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Introduction to the EBRD
An international financial institution established in 1991, owned by 65 countries and 2 inter-governmental organisations (EU and EIB)
Invests in 36 countries
Capital base of over €30 billion
Over €107 billion invested through 4470 projects
In 2015, € 9.4 billion in 381 projects
AAA Rating
Promotes transition to market economies by investing mainly in the private sector
Encourages environmentally sound and sustainable development
Where we invest
The EBRD and its objectives
Objectives:
• To promote transition to market economies by investing mainly in the private
sector
• To mobilise significant foreign direct investment and facilitate inward and cross
border investments in the region
• To support market focused reforms, privatizations
• Promotes policy dialogue with regards to investment climate, business and
policy matter
• To encourage environmentally sound and financially sustainable development
3
Benefits of working with the EBRD
4
• Flexible deal structure
• Debt finance to both public and private sector
• Syndication under preferred creditor status
• Catalyst to access additional debt
• LT (up to 10y or more) or ST revolving
• Floating/ Fixed rates
• Choice of currencies (€, US$, RUB, PLN, RON etc.)
• Support of strategic investors
• Perception of quality investment
• Sector expertise through Board of Directors
• Good corporate governance
• Catalyst to access additional equity
• Positioning as neutral party
• Common stock, preferred, mezzanine
• Minority position only (up to 35%)
• Strong, internationally recognized partner with long term perspective
• AAA rated, commercially focused
• Mitigation of political and regulatory risks
• Policy dialogue with government and regulators
• Grant-funded technical assistance
• Finance and operations monitoring
Shareholder ’ s Value
EBRD value - added
Equity Financing
LT Debt Financing
Shareholder
Value
-
EBRD
Value-added
Equity Debt
• The operation is located in EBRD countries of operation
• Investments have a beneficial effect on the local economy and supports
transition
• We are additional, i.e. not “crowding out” private money
• The project makes economic sense - no “soft loans” or grants
• Small size (<€5m for EBRD) is difficult directly from EBRD but special
facilities are available mainly for various regions e.g. Western Balkans,
Cyprus
• Compliance over time with EU environmental standards
EBRD basic project criteria
5
Power and Energy and Natural Resources
financing guidelines
• Maturities between 5 to 15 years
• Flexibility on commitment amounts (but up to 35% for Project Financing)
• IFI public procurement rules for works goods and service and competitive procurement for private partners of PPP arrangements
• Market pricing and security structures
• Local currency, where possible
• Syndication to commercial banks, where possible or other IFIs
• Equity investments, where appropriate, e.g during privatizations along side a strategic investor.
6
7
A key investor in the extractive industries sector
• Long track record:
167 projects for a total of
EUR 7.16 billion net
cumulative investment.
• Natural Resources Team:
30 bankers distributed
across the EBRD region:
o Permanent presence in
Russia, Kazakhstan,
Mongolia, Ukraine,
Egypt, Turkey and
Bulgaria.
o 2 in-house mining and
petroleum engineers
involved in technical
appraisal, due diligence
and monitoring.
o Access to additional
expertise (consultants).
• Key sectors:
o Oil & Gas up-, mid-, and
downstream.
o Mining and services.
-
200
400
600
800
1,000
1,200
1,400
1,600
2011 2012 2013 2014 2015
Mining
O&G
Signed business volume
6%
7%
30%
9%
30%
18% S. E. Mediterranean
Russia
E. Eur. Caucasus
S. E. Europe
Central Asia
Central Europe
Operating assets by instrument
Operating assets by sub-sector Portfolio by region
EU
R m
illio
n
74%
26%
O&G
Mining
9%
91%
Equity
Debt
Introduction to EBRD EBRD Natural Resources Track Record Working Together
Exploration / Start-up Development/early production Mature/expansion
Oil and gas
Mining
Equity /
Mezzanine
Debt
Exploration Development/early production Mature/expansion
Debt
Equity /
Mezzanine
• Flexible financing
solutions:
Reserve based
lending, trade
finance, convertible
debt, early equity are
some examples of
the Bank`s wide
product range.
