Discover the EurOrient Financial GroupDocument Transcript
Discover the EurOrient Financial Group
Contents What is the EurOrient Financial Group?...............................................................................................3 Our Challenge………………………………………………………..………………………..6 What is Finance for Development?.........................................................................................................7 What are the Millennium Development Goals?....................................................................................9 EurOrient Financial Group on Development………………………….……………………..11 The Role of the EurOrient Financial Group in a Changing World…………………………...12 Our Work…………………………………………………………………….……………....13 What we do?..............................................................................................................................................15 Where do we invest?................................................................................................................................17 What is our source of funds?..................................................................................................................19 How we do it?...........................................................................................................................................22 Our defining characteristic…………………………………………………………………...24 The EurOrient Financial Group - client relationship…………………………………………27
- What is the EurOrient Financial Group? “EurOrient Financial Group is the world’s first private-sector global development finance institution and the only development agency with a global charter to invest in both public as well the private sector.”We live in a world so rich that global income is more than $31 trillion a year. In this world, theaverage person in some countries earns more than $40,000 a year. But in this same world, 2.8 billionpeople—more than half the people in developing countries—live on less than $700 a year. Of these,1.2 billion earn less than $1 a day.As a result, 33,000 children die every day in developing countries. In these countries, each minutemore than one woman dies during childbirth. Poverty keeps more than 100 million children, most ofthem girls, out of school.The challenge of reducing these levels of poverty, while the population continues to grow—by anestimated 3 billion people over the next 50 years—is enormous.EurOrient Financial Group (“EurOrient” or the “Group”) is the worlds first private sector globaldevelopment financial institution. EurOrients mission is to mobilize financial, technical and humanresources for the benefit of developing economies seeking sustainable economic development andpoverty reduction. It provides debt and equity and equity like financing, policy advice and technicalassistance. EurOrient Financial Group today consistsof five jointly-owned financial institutions with acommon mission and distinct mandates towards itsfulfillment.The EurOrients principal objective is to reducepoverty and promote sustainable economic growth.EurOrient Financial Group invest in projects andprograms that promote social development, buildhuman capacities, and address host government
priorities for investments in physical infrastructure that also enhances social development. Theseprojects include roads, transportation and communication systems, water, sanitation and other typesof investments with social development outcomes such as improved quality of life and increasedhuman knowledge and skills.Founded in 1988, since its formation, EurOrient Financial Group has dedicated its resources toprovide financing and technical assistance to project sponsors, suppliers, government and otherbidding consortia in structuring and implementing financial transactions for major internationalpublic, project and corporate financing ventures. EurOrient finances investments with its ownresources and by mobilizing capital in the international capital markets.Not a bank, but rather a specialized agency. The EurOrient Financial Group is not a “bank” inthe common sense, but rather a specialized agency. EurOrient is a private sector global development financial institution accredited by the United Nations General Assembly on Financing for Development. Our mission is to support the economic and social development efforts of the less developed countries as they, in particular, seek to achieve the Millennium Development Goals ("MDGs"). The EurOrient Financial Group is transforming from a relatively straightforward project financier institution into a full-fledged private sector global development bank responding to a wide range of development needs. As the needs of the developing countries continue toimplement economic reforms; as their needs for infrastructure, human resources, and newtechnology grow; as investments in environmental protection become more pressing; and associoeconomic concerns like poverty, education, health and population, water supply and sanitation,and urban development and housing become more urgent, the EurOrient faces increasing demandson its assistance and services.The EurOrients way of operating has changed over the years and has undergone rapid change sincethe beginning of the 1988s as it has sought to adapt to the changing needs of emerging countriesand economies in transitions in a globalized world economy. Most recently, the EurOrientsChairman of the Board of directors, Mr. Ron Nechemia, has launched an ambitious reform agenda,aimed at increasing the EurOrients development effectiveness in four priority and related areas:refueling current business activities; refocusing the development agenda; retooling the EurOrientsknowledge base; and revamping institutional priorities.The EurOrient name draws inspiration from a ring, which has been used cross-culturally forthousands of years as a symbol of partnership and commitment. The ring serves as a connector, abridge between the Eastern and the Western cultures with the rest of the world “This represents ourunderlying brand values of trust, enduring partnerships for development and fruitful relationships”,
explains Mr. Ron Nechemia, the founder of EurOrient Financial group and the founding father ofprivate sector development banking. “We see ourselves as international public servants, we seek toform relationships and partnerships based on integrity and trust wherein we can provide innovativeservices reflecting our commitment to support a wide range of developing countries’ needs at allstages of development”.EurOrient Financial Group employs people from every region of the world. While our employmentdiversity initiatives are well-established in its global context, EurOrient aims to achieve employmentdiversity to the extent that our development professionals are representatives from nearly everycountry in the world working in the EurOrients Los Angeles headquarters or in its country offices.
