Transcript Document

Agribusiness
March 2015
Agribusiness at the EBRD
• Over €8.6 billion invested
in more than 530 projects
since 1991
• 40% of the projects in the
EBRD’s corporate sector
portfolio
Turkey
14%
Central
Asia
5%
2014 Agribusiness Volume by Region
Russia
17%
Central Europe
and Baltics
9%
South-eastern
Europe
15%
SEMED*
7%
Eastern
Europe and
Caucasus
33%
Central Asia
€37.4m
Russia
€144.4m
Eastern Europe and Caucasus
€284.6m
SEMED*
€60.7m
South-eastern Europe
€128.4m
Central Europe and Baltics
€80m
Turkey
€123m
*Southern and Eastern Mediterranean
• €860 million to 56 projects
in 24 countries in 2014
Food retail
and logistics
15%
Beverage
manufacturing
14%
Commodity
trading
9%
Crop
farming
10%
Others
4%
Food
manufacturing
48%
© European Bank for Reconstruction and Development 2014
2014 Agribusiness Volume by Sector
Beverage manufacturing
€120.3m
Commodity trading
€77.3m
Food manufacturing
€412.6m
Others
€34.4m
Crop farming
€86m
Food retail and logistics
€128.9m
Performance in Ukraine
In 2013 and 2014 the EBRD invested €413.7 million through 20 new investments in Ukraine
2013
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2014
7 projects were signed amounting to
€162.7 million (19% of the annual
agribusiness volume), including 2
equity deals
4 projects were sponsored by foreign
companies
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13 projects were signed, amounting to
€251 million (29% of the annual
agribusiness volume), including 1
equity deal
8 projects were sponsored by foreign
companies
Ukraine
19%
2013
Agribusiness
Volume
Ukraine
29%
2014
Agribusiness
Volume
© European Bank for Reconstruction and Development 2014
Private Sector for Food Security Initiative
The EBRD provides financial and technical
support to agribusinesses and builds
relationships between the public and the private
sectors through policy dialogue and grants
Private Sector for Food Security Initiative
includes projects on:
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Food Quality and Animal Welfare
Production and Access to Finance
Linking Importer and Exporter Companies
Resource Efficiency and Sustainable Retail
The EBRD also provides advisory services
through the Advice for Agribusiness programme
© European Bank for Reconstruction and Development 2012
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Policy dialogue in Ukraine
Technical assistance projects in Ukraine
2015
Policy Dialogue under the Food Security Initiative:
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Grain Working Group – A public-private platform in
Ukraine’s grain sector to improve the business
environment
Dairy Working Group – A public-private consultative
forum on issues facing the dairy sector to guide policy
discussions to drive industry development
Meat Working Group – To help Ukraine’s meat sector
realise its potential both on domestic and export
markets; to be initiated in 2015
High-level Meeting with Ukraine’s PM, ministers and
industry associations on the State of Agribusiness in
Ukraine to prepare an action plan for agriculture
High-level meeting on the state of the agribusiness sector
Diagnostic analysis of sustainable retail
Public-Private Partnership for Investments in Agribusiness
Policy dialogue in the Meat Sector
2014
African Swine Fever Awareness Raising
Grain Warehouse Receipts
2013
Policy Dialogue in the Dairy Sector
Training of Grain Farmers
2012
Study of the Sugar Sector
Review of the Meat Sector
Water along the Food Chain
Policy Dialogue in the Grain Sector
Implementation of Crop Receipts
© European Bank for Reconstruction and Development 2014
EBRD Agribusiness Financing
EBRD provides various forms of
financing, including:
• tailored long-term loans
• working capital loans
• commodity finance
• equity
• guarantees
• multi-project facilities
Each is individually designed to meet
the changing needs of agribusiness
clients across the region.
Please find examples of EBRD financing
in the Annex of this presentation.
Criteria for EBRD involvement:
• The project is located in one of the EBRD’s
countries of operation
• The investment has a beneficial effect on
the local economy
• We are not “crowding out” private money
• The project makes economic sense - no
“soft loans”
• Main shareholder has substantial money at
risk before the EBRD
• Companies with turnover under €5m are
not financed directly, but through special
facilities, mainly available in ETC countries*
• The project complies with EU environmental
standards
*EBRD Early Transition Countries include Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Mongolia, Tajikistan, and Turkmenistan.