• Support across
stages of
development.
The EBRD supports
strong sponsors in
pre-development
stage financing,
mine/field
development, project
expansion and
services providers .
8
Financing across the Natural Resources value chain
Introduction to EBRD EBRD Natural Resources Track Record Working Together
EBRD – Power and Energy Utilities
EBRD’s Power team works closely as a trusted partner to
clients and governments in:
• Promoting renewable and sustainable energy through
direct financing an policy dialogue
• Supporting sector reforms and allowing market principles
to develop (e.g. increased competition, market
liberalisation, increased private ownership)
• Strengthening frameworks and infrastructure that lead to
regionalisation (eg. trans-border transmission lines,
regional trading hubs) but also integration of renewable
energy
• Supporting the deployment of new technology e.g. smart
metering
9
Team of ca. 35 bankers, based in London, Almaty, Amman, Belgrade, Budapest,
Bucharest, Cairo, Istanbul, Kiev, Moscow, Tbilisi and Warsaw
• Cumulative EBRD financing in the power
and energy sector since 1992 has
exceeded EUR 11bn, spread across 228
projects. Total value of these projects is
c.EUR 39bn.
• In 2015 EBRD invested over EUR 1.2
billion in 20 projects in the power & energy
sector.
• In each of the last four years, annual
power & energy investments exceeded
EUR 1bn and at least 20% of those funds
went towards renewable energy generation
projects.
• EBRD power investments cover electricity
generation, transmission, distribution,
renewable power, large hydro and natural
gas distribution.
44%
12%
14%
19%
9%
2%
Electric Generation
Electric Transmission
Electric Distribution
Renewable Power
Large Hydro
Natural Gas Distribution
0
2
4
6
8
10
12
0
0.2
0.4
0.6
0.8
1
1.2
1.4 Net c
um
ula
tive
Com
mitm
en
ts
An
nu
al C
om
mitm
en
t
Annual commitment Net Cumulative Commitments
Commitments in € billion
EBRD – Power and Energy Utilities
10
Financing by Sector (1991 – 2015)
28 September, 2016
• Privatisations: Made key investments in
power and gas privatisations in Bulgaria,
Moldova, Poland, Romania and Turkey.
• IPPs are a key focus
• In 2015 the EBRD signed €590mn of
financing for 13 renewables deals with a
total gross project value of €2.2bn.
• Renewable energy technologies financed
since 2011 include primarily onshore wind
(57%), with geothermal (11%), small hydro
(8%), solar (8%) and biomass (7%).
• Award winning transactions include
Kirikkale CCGT (Turkey), Dariali hydro
power plant (Georgia), and Ma’an Solar
(Jordan).
Unaudited as at YE2015
Note: Renewable power excluding new build large hydro
Source: EBRD data
Power and Energy Utilities –
Financings by Region
28 September, 2016 11
25%
18%
17%
19%
8%
7% 6%
Southeastern Europe
Russia
Central Europe & Baltics
Eastern Europe & Caucasus
Central Asia
Turkey
Southern & Eastern
Mediterranean
Financing by Region
(1991 – 2015)
Renewables Financing by Region
(2011–2015)
24%
14%
23%
6%
5%
6%
3%
2%
17% Poland
Romania
Turkey
Regional
Ukraine
Kazakhstan
Serbia
Mongolia
Others
12
Technical
• Feasibility study
• Completion risk
• Production capacity
• Reserves report
• Management
Environ. & Social
• Air / water pollution
• Discharge
• Health & Safety
• Communities
• Management systems
• ESAP / Gap Analysis
Market
• Supply-demand
• Competitors
• Price projections
• FX exposure
Legal & Contracts
• Security
• Charter / Incorporation
• Ownership and title
• Licenses, permits
• Legal agreements
• Insurance
EBRD
Due Diligence
Process
Concept Review
Structure Review
Final Review
Board Approval
Signing
Due Diligence
Energy Audit
Term Sheet
KYC
Final
Documentation
Ou
r a
pp
rova
l p
roce
ss
Approval process and due diligence
• Historical financials
• Projections
• Financial Model
• Credit Ratios
Financial
Introduction to EBRD EBRD Natural Resources Track Record Working Together
Project
Summary
15
2016 Signed in
EBRD Finance
USD 75 million senior loan and a USD 20 million subordinated
loan to Energean Oil & Gas, the only private upstream oil and
gas producer in Greece.