- Our ChallengeAt the EurOrient Financial Group (“EurOrient” or the “Group”) we have made the worldschallenge—to reduce global poverty—our challenge and global agenda is our agenda.The EurOrient Financial Group focuses on achievement of the Millennium Development Goalsthat call for the elimination of poverty and sustained development. The goals provide us with targetsand yardsticks for measuring results.Our mission is to support the economic and social development efforts of the less developedcountries as they, in particular, seek toachieve the Millennium DevelopmentGoals ("MDGs").EurOrient Financial Group aims atdelivering its strategic agenda througha selective, planned, country-focused,and technically viable program ofassistance to the benefit of thedeveloping nations. The overallstrategic approach of EurOrient isdetermined by its long-term strategicframework, the medium-term strategy,and the poverty reduction strategy;and its strategic priorities take into A group photo of the High-level Plenary Meeting of theconsideration global and Sixtieth Session of the General Assembly (2005 Worldinternationally accepted perspectives Summit). The World Summit, being held from 14 to 16and goals. September 2005, is the largest gathering of world leaders in history.The overarching goal, strategicobjectives, and operational themesand priorities of EurOrient Financial Group are translated into an individual Country InvestmentStrategy and Program (CISP) for each developing nation through the planning and programmingcycle. The elements used for this translation are: (i) clear linkage between the individual Country Investment Strategy and Program and EurOrient Financial Group’s strategic priorities and objectives, and alignment with the long-term strategic framework, the medium-term strategy, and the poverty reduction strategy; (ii) economic, thematic, and sector assessments of the emerging economies and economies in transitions; (iii) strategic, thematic, and sector focus, and selectivity for investment programs; and (iv) The EurOrient Financial Group thematic product will invest in securities based on national themes and is designed to identify longer-term trends in the marketplace
and to mobilize capital, human resources and technology for the benefit the individual investment selection.
- What is Finance for Development?“…..infrastructure development in emerging markets continues to expect significant long-term financing needs estimated at $21 trillion for 2008-2017.”Most of the worlds nations lack investment funds that could promote economic development –funds needed to build roads, schools, clinics and factories. As a result, their economies languish andtheir populations remain poor.EurOrient Financial Group (“EurOrient” or the “Group”) is committed to sustainable and equitabledevelopment of developing economies. EurOrient shares the widely held belief that substantialforeign direct investment is needed to boost development in developing countries. “The World Bank,for instance, in 2000 suggested that Infrastructure funding gaps in developing economies are staggering. Africa faces aninfrastructure financing gap of US$35 billion per year (World Bank, 2008). For Asia, it is estimated that the totalinfrastructure financing gap averaged around USD420 billion per year over the period of 2006-2015...” EurOrientstrongly believes, however, that debt or equity financial resources alone are insufficient to supportdevelopment. Well-trained and healthy human capital, technology and knowledge transfer,institutional strengthening, equal access to the international marketplace and the discipline andbalance of public-private development partnerships must also be available in order for emergingsocieties to be truly transformed.For developing countries, higher growth often translates into reduced poverty, better education andhealth care, and greater economicopportunity. That growth, in turn, depends oncost-effectively built and efficiently managedmodern infrastructure. Without adequateroads and ports to link towns and continents,stable energy production to power factoriesand sewage systems, clean water and effectivesanitation services to help lower health carecosts and improve the quality of life, andmodern communications technology toexchange ideas and information, the promiseand benefits of a fully integrated internationaleconomy will not be realized or equitablyshared.In March 2002, the United Nations held anInternational Conference on Financing for Mr. Ron Nechemia the Permanent Representative to the United Nations and the Chairman of the Board of Governors ofDevelopment to address this problem. The the EurOrient financial Group being briefed at the project siteconference focused on six different sourcesfor development funds - domestic resources (such as savings and taxation), foreign directinvestment, international trade, international aid, debt relief, and finally systemic reforms. NGOsand others independent voices proposed alternative sources of financing, including especially global
taxes and fees. They also asked fundamental questions: who should receive the financing, and forwhat kind of development? Furthermore, they asked, can poverty be erased if power and wealth areincreasingly concentrated in the global economic system? This page contains information on thedifferent ways to mobilize finances for development, and provides information on the internationalconference on financing for development, its preparation, and follow-up.Working to cut poverty. At present, more than a billion people are living on less than $1 a day, andmore than three-quarters of a billion people are malnourished. The EurOrients role in low-incomecountries is changing as these countries grow and mature. But its central goal remains the same: tohelp promote economic stability and growth, laying the ground work for deep and lasting povertyreduction. Its current main priority is to help low- and middle-income countries cope with theadverse effects of theglobal economiccrisis. To that effect,it is stepping upinvestment andlending to low-income countries tocombat the impact ofthe global recession.
