Relevant legislation in aspects of financing, as well as a number of challenges to be dealt with in the future, as a precondition for increase in project finance and alternative financing models in Serbia’s mining sector.

1. karanovic/nikolic
Selected Tendencies in
Mining Finance
3rd International Conference on Mineral Resources in the
Republic of Serbia - Belgrade, 1 November 2013

2. karanovic/nikolic
Local Regulatory Framework
▬
Law on Mining and Geological
Explorations
—
▬
Law on PPP and Concessions
—
2
Novelties announced
Investor/financier friendly solutions
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

3. karanovic/nikolic
Relevant
loan
collaterals
BANKABILITY
OF THE
PROJECT
The
position of
the
Lenders
3
Reputational
issues, other
projects
Anticipated
cash flow
margin
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

4. karanovic/nikolic
PROJECT
FINANCE
4
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

5. karanovic/nikolic
Project Finance & PPP
▬
▬
Questionable relations between the SPV, partners
and the lenders?
▬
Securing the loan in PPP transactions
▬
5
Possibilities under the Law on PPP and Concessions
Limitations
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

6. karanovic/nikolic
Direct Agreements & PPP
▬
▬
Law on PPP and Direct Agreements
▬
Prior approval of the authority
▬
6
Concept of Direct Agreements
Local practice
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

7. karanovic/nikolic
Comparison of Available Security
▬
▬
Direct Agreements favored by financiers
▬
7
Traditional collaterals vs. Direct Agreements
Pledge over concession rights?
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

8. karanovic/nikolic
Other Finance Models
▬
▬
Private Equity
▬
Mezzanine Finance
▬
8
IFI Equity
Commodity Streaming
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

9. karanovic/nikolic
The
concept of
MF
MEZZANINE
FINANCE
Hybrid
nature
Higher
rate of
return
9
Local
possibiliti
es/issues
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

10. karanovic/nikolic
The
concept
of stream
financing
Features of
commodity
streaming
COMMODITY
STREAMING
Global
experiences
+
Commodity
Forwards
10
Local
possibilities
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

11. karanovic/nikolic
Contact
Miloš Vučković
SENIOR PARTNER
milos.vuckovic@karanovicnikolic.com
Resavska 23
11000 Belgrade
Serbia
T + 381 11 3094 200
F + 381 11 3094 223
11
3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013

12. karanovic/nikolic
Thank you