Transcript FIRST LINE OF PRESENTATON TITLE SECOND LINE IF NEEDED

Opportunities for Small & Medium-Sized Enterprises
30 May 2013
Claudio Viezzoli, Director,
EBRD
© European Bank for Reconstruction and Development 2010 | www.ebrd.com
The Context
 In many EBRD countries, the SME sector represents the backbone for future
economic growth. This is especially true in smaller and less developed economies
and regions such as the Western Balkans and the smaller SEMED countries.
 However, the domestic financial sector is insufficiently deep and broad to meet the
financing requirements of the SME sector:
 Funding in longer tenors and in local currency is typically scarce.
 Financing beyond senior secured debt is rare. The limited amount of term loan
financing is rationed to larger companies with high-quality security to pledge.
 Financing is mostly available in USD or Euro, exposing unhedged SMEs to large
FX risk.
 EBRD contributes to the development of the SME sector through more and tailormade financing (direct or indirect), renewed intensive advisory services and policy
dialogue to improve the business environment.
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The Context
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EBRD financing to local SMEs is targeted by the Bank via parallel, but
intrinsically connected and strongly complementary, mechanisms:
 Indirectly: via financial intermediaries (local FIs and PE funds), through many FI
SME dedicated facilities, deployed across all countries:
 Competitiveness
 SMEs
 Energy efficiency
 Directly: through direct investments via several “proprietary” facilities created for
direct “tailor-made” financing.
 The primary objective of such direct facilities is to allow an easier access to
EBRD financing for our smaller clients:
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Easier, streamlined and faster processes
Extra support to prepare and monitor projects
Co-operation with other institutions financing SMEs to create synergies
Strong connections with local banking communities in our CoOs
Political protection for our clients (e.g. discriminatory use of tax regimes)
Very deep knowledge of local economies / clients through our offices
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One example: the Local Enterprise Facility (LEF)
Facility
Eligible
countries
Sectors
Established in 2006, with the support and co-financing of the
Italian Ministry of Economy
Balkans (Albania, Bosnia & Herzegovina, Bulgaria, Croatia, FYR
Macedonia, Kosovo, Montenegro, Romania, Serbia), Turkey, and the
SEMED region (Egypt, Jordan, Morocco, Tunisia)
All sectors with a focus on expansion capital, restructuring or
acquisitions of existing private businesses (both locally or
internationally controlled)
The Facility provides between € 1 Mln and € 10 Mln
Financing
Debt, equity and quasi-equity financing
Up to 40% of project cost
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LEF Resources
 €400 million of capital provided jointly by the EBRD (€380 million) and the Italian
government (€20 million)
 A team of bankers in EBRD’s resident offices in Amman, Belgrade, Bucharest,
Cairo, Casablanca, Istanbul, Podgorica, Pristina, Sarajevo, Skopje, Sofia, Tirana and
Zagreb, as well as soon in Tunis
 Supported by Technical Cooperation funds (€13 million) for project development,
pre- and post-investment technical assistance, provided by the Italian government,
the EU and other donors
 Streamlined investment approval process
 Strong support post-investment to investee companies
 Close co-operation with Italian institutions such as commercial banks, Simest,
Finest, SACE, to provide a cohesive package for clients
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Example of integration of financing
SACE
Guarantees for SMEs
investing abroad–
Simest/Finest
Interest rate subsidy della
quota del partner italiano
Up to 49% of equity –
quota del partner italiano
Locally incorporated company
Italian company
Project
Up to 40% of project financing (debt&equity)
Up to 50% of project preparation costs–
quota del partner italiano
EBRD via LEF
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Example of integration of financing
SACE
Simest/Finest
Guarantees for SMEs
investing abroad–
Interest rate subsidy on
Eur 2mm equity–
banks’ loans for equitydella
quota del partner italiano
quota del partner italiano
Locally incorporated company
Italian company
Eur 2 mm equity
quota del partner italiano
EUR 10mm project: 40% equity, 60% debt
Eur 2 mm debt from
Local banks
quota del partner italiano
Up to 40% of project financing (debt&equity)
Up to 50% of project preparation costs–
quota del partner italiano
EBRD
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Lesieur Cristal, Morocco
•Client: Lesieur Cristal, a joint stock
company listed on the Casablanca Stock
Exchange and leading Moroccan producer of
edible oil and soap
•EBRD Finance: EUR 2.5 million loan
•Use of proceeds: construction and launch
of a biomass boiler, improving energy
efficiency and overall profitability
Signed in 2012
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Donalam, Romania
•Client: Rolling mill plant for the production of
steel rounds owned by Beltrame Group (86%)
and Finest (14%)
•EBRD Finance: EUR 4 million senior loan
•Use of proceeds: financing the EUR 20 million
capex expansion plan to expand product range
Signed in 2013
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Forma Ideale, Serbia
•Client: Limited liability company that
produces a wide range of furniture
•EBRD Finance: EUR 5+2 million equity
investment
•Use of proceeds: Construction of a modern
warehouse and logistics centre and
restructuring of the company’s balance sheet
Signed in 2010
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Sustainable Energy Financing
Need
Eligible
countries
Resources
Features
Loans for direct financing for (small) renewable energy and
(industrial) energy efficiency projects
 WB, Turkey and SEMED
 Up to EUR 20 million in Technical Cooperation (TC) to prepare
projects from a technical and financial viewpoint
Average project from EUR 2 million to EUR 6 million EBRD
financing (max EUR 10 million)
Average (expected) maturity of 6-8 years for energy efficiency
and 10-12 years for renewable energy projects (max 15 years)
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IMPG, FYR Macedonia
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Client: IMPG, owned by C.I. Power, joint
venture btw Condotte SpA and ICUN SpA
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EBRD Finance: A senior loan in the amount
of EUR 6 million
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Use of Proceeds: The construction, operation
of four small hydro-power plants with total
installed capacity of up to 8 MW
Signed in 2012
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Questions?
 First: how to get the best advice?
 EBRD representatives in the country
 Second: How do I make my case?
 Prepare a business plan to discuss
 Meet informally with bankers to verify EBRD’s interest
 Third: what should I expect?
 A quick reply on feasibility (4-5 days)
 Followed by first decision (2-3 weeks)
 Length of process (2-5 months) depending on complexity
 Can I ask EBRD to help me find other financiers and take leading role?
 Yes
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EBRD and Italy
 Italy is a founding member of the EBRD, with an 8.52 per cent capital share.
 Italy is one of the strongest sources of foreign direct investment in the EBRD’s
countries of operations: joint Italy-EBRD investment stood at €16.2 billion as of
January 2013.
 Italian banks are leading financial intermediaries in many countries
 Italian banks are also involved in the Trade Facilitation Programme (TFP), through
which the EBRD guarantees the payment of trade finance instruments (such as
letters of credit or payment guarantees) issued by banks in the EBRD’s countries of
operations to foreign confirming banks.
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Contact details:
EGYPT: Philip Ter Woort
Director, Egypt
Tel: + 20 (0) 010 2457 7113
[email protected]
Business Development Unit
EBRD
One Exchange Square
London EC2A 2JN
United Kingdom
E-mail: [email protected]
Tel: +44 20 7338 7168
Fax: +44 20 7338 7848
www.ebrd.com
TUNISIA: Marie-Alexandra Veilleux
Head of Office, Tunis
Tel: +216 24100690
[email protected]
JORDAN: Heike Harmgart
Head of Office, Amman
Tel: ++962 777707747
[email protected]
MOROCCO: Laurent Chabrier
Director, Morocco
Tel: +212 656605180
[email protected]
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