Access to Finance:

Working with the EBRD in Greece

Return to Growth: New Jobs, New Business Opportunities Organized by SEV with the support of the European Commission

23 April 2015, Athens

What is the EBRD?

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• An international financial institution that

promotes transition to market economies in

36 countries from Central Europe to Central

Asia and the Southern and Eastern

Mediterranean region

• Owned by 65 countries and 2

inter-governmental institutions (EU, EIB)

• AAA rating by all three main rating agencies

(S&P, Moody’s and Fitch)

• Capital base of €30 billion

• Invested over €95 billion in more than

4000 projects since 1991

• Portfolio of ~ €37 billion

In March 2015, Greece obtained country of

operation status until 2020

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1,000

2,000

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5,000

6,000

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ABI (reported rate) Number of operations (#)

Note: Unaudited as at 31 December 2014

The EBRD fosters private sector development

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Objectives:

• To promote transition to market

economies by investing mainly in the

private sector on commercial terms

• To mobilize foreign direct investment

(FDI)

• To support privatization, restructuring

and better municipal services to

improve people’s lives

• To encourage environmentally sound

and sustainable development

Results in 2013:

• Investments: €8.5 billion

• Projects: 392

• Private sector: 72%

• Equity: 22%

Results in 2014:

• Investments: €8.85 billion

• Projects: 377

• Private sector: 72%

• Equity: 20%

Greece as EBRD Country of Operation

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• The Greek Government requested EBRD’s engagement in Greece to

tackle the consequences of the financial and economic crisis and

address the structural challenges that the Greek economy is

exposed to

• EBRD Shareholders granted Greece recipient country status in

February 2015

• On 3 March 2015, EBRD announced that it will start investing in

Greece for the period until end 2020

• EBRD’s activities are intended to strengthen progress in the reform

of Greece’s economy and contribute to the momentum of its

recovery

• The Bank shall establish its local presence in Athens in 2015

engaging a multidisciplinary team of local and international bankers

EBRD envisaged priorities for Greece

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• Unlock private sector’s access to finance:

‒ The Bank will help address the issue of insufficient capital for Greek

private companies, especially small and medium-sized enterprises

‒ Through its Trade Facilitation Programme it will provide guarantees

for pre-export and post-import finance

‒ A wider investor base will be mobilised

‒ NPL resolution will be supported

• Support private sector participation in and

commercialisation of infrastructure to enable regional

integration and improve quality of utility services

What can EBRD offer to you

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Loans

Senior, subordinated, convertible

Long term (up to 10y or more) or short

term revolving

Floating/Fixed rates

Choice of currencies (€, US$, etc.)

Equity

Common stock or preferred

Minority position only

(up to 25%)

Mezzanine debt

Private equity, VCs

Technical Cooperation As a Multilateral Development Bank, EBRD brings in additional financing

and technical assistance to economically viable projects

Other: PPPs, guarantees, swaps, etc.

Potential to complement some EBRD products/programmes with those from other IFIs

What more can EBRD offer

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• Since the start of EBRD’s Sustainable Energy Initiative over 13 billion were invested to address

the twin challenges of energy efficiency and climate change in the region.

Market segments include: large-scale industrial energy efficiency, sustainable energy financing

facilities through financial intermediaries, power sector energy efficiency, renewable energy,

municipal infrastructure energy efficiency, including district heating and public transport

network rehabilitation and carbon market support.

• The Trade Facilitation Programme (TFP) was developed to promote and facilitate international

trade to, from and within our countries of operation.

Under the TFP, guarantees provided by EBRD to international commercial banks cover the

political and commercial payment risk of transactions undertaken by participating banks

(issuing banks) in the EBRD’s countries of operations.

• The Small Business Initiative to provide financing to micro small and medium size enterprises

to support entrepreneurship

Initiatives / Programmes

EBRD financing with Greek Sponsors to date

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• Above €2.5 billion of EBRD investment

along Greek clients and co-financiers

over the years

• Dominant investment sectors include:

Industry and Agribusiness (61%),

Financial Institutions (30%),

Energy (7%) and

Infrastructure (2%)

• Current or past clients include: all

major Greek banks, Titan Cement,

OTE, Hellenic Petroleum, Germanos,

Copelouzos, Mornos, Yioula Glass,

Elbisco, Loulis, Viohalco, Global

Finance (and some more in current

pipeline)

20%

17%

10%

53%

Geographical Distribution of EBRD

financing

with Greek Sponsors

Romania

Bulgaria

Albania

Others

Contacts

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For further enquiries, please

contact:

Jean-Marc Peterschmitt

Managing Director, Central and

South Eastern Europe

Email: peterscj@ebrd.com

For project inquiries, please

contact:

E:mail: newbusiness@ebrd.com

Annex 1

Further information on EBRD

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EBRD Portfolio by Sector and Region

