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SOUTHERN & EASTERN
MEDITERRANEAN REGION
European Bank for Reconstruction and Development
Milan
May 2013
© European Bank for Reconstruction and Development 2010 | www.ebrd.com
EBRD: a snapshot
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EBRD: Snapshot
• An International Financial Institution established in 1991 to support
the transition to market economy and democracy in the former
communist countries.
• Owned by governments of 64 countries and two inter-governmental
institutions (EU, EIB).
• Headquartered in London and investing in 31 countries in Eastern
Europe and Central Asia, and, since September 2012, also in Egypt,
Jordan, Morocco and Tunisia.
• Cumulative commitments of €80.26 billion, of which 73% private
sector.
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EBRD: Snapshot (2)

Capital base of €30 billion, AAA rated by all 3 Agencies.

Invested over €80.26 billion in more than 3,700 projects since 1991.

393 new projects signed in 2012 with commitments of over €8.9
billion.

Debt 84%, Equity 16% of EBRD finance.
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Cumulative commitments by sector
Cumulative commitments EUR 80.3billion
Unaudited as at 30 April 2013
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Where we operate
EBRD operations
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EBRD Financing Solutions
Loans
•
Senior, subordinated,
convertible
•
Long term (up to 10y or more)
or short term revolving
•
Floating/ Fixed rates
•
Choice of currencies (EUR,
USD, RUB etc.)
•
Syndication
Equity
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•
Common stock or preferred
•
Minority position only (up to
35%)
•
Mezzanine
Operational Strengths of the EBRD

Having a high-risk taking capacity: EBRD is willing to share risks,
including political risks.

Providing finance to both private and public sector clients.

Acting as a catalyst to access additional equity, debt and trade
finance, mobilising up to 2.5 times from other sources.

Having a very good knowledge of local economy, business
environment and practices, through extensive local presence.

Focusing on corporate governance, including protection of minority
interests.
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Institutional Strengths of the EBRD

Strong, internationally recognised financial partner with long-term
perspective.

Close working relationships with all public and private stakeholders.

Political leverage due to EBRD’s unique mandate and shareholding
structure (all countries of operations are shareholders).

Preferred Creditor Status.

1:1 gearing ratio at €26 billion.
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EBRD is Additional to the Commercial
Banking Sector

EBRD does not lend or invest when commercial banks or private
investors can do it alone.

EBRD invites other banks to participate in its operations (syndication,
co-financing).

EBRD leads the market with innovative products, local currency and
longer tenors.

