opportunities with the european bank for reconstruction
TRANSCRIPT
Opportunities with theOpportunities with theEuropean Bank for European Bank for
Reconstruction & DevelopmentReconstruction & Development
Sanford OwensSanford Owens
Banking on DevelopmentBanking on Development
New Orleans New Orleans
March 16, 2007March 16, 2007
The largest investor in the regionThe largest investor in the region
AAA-rated owned by 62 AAA-rated owned by 62 shareholdersshareholders
Promotes transition to Promotes transition to market economies in 29 market economies in 29 countriescountries
€€20 B capital base20 B capital base
€€5 B Annual loan/equity 5 B Annual loan/equity commitmentscommitments
A growing portfolioA growing portfolio
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004 2005 2006
Cumulative commitments €33.3 billion
To promote:To promote:
Transition to free, market-based economies by Transition to free, market-based economies by supporting private and entrepreneurial initiativesupporting private and entrepreneurial initiative
A better investment climateA better investment climate
Good corporate governance at project, corporate Good corporate governance at project, corporate levels and in marketslevels and in markets
Environmentally sound and sustainable Environmentally sound and sustainable developmentdevelopment
EBRD ObjectivesEBRD Objectives
A large field networkA large field network
29 Countries
32 Offices
Shareholding of the EBRDShareholding of the EBRD
USA 10.1%
Others 12.7%
Japan 8.6%
CEE & CIS 12.4%
EU 56.2%
US is the largest shareholder of the Bank with a US is the largest shareholder of the Bank with a capital subscription of €2 billion. capital subscription of €2 billion.
What makes EBRD different than What makes EBRD different than other IFIs?other IFIs? Unique mandate - both political and economicUnique mandate - both political and economic
Largest single financial investor in the regionLargest single financial investor in the region
Invests primarily in private sector projectsInvests primarily in private sector projects
Specialised knowledge of central and eastern Specialised knowledge of central and eastern Europe, Caucasus, Russia and Central AsiaEurope, Caucasus, Russia and Central Asia
Multi-national staff from our member countriesMulti-national staff from our member countries
Dedicated teams with expertise in a variety of Dedicated teams with expertise in a variety of sectorssectors
In-depth legal know-howIn-depth legal know-how
Financing instrumentsFinancing instruments
Loans
Equity and Quasi-
equity
Guarantees, including
credit enhancements
(performance bonds
etc.)
SME loans
Equity funds
Micro/small business programs
Credit lines
Trade Facilitation Program
Co-financings
Direct Indirect
How the EBRD Shares the RiskHow the EBRD Shares the Risk
Private Sector Business Risk
Helps Mitigate Political Risk
Will Assume Equity or Loan Risk
Can Provide Support to Mitigate Risk
EBRD
Trade Facilitation ProgramTrade Facilitation ProgramHow does it mitigate risk?How does it mitigate risk?
EBRD supports trade by providing:
guarantees that cover risks arising from project finance transactions
short-term advances/financing to banks in the Countries of Operation for trade finance purposes
TC funded trade finance training and advisory service to local banks
Case Study: Export of Equipment to Case Study: Export of Equipment to KazakhstanKazakhstan
Caterpillar sells equipment to Kazakhstan
A Kazakh Issuing Bank under the TFP opens a Letter of Credit to a foreign Confirming Bank, payable in several instalments before, at and after delivery
EBRD guarantees payment of amounts or tenors which are not covered by ECAs (max. 3-5 years)
Confirming Banks in the USA Confirming Banks in the USA
600 Confirming Banks and subsidiaries in 66 countries, e.g. including 37 banks in the US:American Express Bank JP Morgan Chase Bank Banca Intesa National Bank of AlaskaBanco Bilbao Vizcaya Argentaria National Bank of CanadaBanco Espanol de Credito National City BankBank of New York Societe GeneraleBank of Nova Scotia SEBBNP Paribas Wachovia BankCitibank Wells Fargo HSBC Trade BankCommerzbankDeutsche BankHSBC Bank USA
US - 214 transactions US - 214 transactions EUR 156.6mEUR 156.6m
(TRANSACTIONS RANGE FROM 30K TO 10.6 m)(TRANSACTIONS RANGE FROM 30K TO 10.6 m)
www.ebrd.com/tfp
Export Transactions from U.S. Export Transactions from U.S. 2000-2006 2000-2006
Transactions covered for U.S. Transactions covered for U.S. Companies/ExportersCompanies/Exporters
Examples: Exports from U.S.:
industrial machinery/equipment to Russia
cars and machinery to Ukraine
equipment and machinery to Kazakhstan
telecommunications equipment to Uzbekistan
electrical equipment to Yugoslavia
soya beans to Azerbaijan
chicken and meat to Georgia
Check-List for U.S. CompaniesCheck-List for U.S. Companies
Check under Check under www.ebrd.com/tfp for Issuing Banks for Issuing Banks and tenors EBRD may guarantee payment; and tenors EBRD may guarantee payment;
Ask your buyers/suppliers to check if an Issuing Ask your buyers/suppliers to check if an Issuing Bank under the TFP qualifies to issue the required Bank under the TFP qualifies to issue the required trade finance instrument;trade finance instrument;
Ask the Confirming Bank of your choice to confirm Ask the Confirming Bank of your choice to confirm payment instrument under the guarantee of EBRDpayment instrument under the guarantee of EBRD
Contact U.S. Commercial Service/AC-EBRD StaffContact U.S. Commercial Service/AC-EBRD Staff
EBRD’s Procurement Policies and EBRD’s Procurement Policies and RulesRules
www.ebrd.com/oppor/procure/index.htm
AC-EBRD – join e-mailing listAC-EBRD – join e-mailing list
Procurement methods
Public
Sector
Detailed rules/open tendering/EBRD oversees the
process
Private
Sector
Good commercial practice/clients not required to use EBRD
tendering process
Consultancies 75% of consultancies are in Private Sector
How we support U.S. business:How we support U.S. business:
• Increase U.S. awareness of investment opportunities
Develop opportunities for TC participation
Identify/source EBRD procurement opportunities
Provide guidance to U.S. firms
Ensure EBRD policies and procedures are followed in a fair and transparent manner
US Commercial Service/Advocacy US Commercial Service/Advocacy Center Liaison to the EBRDCenter Liaison to the EBRD
Contact Information:Contact Information:
Sanford Owens, Senior Commercial Officer
Gurjit Bassi, Commercial Specialist
U.S. Commercial Liaison/Advocacy Center - EBRDOne Exchange Square
London, EC2A 2JN
Tel: +44 20 7588 8490 Fax: +44 20 7588 8443
Email: [email protected]
Web: www.buyusa.gov/ebrd
Register on-line: www.ebrd.com