EBRD – Overview of EBRD Activities and how Israeli businesses can take advantage of EBRD membership Philip ter Woort - Direc ector or, Head of Busines ess Devel elop opmen ent Tel-Aviv, 13 June, e, 2019
Contents Overview EBRD Green Financing Israel and the EBRD: Long term partners - Israel FDI into EBRD region - EBRD-Israel: an overview of cooperation Contacts Annex: case studies 2
EBRD - An overview An international financial institution supporting the development of sustainable well-functioning market economies Highest credit rating 1991 Established (AAA/Aaa) 1992 Russia and 11 other Shareholding structure members of the former Soviet Union join Japan 2007 The Czech Republic 9% 9% becomes the first country to USA “graduate” from the EBRD 10% 10% 2012 Starts investing in Egypt, Owned by 68 Jordan, Morocco and countries and 2 Others Tunisia 11% 11% inter-governmental 2016 25th anniversary; institutions China becomes 67th (the EU and EIB) member 2017 Lebanon became a EBRD country of operation and region EU 28 28 € 30 billion the Bank also commenced excluding Countri ries 1 operations in West Bank EU EU 63% 63% authorised 8% 8% and Gaza capital 2018 India and San Marino 1. Includes European Com m unity and European Investm ent Bank become members (Share: € 6.2 bn paid-in/23.5 (EIB) each at 3%. Am ong other EU countries: France, Germ any, Italy, and the UK each holds 8.6% callable) 3
DRE by Region 31 December 2018** Where we invest 100% Russia (5.9%) 90% 31 December 2018 South-Eastern 80% Europe (18.7%) 70% Central Europe and 60% Baltics (15.9%) Eastern Europe an 50% Caucasus (15.4%) 40% Turkey (19.5%) 30% Central Asia and 20% Mongolia (9.2%) 10% SEMED (11%) 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cyprus and Greece (4.4%) 24 37 38 39 local offices 35 36 34 2,047 staff (75 per cent in London) 33 € 235.2 billion in total project value 32 More than 40 Resident Offices Across the Region and approx. 2,500 employees WHERE WE INVEST Central Eu Europe and South-eastern Eur Europe Central Asia 30 Russia Southern and eastern Eastern Eur Europe and the 36 Cyprus (2014) the Baltic States 10 Albania Caucasus us 24 Kazakhstan 31 Turkey (2009) Mediterrane nean 37 Greece (2015) 01 Croatia 11 Bosnia and 18 Armenia 25 Kyrgyz Republic 32 Egypt (2015) 38 Lebanon (2017) 02 Czech Republic* Herzegovina 26 Mongolia (2006) 33 Jordan (2013) 19 Azerbaijan 12 Bulgaria 03 Estonia 20 Belarus 27 Tajikistan 34 Morocco (2013) 04 Hungary 13 FYR Macedonia 21 Georgia 28 Turkmenistan 35 Tunisia (2013) 05 Latvia 14 Kosovo 29 Uzbekistan 22 Moldova 06 Lithuania 15 Montenegro 23 Ukraine 07 Poland 16 Romania 08 Slovak Republic 17 Serbia * As of the end of 2007, the EBRD no longer makes investments in the Czech Republic 16 June, 2019 4 ** DRE – Development Related Exposure 09 Slovenia
EBRD’s Investments - Detailed Overview Since 1991, EBRD invested over € 125 EBRD Top 10 investee In 2018 billion in around 5,325 projects countries in 2018 ( € m) € 9.5 bn 14 140 ABI) stment 1 Egypt 1,148 t (AB 131 12 120 investm tment 121 Turkey 1,001 395 2 103 112 95 10 100 tive bank inv investm Greece ce 846 846 3 0.8 1.0 0.4 1.3 bn) 0.7 projects 8 80 R bn 4 Poland 556 556 iness in (EUR 6 60 5 Ukraine 543 543 Private sector accounted lati for share of l busin 9.2 t cumula 8.7 8.7 Kazakhst stan 472 8.5 6 73% 4 8.1 40 Romania 443 443 7 Annual 2 20 Net 8 Uzbekist stan 397 Debt: 83% 0 0 9 Serb rbia 396 396 2014 2015 2016 2017 2018 Belaru rus 360 360 10 10 Equity: 9% Equity Debt Net Cumulative Bank Investment Guarantee: 8% EBRD Portfolio (December 2018): € 43.3 billion C.Asia Turkey Central l Asia Asia 10% 10% 10% 14% 14% Financial Institutions 22% (Banks ks, FI Central l Europe & Baltic ltics 14% Energy CEE Leasing, Insurance, Other) 22% 24% 14% 14% Cyprus s & Greece 4% SEMED Corporate 25% (Agribusiness, M&S, P&T, Easte tern Europe & Caucasus 18% Cyp/G /Greece Sector 14% 14% Region ICT, Equity funds) 4% 4% Russia Ru ia 5% Infrastructure 29% (Transport, Municipal South- th-Easte tern Europe 19% Corporate EEC EEC Infrastructure) Infra SEE 18% 18% 25% Russia SE Medite iterranean 15% 29% 19% 19 5% 5% Energy 24% (Power & Energy, Natural Turkey 16% Resources) 5