Project
USD 186 million for development of two projects, the Prinos
and Epsilon oil fields off northern Greece, and funding of
energy efficiency investment programme.
Environmental Impact
Both projects will help the company set higher standards for
environmental, health and safety management and support
the Greek government to improve the regulatory framework for
offshore operations.
Transition Impact
(1) Largest investment in the Greek upstream sector,
strengthening local business during the recovery period (2)
Introduction of new technologies for operational efficiencies.
(3) Technical support to the Greek government to achieve
international best practice in the oil and gas sector.
Link to Project Summary Document 1 / Link to PSD 2
Energean Oil & Gas, Greece – Upstream oil and gas field development
Project
Summary
16
2015 Signed in
EBRD Finance
USD 40 million loan to Merlon Petroleum El Fayum, an
independent upstream oil & Gas company operating in Egypt.
Project
USD 80 million investment programme, including investments
to reduce associated petroleum gas (APG) flaring, and capital
expenditures for field development.
Environmental Impact
Comprehensive Environmental & Social Action Plan (ESAP)
agreed with the client. Reduction in the flaring of APG and
carbon emissions through the implementation of an APG
utilisation programme. Improvement of the company’s
chemical and waste storage facilities.
Transition Impact
(1) Support of private sector development and increased
competition in the oil and gas sector. (2) Demonstration of
new technologies to capture APG. (3) High standards of
transparency and disclosure of payments to the Egyptian
authorities. (4) Continued Policy Dialogue efforts in relation to
APG utilisation and abatement in Egypt.
Link to Project Summary Document
Merlon, Egypt – Upstream offshore oil and gas field development
Project
Summary
17
2013 Signed in
EBRD finance
USD 40 million long term loan and USD 20 million convertible
note to Serinus Energy Inc, a Canadian mid-sized oil and gas
company resulting from the merger between Kulczyk Oil
Ventures (KOV) and Winstar Resources.
Project
USD 166 million investment plan for the development of the
Company’s Tunisian oil and gas operations.
Environmental Impact
Introduction of Environmental & Social Action Plan envisaging:
improvements in staff trainings, cycling of drilling mud, water
efficiency, emergency planning, stakeholder engagement, air
and water pollution monitoring, treatment waste. KOV’s HR
policies have been aligned with Winstar’s own policies.
Transition Impact
(1) Support to a private independent hydrocarbons producer
in Tunisia, where state-owned enterprise is still dominant. (2)
Demonstration of operational efficiency and productivity
gains. (3) Transfer of geological and operational know-how
from the new owner. (4) Increased revenue transparency.
Link to Project Summary Document
Serinus Energy, Tunisia – Post-merger integration and expansion
Project
Summary
18
2013 Signed in
Romgaz S.A., Romania – Privatization of a state-owned operator
EBRD Finance
RON equivalent investment of EUR 50 million-worth of
ordinary shares in the IPO of Societatea Națională de Gaze
Naturale Romgaz S.A. (Romgaz) in exchange of a 1.9% stake.
Romgaz shares are dual listed on the Bucharest Stock
Exchange (BSE) and the London Stock Exchange (via GDRs)
Project
Romgaz, a state controlled joint stock company, is Romania’s
largest gas producer. The purpose of the project is to assist
Romgaz to improve its corporate governance, internal control
systems and environmental management practices.
Transition Impact
(1) Through the IPO the Ministry of Economy reduced its
holding from 85% to 70%, which increased the private sector
participation in Romania’s energy sector and contributed to
the development of Romania’s capital markets. (2) Improved
corporate governance standards through the implementation
of a Corporate Governance Action Plan, prepared jointly by the
Bank and the Company, and included in the IPO prospectus
Link to Project Summary Document
Link to Press Release
Project
Summary
19
2009 Signed in
Bankers Petroleum, Albania – Environmental remediation
EBRD Finance
USD 55 million borrowing-base loan (BBL) co-financed with IFC,
USD 5 million remediation loan plus CAD 12 million equity to
Bankers Petroleum, a Canadian oil and gas company. In 2013,
the BBL was increased to USD 100 million.
