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An overview of the European Bank for
Reconstruction and Development
(EBRD)
Thursday 18th of June 2015, Lisbon, Portugal
Hildegard Gacek, Managing Director SEMED
Contents
EBRD: Snapshot
EBRD: Operations
EBRD: in the Southern and Eastern Mediterranean region (SEMED)
EBRD: Case studies in the SEMED region
EBRD: EBRD in Turkey, Bulgaria, Romania and Poland
EBRD: EBRD and Portugal
Case studies with Portuguese companies
2
EBRD’s objectives achieved through
financing the private sector
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Net c
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Annual busin
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Debt ABV Equity ABV Net Cumulative Business Volume
€ billion
Net cumulative business volume €100bn
• An international financial institution, promotes transition to market economies in 36 countries from central Europe to central Asia
• In 2011, the Bank expanded its operations to include Egypt, Morocco, Tunisia and Jordan (Southern and Eastern Mediterranean – SEMED region)
• Owned by 65 countries and 2 inter-governmental institutions (EU, EIB).
• Capital base of €30 billion.
• In 2014, the EBRD welcomed Cyprus as a recipient country*
• In 2015 it was also agreed that we will be investing in Greece on a temporary basis in response to a request from the Greek authorities to support reforms and a return to economic growth.
*Libya is yet to become a fully ratified member of the EBRD
EBRD: Shareholding Structure
and triple-A rating
4
The EBRD has a triple-A rating from all three main rating agencies (S&P, Moody’s and Fitch)
Shareholding Structure
As at 13th July 2012
(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%
EU 27 Countries 63% (1)
EBRD region excluding EU
7% (2)
Others 11%
USA 10%
Japan 9%
The EBRD and its objectives
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• Invested nearly €100 billion in more
than 4,000 projects since 1991
• Results in 2014: €8.85 billion invested
in 377 projects
• Private sector accounted for 70% share
• As at end May 2015: €1.6 billion
invested in 95 projects
Note: Unaudited as at end of May 2015
Objectives:
• To promote transition to market
economies by investing mainly in the
private sector
• To mobilise significant foreign direct
investment
• To support privatisation, restructuring
and better municipal services to
improve
people’s lives
• To encourage environmentally sound
and sustainable development
Where we invest
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Contents
EBRD: Snapshot
EBRD: Operations
EBRD: in the Southern and Eastern Mediterranean region (SEMED)
EBRD: Case studies in the SEMED region
EBRD: EBRD in Turkey, Bulgaria, Romania and Poland
EBRD: EBRD and Portugal
Case studies with Portuguese companies
7
EBRD finances diverse range
of enterprises
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Note: as at 31 December 2014
Financial Institutions 32% Bank lending, Bank equity, Small
business finance, Insurance and
financial services
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
Country group portfolio distribution
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Note: Unaudited as at 31 December 2013
18%
22%
21% 16%
8%
11%
4%
Russia
Turkey
Central Asia
Central Europe Eastern Europe & Caucasus
South-eastern Europe
Southern and eastern
Mediterranean
EBRD Product Flexibility tailored
to project needs
Equity
• Common stock or preferred
• Minority position only (up to 35%)
• Mezzanine
• Other
• guarantees
• currency swaps
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Loans
• Senior, subordinated, convertible
• LT (up to 10y or more) or
ST revolving
• Floating/ Fixed rates
• Choice of currencies
(€, US$, some local currencies are
available)
Key strengths of the 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
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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
• Triple-A credit rating
• Work closely with market sources of
capital to fill “market gaps”
Contents
EBRD: Snapshot
EBRD: Operations
EBRD: in the Southern and Eastern Mediterranean region (SEMED)
EBRD: Case studies in the SEMED region
EBRD: EBRD in Turkey, Bulgaria, Romania and Poland
EBRD: EBRD and Portugal
Case studies with Portuguese companies
12
EBRD: Expansion into SEMED
The civil uprising of 2011 created major new transition challenges in the
SEMED region.
The May 2011 G8 Summit launched the Deauville Partnership to support
democratic transition, transparent government and sustainable growth.