- What are the Millennium Development Goals?The Millennium Development Goals (“MDGs”) are eight goals to be achieved by 2015 thatrespond to the worlds main development challenges. The Millennium Development Goals aredrawn from the actions and targets contained in the Millennium Declaration that was adopted by189 nations-and signed by 147 heads of state and governments during the United NationsMillennium Summit in September 2000. The MDGs represent a compact between all the world’smajor economic players. Poorer countries pledged to improve policies and governance and increaseaccountability to their own citizens; wealthy countries pledged to provide the resources. Since thecommitment to achieve the goals comes from the highest political levels, for the first time, entiregovernments are committed to their achievement – including the trade and finance ministers whohold the world’s purse strings. And major international financial institutions – the World Bank, the IInternational Monetary Fund, the EurOrient Financial Group, the regional and development banks,and increasingly, the membership of the World Trade Organization – have made explicit that theywill be accountable for achieving the goals also.The Millennium Development Goals: • synthesise, in a single package, many of the most important commitments made separately at the international conferences and summits of the 1990s; • recognise explicitly the interdependence between growth, poverty reduction and sustainable development; • acknowledge that development rests on the foundations of democratic governance, the rule of law, respect for human rights and peace and security; • are based on time-bound and General view of the opening session of the measurable targets accompanied by Millennium Summit as Tarja Halonen (Finland), Co‐ chair of the Summit, addresses the Assembly. indicators for monitoring progress; and • bring together, in the eighth Goal, the responsibilities of developing countries with those of developed countries, founded on a global partnership endorsed at the International Conference on Financing for Development
in Monterrey, Mexico in March 2002, and again at the Johannesburg World Summit on Sustainable Development in August 2002. The Goals 1. Eradicate Extreme Poverty and Hunger Halve the proportion of people in extreme poverty, and the proportion of people who suffer from hunger, by 2015. 2. Achieve Universal Primary Education Ensure by 2015 that all boys and girls complete a full course of primary schooling. 3. Promote Gender Equality and Empower Women Eliminate gender disparity in primary and secondary education, preferably by 2005, and at all levels by 2015. 4. Reduce Child Mortality Reduce by two-thirds the mortality rate among children under age five by 2015. 5. Improve Maternal Health Reduce by three-quarters the maternal mortality ratio by 2015. 6. Combat HIV/AIDS, Malaria, and Other Diseases Halt and begin to reverse the spread of HIV/AIDS, the incidence of malaria, and other major diseases by 2015. 7. Ensure Environmental Sustainability Reverse the loss of environmental resources; by 2015, reduce by half the proportion of people without sustainable access to safe drinking water; and by 2020, improve significantly the lives of at least 100 million slum dwellers. 8. Develop a Global Partnership for Development Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system, and address the special needs of the least developed countries, landlocked countries, and small island states; deal comprehensively with the debt problems of developing countries; develop and implement strategies for decent and productive work for youth; provide access to affordable essential drugs; and make available the benefits of new technologies
- EurOrient Financial Group on DevelopmentPoverty in all its forms is the greatest challenge to the globalcommunity. Of special concern are the 1.2 billion people livingon less than $1 a day and the additional 1.6 billion living on lessthan $2 a day. Four-fifths of the people of the world are livingin the developing countries, most with improving conditions.But the number in absolute poverty and despair will still begrowing. All people are made less secure and vulnerable by thepoverty that exists in the world.The moral imperative of support for development is self-evident, it is now clear that not only environmental, but alsosocial, cultural and political sustainability of development effortsare essential for the security and well-being of people and thefunctioning of the complex, interdependent global system nowemerging.EurOrient Financial Group (“EurOrient” or the “Group”)solidarity with the people of all countries causes us to seek toexpand the community of interests and values needed to manage the problems that respect noborders from environmental degradation and securing energy future, to bridging the digital dividebetween the industrialized and developing countries.One of the key leadership challenges of our time is to find new ways to harness the innovation,technology, networks and problem-solving skills of the private sector, in partnership with others, tosupport the United Nations Millennium Development Goals and other international developmentgoals, and to do so in a manner that makes sound business sense, and does not replace or underminethe role of government. Without such investment, hopes for conquering poverty – and therefore forcreating peaceful, stable, functioning societies on all continents -- will remain unfulfilled and willleave the world at greater risk of violence and other ills. Without development and hope, there will be no peace. PERMANENT REPRESENTATIVE TO THE UNITED NATION; AND EURORIENT FINANCIAL GROUP RON NECHEMIA Chairman of the Board of Governors
