects$ 410,424,315

Trade Finance 11 Projects$ 67,107,000

Equity 2 Operations $ 5,750,000

Guarantee 2 Operations $ 8,838,000

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Is BSTDB interested in co-financing?

• Yes. Very much so.

• Co-financing with International Fianancial Institutions or commercial banks

• Parallel Financing

• Syndications

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BSTDB Operations in RomaniaTotal Financing in Romania: $ 70,059,5531) PROJECT FINANCE- Rompetrol $ 18,000,000- Petrom $ 10,000,0002) SME Financing- Banc Post $10,000,000- Banca Romaneasca- - KfW Guarantee $6,053,500 - UniCredit SME Leasing $7,000,000 3)Equity - Trans-Balkan SME Equity Fund $4,000,000

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BSTDB Operations in Romania

4) TRADE FINANCE 15,006,053 - Termoelectrica $15,000,000

- Banca Transilvania $6,053.00

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Whom to contact?

Orhan AytemizDirector – Manufacturing FinanceTel: (+ 30 2310) 290 439Fax: (+ 30 2310) 290 432e-mail: oaytemiz@bstdb.org

Web site: www.bstdb.org