Project
USD 130 million initial costs (extension: USD 439 million) to
expand and modernise the Patos Marinza oil field in southern
Albania, one of the largest onshore oil deposits in Europe.
Environmental Impact
Remediation of environmental damage and long-standing
issues (leakages and spills) around the heavily contaminated
Patos Marinza field. Improved life conditions of nearby
residents resulting from reduced pollution.
Transition Impact
(1) Support private investment in the Albanian oil sector. (2)
Demonstration of higher standards for environmental
management. (3) Increased tax revenue transparency. (4)
Technical Cooperation project (EUR 50,000) to improve
social/retrenchment practices by the Albanian authorities.
Link to Project Summary Document
EBRD transactions: Case Studies
Midstream Oil & Gas: Gas Trade, Transmission, Storage and LNG Transportation
20
Project
Summary
21
2016 Signed in
EBRD Finance
USD 94 million EBRD financing, consisting of a USD 71.9
million senior loan and a USD 21.8 million mezzanine facility
to Sonker Bunkering Company SAE (Sonker), a private
hydrocarbon storage and trans-shipment company owned by
the Amiral Holding and the Egyptian Government. The EBRD
financing is part of a larger package with IFC and CIB.
Project
USD 504 million for the construction and operation of a bulk
liquids terminal at the port of Sokhna, on the Red Sea. This
infrastructure project is critical to Egypt’s energy security to
meet its requirement for gasoil, LPG and LNG imports.
Environmental Impact
Comprehensive Environmental & Social Action Plan (ESAP) has
been agreed with the client.
Transition Impact
(1) Promote private ownership in Egypt as Sonker is one of the
few independent private players in the sector. (2) Demonstrate
the benefits of efficient operation of the hydrocarbons import
handling sector. (3) Standards of corporate governance.
Link to Project Summary Document
Sonker, Egypt – Development of a bulk liquids terminal
Project
Summary
22
2010 Signed in
BH-Gas, Bosnia-Herzegovina –Gas pipeline development
EBRD Finance
EUR 19 million senior loan to BH-Gas d.o.o. Sarajevo, a state-
owned company active in transport and wholesale of natural
gas in the Federation of Bosnia and Herzegovina.
Project
USD 23.5 million project for the construction of new 40km
high-pressured natural gas transport pipeline to enable
natural gas supply to four municipalities in Central Bosnia
Canton providing clean and efficient alternative fuel supply
Environmental Impact
A comprehensive Environmental & Social Action Plan has
been agreed with the Bank. The pipeline will provide an
alternative clean energy source and impact CO2 emissions.
Transition Impact
(1) Support reform of the natural gas sector in Bosnia and
Herzegovina. (2) Support through Technical Cooperation the
competitive environment in the gas infrastructure sector by
enabling private companies to participate in public tenders on
an equal basis. (3) Setting standards for environmental,
health and safety management and procurement.
Link to Project Summary Document / Press Release
Project
Summary
23
2010 Signed in
Srbijagas, Serbia – Gas network rehabilitation / Storage development
EBRD Finance
EUR 150 million senior sovereign-guaranteed loan to
Srbijagas, which is engaged in natural gas transmission,
distribution, storage and trade and is 100% owned by the
Republic of Serbia.
Project
EUR 150 million project to rehabilitate 40% of Serbia’s gas
transmission network and develop a new gas storage facility.
Through the financing, EBRD also supports the reorganization
and financial restructuring of Srbijagas and support the gas
sector reform in the country.
Transition Impact
(1) Support to the ongoing unbundling process by gradually
separating and auditing accounts, creating separate
management teams and legally separating transport and
trade activities. (2) Demonstration of successful financial and
operational restructuring. (3) Government's commitment to
pass amendments to the energy law and increase the
independence of the regulator and secure third party access
to the country’s transmission and storage infrastructure.