- The Role of the EurOrient Financial Group in a Changing WorldEurOrient Financial Group (“EurOrient” or the “Group”) is a private sector global development financeinstitution accredited financial institution by United Nations General Assembly on Financing forDevelopment. The mission of the EurOrient Financial Group is to support the economic and socialdevelopment efforts of the less developed countries as they, in particular, seek to achieve the MillenniumDevelopment Goals ("MDGs").EurOrient Financial Group works to generate shared and sustainable prosperity in developingeconomies. The EurOrient actively creates, applies and integrates knowledge from lessons learns fromoperations across world to address development challenges.Founded in 1988, since its formation, EurOrient Financial Group has dedicated its resources to providefinancing and technical assistance to project sponsors, suppliers, government and other biddingconsortia in structuring and implementing financial transactions for major international public, projectand corporate financing ventures. EurOrient finances investments with its own resources and bymobilizing capital in the international capital markets.The EurOrients principal objective is toreduce poverty and promote sustainableeconomic growth. EurOrient FinancialGroup invest in projects and programsthat promote social development, buildhuman capacities, and address hostgovernment priorities for investments inphysical infrastructure that alsoenhances social development. Theseprojects include roads, transportationand communication systems, water,sanitation and other types ofinvestments with social developmentoutcomes such as improved quality oflife and increased human knowledge andskills.The EurOrients primary activities and programmes seek to: • Change the way that growth strategies are conceived, designed, and implemented • Reinvent production-related policies to facilitate countries move to higher productivity activities • Extend markets to the underserved and empower the disenfranchised • Improve service delivery in education, health, and other social services • Design institutions, policies and practices that promote sustainable development that meets human needs while conserving the earths life support systems
- Our WorkEurOrient Financial Group (“EurOrient” or the “Group”) notes that a revolutionary change hasswept the globe resulting in the global economic integrations, private capital flows are at least fivetimes greater than official assistance, where many different actors (from multilateral banks tonongovernmental organizations) now play a much greater role in development, and wheretechnological change has revolutionized the way business is done.Recognizing the remarkable scale of these changes, EurOrient Financial Group is convinced theworld is at a pivotal juncture. The EurOrient believes that these changes mandate a full review ofEurOrient’s investment policy priorities and a complementary retooling and restructuring of theprincipal instruments of this policy. The EurOrient Financial Group also notes that the necessity toenhance the effectiveness investment operation by 2010 adds an additional imperative--the need toreview the investment operations with a careful eye to ensuring the most cost-effective use of theseincreasingly scarce dollars. EurOrient Financial Group further notes that while this year EurOrient has accelerates this process,it by no means finishes it. The road ahead will be an arduous one and the decisions facing by theTreasury Board of EurOrient Financial Group will be increasingly difficult.Finally, the EurOrient Financial Group notes with special attention the seriousness with which itaccepts these responsibilities. Our actions in the area of investment operations are perhaps unique inthat they directly affect the lives and security of millions of less fortunate human beings around theworld.Working to cut poverty. At present, more than a billion people are living on less than $1 a day, andmore than three-quarters of a billion people are malnourished. The EurOrients role in low-incomecountries is changing as these countries grow and mature. But its central goal remains the same: tohelp promote economic stability and growth, laying the ground work for deep and lasting povertyreduction. Its current main priority is to help low- and middle-income countries cope with the
adverse effects of the global economic crisis. To that effect, it is stepping up investment and lendingto low-income countries to combat the impact of the global recession.EurOrient Financial Group seeks to promote country and community ownership of developmentefforts in order to respond quickly to crisis; supporting increased investments in humandevelopment, specifically for marginal groups; and encouraging private sector-led and equitableshares in economic growth. EurOrient has established and maintains going diplomatic and workingrelationships with the various representatives, offices and departments of central governments aswell as provincial and local governmentofficials, multilateral and bilateraldevelopment financial institutions, andofficers and executives of public andprivate financial institutions.The EurOrient Financial Group is using abroad range of financing instruments,tailored to specific projects or programs.The main instruments are loans, equityinvestments and guarantees. TheEurOrient applies sound banking andinvestment principles in all its operations.