In 2011 EBRD shareholders approved an expansion of EBRD’s mandate
to include four SEMED Countries (Egypt, Jordan, Morocco and Tunisia).
In November 2013, EBRD Board of Governors granted full Country of
Operation status to Jordan, Morocco and Tunisia. The status of Egypt will
be reviewed in 2015.
In 2013 Host Country Agreements were signed with Egypt, Tunisia and
Jordan; and in September 2014 with Morocco.
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SEMED: Progress to Date
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• Permanent offices were opened in Tunis and Amman in 2013.
The opening of a permanent offices in Egypt took place in 2014 and
in Morocco in 2015.
• Overall the Bank has increased its staff by 107 employees.
• 96 Projects have been signed to date for a total value of €1.84
billion.
• As of end-May 2015, over 150 TC projects totalling €80.5 million
have received funding.
• Local currencies are available in Jordan and Egypt. In Morocco a
swap agreement has been signed and a local currency investment
has been done. The Bank is negotiating currency swap
arrangements in Tunisia.
0
100
200
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400
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Egypt - €820 million Morocco - €420 million Tunisia - €254million Jordan - €351million
Total: €1.84 billion
Total Signed Projects by Country
EBRD: SEMED Investment Projects
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EBRD: Operational priorities in
SEMED
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• Support for the private sector with particular emphasis on small and
medium-sized enterprises (SMEs).
• Developing non sovereign financing solutions for infrastructure
including PPP structures.
• Promoting sustainable energy and energy efficiency initiatives.
• Supporting and developing local capital markets.
Contents
EBRD: Snapshot
EBRD: Operations
EBRD: in the Southern and Eastern Mediterranean region (SEMED)
EBRD: Case studies in the SEMED region
EBRD: EBRD in Turkey, Bulgaria, Romania and Poland
EBRD: EBRD and Portugal
Case studies with Portuguese companies
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Project
Summary
Case Study:
IPP4 Al-Manakher Power Project
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Client
AES Levant Holding BV Jordan PSC , owned 60% by AES
Corporation (US) and 40% by Mitsui and Co. Ltd (Japan).
EBRD Finance
A secured limited recourse loan of up to US$ 100 million.
The remainder of the required funding is being provided by a
mixture of debt financing from the US Overseas Private
Investment Corporation and the sponsors.
Use of Proceeds
To fund the development of a 240MW peaking power plant,
15 km east of Amman in Jordan.
EBRD value added
EBRD financing will help to meet Jordan’s urgent needs for
power in the short-term and in the longer-term support
Jordan’s transition towards a sustainable, low carbon
economy through the provision of the flexible, responsive
backup capacity needed for the widespread development of
intermittent renewable energy generation such as solar and
wind.
2012 Signed in
Project
Summary
Universal: EBRD finances new
washing machine factory in Egypt
Client
Universal Washing Machines is part of the Universal Group
which is now the largest domestic appliance group in Egypt.
EBRD Finance
A long-term secured senior loan of US$ 24.3 million (around
EGP 150 million).
Use of proceeds
To finance the completion of a new manufacturing facility,
including the acquisition of production equipment, with a
capacity of up to 3 million washing machines a year
This will be the first facility to manufacture, as opposed to
assemble, washing machines in Egypt and will be fully
automated.
EBRD value added
The project will have a strong transition impact by introducing
modern technology in large scale washing machines
production in Egypt, which will enhance the know-how and
skills of the workers in the Company.
22 June, 2015 19
Signed in
2013
Company Information
• Joint stock company listed on the Casablanca
Stock Exchange since 1972
• Leading Moroccan producer of edible oil and soap
EBRD Finance
• EUR 2.5 million loan
Purpose of investment
• Construction and launch of a biomass boiler to
improve energy efficiency and overall profitability
Lesieur Cristal – Morocco
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2012
Signed in
Project
Summary
Serinus Energy – Tunisia
Oil & Gas field development
• Serinus Energy is an medium sized
independent oil & gas group incorporated in
Alberta, Canada, listed on WSE and TSE.
