Working with the European Bank
for Reconstruction and Development
WHAT CAN WE DO FOR YOU ?
Jean-Marc Peterschmitt
EBRD Business Development visit to Thessaloniki
29 May 2013
© European Bank for Reconstruction and Development 2010 | www.ebrd.com
EBRD: an institution to promote
market economies
 An international financial institution
established in 1991, owned by the
governments of 64 countries and 2
inter-governmental institutions (EU,
EIB)
Crisis: + 50%
 Headquartered in London, the
EBRD invests in all countries from
Central and Eastern Europe to
Central Asia
 In 2011, the Bank expanded its
operations to include Egypt,
Morocco, Tunisia, and Jordan
(Southern and Eastern
Mediterranean – SEMED region)
 A capital base of €30 billion and
~ €81 billion cumulative
commitments.
 Portfolio: ~ €37 billion
 Annual new commitments of
~ €9 billion/year
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Shareholding Structure and Rating
EBRD has a AAA rating from all three main rating agencies
As at 13th July 2012
Footnotes
(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%
(2) Russia at 4%
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Where We Operate

34 Countries
All of Greece’s neighbours
Most of Greece’s FDI
destinations
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EBRD: Investment Portfolio
Unaudited as at 30 Apr 2013
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Tailoring Financing for Project Needs
EBRD operates commercially / higher risk appetite than the private sector
EBRD takes political and commercial risk
Large or small (€2 to €250 million)
Broad range of instruments
 Debt
- Long term (up to 10 years or more) and short term loans: capex and WC
- Senior, subordinated or convertible loans
- Project risk or parent guaranteed
- Floating or fixed rate; EUR, USD or local currency (in selected countries)
 Equity
- Minority positions (usually up to 25%)
- Common or preferred stock
- Mezzanine finance
 Other instruments
- Guarantees
- Currency swaps
*Note: Subject to market conditions and availability
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EBRD: Key Success Factors
Institutional strength
 Internationally recognised
financial partner with a longterm perspective
 Close relationships with
governments and shareholders
 Political leverage due to
mandate
 Preferred Creditor Status, AAA
credit rating
 Working closely with market
sources of capital to fill “market
gaps”
Operational focus
 Knowledge of local market, business
environment and practices; local
presence
 Engaged minority partner for
businesses
 Risk sharing, including political
 Catalyst in mobilising commercial
co-financing
 Expansion, privatisation, M&A,
restructuring
 Promoting high standards:
Corp. governance and compliance
Environment
 Improve people’s lives: jobs, quality
of services
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Focus on South Eastern Europe
08/04/2015
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Portfolio geographic distribution
Unaudited as at 30 Apr 2013
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EBRD in SEE: Annual Business
Volume 2008-2012
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EBRD in SEE: Sectors 2008-2012
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Joint IFIs Recovery Plan for Central
and South Eastern Europe
Region challenged and vulnerable. Low growth, lack of
investment. Bank deleveraging.
Need to mobilise finance and have IFIs to work together to
support investment aimed at growth
€30 billion pledged by the European Investment Bank (20bn),
the World Bank (6bn) and the EBRD over 2013-2014 for the
countries of Central and South Eastern Europe
Create a fresh momentum
Greece has a role to play in this as a major trade and
investment partner for SEE, as well as logistical position
More trade, more investment, more physical integration (infra)
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2013 operational priorities in SEE:
Corporate sector
 Promote and support FDI – almost disappeared
 Support MSMEs
 Any type of capital expenditure but also assist in financial
restructuring and provision of liquidity
 Promoting energy efficiency improvements
 Supporting local agribusiness sector in raising quality
standards and expanding in the region
 Investing in “knowledge” economy, either directly or via
private equity funds
 Selective projects in property and tourism sector,
stressing business integrity
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2013 operational priorities in SEE:
Financial Sector
 Stabilisation of financial institutions.