- What we do?Financing emerging countries and economies in transition is what we do.EurOrient Financial Group (“EurOrient” or the “Group”) is an innovator in global finance, servesthe financial needs of corporations, governments and municipalities, institutional clients, and highnet worth individuals worldwide. Founded in 1988, EurOrient Financial Group through its affiliatesdevelopment financial institutions and part of its body organ maintains leadership positions inemerging market equity and fixed income sales, investment banking, private investmentmanagement, asset management and private equity. The EurOrient is headquartered in Los Angeles,California, and operates in a network of offices around the world.Working with partnerorganizations and using avariety of mechanisms, theEurOrient Financial Grouphelps client countries mobilizethe financing needed topromote economic and socialdevelopment. This includessupport through innovativefinancial mechanisms, such asthe- Clean Technology Fund,sovereign and municipal bondissuance, as well as directEurOrient lending andinvestment.EurOrient Financial Group fosters sustainable economic growth in developing countries byfinancing private and public sector initiatives, mobilizing capital in local and international financialmarkets, and providing advisory and risk mitigation services to businesses and governments. TheEurOrient Financial Group vision is to become a full-fledged global development bank, as itevolving from mere project financier, which is dedicated to address emerging challenges ofdevelopment and circumstances, and the financial risks, which are posed by global trends as wemove into 21st century. In fiscal year 2010, the EurOrient Financial Group will issue securities for atotal volume equivalent to US$4 billion. For fiscal year 2011 and beyond, annual securities issuanceis expected to be around US$4 to 5 billionCommunity Investment StrategiesEurOrient Financial Group is a socially responsible investor. EurOrient is integrating traditionalfundamental analysis of projects and programs with in-depth assessment of select social andenvironmental factors in the investment decision-making process. The EurOrient investment modelembraces core commercial competencies, skills and products, while others are being established asprofit-making ventures and business activities. Within this framework, socially responsible
investments are focused on improving the access of low-income households, entrepreneurs andcommunities to essential products, services, resources and opportunities while also providingsupport to the national development strategy.EurOrient Financial Groupis continually presentedwith opportunities andrequests for financing of alltypes in support of acountry’s nationaldevelopment agenda fromboth public and privateentities. These prospectivetransactions are initiallyscreened for developmentimpact assessment. Inanalyzing these requests,EurOrient evaluatesprojects usingDevelopment Impact KeyIndicators, which is ascore-card-style ratingsystem. EurOrient weighseach investment decision interms of four impactfactors, they are: commercial, social, environmental and good governance. Under our vision,sustainable growth in developing countries is not possible without a healthy private sector.EurOrient Financial Group therefore seeks to maximize the development impact of its investmentsfor private entrepreneurs, businesses and financial institutions in developing countries.Through its investments the EurOrient Financial Group promotes: ■ economic growth in its countries of operations ■ entrepreneurship, competition and privatisation ■ stronger financial institutions and legal systems ■ infrastructure development ■ adoption of strong corporate governance, including environmental sensitivity ■ structural and sectoral reform
- Where do we invest?EurOrient Financial Group (“EurOrient” or the “Group”) invests in projects and programs thatpromote social development, build human capacities, and address host government priorities forinvestments in physical infrastructure that promote and enhance social development. These projectsinclude roads, transportation and communication systems, water, sanitation and other types ofinvestments with social development outcomes such as improved quality of life and increasedhuman knowledge and skills.The EurOrient Financial Group targets investment opportunities in such industries as: • Electrical generation and distribution, including independent power projects, power transmission, power storage; • Telecommunications systems and related services, including wireline/wireless equipment and facilities, cable and satellite transponder systems; • Transportation, including airports, seaports, toll roads, bridges, and rail and mass transit systems; • Petroleum, including exploration, production, refining and transportation; • Petrochemicals, including additives, natural gas such as pipelines and LNG facilities, liquefied petroleum gas (“LPG”) and compressed natural gas (“CNG”); • Hi-tech systems and related services such as infrastructure technology, information technology, engineering process innovations; • Science and technology, including media, and biotech; • Financial services such as banking and insurance; and • Land development such as commercial and residential real estate development and public spaces • Any other infrastructure project of similar nature, notified by EurOrient Financial Group.
Target InvestmentThe following are broad categories of the type of infrastructure investment actively sought or considered byEurOrient: I. Companies undergoing post-privatization restructuring or engaged in mergers and acquisitions as a result of industry consolidation in the most mature and active sectors and countries; II. Privatization of commercial public services (such as power, gas, telecommunications, water, roads, railroads, ports, and airports); and III. Selective start-ups and green field projectsSectors the EurOrient Financial Group does not financeThe EurOrient Financial Group will not provide financing for defense-related activities, the tobaccoindustry, selected alcoholic products, substances banned by international law and stand-alonegambling facilities.