Project Summary Document / Press Rel. 1 / Press Rel. 2
Project
Summary
24
2009 Signed in
Plinacro, Croatia – Acquisition of strategic gas storage assets
EBRD Finance
EUR 70 million senior corporate loan secured with a sovereign
guarantee to Plinacro d.o.o., a state-owned company and the
Croatian natural gas transmission system operator.
Project
Financing of the acquisition of Podzemno Skladiste Plina
d.o.o., a company that owns a strategic underground gas
storage facility at Okoli. The acquisition of Okoli will enable
Plinacro to implement non-discriminative third party access to
storage gas supply.
Environmental Impact
A comprehensive Environmental & Social Action Plan (ESAP)
was agreed with the client. In addition, a Stakeholders
Engagement Plan (SEP) was prepared.
Transition Impact
(1) Promote improvements in the efficiency of the gas storage
and supply services, including commitment to rehabilitation
and expansion of the storage facility. (2) Improvements in the
regulatory framework for gas storage and gas market activities
in Croatia.
Link to Project Summary Document / Press Release
Project
Summary
26
2016 Signed in
EBRD Finance
USD 150 million loan to Tüpraş, Turkey’s largest industrial
company and the owner of the country’s four active refineries.
Project
USD 232 million resources efficiency programme, including a
new on-site thermal power plant, waste heat recovery system,
stack gas treatment, water treatment plant, new fluid catalytic
cracker and hydrocracker unit at Kirikkale and Izmir plants.
Environmental Impact
Reduction in NOx and CO2 emissions (270,000 tonnes/year)
and water consumption (2.6 mcm/year) as a direct result of
the project. Comprehensive Environmental & Social Action
Plan (ESAP) to bring the plants in line with EU standards.
Transition Impact
(1) Largest resource-efficiency programme in the Turkish
industrial sector to date, fully in line with the Bank’s Green
Economy Transition approach. (2) Demonstration of increased
competitiveness stemming from efficiency upgrades. (3)
Demonstration of OHS standards in line with EU Seveso III
directive and beyond national requirements.
Link to Project Summary Document
Tüpraş, Turkey – Resource efficiency investment programme
Project
Summary
27
2010 Signed in
INA, Croatia –Energy efficiency and modernization programme
EBRD Finance
EUR 210 million loans from EBRD (EUR 150 million), Cordiant
Emerging Fund of Canada (EUR 10 million) and ICF Debt Pool
(EUR 50 million) to INA, a Croatian integrated oil company.
Project
First stage of INA’s refinery modernization programme,
including: (i) introduction of modern technologies and
improved business practices, (ii) implementation of energy
efficiency sub-projects identified through the EBRD-led energy
audit, and (iii) implementation of an environmental
remediation programme and prevention at INA’s refineries.
Environmental Impact
Upgrade of environmental practices to comply with EBRD
requirements, including: air monitoring, wastewater treatment
systems, storage and handling of waste and completion of soil
and groundwater quality assessments.
Transition Impact
(1) Increased competition in the sector and introduction of
modern technology and improved practices leading to higher
efficiencies. (2) Technical and marketing know-how transfers.
Link to Project Summary Document
Project
Summary
28
2000 Signed in
Hellenic Petroleum, Regional – Feedstock supply pipeline
EBRD Finance
USD 50 million A/B loan (of which USD 25 million syndicated)
to Okata Refinery, an Hellenic Petroleum’s subsidiary
operating in FYR Macedonia.
Project
Construction of a 2.5 Mtpa crude oil pipeline from Hellenic
Petroleum’s facilities at Thessaloniki to the Okta refinery at
Skopje.
Environmental Impact
Development of the project in line with the Bank’s
Environmental standards. Mitigation of the risk of a major
hazard accident by replacing rail transportation. The pipeline
has been re-routed to pass through avoid land of ecological
importance.