• Serinus Energy has producing assets in
Ukraine and Tunisia and exploration assets in
Brunei and Romania.
• The Loans are used to finance the
development of four oil & gas fields in Tunisia
between 2013 and 2017.
• Significant operational efficiency and
productivity gains are expected to be achieved
through this project.
• Key figures:
- USD 40 million senior loan
- USD 20 million convertible loan
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2013 Signed in
Contents
EBRD: Snapshot
EBRD: Operations
EBRD: in the Southern and Eastern Mediterranean region (SEMED)
EBRD: Case studies in the SEMED region
EBRD: EBRD in Turkey, Bulgaria, Romania and Poland
EBRD: EBRD and Portugal
Case studies with Portuguese companies
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EBRD in Turkey (1) Key EBRD figures
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The EBRD has been investing in Turkey since 2009 with 140 projects and €5
billion investments signed
Today, Turkey is the biggest country of EBRD operations
In the resident offices in
Istanbul, Ankara and
Gaziantep, EBRD
employs 50 professionals
In 2014, EBRD invested
€1.4 billion for
37 projects in Turkey
EBRD in Turkey
Our operational priorities in Turkey:
developing sustainable energy (including support to on-going reforms
of the energy sector through policy dialogue);
promoting the development of micro, small and medium enterprises
(MSMEs);
enhancing the competitiveness of Turkish industry;
promoting market approaches toward investment in municipal
infrastructure;
support the Turkish government’s privatisation programme in the
enterprise and financial institutions sector.
EBRD in Turkey
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The EBRD has financed various industries and directly provided financing, both
debt and equity with clients ranging from commercial banks to municipalities and
SMEs.
EBRD in Turkey:
Sector and Product Portfolio Distribution
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Project
Summary
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2013 Signed in
Client: Asya Port
EBRD finance: USD 92 million
Type of finance: Senior Loan
Total Project cost: USD 391 million
Year: 2013
Project description: Financing the construction and operation of
the deep sea container terminal, located in
Barbaros, Tekirdag.
Promoting growth in containerisation and development of
logistics services in Turkey and the Black Sea region and drive
development of transhipment activities in the region.
Fostering greater competition in the domestic Turkish port
sector and will reduce existing bottlenecks and improve the
quality of port services in the Bosphorus.
Promoting commercial behaviour in the sector in general and
the adoption of the highest technical and management
standards.
The ability to handle larger container ships at the port will reduce
handling costs and increase the competitiveness of regional
transhipment terminal services for container cargo destined for
Black Sea ports.
EBRD in Turkey: Asya Port Container Terminal
EBRD in Bulgaria
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Since initiating operations in 1993, the Bank has signed 228 projects with cumulative
investment of €2.9 billion. Total project value is more than €8.5 billion.
Number of projects to date 228
Net cumulative Bank investment €2,940m
Private Share of cumulative
investment 88%
Cumulative disbursements €2,717m
Annual Bank Investment and Operations Portfolio Composition
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EBRD is finalising a new Country Strategy
Following public consultations will be approved by EBRD on 8 July
The main focus remains private investments, which account for 90% of Bank ABI.
Three main pillars:
• Enhancing competitiveness through efficiency, governance and innovation:
Bank financing should improve competitiveness, including resource management.
• Strengthen the financial sector through targeted investments and improved governance:
SMEs financed through FIs, funds and the LEF instrument.
• Narrowing the infrastructure gap through commercialisation, reform and efficiency:
The Bank remains available to support infrastructure – municipal, transport, energy – but
requires a constructive dialogue with Government.
Policy advisory assignments, particularly on regulatory issues, are possible.
EBRD business volume impacted by:
• Slow growth, limited FDI, limited FI activities
• Limited sovereign and municipal borrowing capacity
• Access to inexpensive resources from EU and EIB
EBRD in Bulgaria: Strategy
EBRD in Bulgaria: Sofia Water Project
• Client: Sofiyska Voda, currently 77 per cent
owned by Veolia Water and 23 per cent owned by
the City of Sofia
• EBRD Finance: EUR 51.5 million Total project
cost: EUR 147 million
• Investment in Sofiyska Voda’s priority investment
programme, including investment in water and
wastewater treatment
• A well balanced concession contract combined
with efficient project implementation and
necessary tariff increases lead to an increase in
investment and higher service levels.