- What is our source of funds?EurOrient Financial Group (“EurOrient” or the “Group”) is the world’s first private-sector globaldevelopment finance institution accreditedby the United Nations General Assembly onFinancing for Development. EurOrient isthe only development agency with a globalcharter to invest in both public as well theprivate sector.In pursuing its vision, EurOrient’s maininstruments comprise investment, loans,technical assistance, advice, and knowledge.EurOrient Financial Group obtainsoperational and investment resources byoffering its securities and those of itsinvestment funds, to international publicand private institutional investors. These include multilateral and bilateral development banks,pension funds, insurance companies, commercial banks, endowments and foundations, mutualfunds, private trusts, corporations and accredited individual investors. EurOrient seeks to diversifyits sources of financing by offering its securities in the international capital markets and in multiplecurrencies.The EurOrient Financial Group was founded in 1988 and issued its first security in 1990. Since then,it has continuously developed innovative debt and equity products, opened up new markets forissuance, and built-up a broad investor base around the world.EurOrient Financial Group debt and equity securities are offered in all major internationalborrowing currencies. EurOrient issues debt and equity securities in different currencies to fundeconomically viable development projects in emerging countries and economies in transition. Theobjective is to provide investors with a broad choice of currencies. In many instances, this involvesopening new markets for bond and equities issuance, thereby promoting local capital marketdevelopment.The EurOrients financing requirements are primarily determined by its investment and lendingactivities for development projects. As EurOrient Financial Group investment and lending haschanged over time, so has its annual financial mobilization programs. In fiscal year 2010, theEurOrient Financial Group will issue securities for a total volume equivalent to US$4 billion. Forfiscal year 2011 and beyond, annual securities issuance is expected to be around US$4 to 5 billion.EurOrient Financial Group has adopted a lending and investment methodology, and policies andprocedures based on it, which is intended to assure the creation of a portfolio of assets of consistentfinancial soundness and credit quality. EurOrient’s investment and lending policies and procedures
focus heavily on project design, project evaluation and portfolio risk management. EurOrient aimsto achieve an investment grade credit rating for itself that is higher than that achievable by manyemerging market countries and projects. That savings on funding costs in part may be used tostrengthen EurOrient Financial Group and in part passed on to EurOrient’s clients.The EurOrient Asset Management Group agencies the EurOrient Private Equity ManagementGroup (“EPEMG”), EurOrient Merchant Banking Group (“EMBG”), EurOrient AssetManagement Group (“EAMG”) and their agencies, the private sector lending and investmentaffiliate of the EurOrient Financial Group, also offers debt and or equity instruments.Securities CharacteristicSocially Responsible Investing (“SRI”) is one of many terms used to describe an investment strategyaiming to maximize social good and financial returns. Others include social, sustainable, ethical, andmission-based investingThe mission of the EurOrient Financial Group (“EurOrient” or the “Group”) is to support theeconomic and social developmentefforts of the less developedcountries as they, in particular,seek to achieve the MillenniumDevelopment Goals ("MDGs"),in a sustainable way by investingin projects and programs thatpromote social development,build human capacities, andaddress host governmentpriorities for investments inphysical infrastructure thatpromote and enhance socialdevelopment. These projectsinclude roads, transportation andcommunication systems, water,sanitation and other types ofinvestments with socialdevelopment outcomes such asimproved quality of life andincreased human knowledge andskills. This made EurOrient Financial Group debt and equity securities suitable for investors withsuch an investment strategy.EurOrients debt and equity securities finance projects that emphasize the need to (1) invest inpeople, particularly through strengthening basic health and education systems, (2) protect theenvironment by strengthening governance and reducing environmental degradation, (3) supportprivate business development, (4) strengthen the ability of governments to deliver quality publicservices, (5) promote reforms to create stable macroeconomic environments, and (6) foster social
development, inclusion, governance and institution-building as key elements of poverty reduction.For more information about the socially responsible investing nature of EurOrient Financial Groupdebt and equity securities.Sustainable Investing in EurOrient Financial Group SecuritiesEurOrient Financial Group (“EurOrient” or the “Group”) is the world’s first private-sector globaldevelopment finance institution and the only development agency with a global charter to invest inboth public as well the private sector. Using the Millennium Development Goals as a roadmap toreducing poverty, the EurOrient uses its financial resources, its highly trained staff, and its extensiveknowledge base to help each developing country onto a path of stable, sustainable, and equitablegrowth. Proceeds from EurOrient Financial Group securities are used for projects that: • Invest in people, particularly through making investment and in basic infrastructure, health and education • Support rural development • Protect the environment • Support the governments to deliver quality services, efficiently and transparently • Promote reforms to create a stable macroeconomic environment, conducive to investment and long-term planning • Focus on social development, inclusion, governance, and institution building as key elements of poverty reduction.
