Meinl Bank AG

• • Leading private merchant and investment bank in Austria Focus: Central and Eastern Europe  Private banking; private asset management  Institutional asset management  Equity banking; venture funds managment  Emerging market debt trading and forfaiting  Corporate finance advisory services

Bulgarian Investment Forum 14.-15.4.2004

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Meinl Capital Advisors AG

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Corporate finance advisory services in Central and Eastern Europe

Government privatization and restructuring advisory services –

Macedonia:

Restructuring and Privatization of Electricity Sector –

Serbia:

Restructuring and Privatization of Metalworking and Engineering companies –

Serbia:

Privatization of companies in Food Processing and Textile Sectors

Bulgarian Investment Forum 14.-15.4.2004

Meinl Capital Advisors AG

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Corporate finance advisory services in Central and Eastern Europe

• • Merger and acquisition advisory services for private strategic investors –

Bulgaria:

Breweries Advised

Carlsberg A/S

on acquisition of –

Moldova:

provider Advised owners on sale of

Moldcell GSM

Arrangement of finance for governments, municipalities and quangos –

Hungary:

Advisor to Heves County (Eger Region) on implementing and arranging finance for Regional Waste Management System

Bulgarian Investment Forum 14.-15.4.2004

CASE STUDY: HEVES COUNTY HUNGARY (1)

• • • MCA is advisor to 93 municipalities in Heves County for preparation and implementation of Regional Waste Management System Euro 65 million project, of which 50% will be provided by the EU Cohesion Fund, 40% by the Hungarian Government, and 10% by private investors Similar projects have been planned and are underway in Bulgaria

Bulgarian Investment Forum 14.-15.4.2004

CASE STUDY: HEVES COUNTY HUNGARY (2)

•

Step 1: Defining the Project

– – – Public Sector – defined the need for modernization Private sector – specific technological and financial proposals Regional policy of European Union – strategy for applicants to reach EU standards (acquis communitaire) in environmental area – Strong political support on all levels

Bulgarian Investment Forum 14.-15.4.2004

CASE STUDY: HEVES COUNTY HUNGARY (3)

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Step 2: Identification of Financing Sources

– Multilateral Financing European Union: Cohesion Fund / ISPA / PHARE EBRD / EIB / IFC – – Bilateral Financing - Hungarian Government Commercial Financing Suppliers / Commercial Banks / EGA Structured Financing Private Financial Investors – Special Purpose Fund

Bulgarian Investment Forum 14.-15.4.2004

CASE STUDY: HEVES COUNTY HUNGARY (4)

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Step 3: Key milestones in the project

– – – – – – – – Establishment of Municipal Association – 2003 Detailed project planning – 2003 Government permitting / impact studies – 2003-04 Submission to EU Cohesion Fund of feasibility study – 2004 Establishment of operating company – 2004 Tendering for equipment – 2005 Public-private partnership – partial privatization of opco – 2005 Realization of project – 2006-08

Bulgarian Investment Forum 14.-15.4.2004

Key success factors

• • • • • • Planning and analysis: assurance of adequate returns over investment period under conservative assumptions Government support: municipal, central government, multilateral levels Thorough review of technical, legal, financial issues (due diligence) Flexibility and opportunism in sources and structure of financing Appropriate legal and contractual framework Competent project management to drive project and assure success

Bulgarian Investment Forum 14.-15.4.2004