TIME PROVED PARTNERSHIP 2018 WWW.IIB.INT MAIN FACTS - - PowerPoint PPT Presentation

TIME PROVED PARTNERSHIP

2018

WWW.IIB.INT

1 MAIN FACTS

INTERNATIONAL INVESTMENT BANK

is a multilateral development bank

Established in1970 The intergovernmental Agreement Establishing the International Investment Bank and its Charter are registered with theUN Secretariat Diversified loan portfolio with funding over 260 investment pro- jects and volume of loans exceeding EUR 8 bn till date Authorized capital – EUR 1.300 million Paid-in capital – EUR 314,96 million* (The Council, the highest authority of IIB, approved the increase in paid-in capital

• f up to EUR 341 million)

Total equity – E U R 392.8 million International investment grade credit ratings: Long-TermIssuerDefault Rating (IDR)of «Baa1»,

• utlook «positive», assigned by Moody’s on May 05, 2017; Long-

TermIssuer Default Rating (IDR)of «BBB»,Short-Term IssuerDefault Rating (IDR) of «F2», outlook «stable», assigned by Fitch Ratings on December 06, 2016, Long-Term Issuer Default Rating (IDR) of « A » ,

• utlook «stable» assigned by Dagong on October 27, 2015; S&P

Global Ratings – Long-Term Issuer Default Rating (IDR) of «BBB», Short-term Issuer Default Rating (IDR) – «A-2», outlook «stable» on June 09,2016.

* As of 30.06.2017

MEMBER STATES 2

IIB is a multilateral development bank enjoying a special status, as well as the constant support from the authorities of its member states. Diversity of member states – from the G20 and EUmembers to rapidly growing Asian markets. Overall territory of operations – 19.6 million km² with a total population of more than 300 million people

Member states Share in paid-in-capital* (EURmillion) %

Russia 150.03 47.63 Bulgaria 42.20 13.4 CzechRep. 30.37 9.64 Slovakia 21.48 6.82 Hungary 40.0 12.7 Romania 18.45 5.86 Cuba 5.36 1.7 Mongolia 3.39 1.08 Vietnam 3.67 1.17 TOTAL 314,96 100 * Asof27.12.2017

OPERATING ENVIRONMENT 3

GDP GROWTH FACT AND PROJECTION, %

Data sources: Business Monitor International 2016 2017f 2018f 2019f 2020f Data sources: Business Monitor International, national statisticsinstitutes

MEMBERSHIP BASE REPRESENTS A SIGNIFICANT ECONOMIC BLOCK WITH COMBINED GDP OF MORE THAN EUR 2,000 BN (AS OF2016)

1600 1400 1200 1000 800 600 400 200

BULGARI A HANGAR Y VIETNA M CUB A MONGOLI A RUSSI A ROMANI A SLOVAKI A CZECH REP . BULGARI A HANGAR Y VIETNA M CUB A MONGOLI A RUSSI A ROMANI A SLOVAKI A CZECH REP .

• 8,0
• 6,0
• 2,0
• 4,0

0,0 2,0 6,0 4,0 8,0 10,0 12,0 14,0

47.3 112.2 184.7 80.9 10.2 1158.5 169 79.7 173.4

MISSION AND OBJECTIVE OF THE BANK 4

OUR MISSION

is to contribute to the social and economic develop- ment, to the growth of the population wellbeing and to the economic cooperation between the member

• states. Supporting small and medium–sized enter-

prises in member states of the Bank by increasing the access of SME sector to sustainable and con- stant sources of funding. Contributing to the further integration of our member states in the international tradeflows.

THE BANK FINANCES

national development banks, leadinginterna- tional and national financial institutions and companies of IIB memberstates.

OUR OBJECTIVE

is to be recognized globally, by our shareholders in particular, as one of the prominent development finance institutions, providing efficient and tailor-made development assistance andsolutions. Consequently, IIB aims to become a preferred partner in its member states for clients and multilateral or nationaldevelopment institutions.

THE BANK PROVIDES

financing, including syndicated lending with leading national and internationalinstitutions for the investment projects on the territory of its memberstates.

