Opportunities With the European Bank for Reconstruction ...
Transcript of Opportunities With the European Bank for Reconstruction ...
Opportunities With theOpportunities With theEuropean Bank for European Bank for
Reconstruction & DevelopmentReconstruction & Development
Malcolm BurkeMalcolm Burke
Trade Advocacy & Multilateral Trade Advocacy & Multilateral Development Bank CenterDevelopment Bank Center
The largest investor in the regionThe largest investor in the region
AAA-rated owned by 62 AAA-rated owned by 62 shareholdersshareholders
Promotes transition to market Promotes transition to market economies in 29 countrieseconomies in 29 countries
€€20 B capital base20 B capital base
€€5 B Annual loan/equity 5 B Annual loan/equity commitmentscommitments
U.S. is the largest single U.S. is the largest single shareholder, with a capital shareholder, with a capital subscription of €2 billion or subscription of €2 billion or 10% (EU is 56%)10% (EU is 56%)
A growing portfolioA growing portfolio
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004 2005 2006
Cumulative commitments €33.3 billion
To promote:To promote:
Transition to free, market-based economies by Transition to free, market-based economies by supporting private and entrepreneurial initiativesupporting private and entrepreneurial initiative
A better investment climateA better investment climate
Good corporate governance at project, corporate Good corporate governance at project, corporate levels and in marketslevels and in markets
Environmentally sound and sustainable Environmentally sound and sustainable developmentdevelopment
EBRD ObjectivesEBRD Objectives
A large field networkA large field network
29 Countries
32 Offices
What makes EBRD different than What makes EBRD different than other IFIs?other IFIs?
Unique mandate - both political and economicUnique mandate - both political and economic
Largest single financial investor in the regionLargest single financial investor in the region
Invests primarily in private sector projectsInvests primarily in private sector projects
Specialized knowledge of central and eastern Specialized knowledge of central and eastern Europe, Caucasus, Russia and Central AsiaEurope, Caucasus, Russia and Central Asia
Multi-national staff from member countriesMulti-national staff from member countries
Dedicated teams with expertise in a variety of Dedicated teams with expertise in a variety of sectors and in-depth legal know-howsectors and in-depth legal know-how
Financing instrumentsFinancing instruments
Loans
Equity and Quasi-
equity
Guarantees, including
credit enhancements
(performance bonds
etc.)
SME loans
Equity funds
Micro/small business programs
Credit lines
Trade Facilitation Program
Co-financings
Direct Indirect
How the EBRD Shares the RiskHow the EBRD Shares the Risk
Private Sector Business Risk
Helps Mitigate Political Risk
Will Assume Equity or Loan Risk
Can Provide Support to Mitigate Risk
EBRD
Trade Facilitation ProgramTrade Facilitation ProgramHow does it mitigate risk?How does it mitigate risk?