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Risk assessment and investment strategy
Financing requirements
An indicative timeline
of EBRD financing
Management strength and strategy
Provision of initial information about the company and
planned use of proceeds
Clear business plan and project costs
Agreement on preliminary Head of Terms, outlining key
terms and conditions of the EBRD financing
Transparency of operations
EBRD initial approval
Disclosed identity of final shareholders and corporate
structure
Signing of the Mandate Letter, EBRD’s due diligence and
financial projections, agreement on a detailed Term Sheet
Identified and limited tax liability risk
EBRD Final and Board approvals
Recourse to subsidiaries generating profits and holding
assets
Drafting and signing of Legal Agreements
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Selected Agribusiness Clients and Partners
Introduction to
the EBRD
EBRD and Agribusiness
Case Studies
EBRD Financing
Technical Cooperation
Agribusiness team has extensive experience in cooperating
with the leading Agribusiness and FMCG corporates of the
entire food chain.
The team is working with local and international clients with
many follow on projects.
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© European Bank for Reconstruction and Development 2012
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Can-Pack – Financing the regional expansion of
a packaging company
Project
Summary
2009-12
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Can-Pack is a major producer of
aluminium, steel and glass packaging from
Poland, owning subsidiaries in other CEE
countries, France and the UAE
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The EBRD provided a US$35 million loan to
Can-Pack in 2009, to finance the
construction and equipping of a brownfield
production facility near Moscow, Russia
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In 2012, a second loan of US$55 million
was used to finance the construction of a
can production facility near Rostov, Russia
© European Bank for Reconstruction and Development 2012
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Lenta – Financing expansion of a leading local
food retailer in Russia
Project
Signed in
Summary
2014
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Lenta is a top 10 food retailer in Russia
EBRD provided a long-term loan of up to
RUB 4.6 billion
The Bank’s financing supports the
construction of new stores and distribution
centres in Russia’s regions, and a range of
sustainability investments across its store
and DC network
EBRD has worked with Lenta since 2003
and has been a shareholder in the
company since 2007
© European Bank for Reconstruction and Development 2012
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Bonduelle – an example for an equity investment
in a greenfield project
Project
Signed in
Summary
2004
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Bonduelle, world’s top processed-vegetable
producer
Project: Construction of a greenfield
vegetable canning plant, located in the
Krasnodar region, Russia to produce
60,000 tonnes of fresh packaged
vegetables
€15m equity investment
© European Bank for Reconstruction and Development 2012
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John Deere – Financing the world’s leading
agriculture equipment producer in Russia
Project
Summary
Signed in
2011
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John Deere is the world’s leading
manufacturer of agricultural, construction and
forestry equipment
EBRD provided a five-year loan of up to RUB
4.7 billion ($130m), complemented by a risksharing agreement for up to RUB 1.6 billion
($45m), through which EBRD shares part of
the risk from John Deere’s portfolio of local
leases
Both facilities have supported John Deere in
developing its leasing operations in Russia,
which allow local companies, including SMEs
and farmers, to finance the acquisition of John
Deere equipment
This new financing program has proved very
successful, with John Deere having extended
several hundred leases during the last two
years to a wide range of customers in a market
with a strong deficit of modern and efficient
agricultural machinery and where financing is
not always readily available to SMEs and
individual farmers
© European Bank for Reconstruction and Development 2012
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Schwarz Group – supporting the expansion of
retail networks
Project
Signed
Summary
2007-10
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Schwarz Group: The number one discount
retailer in Europe and leading hypermarket
operator in Germany. Its key chains are
Kaufland and Lidl.
• Project: Various loans to subsidiaries of the
group to support the expansion of Kaufland
and Lidl in Poland, Romania and Bulgaria
• Loans totalling EUR 660 million (including
syndication):
o €33.3 million to support Lidl’s regional
expansion in Romania;
o €100 million to sponsor Kaufland’s entry
to Romania and additional €40 million to
support the expansion of the company’s
retail network.