Strengthening of capital base, providing LT funding
and helping address non-performing loans problems
 Supporting systemic restructuring/consolidation efforts
in the banking sector
 Help mitigate the effects of deleveraging, including
through re-financing of existing loan portfolios and
diversification from parent funding
 Continuing to develop on-lending programmes with
local banks focusing on SME funding and energy
efficiency, including with the support of EU grant funds
 Supporting development of local capital markets and
related instruments
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2013 operational priorities in SEE:
Energy & Infrastructure Sectors
Energy Sector – EBRD will focus on
 Regional integration and energy security: transmission interconnections
and rehabilitation of power generation
 Energy efficiency for corporate, residential and municipal clients
 Financing regional oil and gas pipelines
 Selective projects in mining
Infrastructure sector – EBRD will focus on
• Regional integration through financing rail and road links, with a focus on
trans-European corridors, incl. cross border projects with Greece
• Rehabilitation of national roads and development of airports and ports
• Develop bankable and transparent PPPs
• Water, wastewater, solid waste (meet EU environmental standards) and
urban transport modernisation sectors
• Facilitating the absorption of EU cohesion and structural funds to provide
sub-sovereign co-financing to small and medium-sized municipalities
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EBRD and Greece
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Greek Clients: Role in EBRD
Investments
€2 billion of EBRD investments along Greek clients and cofinanciers
Greek-EBRD investment have been especially strong in
Romania (23%), Bulgaria (15%), Russia (13%) but also
Serbia and others
Dominant investment sectors include: Industry and
Agribusiness (46%), Energy (23%), Financial Institutions
(22%), Infrastructure (9%)
Current or past clients include: all major Greek banks, Titan
Cement, OTE, Hellenic Petroleum, Germanos, Copelouzos,
Mornos, Yioula Glass, Elbisco, Loulis, Global Finance,
Viohalco (SofiaMed) and some more in current pipeline
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Issues during crisis time
Opportunities domestically are limited, cash under
pressure, business and financing models need to be
reviewed
Bank financing (domestically or outside) from existing
banks limited and inadequate in terms of tenor or size.
Refinancing difficulties. Over-leverage.
Need to diversify ownership and financing sources of
foreign subsidiaries. Stabilise and make sustainable
 Get fresh capital and long-term debt for operations
outside Greece, to support operational and financial
restructuring.
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EBRD : Initiative aimed at Greece
Greece is not an EBRD Country of Operation - investments in
Greece are not possible on the EBRD balance sheet
However: EBRD can invest alongside Greek sponsors in SEE,
Turkey, SEMED
Areas for cooperation:
1. Support Greek corporates outside Greece: existing, new, JV,
greenfield
2. Greek bank subsidiaries (outside Greece) – incl. co-financing
corporate clients
3.Trade Facilitation (working with local banks)
4.Cross-border infrastructure and energy sectors (linking Greece
and other countries)
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EBRD – Greece
Case Study Examples
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Sofia Med Bulgaria
Signed in 2013
• 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 upstream 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 coordination leading the process and aligning the interests.
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Hygeia Hospital Tirana
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.
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Sveti Stefan Hotel Complex
(Montenegro)
•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.
Signed in 2010
• 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.
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Pulkovo Airport Concession
Finance
“European
Airport Deal of
the Year 2010”
(Project Finance
Magazine)
Signed in 2010
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.
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Antea Cement, Albania
Signed in 2008
Signed in 2008
Client: Antea Cement Sh.A., a company in
Albania, majority owned by Titan Cement
Company S.A.
EBRD Finance: EUR 17 million equity and
EUR 16.8 million subordinated debt
Use of proceeds: Construction and operation
of a green field cement plant designed to
produce 1.5 million tons of cement annually at
a plant located about 30 km north of Tirana
EBRD added Value: The project is one of the
largest industrial greenfield investments in
Albania. The entry of a second major player in
the local cement market restores competitive
pressure. A part of the company’s production
will be exported into the region, thus
strengthening the trade links between Albania
and its neighbours.
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How to Contact Us
Jean-Marc Peterschmitt
Managing Director, Central and South Eastern Europe
+44 207 338 6892
peterscj@ebrd.com
www.ebrd.com
Signed in 2008
We have offices in each country !
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