Working with the European Bank for Reconstruction and Development

OFFICIAL USE

Jose Brito

Director for Portugal, Greece and

San Marino

November 2019

EBRD - An overview

2

EU 28 Countries1

63%

EBRD region

excluding EU 8%

Others 11%

USA 10%

Japan 9%

Shareholding structure

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%

An international financial institution supporting the development of sustainable well-functioning market economies

Highest credit rating (AAA/Aaa)

Owned by 69 countries and 2 inter-governmental institutions (the EU and EIB)

€30 billion authorised capital

1991 Established

1992 Russia and 11 other

members of the former

Soviet Union join

2007 The Czech Republic

becomes the first country

to “graduate” from the

EBRD

2012 Starts investing in Egypt,

Jordan, Morocco and

Tunisia

2016 25th anniversary;

China becomes 67th

member

2017 Lebanon became a

country of operation and

the Bank also

commenced operations

in West Bank and Gaza

2018

2019

India and San Marino

become members

Libya becomes a

member

OFFICIAL USE

Portugal

0.42%

Capital

(EBRD is presently not undertaking any new business in Russia)

Kazakhstan Mongolia

—Kyrgyz Republic

—Tajikistan

—Moldova

—Jordan

Azerbaijan

—Morocco

Belarus

Ukraine

—Romania —Serbia

—Kosovo Georgia—

Armenia—

Tunisia—

Croatia— Bosnia and

Herzegovina— Montenegro—

Albania—

FYR Macedonia

—Turkmenistan

—Bulgaria

Estonia—

Latvia—

Lithuania—

Poland

Slovenia—

Czech

Republic— (graduated in 2008)

—Slovakia

—Hungary

Uzbekistan—

Egypt—

Greece Cyprus

Turkey

3

Where we invest EBRD’s increasing footprint

Central

Eastern Europe

SEMED Western Balkans Turkey

Armenia, Azerbaijan, Belarus,

Georgia, Moldova, Ukraine

Central Asia

(incl. Mongolia)

Cyprus, Greece

West Bank

and Gaza

Lebanon

—Lebanon

West Bank & Gaza—

OFFICIAL USE

EBRD’s Investments - Detailed Overview

4

Since 1991, EBRD invested over €125 billion in around 5,325 projects

In 2018

€9.5 bn

395 projects

EBRD Top 10 investee countries in 2018 (€m)

Private sector accounted for share of

73%

1 Egypt 1,148

2 Turkey 1,001

3 Greece 846

4 Poland 556

5 Ukraine 543

6 Kazakhstan 472

7 Romania 443

8 Uzbekistan 397

9 Serbia 396

10 Belarus 360

EBRD Portfolio (December 2018): € 43.3 billion

Sector

Debt: 83%

Equity: 9%

Guarantee: 8%

8,5 8,1 8,7 9,2 8,7

1,0 1,3 0,7 0,4 0,8

95 103

112 121

131

0

20

40

60

80

100

120

140

0

2

4

6

8

10

12

14

2014 2015 2016 2017 2018

Net

cum

ula

tive b

ank

invest

ment

Annual

busi

ness

invest

ment

(ABI)

(EU

R b

n)

Equity Debt Net Cumulative Bank Investment

C.Asia 10%

CEE 14%

Cyp/Greece 4%

EEC 18%

Russia 5%

SEE 19%

SEMED 14%

Turkey 14%

Central Asia 10%

Central Europe & Baltics 14%

Cyprus & Greece 4%

Eastern Europe & Caucasus 18%

Russia 5%

South-Eastern Europe 19%

SE Mediterranean 15%

Turkey 16%

Region

FI 22%

Corporate 25% Infra

29%

Energy 24%

Financial Institutions 22% (Banks,Leasing, Insurance, Other)

Corporate 25% (Agribusiness, M&S,P&T, ICT, Equity funds)

Infrastructure 29% (Transport,Municipal Infrastructure)

Energy 24% (Power & Energy, NaturalResources)

OFFICIAL USE

EBRD Multi-dimensional approach

5

EBRD

COMMERCIAL

FINANCING

CONCESSIONAL

CO-FINANCING

POLICY

DIALOGUE

TECHNICAL

ASSISTANCE

• EBRD direct finance (debt &

equity)

• EBRD Indirect finance (SME loans)

• Mobilising external finance

• Working with

governments on

improved

legislation and

regulation in

support of

improved business

environment

For selected eligible

investments to develop markets

• Resource efficiency audits

• Climate vulnerability

assessment

• Capacity building for local

financial institutions

• Project preparation support

(including tendering) OFFICIAL USE

EBRD working with investors

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arranges syndicated financing financing as a lender of record

leads the market with innovative products and longer tenors

provides equity and has 25+ years of experience of investing in equity funds

cooperates with other investors (supporting strategic equity investors)

provides assistance in structuring and executing investments with significant energy and resources efficiency gains

employs donor grant funds to complement its projects.

supports legal and regulatory improvements to facilitate private investments

and each investment of €1 “mobilises” another €3 for the project.