MAIN BALANCE SHEET INDICATORS 5

LIABILITIES STRUCTURE

Equitycapital Totalliabilities

ASSET STRUCTURE

Cash and cashequivalents Interbank placements Investmentsecurities Net loan portfolio Fixed and otherassets

600 500 400 300 200 100 343.1 8.2 12.0 355.1 355.7 389.6 397.7 58.0 225.3 412.3 390.1 491.3 450 400 350 300 250 200 100

51.0

50

103.7

150

49.1 117.7

96.4 123.2

111.8 102.7 96.0 240.3 306.3 363

€ m 31.12.2011 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 € m 31.12.2011

31.12.2012 31.12.2013 31.12.2014

31.12.2015 31.12.2016

MAIN BALANCE SHEET INDICATORS 6

LOAN PORTFOLIOGROWTH PAID-IN CAPITAL

Signed Outstanding

As of December 27, 2017 the IIB’s paid-in capital amounts to EUR 314,96 million, after Mongolia increased its share in the Bank’s paid-in capital.

€ m € m

400 320 240 160 80 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 316 244 431 414 316 381 700 600 500 400 300 200 100 170 128 150 96 31.12.2016 31.12.2017 800 __ 726 953 900 __ 165.2 241.3 303.1 313.1 272.6 314.9 31.12.2012 31.12.2013 31.12.2014 31.12.2015

INTERNATIONAL INVESTMENT GRADE CREDIT RATING 7

KEY FACTORS OF RATING ASSIGNMENT:

High level of support from the Bank’s member states, high capital adequacy, stable liquidity situation and low financial leverage.The significant factorof such support was the decision(approved bythe Council of IIBin June2013) of the capital increase via making additionalcontributionsbythe member statesto the IIB’s authorizedcapitalof at leastEUR100 m; Almost debt-free robust capitalbase; Realization of the complex reformation of the Bank during 2013 aimed at IIB’s transformation into an effective multilateral institution fordevelopment; Implementation of the new principles of credit policy – IIB is oriented toward the support of SMEs in member states, working mainly through international institutions for development and banks with a high rate of credibility; New conditions of operational activities — very high amount of equity to be used for financing development projects, very low financial leverage, new risk management system based on Basel II, new compliance control and new system

• f employeemotivation.

Long-term Issuer Default Rating (IDR) Short-term Issuer Default Rating (IDR) Outlook Dateof revision “Baa1” – “Positive” May05,2017 “ВВВ“ “F2” “Positive” December 06,2016 “А” – “Stable” October 27,2015 “BBB” “A-2” “Stable” June 09,2016

8 INCREASE OF THE FUNDING BASE

BONDS PLACEMENT

9 FORMS OF FINANCING

CREDIT LINES FOR SMEs THROUGH SELECTEDFINANCIAL INSTITUTIONS (loan maturity from 1 to 7 years, loan volume up to EUR40 m); SYNDICATED LOAN FACILITIES FOR SMEs (loan maturity from 1 to 7 years, loan volume up to EUR40 m); EQUITY INVESTMENTSIN SMEs (clear exit strategy from 3 to 7 years, investment volume up to EUR10 m); PROJECT FINANCE LOANS FOR FINANCIAL INSTITUTIONSIN THE MEMBER STATES (loan maturity from 3 to 15 years, loan volume up to EUR50 m); SYNDICATED LOANS FOR FINANCIAL INSTITUTIONS IN THE MEMBER STATES (loan maturity from 1 to 15 years, loan volume up to EUR50 m); SYNDICATED LOANS FOR INVESTMENT PROJECTS (loan maturity from 3 to 15 years, loan volume up to EUR50 m); EQUITYINVESTMENTS (clear exit strategy from 3 to 7 years, loan volume up to EUR20 m). INVESTMENTS IN FUNDS IN LINE WITH IIB STRATEGY

IIB is open for cooperation with other financial institutions in various forms, such as joint financing of investment projects or providing loans to the development of SME sector in IIB member states. In this regard, IIB has developed and is currently using several financialinstruments:

EXAMPLES OFPROJECTS

Over the years, the International Investment Bank took part in financing more than 260 investment projects on the total sum of EUR 8 bn, signed and implemented cooperation agreements and provided credit lines to financial institutions of the member states. Main projects since 2012 to the present day:

Vietnam Bank for Industry and Trade Financing of theSMEs Xac BankLLC, Mongolia Syndicated financing ofSMEs Partner:EBRD Khan Bank, Mongolia Syndicated financing ofSMEs Partner:IFC Pilsen Toll The loan facilities will be directed for the operations