EBRD supports trade by providing:
guarantees that cover risks arising from project finance transactions
short-term advances/financing to banks in the Countries of Operation for trade finance purposes
TC funded trade finance training and advisory services to local banks
Case Study: Export of Equipment to Case Study: Export of Equipment to KazakhstanKazakhstan
Caterpillar sells equipment to Kazakhstan
A Kazakh Issuing Bank under the TFP opens a Letter of Credit to a foreign Confirming Bank, payable in several instalments before, at and after delivery
EBRD guarantees payment of amounts or tenors which are not covered by ECAs (max. 3-5 years)
Confirming Banks in the USA Confirming Banks in the USA
600 Confirming Banks and subsidiaries in 66 countries, e.g. including 41 banks in the US:American Express Bank JP Morgan Chase Bank Banca Intesa National Bank of AlaskaBanco Bilbao Vizcaya Argentaria National Bank of CanadaBanco Espanol de Credito National City BankBank of New York Societe GeneraleBank of Nova Scotia SEBBNP Paribas Wachovia BankCitibank Wells Fargo HSBC Trade BankCommerzbankDeutsche BankHSBC Bank USA
U.S. - 216 transactions U.S. - 216 transactions EUR 186 millEUR 186 mill
(TRANSACTIONS RANGE FROM 30K TO 10.6 m)(TRANSACTIONS RANGE FROM 30K TO 10.6 m)
www.ebrd.com/tfpwww.ebrd.com/tfp
Export Transactions from U.S. Export Transactions from U.S. 2000-2006 2000-2006
Transactions covered for U.S. Transactions covered for U.S. Companies/ExportersCompanies/Exporters
Examples: Exports from U.S.:
Industrial machinery/equipment to Russia
Cars and machinery to Ukraine
Equipment and machinery to Kazakhstan
Telecom equipment to Uzbekistan
Electrical equipment to Yugoslavia
Soy beans to Azerbaijan
Foodstuffs to Georgia
Check-List for U.S. CompaniesCheck-List for U.S. Companies
Check under Check under www.ebrd.com/tfp www.ebrd.com/tfp for Issuing Banks for Issuing Banks and tenors EBRD may guarantee payment; and tenors EBRD may guarantee payment;
Ask your buyers/suppliers to check if an Issuing Ask your buyers/suppliers to check if an Issuing Bank under the TFP qualifies to issue the required Bank under the TFP qualifies to issue the required trade finance instrument;trade finance instrument;
Ask the Confirming Bank of your choice to confirm Ask the Confirming Bank of your choice to confirm payment instrument under the guarantee of EBRDpayment instrument under the guarantee of EBRD
Contact U.S. Commercial Service/AC-EBRD StaffContact U.S. Commercial Service/AC-EBRD Staff
EBRD’s Procurement PoliciesEBRD’s Procurement Policies
www.ebrd.com/oppor/procure/index.htmwww.ebrd.com/oppor/procure/index.htm
AC-EBRD – join e-mail listAC-EBRD – join e-mail list
Public Sector
Detailed rules/open tendering/EBRD oversees the
process
Private Sector
Good commercial practice/clients not required to use EBRD
tendering process
Consultancies 75% of consultancies are in Private Sector
How we support U.S. business:How we support U.S. business:
• Increase awareness of investment opportunities
Develop opportunities for TC participation
Identify/source EBRD procurement opportunities
Provide guidance to U.S. firms
Ensure EBRD policies and procedures are followed in a fair and transparent manner
US Commercial Service/Advocacy US Commercial Service/Advocacy Center Liaison to the EBRDCenter Liaison to the EBRD
Contact Information:Contact Information:
Sanford Owens, Senior Commercial Officer
Gurjit Bassi, Commercial Specialist
U.S. Commercial Liaison/Advocacy Center - EBRDOne Exchange Square
London, EC2A 2JN
Tel: +44 20 7588 8490 Fax: +44 20 7588 8443
Email: [email protected]
Web: www.buyusa.gov/ebrd
Trade FinanceTrade FinanceBank: IFC IDB ADB EBRD Ex-Im
Ceiling $1Billion $ 400 Million $200 M $1 Billion $10 Million
Cover 100% 100% 80% 100 % 85%
Maturity Up to 3 Yrs Up to 3 Yrs 5 years Up to 3 years Up to 5 yrs (10 yrs Env. Med.)