© European Bank for Reconstruction and Development 2012
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Carlsberg – Providing long-term support for
expansion through a multi-project facility
Project
Summary
Signed in
2003
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Carlsberg is the fourth largest brewing
group in the world, active across Eastern
Europe
In 2003 the EBRD amended the existing
multi-project financing facility (originally
signed in 1996) and increased the funds to
€250 million
Sub-projects include:
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Equity investment in a Lithuanian
brewery
Strengthening of production, distribution
and marketing in Carlsberg’s breweries
in Kazakhstan
Expansion of the production facilities
and improvement of Carlsberg’s
operations in Ukraine
Carlsberg and its subsidiaries also had
several other standalone financing
agreements with the Bank, across the
EBRD’s region of operations.
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© European Bank for Reconstruction and Development 2012
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Agrokor – an example for a leading local food and
beverage player
Project
Signed in
Summary
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2006
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Agrokor – largest private group in Croatia,
no. 1 regional food and beverage player
and has a leading regional retail chain
(Konzum)
Project: EBRD’s financing is part of a larger
refinancing programme aimed at
restructuring and strengthening of
Agrokor’s balance sheet
€110m equity investment
© European Bank for Reconstruction and Development 2012
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Danosha – Supporting a foreign investor in
Ukraine’s meat sector
Project
Summary
Signed in
2013
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Danosha is a major pig farming company in
Ukraine, established in 2004 and owned by
Axzon Group
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EBRD provided a €35m long-term loan
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The EBRD financing:
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Expands the company’s operations
Improves operational efficiency of the
company
Increases biological security of the
production
Brings animal welfare standards in line
with EU regulations
© European Bank for Reconstruction and Development 2012
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Nibulon – Supporting integrated traders in
Ukraine
Project
Summary
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Nibulon is 100% owned by a Ukrainian
entrepreneur, one of the leading vertically
integrated agricultural commodity trader
and agricultural producer
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4.6 million tonnes of grain was exported in
2013-14 (14% of total grain exports in
Ukraine), 82 thousand ha of arable land
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EBRD financing amounted over EUR150
million
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The investment supported working capital
needs related to the Group’s overall trading
operations, the construction of in-land and
river silos and the building of a river fleet
2010-14
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© European Bank for Reconstruction and Development 2012
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Astarta – Supporting integrated processors in
Ukraine
Project
Summary
2008-14
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Astarta is owned by 2 entrepreneurs and
listed on Warsaw SE
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It is one of the largest vertically integrated
agribusinesses and a leading sugar
producer in Ukraine with 9 sugar plants
and 245 thousand ha arable land
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The EBRD financing amounted to over EUR
110 million
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The investment supported energy efficiency
improvements in several sugar plants,
production capacity increases, purchase of
new agricultural equipment, and
restructuring of existing debt through the
Ukrainian Corporate Support Facility, to
address liquidity needs in times of reduced
external funding
© European Bank for Reconstruction and Development 2012
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MHP – Supporting integrated animal producers
in Ukraine
Project
Summary
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MHP is a leading, vertically integrated
grain, fodder and poultry producer in
Ukraine, listed on the London stock
exchange
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The company operates on 360 thousand
ha of land and raises 350 million chickens
annually
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The EBRD financing amounted to over
EUR130 million
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The investment developed upstream grain
production activities in Ukraine and Russia,
to invest in new agricultural equipment and
to construct a biogas plant at a poultry
farm
2010-13
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© European Bank for Reconstruction and Development 2012
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APU – Financing for new facilities of a major
beverage producer in Mongolia
Project
Summary
Signed in
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APU is on of the first privatised companies
in Mongolia, whose products include beer
and alcoholic drinks, soft drinks and water,
as well as UHT milk
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The EBRD provided several loans to APU
since 2009, amounting to over €40 million
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The financing:
2012
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Upgraded existing brewing facilities and
increased the company’s production
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Supported construction of a new dairy
facility, a new canning line and a new
logistics centre
© European Bank for Reconstruction and Development 2012