• Project supported the development of the
regulatory framework in the water sector.
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EBRD in Romania
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• Over €7.1 billion invested in Romania in 370 projects, by May 2015
• 24 projects for around €590 million in 2014
• Most of the EBRD’s investments in Romania are in the private sector
• The EBRD’s focus in on:
• the corporate sector (manufacturing, agribusiness and telecoms)
• Financial institutions (SME and energy efficiency loans)
• Infrastructure (including co-financing with EU structural funds)
• The EBRD is keen to support and mobilize foreign direct investments and to
invest both debt and equity in local companies to improve competitiveness,
corporate governance and help meet EU standards.
EBRD in Romania: Arad Urban Transport
(Phase III): efficient and reliable urban
transportation
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Borrower – Arad Municipality
City – 185,000 people
Project:
• acquisition of new energy efficient
rolling stock (up to 6 new tram
vehicles)
• restructuring of the existing loan and
• modernisation of the main tram depot
Total Investments – EUR 20.8m
€ billion
22 June, 2015 32
EBRD in Poland
The EBRD is among the largest investors in Poland. By May 2015 The Bank signed 354
operations in Poland for and total EUR 7.6 billion.
87 % in the private sector:
• 38% corporate sector represents
• Energy 33%
• 23% financial institutions Energy
• 6% infrastructure
The Bank is helping to support the growth of the private sector in Poland, in particular
through privatisation cases, as well as through a support to the stability of the financial
sector, assistance to the energy sector (including renewables and decarbonisation of
the economy), help to reduce the economy’s environment footprint.
of 3.0%-3.5% from 2014-15.
EBRD in Poland Iberdrola Polska Wind
• Client: Iberdrola Renewables Polska Sp. Z.o.o. is a fully-owned Polish subsidiary of Spain-based Iberdrola Renovables, S.A. a world leading developer in the renewable energy industry.
• EBRD Finance: 25% equity investment in IBR Polska of the PLN equivalent to up to EUR 75 mln, by subscribing for shares following a capital increase.
• Use of Proceeds: Proceeds of the investment will fund the development, construction, and operation of the Company’s current portfolio of wind power projects in Poland.
• EBRD added Value: By financing one of the most visible wind farm portfolios in Poland, EBRD’s investment will provide comfort to project developers and other private investors and will demonstrate confidence in Poland’s renewable energy framework. The project will also set appropriate standards for the environmental permitting process and wind assessments in the country.
Signed in 2010
Contents
EBRD: Snapshot
EBRD: Operations
EBRD: in the Southern and Eastern Mediterranean region (SEMED)
EBRD: Case studies in the SEMED region
EBRD: EBRD in Turkey, Bulgaria, Romania and Poland
EBRD: EBRD and Portugal
Case studies with Portuguese companies
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Portugal and EBRD joint cooperation
• Value of joint Portuguese-EBRD investment: €1.67 billion as of January 2015:
• €1.13 billion from EBRD
• €0.54 million from Portugal
• Major beneficiary regions: Romania and Hungary.
• Dominant investment sectors:
• Financial Institutions: €0.69 billion
• Infrastructure: €0.46 billion
• Energy: €0.43 billion
• Industry, Commerce and Agribusiness: €0.08 billion
22 June, 2015 35
Portugal: Consultancy Services,
Procurement
Consultancy Services
• In 2014, there were five consultancy contracts totalling €281,456 awarded to Portuguese consultants by EBRD including one contract for €195,000 for the Small Business Support team for provision of management advice. The remaining four contracts were for provision of specialist industry and procurement advice.
Procurement
• As of December 2014 a total of 168 public sector loan funded and EBRD administered grant contracts were awarded for a total contract value of €1.3 billion. 68 Nuclear Safety Grant funded Contracts worth € 105.5 million were also signed in 2014.