EBRD Multi-dimensional approach • EBRD direct finance (debt & equity) • EBRD Indirect finance (SME ME loans) • Mobilising external finance EBRD RD For selected eligible COMMERC RCIAL FINANCING investments to develop marke kets POLICY CONCESSIONAL DIALOGUE CO-FINANCING CO • Worki king with governments on improved legislation TECHNICAL and regulation in ASSISTANCE support of improved business environment • Resource efficiency audits • Clima mate vulnerability assessme ment • Capacity building for local financial institutions • Project preparation support (including tendering) 6
EBRD’s financing instruments Debt Equity Guarantees Typical size € 1 – 300 mln (average € 20 mln) Typically € 50 k – € 50 mln Typically 5-7 years Maturity Up to 15 years in case of Typically from 3-7 years 1 month to 3 years infrastructure investments Currency/terms Major foreign currencies or local currency; floating/fixed Corporate loans Trade Facilitation Programme with Approach Minority stake Project loans (max 35%) banks • Senior, subordinated, • Pure or “structured” • Trade finance guarantees & Structures convertible loans or bonds equity cash advances • Project finance • Capex for expansion/modernization, including resource • Guarantee of issuing banks in efficiency improvements countries of operations in Applications • Ownership change: acquisition, consolidation, privatisation favour of confirming banks in • PPPs the rest of the world • Working capital NB: Exact terms depend on specific needs and market conditions
Projects in all key business sectors Transport Municipal & Environmental Property & Infrastructure Tourism Financial Natural Resources Information & Institutions Communication Technologies Industry, Commerce Power & Manufacturing & Energy & Services Agribusiness 8
EBRD Clients – A S Snapsh shot edp 9
Contents Green Financing 10
Mainstreaming Green Financing Our Journey since 1994 • Since 2006 the EBRD has adopted cross-sectorial strategies: • to mainstream across the Bank’s operations , and • to increase the share of Bank business represented by measures which enhance the efficient use of energy and resources (water, materials) and contribute to the mitigation of, and adaptation to, climate change. • The latest strategy, the Green Economy Transition (GET) aims to further scale up the Bank’s green business, and to include new areas of activity. 11
Green Economy Transition: Current tools & scale and results 2010 - 2018 RESOURCE AND TECHNOLOGY GREEN ECONOMY ENERGY EFFICIENCY TRANSFER AND FINANCING FACILITIES AUDITS INNOVATION SUPPORT Tools: GREEN CITY ACTION BLENDING PLANS & MUNICIPAL MULTILATERAL POLICY DIALOGUE SUPPORT CLIMATE FUNDS Results: FINANCED ED REDUCED SIGNED ED 1,650+ € 30. billion 100 million of green financing projects and credit lines tonnes of CO2/year Emission reductions equal to 1200+ directly financed For projects with a total value twice the annual energy use- projects with green of € 170+ billion. related emissions of Greece. components, and Since 2016 green financing +annual water savings of 440+ credit lines to local has represented 36% of 330m 3 since 2013 equal to a financial institutions for on- EBRD’s total business. third of Londoners’ water use lending to smaller projects 12
Mainstreaming Green Financing Green Economy Transition Targets ’16 - ’20 40% € 4 billion € 18 billion Target annual EBRD Target cumulative EBRD 2020 target for the share green business by 2020 green business 2016- of green finance in EBRD 2020 annual business, from a current level of 30% 13
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