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Vitafit – Investing in production efficiency of a
major beverage producer in Mongolia
Project
Summary
Signed in
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Vitafit is one of the leading beverage
producers and distributers of fruit juices
and drinks, bottled water and ice teas in
Mongolia
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Vitafit was one of the first EBRD
investments in Mongolia ever, and since
2007 the Bank provided loans to the
company amounting to over €11 million
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The financing:
2012
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Allowed for the construction of a new
fruit juice bottling factory, including the
purchase of bottling and canning
equipment
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Provided for additional warehouse
capacity and refurbished the existing
premises
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Supported the company during the
economic crises with additional working
capital
© European Bank for Reconstruction and Development 2012
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Netlog – Investment in six cold chain storage
facilities
Project
Signed in
Summary
2014
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Netlog: Leading third-party logistics
company in Turkey
Project: Support the sustainable growth of
the company by financing its capacity
expansion programme in six cold chain
storage facilities across, in particular its
network of temperature-controlled storage
and distribution facilities, which extend the
shelf life of food and other consumer
products
A long-term loan of up to USD 25 million
© European Bank for Reconstruction and Development 2012
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Multi Forum Lviv
Project
Signed in
Summary
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2012
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The Sponsor of the project is Multi
Development, an inner-city regeneration
developer active in 14 countries that focuses
on innovative, unique, and sustainable
projects, recognised internationally
The EBRD signed a EUR 46 million senior loan
to finance the development of a highly
sustainable retail and entertainment centre in
Lviv, Ukraine
EBRD’s financing will be used to finance the
development of the anchoring retail centre
Forum Lviv which will comprise 36.000 m² of
modern retail and leisure space, and is located
in the northern part of the city centre
The project anchors a major regeneration
scheme in the centre of Amman, the largest
mixed-use development ever undertaken in
Jordan which will employ about 2000 people
The Bank supported the client in identifying
resource efficiency opportunities, as well as
developing a programme of reaching out to a
civil society through public consultations and,
most importantly, providing employment
opportunities for youth and women
© European Bank for Reconstruction and Development 2012
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Abdali Urban Regeneration / Abdali Centre
Project
Signed in
Summary
2012
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The Sponsor of the project is United Real
Estate Company from Kuwait, one of the
leading real estate developers in the region
EBRD signed a USD 80 million senior loan to
finance the development of a highly
sustainable retail and entertainment centre in
Amman, Jordan
EBRD’s financing will be used to finance the
development of the anchoring retail centre
with total estimated GLA of ca. 67,000
The project anchors a major regeneration
scheme in the centre of Amman, the largest
mixed-use development ever undertaken in
Jordan which will employ about 2000 people
The Bank supported the client in identifying
energy efficiency opportunities and also
allocated technical cooperation funds to
support the client with the development of
training opportunities; as a result, the client
will be offering to young entrants into the job
market institutional level trainings in various
aspects of retail, including facility and property
management
© European Bank for Reconstruction and Development 2012
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Hines Property Fund
Project
Signed in
Summary
2012
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First closing November 2010
Final closing May 2012
EBRD investment EUR 100 million at final
closing
Focus on Russia and Poland
Set up to focus on institutional quality
developments, re-developments, and
income-producing real estate projects
including distressed assets
© European Bank for Reconstruction and Development 2012
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The first green property fund for the Bank and in
CEE/SEE – focused on Poland
Project
Signed in
Summary
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2014
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The fund has mandatory sustainability criteria
to be achieved, including:
Sustainability management plan
Green leases
Certification
Building Management Committee
Increase in savings/performance vs. local
standards and vs. acquisition stage
The fund had the first closing in June 2014
The Bank committed the lower of EUR 60
million or 25% of total capital.
Strong commitment from the fund manager to:
• Implementation:
o sustainability is part of their annual targets
o penalty for underachievement
• Disclosure and reporting
• Cooperation in increasing market awareness:
o Sharing information about the criteria with
other stakeholders and the market
o Presenting the achievements to the market
and stakeholders
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© European Bank for Reconstruction and Development 2012
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Contacts
For all further enquiries, please contact:
Wojtek Boniaszczuk
Head of Agribusiness for Central Europe, the Baltic
States, Ukraine, Moldova and Belarus
Tel: + 44 20 7338 6073
e: [email protected]
EBRD, One Exchange Square
London, EC2A 2JN
United Kingdom
www.ebrd.com
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@European Bank for Reconstruction
& Development