• From 2010 to December 2014, entities from Portugal participated in 17 tenders, and won 1 contract worth € 1.4 million under our public sector projects, and did not participate in any contracts in 2014, under the Nuclear Safety Funds.
22 June, 2015 36
Portugal: Small Business Initiative
Small Business Initiative
• Since 2006, Portugal has provided €520,000, supporting 75 projects
helping small and medium-sized enterprises access business advice
through local consultants and international industry experts in Albania,
Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia and Kosovo.
• Portugal’s latest contribution of €180,000 in 2009 in Bulgaria helped SBI
phase out of the country, ensuring sustainability targeting energy
efficiency, renewable energy and energy audits. It involved support to local
SMEs in implementing energy efficiency measures, obtaining certifications
and conducting energy audits with help of local consultants. It also
included two workshops for local consultants on energy efficiency and
renewable energy.
22 June, 2015 37
Portugal: Technical Cooperation and
Trade Facilitation Programme
Technical Cooperation
• Since 1992, Portugal has contributed more than €2 million through its bilateral
fund. Priority sectors include energy, municipal and environmental infrastructure
and small business. In 2013, Portugal renewed its engagement with the Bank’s
mandate and welcomes the SEMED region.
Trade Facilitation Programme
• Since the start of the programme in 1999, EBRD has financed more than 17,295
transactions for a total amount of more than €11 billion.
• Regarding Portugal:
• 25 export and import transactions with Portugal, totalling €16.9 million
• 12 Portuguese Confirming Banks (as at January 2015)
22 June, 2015 38
Project
Summary
EDPR Solar (Romania)
Client
EDP Renováveis (EDPR). EDPR is a global leader in the
renewable energy sector.
EBRD / other Finance
EBRD - EUR 20 million loan
BTSB - parallel facility of EUR 10 million
Use of funds
The finance was used for the construction and operation
of six solar photovoltaic (PV) parks totalling 50 MW in
southern Romania.
EBRD added value / impact
The investment is supporting Romania to increase its
renewable energy capacity and to meet the EU’s
renewable energy targets.
22 June, 2015 39
2014
Project
Summary
Frulact
(Morocco)
22 June 2015 40
Client
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.
EBRD Finance
EUR 4 million loan
Use of Proceeds
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.
EBRD value added / impact
The investment will help Frulact to increase its fruit-processing
capacity in Morocco by 75 percent 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.
2013 Signed in
Project
Summary
EDPR Romania Wind Farms
(Sarichioi and Vutcani WPPs)
Client
EDP Renováveis (“EDPR”), the third largest wind energy producer in the world
EBRD Finance
Up to €60 million with an A/B loan structure
Use of Proceeds
to finance the commissioning and operation of Vutcani (24MW) and Sarichioi (33MW) wind farms, located in the Moldova and Dobrogea regions respectively
EBRD value added
EBRD financing will contribute to increasing the generation of renewable energy capacity in Romania meeting EU’s green energy quotas
41
Signed in
2012
Project
Summary
Logoplaste
Client
Logoplaste Ukraine, subsidiary of Logoplaste Group,
one of the world’s largest producers of rigid plastics
packaging
EBRD Finance
Loan of €4.1 million secured by Logoplaste corporate
guarantee
Use of proceeds
The loan will support Logoplaste Ukraine in
acquiring, modernising, and operating the packaging
facilities of SC Johnson Ukraine
EBRD value added
This industrial investment by an international
medium-sized Portuguese company in Ukraine will
set an example for other medium-sized European
companies to consider that market
22 June, 2015 42
2009 Signed in
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Jordan: Heike Harmgart
Head of Office, Amman
Tel: +962 65635030
Morocco: Laurent Chabrier
Director, Morocco
Tel: +212 656605180
Egypt: Philip Ter Woort
Director, Egypt
Tel: + 20 (0) 010 2457 7113
Tunisia : Marie-Alexandra Veilleux
Head of Office, Tunisia
Tel: +216 70011500
Hildegard Gacek
Managing Director - SEMED
Tel: +44 (0)20 7338 8128
Contact us
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