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18%

22%

21%

8%

11%

16%

4%

Russia - 18%

South-eastern Europe -22%Eastern Europe &Caucasus -21%Central Asia - 8%

Turkey - 11%

Central Europe &Baltics - 16%Southern & EasternMediterranean - 4%

Net cumulative business volume €95bn

Note: Unaudited as at end December 2014

Financial Institutions

32% Bank lending, Bank equity,

Corporate 26% Manufacturing and

services, Agribusiness,

Equity Funds, Property

and tourism, Information

and communication

technologies

Energy 19% Power and energy,

Natural resources

Infrastructure 23% Municipal and

environmental

infrastructure, Transport

Where we invest

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Key strengths of EBRD

Operational

• Extensive knowledge of local economy,

business environment and practices,

local presence

• Engaged minority partner for business

• A business partner who shares risks,

including political

• Catalyst to access additional equity, debt

and trade finance

• Provides finance to both private and

public sector clients

• High standards for corporate governance

and compliance

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Institutional

• Strong, internationally recognised financial

partner with long-term perspective

• Close working relationships with

governments and shareholders

• Political leverage due to EBRD’s unique

mandate and shareholder structure

• Preferred Creditor Status

• AAA credit rating

• Work closely with market sources of

capital to fill “market gaps”

Annex 2

Further information on EBRD

Case studies of projects with Greek sponsors outside Greece

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Sofia Med Bulgaria

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• Client: Sofia Med, is the leading copper processing facility in Eastern Europe with 20%

market share in Europe, ultimately owned by the industrial Greece based Group

Viohalco.

• Project size: EUR 160 million out of which the Sponsor provided equity of EUR 40

million and other commercial banks 80 million in LT and ST loans.

• EBRD Finance: EUR 40 million loan, senior debt.

• Use of Proceeds: EUR 30 million for company’s LT working capital financing and

EUR10 million to finance energy efficiency measures and increase capacity for higher

value products.

• Context: Given its importance for the Bulgarian economy, Sofia Med’s further

development will also boost growth of its numerous up-stream and down-stream

clients.

• EBRD added value: This investment will enable Sofia Med to gain stability of the

operations via LT committed working capital and via additional CAPEX to increase

energy efficiency, cut down production costs and shift production towards higher

value-added products.

• EBRD Role: support companies with good underlying business to manage the roll-over

risk by providing new LT committed funds; mobilize the market and play a constructive

role in creditors co-ordination leading the process and aligning the interests.

Signed in

2013

Hygeia Hospital Tirana

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Signed in 2010

• Client: Hygeia Hospital Tirana, part of the Hygeia Group

(a leading health care provider in Greece)

• EBRD Finance: EUR 10 million senior loan. The Black Sea

Trade and Development Bank provided a parallel loan of

EUR 10 million.

• Use of Proceeds: The construction and operation of a

greenfield private hospital in Tirana designed for 220

beds.

• Context: Albania’s need for modern, high quality and

comprehensive medical services. The hospital provides a

wide range of services and technologies, some of which

were previously unavailable in Albania, e.g. linear

accelerators.

• EBRD added value: The hospital represents the largest

private health care investment in Albania to date and one

of the largest direct investments in the country. The

Bank’s role was instrumental due to the limited

availability of long-term financing in Albania and the

greenfield nature of the project.

Sveti Stefan Hotel Complex (Montenegro)

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Signed in 2010

• Client: Adriatic Properties D.O.O., owned by the

Restis Group (Greece)

• EBRD Finance: EUR 37 million long term debt

facility under A/B structure, with two separate

tranches.

• Use of Proceeds: re-development of a landmark

tourist site on the Montenegro’s coast into a

prime resort. Project is located on a land plot of

68,000 m2 which includes the Sveti Stefan

peninsular village and additional area along the

Montenegrin Adriatic coast.

• EBRD added value: due to its high visibility, the

Project’s impact is expected to reach beyond

Montenegro’s borders and set quality standards

for the tourism industry in the Southern and

Eastern Mediterranean region. Furthermore,

through its Public Private Partnership structure,

the project will set an example for future tourism

privatisations in the region.

Pulkovo Airport Concession Finance

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Signed in 2010

“European Airport Deal of the Year

2010” (Project Finance Magazine)

• Client: Northern Capital Gateway, owned by VTB Capital,

Fraport AG Frankfurt Airport Services Worldwide and the

Copelouzos Group

• Total project cost: EUR 1.2 billion;

Financiers: VEB, EBRD, IFC, NIB, Eurasian Bank, Black

Sea Trade and Development Bank and commercial banks

• Project Description: Building, expanding, operating the

Pulkovo airport facilities (except cargo) under the terms of

a PPP agreement with the City of St Petersburg and

Pulkovo Airport Company, for a period of 30 years.

• As the first PPP in the airport sector in Russia involving a

well known international airport partner, this is a

landmark transaction and the Bank's role in structuring

this project is widely acknowledged and appreciated by

the Russian authorities.

• Project Impact: Flagship project for St Petersburg that

addresses key transport needs; high standards in terms

of building energy efficiency and energy management

that go beyond what is required under current legislation.

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