December 17


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  • There is a growing energy demand GDP driven, European energy consumption has been growing steadily over the past 20 years However, the energy mix has changed. The EU has been promoting a broad mix of energy sources and gas is taking a growing part of the market And as you can see from the pie chart gas accounts for more than 24% of it Gas and renewables are taking an increasing part of the balance Solid fuel and oil are steadily decreasing
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  • Advantages of working with EBRD for Russian companies – long-term finance, long-term co-operation, local presence, introduction to international capital markets
  • December 17

    1. 1. BRBC Programme December 17, 2012• Welcome by Mr. Johan Vanderplaetse, General Director Emerson Russia• Economic highlights of the last months, Mr. Trouveroy, Ambassador• Activities of the EBRD in Russia, Mrs. Anna Tokarz, Senior Banker and Mr. Bruno Balvanera, Head of Regional development 28/12/12
    2. 2. EBRD, your strong partner in Russia Bruno Balvanera, Head of Regional DevelopmentAnna Tokarz, Senior Banker, Industry, Commerce & Agribusiness Belgium Embassy December 2012 © European Bank for Reconstruction and Development 2012 |
    3. 3. What is EBRD? European Bank for Reconstruction and Development International Established in 1991 and owned by 63 countries Financial Institution and 2 inter-government institutions (EU and EIB) To foster the transition of 30 countries* from Development Central and Eastern Europe to Central Asia mandate towards open market-oriented economies Largest investor in Since 1991 signed EUR 72bn of investments in its the region countries of operation Solid financial Capital base of EUR 30bn with AAA/Aaa rating position*In addition to these 30 countries, the process of granting Egypt, Jordan, Morocco and Tunisia “potential recipient country” status iswell underway. 3
    4. 4. EBRD’s objectives achieved throughfinancing mainly the private sector We have invested: over €71.1 billion in more than € billion 3,389 projects since 1991 12 70 €9.0 billion in 386 projects in 2010 65 60 10 €9.1 billion in 380 projects in 2011: 55 –72% in private sector Annual business volume (ABV) 50 Net cumulative business volume 8 –Debt 82% & Equity 18% 45 40 6 35 30 25 4 20 15 2 10 5 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Debt ABV Equity ABV Net Cumulative Business Volume 4
    5. 5. Key Strengths of EBRDInstitutional Operational Strong, internationally recognised  Extensive knowledge of local economy, financial partner with business environment and practices with long-term perspective local presence Close working relationships with  Engaged minority partner for business governments  A business partner who shares risks, Political leverage thanks to unique including political mandate and shareholders  Catalyst to access additional equity, debt Work closely with market sources of and trade finance capital to fill “market gaps”  Provides finance to both private and Preferred Creditor Status (exempts public sector clients from payments moratoria)  Highest standards for corporate AAA rating governance and compliance 5
    6. 6. EBRD Countries of Operations 6
    7. 7. Russia is the largest Country of Operations ~ 1/3 of EBRD business volume 3 25 bn €20.6 bn in > 700 successful transactions since 1991 Net cumulative business volume (NCBV), € 2.5bn 20 €2.9 bn in 2011, 27% growth yoyAnnual business volume (ABV), € 2 15 1.5 10 1 5 0.5 0 0 01 02 03 04 05 06 07 08 09 10 11 ABV NCBV 7
    8. 8. Strategic Directions in Russia Energy Efficiency across all sectors Modernization & Diversification of Corporate Sector Infrastructure improvement: transport, municipal, energy Support of Small and Medium Enterprises Local Capital Markets and Equity Knowledge Economy and Innovation 8
    9. 9. EBRD’s Key Priorities in Russia Improve Energy Efficiency and Sustainable Use of Energy Improve Energy Efficiency and Sustainable Use of Energy Medium Size and Medium Size and Closing the Closing the Capital Markets and Capital Markets and Larger Companies Larger Companies Infrastructure Gap Infrastructure Gap Financial Intermediaries Financial Intermediaries  Promote regional growth  Reduce transport  Develop domestic investor bottlenecks and ensure base, deepen domestic  Support modernisation flow of goods and capital markets and diversification of people industries  Support banking sector,  Improve municipal encourage diversification,  Build investor infrastructure capitalisation, risk taking confidence and foster capacity transfer of technologies  Modernise power generation and remove  Foster corporate standards  Support FDI electricity transmission and institutional bottlenecks improvements 9