Transition Impact
(1) Reduction in transport costs by 40% and enhanced
security of supply to the region. (2) Strengthened links
between the oil sector and the rest of the economy through
market expansion and regional integration of Hellenic
Petroleum’s operations.
Link to Project Summary Document
Project
Summary
30
2015 Signed in
Bulmarket DM, Bulgaria – Expansion of LPG and LNG network
EBRD Finance
Parallel EUR 10 million loans from EBRD and IFC to Bulmarket
DM, a Bulgarian fuels and natural gas distributor.
Project
Expansion of Bulmarket DM’s network of liquefied petroleum
gas (LPG) terminals and development of a new terminal to
store and distribute liquefied natural gas (LNG). Thanks to the
project, Bulmarket DM is expected to become the first
importer and distributor of LNG in Bulgaria.
Environmental Impact
Introduction of cleaner and more efficient fuels. Introduction
of EBRD and IFC environmental and social requirements.
Transition Impact
(1) Diversification of the energy sources available to Bulgaria’s
smaller businesses by introducing alternative and more
competitive fuels. (2) Support the growth of an innovative local
company committed to transparency and best environmental
and safety standards. (3) The project is consistent with the
LNG Masterplan of the European Commission’s Innovation
and Networks Executive Agency.
Link to Press Release
Project
Summary
31
2012 Signed in
Prista Oil, Bulgaria / Turkey – Financial restructuring
EBRD Finance
EUR 36 million financing including a long term secured loan,
an equity investment and a convertible loan to Prista Oil
Holding EAD and Prista Oil Yag San. ve Tic., a producer and
distributor of engine lubricants in Bulgaria and Turkey
Project
USD 60 million financial restructuring of the Prista group,
thereby improving its corporate and shareholders structure
and capital investment financing to turn around the lubricants
business performance in Bulgaria and Turkey.
Environmental Impact
Comprehensive Environmental & Social Action Plan (ESAP)
including improvement in waste and materials storage;
individual employee exposure monitoring; monitoring of
wastewater discharges; and redefinition of Stakeholder
Engagement Plan (SEP).
Transition Impact
(1) Elimination of unprofitable business lines and reduction of
costs. (2) Implementation of an innovative branded services
programme. (3) Corporate governance improvements.
Link to Project Summary Document / Press Release
Efeler Geothermal Plant – Turkey
Gurmat Elektrik
EBRD: US$ 200 million, signed 2015 Other banks: USD$ 520 million
Construction of the largest greenfield geothermal power plant in Turkey (123MW), located in the Aydin province.
Limited recourse project finance structure with project completion support from the Sponsors
Mogan Enerji Yatırım Holding, Guris Holding, Guris Construction
28 September, 2016 33
Borrower
Lenders
Project
Structure
Sponsor
Ma’an Solar Programme – Jordan
Four separate private companies
Four loans totalling US$ 75 million, signed Sep 2014
Construction and operation of four solar power plants
totalling 60 MW, as part of Jordan’s first round of solar
IPPs, diversifying energy sources and reducing
dependence on oil imports.
SunEdison, Scatec
28 September, 2016 34
Borrower
Lenders
Project
Structure
Sponsor
Senior loan to private operator on a secured limited
recourse basis.
Lastva - Pljevlja Transmission Line –
Montenegro
Crnogorski Elektroprenosni Sistem AD (CGES)
EBRD: € 60 million KfW: € 25 million
Construction of a 400kV high voltage transmission line and associated infrastructure connecting a new undersea cable from Italy to Montenegro with Pljevlja in Northern Montenegro
Sovereign loan
May 2013
28 September, 2016 35
Borrower
Lenders
Project
Structure
Date
Khalladi Wind Farm – Morocco
UPC Renewables
EBRD: € 57 million EBRD Special Fund: € 10 million Local bank: € 67 million
Construction of a wind farm of up to 120 MW near Tangiers in northern Morocco. First private project to sell electricity directly to high voltage private offtakers.
Senior secured limited-recourse project finance structure. Loan in local currency (MAD).
ACWA Power, UPC Renewable and ARIF
28 September, 2016 36
Borrower
Lenders
Project
Structure
Sponsor