The EBRD

OFFICIAL USE

Projects in all key business sectors

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Information & CommunicationTechnologies

Property & Tourism

Industry, Commerce & Agribusiness

Transport Municipal & Environmental Infrastructure

Financial Institutions

Natural Resources

Power & Energy

Manufacturing & Services

OFFICIAL USE

What the EBRD can and cannot finance

8

What we finance Projects may be considered for

EBRD assistance if they:

are located in an country

where the EBRD works (but flexibility)

are bankable projects

Meet satisfactory integrity &

operational standards

would benefit the local economy

satisfy the EBRDs environmental

standards as well as those of

the host country

And each project must achieve two or more

of our six transition qualities: competitive;

inclusive; well-governed; resilient;

integrated and green

Defence-related activities

Tobacco industry

Substances banned by

international law

Gambling facilities

Environmental harmful

projects (or if adverse impact

cannot be adequately

mitigated)

Nuclear energy

OFFICIAL USE

What we cannot

finance:

EBRD in the Southern and Eastern Mediterranean

9

Active in the region since 2012. Currently working in:

Egypt, Jordan, Lebanon, Morocco, Tunisia and West

Bank & Gaza.

• Net Cumulative Bank Investment: € 9.93 billion

• Number of projects: 229

• Cumulative Disbursement: € 5 billion

• Private Sector Share of Cumulative Investment: 73%

end-Aug’19 data

Portfolio

Composition

OFFICIAL USE

EBRD in Egypt – largest country of operation in 2018

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Net Cumulative Bank Investment

€ 5.2 billion Number of projects

97 Cumulative Disbursement

€ 2.36 billion Private Sector Share of Cumulative Investment

70%

Two offices, in Cairo and

Alexandria

Portfolio

Composition

OFFICIAL USE

EBRD in Morocco

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Net Cumulative Bank Investment

€ 1.93 billion Number of projects

57 Cumulative Disbursement

€ 870 million Private Sector Share of Cumulative Investment

75%

Two offices, in Casablanca and Tangiers

Portfolio

Composition

OFFICIAL USE

EBRD in Tunisia

12

Net Cumulative Bank Investment

€ 869 million Number of projects

41 Cumulative Disbursement

€ 555 million Private Sector Share of Cumulative

Investment

65%

Two offices, in Tunis and Sfax

Portfolio

Composition

OFFICIAL USE

Frulact Morocco

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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.

Signed in 2013

EBRD finance

EUR 4mn loan

Use of proceeds and EBRD value added/impact

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. The investment will help

Frulact to increase its fruit-

processing capacity in Morocco by

75% 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.

OFFICIAL USE

Agrib

usin

ess

DFF Sovena Tunisia

14

Sovena MENA and Tiba Foods are Tunisian subsidiaries of Sovena Group, the leading Portugese producer and distributor of olive oil and oilseeds oils, olives and soaps, with facilities in 7 countries and exports to over 70 countries in Europe, Africa and the Americas. The Group is the world’s largest private label supplier of olive oil and is increasingly developing its own brands (e.g. Olivari, Fontoliva etc).

Signed in 2016

EBRD finance

EUR 5mn working capital

loan with a tenor of 3 years

Use of proceeds and EBRD value added/impact

The Bank’s proceeds will enable the

company to expand their olive oil

sourcing operations and further

strengthen their relationship with their

partner suppliers. It will also support

the increase of olive oil bottling

operations in Tunisia.

OFFICIAL USE

Power & Energy: Egypt Benban Solar PV FIT Program Egypt

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A consortium of major

renewable energy

developers.

Signed in 2017

EBRD finance

US$368mn to a consortium

Use of proceeds and EBRD value added/impact

The construction and

development of 16 plots at

the Benban solar complex,

for a total combined

capacity of 986 MWp. Total

investment cost amounted

to c. USD 1.3 billion, with

total mobilised co-finance

of c. USD 476 million from:

GCF, Proparco, FMO, ICD,

IsDB, and ICBC.

The project is setting

environmental standards

through the demonstration

of new replicable activities.

Encouraging more

widespread private

ownership and a framework

for markets.

OFFICIAL USE

Grant or Bank funded consultancy contracts 2017-2018

In total

Number of contracts won: 4,631

For a value of EUR 249.8 million

Since 1992, Portugal has

contributed about €2 million in

grants for technical cooperation

projects. Priority sectors include

energy, municipal and

environmental infrastructure and

small business. For example,

Portugal supported the Belgrade

Bus Renewal programme in

Serbia.

Portugal

Number of contracts won: 30 (0.6%)

For a value of EUR 1.21 million

(0.5%)

All 30 contracts were directly awarded.

Portuguese consultancy companies submitted 18

expressions of interests/proposals in competitive

selection processes, resulting in no contract

awards.

Preliminary figures for 2019:

18 contracts (of 2,424 in total) for a

value of EUR 0.85 million (of EUR

148.5 million in total) awarded to

Portuguese consultants. 26/11/2019 OFFICIAL USE

Contacts

José Brito Director for Portugal, Greece and San

Marino

britoj@ebrd.com

EBRD

One Exchange Square

London, EC2A 2JN

United Kingdom

www.ebrd.com

Find us on social media

17 OFFICIAL USE

Useful links

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EBRD website: www.ebrd.com

Information about the countries of operations & Sectors of EBRD:

www.ebrd.com/news/publications/factsheets.html

Project Summary Documents, details of the projects signed with EBRD:

www.ebrd.com/work-with-us/project-finance/project-summary-documents.html

Sending your project financing request online:

http://www.ebrd.com/work-with-us/project-finance/funding-adviser.html

Procurement Opportunities:

https://www.ebrd.com/work-with-us/procurement.html

Trade Facilitation Programme:

http://www.ebrd.com/work-with-us/trade-facilitation-programme.html

OFFICIAL USE