- How we do it?EurOrient Financial Group (“EurOrient” or the “Group”) is acting in Partnerships. The objectiveof EurOrient Financial Group partnership program is to address the challenge of formulation ofhigh-impact, service delivery that tackle major global development challenges through expandedpartnerships.The EurOrient Financial Group aims to fulfill its mission of a professionally excellent institutionthat responds quickly to the evolving and varying needs of its clients and provides a wide range ofhigh-quality services. These services operate through partnerships and act as a catalyst for private-public collaboration that also serves to build capacity as a knowledge-based organizationThe EurOrient Financial Group partnership strategy is focused on building a broad network ofpartners at the global, regional and nationallevels through stronger collaboration andcooperation. Additionally, we arecontinually seeking to further strengthenour current collaboration efforts withcurrent development partners whilecultivating new strategic relationships aswell.The EurOrient Financial Grouppartnership strategy encompasses threepillars that are also aligned with developingcountries’ own development strategy,namely: (a) investment in environmentalprotection and in clean energy; (b)investment in infrastructure; and (c)financial services.Forging Partnerships:The International Organizations (“IOs”): It is important for EurOrient Financial Group topartner with international organizations, such as the United Nations, and the Organization ofEconomic Cooperation and Development. These “organizations” play a major role in setting andinfluencing the international development agenda. International organizations are the linksestablished between the provision of finance and the realization of specific policy outcomesincluding the Millennium Development Goals, and frameworks and policy initiatives such as PovertyReduction Strategy Papers, the Fast Track Initiative, Managing for Development Results and the harmonizationof donor and of development financial institutions practices.
The International Financial Institutions (“IFI”), China as well as most of the less developedcountries are also Member States of Multilateral Development Banks (“MDBs”) such as the WorldBank, the Asian Development Bank, where partnership is based on common objectives that provide astrategic advantage as well as added-value.The National GovernmentEurOrient Financial Group actively seeks cooperation with organizations to strengthen theeffectiveness, quality, and sustainability of the services it provides. The dialogue enables EurOrientFinancial Group and its potential local partners to identify areas of complementary expertise leadingto the improvement of operational policies, project design and implementation.The EurOrient Financial Group partnership for development approach emphasizes the need toplace committed governments, and their people, at the center of their development process.EurOrient’s desire is to establish partnership with government agencies, such as but not limited tothe national development banks, state development investment corporations, the provincial andother government investment agencies and with all major stakeholders around the country’sdevelopment strategy, programs, and projects. • Ministry • Provincial Government • Local government • National Development Agencies Mr. Ron Nechemia the Permanente Representative of United Nations and the Chairman of the Board of Governors of EurOrient Financial Group Addressing World Leaders at the United Nation Sponsored Summit on Financing for Development in Monterrey, Mexico, March 19-22, 2002. Ministerial Segment.
- Our defining characteristic EurOrient Financial Group (“EurOrient” or the “Group”) produced a matrix of six development agencies characteristics that can be used to evaluate and guide the work, systems and principles of various agencies. A careful assessment of these characteristics can be useful in identifying the presence of international development financial institutions and gauging its strength within a particular context, and helpful in matching organizational goals to specific actions that will encourage positive economic and social development. “Development financial institutions and agencies” has occupied a central stage of global economic and social development since 1944, yet they are difficult to define, inherently complex, and resistant to being categorized or interpreted through a singular theoretical lens. As the development financial institutions are not “banks” in the common sense, but rather a specialized agency. Development financial institutions and agencies, like other groups and institutions in modern societies, operate within and are conditioned by three types of systems: economic, political, and social. Better defining the characteristics development financial institutions it is necessary prerequisite for effective implementation. There are at least four features that define the characteristics: malleability, complexity, opportunity, and gravity. Risk The Investment Pricing MarketThe Institution: Mandate Characteri- Instruments Charter Objective Strategy Response sticsEurOrient Global Public and Count for Share the Loans, Has Aligned toFinancial Group Mandate the private development same risk as Investment, market global sector impact (both other Guarantees pricing development economic rate (institutional and Technical policy agenda, market of return as ) investors Assistance driven, FAST well social rate DOES responsiveness of returns) accept performance & Sovereign profit-oriented GuaranteesThe World Bank Global Limited to Count for Require Loans and Concessio- Politically Mandate the Public development Sovereign Technical nal driven, sector impact Guarantee Assistance; Funding, SLOW payment for does NOT that is responsivenes every make subject to s, good transaction Investment meeting performance political