    10. 10. Projects Across Sectors in RussiaCorporate – 40% Financial institutions – 26% 26% 40% 14%Infrastructure – 20% Energy – 14% 20% 84% private sector investments *The Bank does not finance defence-related activities, the tobacco industry, selected alcoholic products, substances banned by international law and stand-alone gambling facilities **As of February 2012 10
    11. 11. EBRD Financing Solutions Debt Equity Trade finance Size EUR 10-250m Term 5-7 (up to 12) years Typically from 3-7 years 1.5-2 (up to 3) years Currency Rubles and major foreign currencies Finance up to 35% of Usually up to 20% Mainly through Trade Approach the project (60% with share, minority stake Facilitation Programme syndication) ► Senior, subordinated ► Portage equity ► Import/export operations Options or convertible finance ► Pure guarantees, cash ► Floating or fixed rates ► Risk equity advance trade finance ► Greenfield or Brownfield ► Issues to international ► Modernisation and energy efficiency banksApplications ► Acquisition and consolidation ► Takes the risk of ► Privatisation transactions of local banks Exact terms depend on specific needs and market conditions 11
    12. 12. EBRD Value Added For Russian Companies For Foreign Companies Support goals of business and  Solid local expertise shareholders  Local offices in each region Flexible financing (tenors and  Problem resolution experience currencies) Long-term reliable partner  Preferred creditor status First step to access  Market intelligence international markets  Knowledge of local business “Stamp of Approval” community 12
    13. 13. Working with Foreign Investors in RussiaCompanies from Francewhich countries Other 15%invest most? 18% Austria 5% USA Sweden 14% 5% Finland27% 5%of all EBRD volume of Turkey Germanyinvestments in Russia 6% Japan 13%are made with a foreign Italysponsor 7% 12% 13
    14. 14. FDI Support Across IndustriesWhat industries Other Financial 13% Institutionsget most Municipal (without funds) Infrastructureinvestments? 3% 17% Forestry & Paper 6% Auto & Special Equipment 13% Transport & Aerospace 9%65% Natural Agriculture & Food Production Resources & 11%of EBRD volume of Energyinvestment with FDI are Construction & 9% Real Estate & Buildinggoing to the industries Retail Materialssector 10% 9% 14
    15. 15. We support FDIs in the regionsTop Regions where EBRD supported FDIoutside Moscow and St. Petersburg Regions: 27%▲ Kaluga of all EBRD volume of▲ Nizhniy Novgorod investments in Russia▲ Rostov are made with a foreign▲ Novgorod sponsor▲ Vologda▲ Tatarstan ▼St. Petersburg 65% of EBRD volume of ▼ Moscow investment with FDI are going to the industrial sector ▼ ▼ Yekaterinburg Rostov ▼ Samara ▼Krasnoyarsk ▼VladivostokStrong FDI presence ▼ Regional officesSome FDI projects 15
    16. 16. Belgium and EBRD joint cooperation  Total value of projects with Belgium-EBRD involvement: €25.1 billion  Value of joint Belgium-EBRD investment: €6.2 billion as of December 2011 – EBRD investment: €3.7.billion – Belgian investment: €2.5 billion  Major beneficiary regions: Russia, Hungary, and Slovenia  Dominant investment sectors – Industry, Commerce and Agribusiness: €2.4 billion – Infrastructure: €1.9 billion – Financial Institutions: €1.0 billion – Energy: €0.8 billion As of December 2011 16
    17. 17. Belgian companies and consultants Procurement  From 2007 to 2011, Belgian entities won 2 contracts valued at €0.7 million from a total of 669 public sector signed contracts for a total value of €7.1 billion. Consultancy services  In 2011 Belgian consultants were awarded 28 consultancy contracts with a total value of €594,297. As of December 2011 17
    18. 18. Belgium and Technical Cooperation  Contribution of over €1.9 million in Technical Cooperation (TC) funds supporting projects in manufacturing (mainly through TAM programme) and transport in countries such as Azerbaijan, Kazakhstan and Ukraine.  Contributors are the governments of Belgium, Flanders and Wallonia  Contributor to EBRD’s Multilateral Carbon Credit Fund (over €22 million as of December 2011) As of December 2011 18
