Transcript Document

Working with the EBRD
UK-Albania Trade and Investment Forum
November 2014
What is the EBRD?
Introduction to EBRD
Case studies
Cumulative business volume of €86bn
International financial institution, promotes
transition to market economies in 35
countries from central Europe to central Asia
and the Southern and Eastern
Mediterranean – SEMED region)
90
80
70
€ Billion
Owned by 65* countries and two
inter-governmental institutions.
100
60
50
Capital base of €30 billion.
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Invested over €86 billion in more than
4,007 projects since 1991
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20
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0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 13 14
Note: Unaudited as at 30 April 2014
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Where we invest
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EBRD finances diverse range of enterprises
Introduction to EBRD
Case studies
Agribusiness - 12%
12%
18%
Manufacturing and Services - 12%
Information & Communication Technologies - 2%
12%
Property and Tourism - 2%
8%
2%
Equity Funds -5%
2%
Financial Institutions - 23%
5%
13%
Municipal & Env Inf - 4%
Transport - 13%
4%
29%
Net cumulative business volume €86bn
Natural Resources -8%
Power and Energy - 18%
Note: Unaudited as at 30 April 2014
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The EBRD and its objectives
Introduction to EBRD
Case studies
The EBRD is:
Objectives:
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Your engaged partner
•
Operates in “business time”
•
Private sector focused
•
Wide product, currency, tenor range
•
•
•
•
To promote transition to market
economies by investing mainly in
the private sector
•
Facilitates inward and cross border
investments in the region
To mobilise significant foreign
direct investment
•
Promotes policy dialogue with
regards to investment climate
business environment and policy
matter
To support privatisation,
restructuring and better municipal
services to improve people’s lives
•
To encourage environmentally
sound and sustainable
development
AAA rating profitable, commercial
focus
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EBRD Product Flexibility tailored
to project needs
Introduction to EBRD
Case studies
Equity
Loans
• Common stock or preferred
• Senior, subordinated, convertible
• Minority position only (up to 35%)
• LT (up to 10y or more) or
ST revolving
• Mezzanine
• Other
• guarantees
• Floating/ Fixed rates
• Choice of currencies
(€, US$, RUB etc.)
• currency swaps
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Key strengths of EBRD
Introduction to EBRD
Case studies
Operational
Institutional
• Extensive knowledge of local economy,
business environment and practices,
local presence
•
Strong, internationally recognized financial
partner with long-term perspective
•
Close working relationships with
governments and shareholders
• A business partner who shares risks,
including political
•
Political leverage due to EBRD’s unique
mandate and shareholder structure
• Catalyst to access additional equity, debt
and trade finance
•
Preferred Creditor Status
•
AAA credit rating
•
Work closely with market sources of
capital to fill “market gaps”
• Engaged minority partner for business
• Provides finance to both private and
public sector clients
• High standards for corporate governance
and compliance
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Albania – Key Economic Indicators
•
Albania has become an EU candidate in June 2014. This outcome reflects the country’s
progress in recent years in political and economic reform as well as the EU’s continued
commitment to support Albania in its efforts. EU’s IPA funds to Albania are set at 650 EUR
million for the EU’s budget period 2014-2020 (10% increase in comparison to the period
2007-2013), and the country will also have access to about 3 EUR billion of multi-beneficiary
funds.
•
1.7% real GDP growth expected in 2014 – Economic performance remains weak for Albania's
convergence potential, reflecting domestic problems and difficulties in trading partners
(especially Italy and Greece).
•
Inflation below the official target of 3% +/- 1p.p. In line with the subdued inflation rate, the
Bank of Albania has implemented an expansionary monetary policy – bringing the reference
rate down to an historic low of 2.5 per cent.
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Public debt is expected to peak around 73% of GDP next year.
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A new €331 million IMF programme has been agreed in February 2014. This is complemented
by two World Bank (WB) development policy loans of US$ 220 million, which aim to strengthen
public financial management and maintain stability in the financial sector. In Sept 2014, the
WB approved additional US$150 million for improving stability of Albania’s energy sector.
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On 10 October 2014, S&P revised Albania’s B rating from Stable to Positive outlook . Moody’s
ratings is at B1 with stable outlook.
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Albania - Ease of doing business
The overall positive direction of business environment reforms is highlighted
by Albania’s significant jump in the World Bank Doing Business 2015
report. The country climbed 40 positions, ranking 68th out of 189 countries
for ease of doing business. However, significant challenges remain.
ALBANIA
SOUTH-EASTERN EUROPE
Overall
2015 2014
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Topics
1 Protecting Minority Investors
2 Getting Credit
3 Starting a Business
4 Resolving Insolvency
5 Trading Across Borders
6 Enforcing Contracts
7 Registering Property
8 Paying Taxes
9 Getting Electricity
10 Dealing with Construction Permits
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41
44
95
102
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152
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153
189
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Legal and Regulatory Reform
to Help Improve the Investment Climate
• EBRD’s Investment Climate and Governance Initiative (ICGI) : An ambitious programme to
• help improve the business climate,
• strengthen legal framework and mechanisms of dispute resolution
• enhance transparency, combat corruption and promote good governance
• EBRD and Government of Albania have signed a MoU on 24 Feb 2014 to provide the framework
for the implementation of this initiative.
• One example: Establishment of the Investment Council (IC), an independent body to facilitate
dialogue between the government and the private sector. Ultimate goal is improvement of
business climate in Albania working closely and strengthening the National Economic Council
(NEC) established by the government.