agenda and political conditionsInternational Global Limited to Count for Share the Loans, Concessio- PoliticallyFinance Mandate the Private development same risk as Investment nal driven,Corporation Sector impact (both other and Technical Funding SLOW economic rate investors Assistance sources; responsivenes of return as does NOT and has s and good well social rate accept market performance of returns) Sovereign pricing Guarantees policyAsia Regional Public and Achieve Require Loans, Concessio- PoliticallyDevelopment Mandate the Private development Sovereign Investment nal driven,Bank Sector impact Guarantee and Technical Funding, SLOW payment for Assistance that is responsivenes every Public subject to s, good Sector meeting performance transaction political agenda and political conditionsAfrica Regional Public and Achieve Require Loans, Concessio- PoliticallyDevelopment Mandate the Private development Sovereign Investment nal driven andBank Sector impact Guarantee and Technical Funding, Market payment for Assistance that is driven, Good every Public subject to responsivenes Sector political s, good transaction agenda and performance political & profit conditions orientedEuropean Bank Regional Public and Count for Require Loans, Concessio- Politicallyof Mandate the Private development Sovereign Investment nal driven andReconstruction Sector impact (both Guarantee and Technical Funding Marketand economic rate payment for Assistance that is driven, GoodDevelopment of return as every Public subject to responsivenes well social rate Sector meeting s, of returns) transaction political performance agenda and & profit political oriented conditions
The development landscape at the end of the 20th century was shaped by global integration andlocalization. These forces offered EurOrient Financial Groupfounding members’ unprecedented opportunities for growth,and EurOrient was aiming to establish the first private globaldevelopment bank that catered to serve the public and theprivate sectors of the emerging and transitional economies.EurOrient Financial Group founding members under theleadership of Mr. Ron Nechemia, they established EurOrientin 1988 with a vision of creating a privately owned globaldevelopment bank. EurOrient’s shareholding structure assuresthat the EurOrient will remain private sector oriented and thatits operations will remain free and independent of anygovernment’s foreign policy and political agenda. Thisindependence will ensure that EurOrient developmentassistance is efficiently and effectively managed, based ongood corporate governance and best practices, for the benefitof its shareholders, investors, and society at large.EurOrient Financial Group was created to be different, to bedynamic, flexible and innovative in its delivery of Mr. Ron Nechemia, the Chairmandevelopment financial services. EurOrient affirms the often of the Board of Governors of theforgotten fact, that, development must represent "...a EurOrient Financial Group and thetransformation of society, a movement from traditional founding father of private sectorrelations, traditional ways of thinking, traditional ways of global development bankingdealing with health and education, traditional methods ofproduction, to more modern ways." And that development "is not about charity; it is aboutinclusion and empowerment, education, good health, security, and opportunity." To EurOrient,development is about putting people first, giving people a voice and better life and respecting theirfundamental human rights. Because development is not about charity, it is about delivering whatpeople want in a commercially viable, but socially responsible manner.
- The EurOrient Financial Group - client relationshipEurOrient Financial Group (“EurOrient” or the “Group”) is the world’s first private-sector globaldevelopment finance institution and the only development agency with a global charter to invest inboth public as well the private sector. The EurOrient Financial Group is a peculiar globaldevelopment financial institution. Its main characteristics are the following: - EurOrient Financial Group is the world’s first private-sector global development finance institution - Unlike private investment banks or commercial banks, the EurOrient Financial Group has shareholders that do not receive dividends. - Its investments are restricted to the emerging countries and economies in transitions. - Unlike the World Bank which can invest in public institutions or International Finance Corporation (“IFC”), which can invest only in private sector enterprises, the EurOrient Financial Group can invest in both public and the private sector of the economy. - Its investments have to respect environmental standards. - Unlike private investment banks or commercial banks, EurOrient Financial Group count for development impact (both economic rate of return as well social rate of returns) - Unlike International Finance Corporation, and like the other multilateral development banks, EurOrient Financial Group does accept sovereign guarantee payments. - Its mandate stipulates that it must only work in emerging countries and economies in transitions that are committed to democratic principles. Nevertheless, some investments have been realized in certain countries that are far from being fully-edged democracies.On a theoretical point of view, we consider the objective function of the EurOrient Financial Groupas identical as that of any multilateral development banks. The EurOrients principal objective is toreduce poverty and promote sustainable economic growth. EurOrient Financial Group invest inprojects and programs that promote social development, build human capacities, and address hostgovernment priorities for investments in physical infrastructure that also enhances socialdevelopment. However, its objective is to maximize profits from investment in projects and inprograms by maximizing operational efficiencies and by deployment of new means to enhanceproductivity and by adding values. EurOrient makes use of all the instruments available on thefinancial markets to raise funds and protect its portfolio against risks.However, its constraints are different. It must invest in a restricted geographic area precluding it todiversify its portfolio with investments in safer places in the developed world. Therefore, in thisrespect, the EurOrient Financial Group faces a harder constraint than any other investment bank orcommercial bank. On the other hand, not like in the case of the multilateral development banks, itsshareholders do not guarantee it virtually against bankruptcy, which is similar to the case for anyother private investment bank. This feature together farther challenging the EurOrient FinancialGroup to raise funds at the best conditions and, simultaneously, face the high risks inherent to theinvestments in emerging countries and economies in transitions.