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Irina Kravchenko
Senior Banker – Southern & Eastern Mediterranean Region
© European Bank for Reconstruction and Developmen...
2
Direct Risk Sharing
•Local Enterprise Facility (“LEF”)
•Local Currency Financing
Through intermediaries
•A/B loans
•Risk...
3
What is LEF?
3
• A delegated facility for equity and quasi-equity investments, as
well as tailor-made debt financing
• E...
4
Who is eligible for investments under LEF?
• Eligible investments: expansion, restructuring or
acquisitions of existing ...
5
5
LEF : Achievements to date
• Total available capital (31/01/13): EUR 400 million
• Total commitments: EUR 245.5 millio...
6
6
Local Currency Programme
• Approved by Board in February 2011. Operational in April
2011.
• Donors provided of guarant...
7
7
Co-financing with Local banks
• Targeted clients: private SMEs
• Eligible Partner Banks
• Funded or Unfunded
• Up to 5...
8
Thank you for your attention
05/08/13
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Risk sharing/mitigation instrument in the Middle East and North Africa

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Presented at the Annual Meeting of the MENA-OECD Working Group on Investment Policies and Promotion, March 2013

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Risk sharing/mitigation instrument in the Middle East and North Africa

  1. 1. Irina Kravchenko Senior Banker – Southern & Eastern Mediterranean Region © European Bank for Reconstruction and Development 2010 | www.ebrd.com Risk Sharing St. Downtown, Cairo Risk Sharing / Mitigation Instruments OECD – Annual meeting of the MENA-OECD Working Group On Investment Policies and promotion Paris – 19 March 2013
  2. 2. 2 Direct Risk Sharing •Local Enterprise Facility (“LEF”) •Local Currency Financing Through intermediaries •A/B loans •Risk Sharing facility with local banks 2
  3. 3. 3 What is LEF? 3 • 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 • For investments in the Balkans (Albania, Bosnia & Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania, Serbia), Turkey, and the SEMED region (Egypt, Jordan, Morocco, Tunisia) • To meet the growing financing needs of dynamic local SMEs, not sufficiently supported by other financing sources
  4. 4. 4 Who is eligible for investments under LEF? • Eligible investments: expansion, restructuring or acquisitions of existing private businesses • Eligible sectors: a wide range of sectors, with few exceptions (weapons, spirits, tobacco, gambling). All investments must be in line with sound environmental principles • Size of investments: LEF individual investment could amount to up to EUR 10 million • Target Stake: (preferably) in the range of 20 to 35% of the capital of the company • Time horizon: a period of 3 to up to 10 years (15 years for project finance deals) 05/08/13
  5. 5. 5 5 LEF : Achievements to date • Total available capital (31/01/13): EUR 400 million • Total commitments: EUR 245.5 million • Number of transactions: 100 • Number of borrowers/investee companies: 54 • Equity and Quasi-Equity: 40.2% • Debt: 59.8% • Operating Assets: EUR 129.5 million
  6. 6. 6 6 Local Currency Programme • Approved by Board in February 2011. Operational in April 2011. • Donors provided of guarantee for 100% first loss up to 15% of portfolio. Donors grants to reduce EBRD credit margin. • Allows EBRD to reduce credit margin. • Eligibility - Early transition countries. - Initial capped at EUR 10 million per borrower - All Senior Loans for Financial Institutions - Private Corporates - USD 187.1 million of approved / outstanding loans and USD 30.4 million of risk sharing grants
  7. 7. 7 7 Co-financing with Local banks • Targeted clients: private SMEs • Eligible Partner Banks • Funded or Unfunded • Up to 50% of the sub-loan amount • Sub-loan amount: up to EUR 20 million and up to 10 years maturity
  8. 8. 8 Thank you for your attention 05/08/13

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