• Further areas of legal and regulatory reforms with EBRD engagement:
• Telecoms regulatory reform – new strategy and new law
• Financial Supervisory Authority assistance
• Corporate reform, law on bond issuance
• Fiscal Decentralization to allow municipalities and municipal utilities (at the right moment) to
start borrowing
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EBRD in Albania
• Active in Albania since 1992
• Total commitment of € 906 million
• EBRD financing augmented by private and public contribution – approximately € 2.5 billion linked to EBRD projects
• Portfolio is composed of circa 55% public sector and 45% private sector investments
• In the Public sector, helping Albania with major investments such as highways, dams, electricity distribution and
other major projects that directly impact the development of the country
EBRD Portfolio in Albania
EBRD has supported the largest companies, in strategic
sectors, such as:
35%
28%
Energy
• Bankers Petroleum
Fin. Institutions
• Tirana East Gate
Ind., Comm. & Agrib.
Infrastructure
• Hygeia Hospital
• Antea Cement
15%
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22%
• Privatization of the Tirana Airport
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Albanian Deposit Insurance Agency
Project
Summary
Signed in
2014
Client
Albanian Deposit Insurance Agency
EBRD Finance
EUR 100 million standby credit line, covered by a sovereign
guarantee
Use of Proceeds
Proceeds of the credit line can be used by ADIA for the
purpose of making funds available to pay out insured
depositors in accordance with provisions of the Law on
Deposit Insurance.
Context
Albania’s need for a modern well-functioning financial
system. The project is even more relevant after the banking
crisis, to ensure that the banking system remains sound and
liquid.
EBRD value added
A well-functioning deposit insurance scheme is an important
part of a well-functioning financial sector. The support of
EBRD is highly additional in that it will provide long term
financing with a flexible structure which is currently not
available in the market and which would fit the purpose and
needs of the Agency.
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Tirana East Gate
Project
Signed in
Summary
2009
Borrower
Tirana East Gate Sh.p.k, a shopping mall established in
Tirana, Albania
EBRD finance
Total €17 million loan, including a €7 million mezzanine
loan
Tenor
9 years, originally 7 years
Use of proceeds
Construction and development of TEG, the largest
shopping mall in Albania.
EBRD Value Added
Scarcity of long-term investment resources in the
Albanian market, as well as adoption of applicable
corporate governance and financial reporting
standards;
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Hygeia Hospital Tirana
Project
Summary
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 has 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 and initially
operating with 120 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 value added
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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Bankers Petroleum - Albania
Project
Signed in
Summary
2009
Borrower
Bankers Petroleum Albania Ltd., subsidiary of Bankers
Petroleum Ltd. in Canada
EBRD Finance
USD 55 million loan, USD 9.5 million in equity investment
Tenor
7 years
Co-financing
USD 130 million with IFC (International Finance
Corporation) on a 50-50 basis
Use of Proceeds
Development and remediation of the Patos Marinza oil
field in Albania
EBRD Value Added
$5 million loan allocated to support the redevelopment &
environmental remediation of the area
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How to work with EBRD in Albania
Directly:
• Local Enterprise Facility (LEF) - A delegated facility for equity and quasi-equity investments, as well as tailor-made debt financing.
Established jointly by the EBRD and the Italian Government in 2006. Individual investments between €1 mil to €10 mil.
• Western Balkans Sustainable Energy Direct Financing Facility (WBSEDFF) - A direct financing facility operated by the EBRD for (small)
renewable energy and (industrial) energy efficiency projects. Senior loans and project financing arrangements from EUR 2 million to
EUR 6 million.
• Western Balkans Enterprise Expansion Fund (ENEF) - A fund for equity and quasi-equity finance established jointly by the EBRD, EU,
EIF and DEG in 2014. A total of EUR 77 million of initial capital.
Indirectly:
• Medium-Sized Co-financing Facility (MCFF) – Financing of medium-sized private companies. EBRD co-financing takes the form of
funded or unfunded risk participation by the EBRD. The MCFF offers local partner banks a combination of credit lines with a full
recourse to the PB and a risk-sharing participation in sub-loans where EBRD takes risk of the ultimate borrowing enterprise.
• Western Balkans Municipal Infrastructure Development Fund (MIDF) - An innovative financing vehicle established by EBRD and KfW,
dedicated to provide debt financing for municipal infrastructure projects in the Western Balkans. Operations through local commercial
banks by providing funded and unfunded risk sharing and credit lines. Loans between EUR 100,000 and EUR 5 million. Total capital
EUR 100 million.
• Western Balkans Women in Business Facility - EUR 20 million under which credit lines will be provided by EBRD to eligible
Participating Financial Institutions for on-lending to women owned and managed MSMEs.
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Key strengths of EBRD
Introduction to EBRD
Case studies
Operational
Institutional
• Extensive knowledge of local economy,
business environment and practices,
local presence
•
Strong, internationally recognized financial
partner with long-term perspective
•
Close working relationships with
governments and shareholders
• A business partner who shares risks,
including political
•
Political leverage due to EBRD’s unique
mandate and shareholder structure
• Catalyst to access additional equity, debt
and trade finance
•
Preferred Creditor Status
•
AAA credit rating
•
Work closely with market sources of
capital to fill “market gaps”
• Engaged minority partner for business
• Provides finance to both private and
public sector clients
• High standards for corporate governance
and compliance
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© European Bank for Reconstruction and Development 2012
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Contacts
For all further enquiries, please
contact:
Holger Muent
Director, Western Balkans
Tel: + 44 207 338 7413
Email: [email protected]
EBRD, One Exchange Square
London, EC2A 2JN UK
Christoph Denk
Head of Office (from 17/11/14)
EBRD Tirana Resident Office
Torre Drin Building, 4th Floor
Tel: +355 4 2232 898
Email: [email protected]
www.ebrd.com
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@European Bank for Reconstruction & Development
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