    19. 19. Belgium: Trade Facilitation Programme  Since the start of the programme in 1999, EBRD has financed more than 11,629 transactions in the total amount of more than €7.2 billion  Regarding Belgium in particular: – financed 221 export and import transactions of Belgian companies in the total amount of €52.2 million – 9 Belgian Confirming Banks (as at December 2011) As of December 2011 19
    20. 20. Belgium and SME Finance Facility  EBRD has committed €20 million to Belgian-owned financial institutions, of which the EU has provided EUR 1.7 million  Belgian financial institutions have taken part through the Polish subsidiary of Fortis  As of January 2012, 1,150 sub-projects have been disbursed for a total volume of €45.2 million As of December 2011 20
    21. 21. EBRD and Belgium Case Study Examples 21
    22. 22. RusVinyl JV Sponsors: Solvin (Solvay, Belgium/BASF, Germany) and Sibur, a major Russian petrochemicals producer EBRD financing: EUR 1.3 billion green field plant in the Nizhny Novgorod region: 330 ktpa PVC and 235 ktpa caustic soda capacity –Equity participation of EUR 52m –Loan to RusVinyl: EUR 750m, wihich included EUR 150m from EBRD Multi-party financing (EBRD, Sberbank, and with ECA support: BNP Paribas, HSBC, ING) Signed in 2010 EBRD Value-added - Bringing together:Project Finance International & Euromoney –Russian and International companies Petrochemical Deal of the Year, 2011 –industrial and financial partners –government and private sector 22
    23. 23. Petrovax Pharm Equityto Improve Production Facility in Moscow Region Company: NPO Petrovax Pharm, a niche Russian pharmaceutical company focused research, development and commercialization of branded products primarily in the field of immunology EBRD Finance: the Bank acquired a 25% equity interest in Petrovax for EUR 15 M through a subscription to newly issued equity units Use of Proceeds: construction of an additional production line at the companys facility in Pokrov (Moscow region); research, development and commercialisation of new products; enhancement of the company’s organisation structure and corporate governance standards Security: Tag/Drag Along Rights; Accelerated Put Option EBRD added Value: introduction of new products & technology targeted at saving lives & reducing the economic costs associated with diseases; setting standards in corporate governance practices; Signed in 2008 increased competition 23
    24. 24. Cora Regional The EBRD provided financing in 2003 to the leading Belgian retail group Louis Delhaize for the expansion of their Cora hypermarket brand in Hungary and Romania €30 million in senior debt Signed in 2003 24
    25. 25. Bor Glass Factory (Russia)  EBRD Equity: US$ 15 million Asahi - Bor Glass (signed on 1 December 1997)  EBRD Loan: US$ 25 million (signed on 4 February 2003)  Acquisition of a 75 per cent controlling interest in the Company by a Asahi/Glaverbel-led consortium, which is to be followed by the completion of a short-term capital investment program in order to improve productivity Signed in 1997 and 2003 25
    26. 26. Belgian Sponsor in Central Europe:KBC Bancassurance Holding  KBC Group and EBRD supported together the privatisation of four banks in four countries: – Poland: Kredytbank (EBRD exited to KBC) – Hungary: K&H Bank (EBRD exited to KBC) – Czech Republic: CSOB (EBRD holds 7.5 per cent, KBC 66 per cent) – Slovenia: NLB (EBRD holds 5 per cent, KBC holds 34 per cent)  KBC plays a role in the management of NLB, while EBRD, with one seat on the Supervisory Board of NLB, plays a role in the improvement of corporate governance practices  In 2002, KBC bought 34 per cent of Nova Ljubljanska banka for €433 million, while EBRD bought 5 per cent of NLB for €64 million 26
    27. 27. How to contact us? 6 Gasheka Street Ducat Place III Second floor Moscow, Russia 125047 Tel: +7 (495) 787 1111 Fax: +7 (495) 787 1122 Natasha Khanjenkova, George Orlov, Managing Director for Russia Director, Financial Institutions Lindsay Forbes, Alexander Orlov, Director, Industry, Commerce and Director, Government Relations Agribusiness Bruno Balvanera, Anna Tokarz, Head of Regional Development Senior Banker, ICA 27
    28. 28. thanks For its support28/12/12