Access to Finance: Working with the EBRD in Greece

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?

• An international financial institution that 10,000 450 promotes transition to market economies in 9,000 36 countries from Central Europe to Central 400 Asia and the Southern and Eastern 8,000 350 7,000 Mediterranean region 300 6,000 • Owned by 65 countries and 2 250 inter-governmental institutions (EU, EIB) 5,000 200 AAA rating by all three main rating agencies 4,000 • 150 (S&P, Moody’s and Fitch) 3,000 100 • Capital base of €30 billion 2,000 1,000 50 • Invested over €95 billion in more than 4000 projects since 1991 0 0 • Portfolio of ~ €37 billion

ABI (reported rate) Number of operations (#) In March 2015, Greece obtained country of operation status until 2020 Note: Unaudited as at 31 December 2014

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The EBRD fosters private sector development

Objectives: Results in 2013:

• Investments: €8.5 billion • To promote transition to market economies by investing mainly in the • Projects: 392 private sector on commercial terms • Private sector: 72%

• To mobilize foreign direct investment • Equity: 22% (FDI) Results in 2014:

• To support privatization, restructuring • Investments: €8.85 billion and better municipal services to • Projects: 377 improve people’s lives • Private sector: 72% • To encourage environmentally sound • Equity: 20% and sustainable development

28 April, 2015 3 Greece as EBRD Country of Operation

• 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

28 April, 2015 © European Bank for Reconstruction and Development 2012 4 EBRD envisaged priorities for Greece

• 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

28 April, 2015 © European Bank for Reconstruction and Development 2012 5 What can EBRD offer to you

Loans Equity

Senior, subordinated, convertible Common stock or preferred

Long term (up to 10y or more) or short Minority position only term revolving (up to 25%) Floating/Fixed rates Mezzanine debt Choice of currencies (€, US$, etc.) 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

28 April, 2015 © European Bank for Reconstruction and Development 2012 6 What more can EBRD offer

Initiatives / Programmes

• 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

28 April, 2015 © European Bank for Reconstruction and Development 2012 7 EBRD financing with Greek Sponsors to date

• Above €2.5 billion of EBRD investment along Greek clients and co-financiers over the years Geographical Distribution of EBRD financing • Dominant investment sectors include: with Greek Sponsors Industry and Agribusiness (61%), Financial Institutions (30%), Energy (7%) and 20% Infrastructure (2%) Romania • Current or past clients include: all Bulgaria major Greek banks, Titan Cement, 53% 17% Albania OTE, Hellenic Petroleum, Germanos, Copelouzos, Mornos, Yioula Glass, Others 10% Elbisco, Loulis, Viohalco, Global Finance (and some more in current pipeline)

28 April, 2015 © European Bank for Reconstruction and Development 2012 8 Contacts

For further enquiries, please contact:

Jean-Marc Peterschmitt Managing Director, Central and South Eastern Europe Email: [email protected]

For project inquiries, please contact: E:mail: [email protected]

28 April 2015 @European Bank for Reconstruction & Development 21 Annex 1

Further information on EBRD

28 April, 2015 © European Bank for Reconstruction and Development 2012 10 EBRD Portfolio by Sector and Region

Financial Institutions 32% Energy 19% Bank lending, Bank equity, Power and energy, Natural resources Corporate 26% Manufacturing and services, Agribusiness, Equity Funds, Property Infrastructure 23% and tourism, Information Municipal and and communication Russia - 18% environmental 4% technologies South-eastern Europe - infrastructure, Transport 18% 16% 22% Eastern Europe & Caucasus -21% Central Asia - 8% 11% 22% Turkey - 11%

8% Central Europe & Baltics - 16% 21% Southern & Eastern Mediterranean - 4%

Net cumulative business volume €95bn Note: Unaudited as at end December 2014 28 April, 2015 11 Where we invest

28 April, 2015 12 Key strengths of EBRD

Operational Institutional • Extensive knowledge of local economy, • Strong, internationally recognised financial business environment and practices, partner with long-term perspective local presence • Close working relationships with • Engaged minority partner for business governments and shareholders • A business partner who shares risks, • Political leverage due to EBRD’s unique including political mandate and shareholder structure • Catalyst to access additional equity, debt • Preferred Creditor Status and trade finance • AAA credit rating • Provides finance to both private and public sector clients • Work closely with market sources of capital to fill “market gaps” • High standards for corporate governance and compliance

Further information on EBRD Case studies of projects with Greek sponsors outside Greece

• 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.

Signed in • EBRD Finance: EUR 40 million loan, senior debt. 2013 • 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.

• 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 Signed in 2010 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.

• 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, Signed in 2010 the project will set an example for future tourism privatisations in the region.

• Client: Northern Capital Gateway, owned by VTB Capital, Fraport AG Frankfurt Airport Services Worldwide and the Copelouzos Group “European Airport Deal of the Year • Total project cost: EUR 1.2 billion; ” 2010 (Project Finance Magazine) 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 Signed in 2010 that go beyond what is required under current legislation.

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