Fees None None None None $ 150
Pricing 75 BPs (min)
400 BPs (max)
75% of confirmation fee
90 days: 75-200 bps,
1 year: 125-250 bps
3 years: up to 350 bps
Flexible On-line calculator
Country
LimitationsNone
IDB Member Countries
Member countries (Asia Pacific & 6 in Central Asia)
EBRD countries of operation
Many & varied
Product Limitations
Vice, PCBs, child- labor, asbestos, drift
nets, etc
Vice, Environ., (Any involvement, even if unrelated to IDB financing)
Arms, ammunition, radioactive materials, nuclear reactors and fuel
variousMinimum U.S. Content
No Defense Articles
Party Limitations Public Sector Buyers
Issuing and Confirming Banks
Public and private sectors
Public & Private
No Military Buyers (except: Humanitarian, Drug interdiction, Dual use)
Rated (S&P) AAA AAA AAA AAA Full Faith & Credit
Trade Finance ApplicationsTrade Finance ApplicationsIFC IDB AfDB ADB EBRD Ex-Im
Import Finance Pre-Export Finance Equipment Bid Bonds
SBA up to $2M
Performance Bonds Advance Payments
Project FinanceProject FinanceBank: IFC IDB AfDB ADB EBRD Ex-Im
Ceiling25% Greenfield 50% Expansion
$200 Million 33%Negotiated w/ borrowing countries
35% total project value
85% Plus Local …….....Costs
Maturity 7-12 years 8-15 years 15 years
Up to 4 year grace period
Up to 20 yrs Up to 20 yrs
Aircraft: 12 yrs Power Plant :15 yrs Ships: 10 yrs >$25M: 5 yrs, C-1 >$25M: 10 yrs, C-2
Fees1% front-end .5% per annum
Market driven; case-by-case basis
Variable
Up to 2%
1% front end, 0.75% commitment fee
Commercial rates
Evaluation Fee Exposure Fee Due Diligence Fees
Commitment Fee (12.5 bp)
PricingFixed or floating market rate
Fixed or floating market rate
Fixed or floating market rate
Fixed or floating market rate
Fixed or floating market rate
Fixed or floating market rate
Country Limitations
Developing Country, IFC member
Member countries Member countries Member countriesEBRD country of operations
Country Limitation Schedule
Project Limitations
Env., Social, Procurement Requirements
Env., Social, Procurement Requirements
Env., Social, Procurement Requirements
Env., Social, Procurement Requirements
Env, Social, No gaming
Environmental No Defense items U.S Ships if $20M+
Party Limitations
Private Sector Borrowers
Private Sector Borrowers
Private Sector Borrower
Public and Private sector Borrowers None No Military Buyers
Rated (S&P) AAA AAA AAA AAA AAA Full Faith & Credit
AADVOCACY DVOCACY CCENTERENTER MDB MDB LLIAISONIAISON O OFFICESFFICES
IFC: Will Center, [email protected]
U.S. Trade Advocacy Center- World Bank
1818 H St. NW – Room 13- 525
Washington, DC 20002
Tel: 202- 458- 0120 Fax: 202-477-2969
IDB: Miguel Romano, [email protected]
U.S. Trade Advocacy Center- IDB
1300 New York Ave., NW, Room NE- 465
Washington, DC 20577
Tel: (202) 623-2598 Fax: (202) 623-2039
AfDB: Christel Fredrikson, [email protected]
U.S. Trade Advocacy Center- AfDB
ATR BAD, 16, rue de Syrie
EPI A: 3/A, 1002 Tunis Belvedere, Tunisia
Tel: 011 216 - 71- 831- 117 Fax: 011 216-71- 830 - 244
ADB: Kenneth Reidbord, [email protected]
U.S. Trade Advocacy Center- ADB
25th Floor, Ayala Life – FGU Center
6811 Ayala Avenue, Makati City 1226, Metro Manila
Tel: 011 (63-2) 887-1345 Fax: 011 (63-2) 887-1164
EBRD: Sanford Owens, [email protected]
U.S. Trade Advocacy Center- EBRD
One Exchange Square
London, EC2A 2JN
Tel: 011 44 20 7588 8490 Fax: 011 44 20 7588 8443
AADVOCACY DVOCACY CCENTERENTER MDB MDB LLIAISONIAISON O OFFICESFFICES
AADVOCACY DVOCACY CCENTERENTER MDB MDB LLIAISONIAISON O OFFICESFFICES