EBRD provides technical assistance for project preparation and
implementation where such assistance is required.
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EBRD in the Southern and Eastern
Mediterranean Region (SEMED)
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Key milestones
•
The Arab Spring of 2011 has created new major transition
challenges in the SEMED region (Egypt, Jordan, Morocco and
Tunisia).
•
The May 2011 G8 Summit launched the Deauville Partnership to
support democratic transition, transparent government and
sustainable growth.
•
By end 2011, EBRD shareholders approved the expansion of the
Bank’s mandate to 4 SEMED countries.
•
Since September 2012, the EBRD has been able to invest in Jordan,
Morocco, and Tunisia, and since November 2012, in Egypt.
•
Host Country Agreements have been signed with Tunisia and
Jordan; negotiations are in progress with Morocco and Egypt.
•
Temporary offices are in place in all countries. Tunisian permanent
office will open in June 2013.
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Three phased fast start
Reflecting progress in ratification
From 3rd – 4th Quarter 2013
Since September 2012
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•
•
Market demand studies, project
preparation, plus advisory services for
small businesses
Almost 80 technical cooperation
projects received funding* (Total
amount: EUR 37 M).
TC projects are donor-funded:
ORDINARY INVESTMENT
OPERATIONS
SPECIAL OPERATIONS
TECHNICAL ASSISTANCE
•
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•
•
•
Countries remain ‘potential’ and not
full countries of operation of EBRD.
Operations funded through a Special
Fund (€1 billion EBRD net income),
not regular capital resources
•
•
8 investment projects have already
been signed *.
- SEMED multi-donor account: €20
million
•
- EU neighbourhood facility: €20 million
After the Amendment to Article 1 of
the Agreement establishing the
EBRD, the Bank will be able to
finance investment operations from
its ordinary capital resources.
Egypt, Jordan, Morocco and Tunisia
will then be given full country of
operations status.
Resources COULD allow up to €2.5
billion p.a. of business in the
medium term.
- EBRD net income: €20 million.
* as of end April 2013
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Progress to date
• Temporary offices are operational in all 4 countries, with
permanent offices to be opened from 2013 onwards and staffed
later over the year. Tunisian permanent office will be opened in
June
• Overall the Bank will increase its staff by 107 employees of
which 50% will be nationals of the SEMED Region.
• Delineation of country strategies and project pipelines is well
underway.
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Operational priorities in the region
• Supporting the private sector, with a particular emphasis on SMEs.
• Developing non-sovereign financing solutions for infrastructure
development, including PPP structures.
• Promoting sustainable energy and energy efficiency initiatives.
• Supporting and developing local capital markets.
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Priority Sectors
1) Financial Sector
• Working through local banks to finance the SME Sector.
• Providing trade facilitation and other services.
• Supporting the restructuring and institutional building of selected
banks.
• Supporting Microfinance and other specialized institutions.
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Priority Sectors (Cont.)
2) Infrastructure
• Supporting reform agenda for State-owned enterprises, including
corporatisation, subsidy reduction and privatisation.
• Assisting in introducing legal and regulatory framework for PPPs
and concessions.
• Making direct investment in selected projects (ports, transport,
waste management, etc.).
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Priority Sectors (Cont.)
3) Financing Private Enterprises
• Manufacturing and Services including large corporates.
• Agribusiness and related industries (Food chain).
• Direct support for the SME Sector.
• Financial restructurings in selected cases.
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Priority Sectors (Cont.)
4) Energy efficiency
• Promoting power sector reform (liberalisation,
commercialisation, unbundling).
• Supporting the development of renewable energy.
• Financing natural resources, preferably in less favoured
regions.
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EBRD: Investment Projects Pipeline
(April 2013)
In EUR million
10 projects
9 projects
4 projects
4 projects
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6 projects
EBRD: Investment Projects
(March 2013)
•8 projects signed across the region:
2012
Op Name
Aqualia Investment Venture
Maghreb Private Equity Fund III
SGMB - SME Loan
LEF: Lesieur Cristal
IPP4 Al-Manakher Power Project
Borges Tunisia
Total
Country
Regional
Regional
Morocco
Morocco
Jordan
Tunisia
2012
Portfolio Class
PRIVATE
PRIVATE
PRIVATE
PRIVATE
PRIVATE
PRIVATE
Product
Equity
Equity
Debt
Debt
Debt
Debt
Sector Team
EBRD fin (EUR, m)
Municipal & Env Inf
9.9
Equity Funds
20.0
Bank Lending
10.0
Agribusiness
2.5
Power and Energy
124.6
Agribusiness
15.0
182.0
Debt
Debt
Manufacturing
Power and Energy
2013
Universal - White Goods
Egypt
PRIVATE
ONE - rural Electrification and smartMorocco
metering PUBLIC
Total Portfolio
18.9
60.0
260.9
• 4 Trade Facilitation Programme Agreements signed (2 in Jordan, 2 in Morocco) for a total value of €113M
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Conclusion
To Achieve Political, Economic and Financial Sustainability in the
Mediterranean Region
•Political Stability.
•Predictable business environment.
•Continuation of the reform processes.
•Job creation based on investments through FDI but also local
investments by the private sector
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To contact us:
Hassan El Khatib
Director - SEMED
Industry, Commerce & Agribusiness
Hildegard Gacek
Managing Director - SEMED
Tel: +44 (0)20 7338 8128
[email protected]
Tel: +44 20 7338 8420
[email protected]
Jordan: Heike Harmgart
Head of Office, Amman
TUNISIA: Marie-Alexandra Veilleux
Head of Office, Tunis
Tel: ++962 777707747
Tel: +216 24 100 690
[email protected]
[email protected]
Morocco: Laurent Chabrier
EGYPT: Philip Ter Woort
Director, Cairo
Tel: + 20 (0) 010 2457 7113
[email protected]
Director, Casablanca
Tel: +212 656605180
[email protected]
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