• f its metallurgical-engi-

neering plantPILSEN STEEL BT Leasing Transilvania IFNS.A Financing of leasing programs for the RomanianSMEs Transcapitalbank Syndicated financing ofthe power efficient projects. Partner:IFC

Trade and Development Bank of Mongolia Syndicated financing Partner: FMO (Netherlands Develop- ment FinanceCompany) Bank of Investment and Development ofVietnam Realization of program of support of the SMEs

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Slovak Gas Holding Syndicated financing, Partner: UniCreditBank Eurolease Group Syndicated financingof SMEs Partner: VTBCapital Urban MobilityCentre Syndicated financing, Partne: Bulgarian Development Bank Agricover Credit Financing ofSMEs Acron Syndicated Financing Partner: SocieteGenerale Huverpharma Syndicated loan Partner:Citibank Fabrica DeLapte Brasov SA Co-financingdeal Partner:BSTDB Eurohold The funds will be used by the company to increasethe capital of Euroins Romania and Euroins Bulgariawith the aim to develop insurance business in the territories of Romania and the Republic

• f Bulgaria

TRADE FINANCEPRODUCTS

IIB considersto provide FIswith a full rangeof trade and export finance products. In April 2014 a Multilateral Memorandum on Cooperation between IIB, EXIAR, EXIMBANKA SR, EGAP , BAEZ and EximBank Romania was executed. Under this document IIB will be acting as a bridging financing institution while the ECAs will be providing insurance coverage to projects be- tween its respective memberstates.In November2014, the Memorandum wasjoinedbyHungari- an Eximbank, alongwith Hungary’s request to join the IIB. AT FIRST IIB CONSIDERS TOCONCENTRATE ON PROVIDING THE FOLLOWING TRADE FINANCE SERVICES TO FINANCIALINSTITUTIONS:

Guarantees/counter-guarantees Reimbursementundertakings,covering documentaryoperationsof counterpartybanks Standbylettersofcredit Trade-relatedloans ECA-coveredfinance,covering export from IIB’s member states

IIB aims to discuss various opportunities for cooperation with FIsin trade finance to find the most efficient solution foreachcase.

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NEW STRATEGY OF IIB IS DESIGNED TO UTILIZE ITS POTENTIAL AS A MULTILATERAL DEVELOPMENT BANK TO THE FULL EXTENT

BANKS’ OBJECTIVES UNDERTHE STRATEGY PRODUCTS ANDSERVICES RANGE EXPANSION,with the focus

• n the loan and investment products

DEVELOPING PARTNERSHIPNETWORK (Leading commercial banks, multilateral, regional, national development banks and specific governmentaldepartments and institutions for tradeand development) MAINTENANCEANDIMPROVEMENTOF INVESTMENTGRADE CREDITRATINGS fromInternational rating agencies — Moody’s, Fitch Ratings, Dagong and S&P GlobalRatings. MAXIMIZING THE EFFICIENCY AND PRODUCTIVITYOF ALL BUSINESS PROCESSES In line with the new

• rganizational structure implemented

in January2014; Increasing number of investmentprojects FULL USAGE OF IIB’S POTENTIAL AS A MODERN MULTILATERAL DEVELOPMENT BANK a significant increase of Bank’s

• perations in its member states

ENHANCEMENT OF IIB’S ROLE FOR ITS MEMBER STATES by promoting a growth of mutual trade and investment activities BANKS’ PERFORMANCE IMPROVEMENT in order to reach the level of world’s best practices, used by developmentbanks KEY STRATEGY IMPLEMENTATIONISSUES STRATEGY IMPLEMENTATIONRESULTS

BOOSTING LOAN PORTFOLIO ensuringan adequate andsustainable risklevel

INCREASE OFFINANCIAL RESOURCE BASE

INCREASING OF NUMBER OF INVESTMENTPROJECTS

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IMPLEMENTATION OF NEWSTRATEGY GROWTH OF THE LOAN PORTFOLIO

– Participation in syndicated loans together with leading development institutions: ERBDorganized syndication to Mongolia’s XacBank, the fourth largest bank and a leading small business lender in the country; International Finance Corporation

• rganized syndication to Mongolia’s Khan Bank, biggest lender in the country, and to Transcapitalbank which ranks among

the top 50 Russian banks in terms of assets and total equity; FMO (Netherlands Development Finance Company) organized syndication to Trade and Development Bank of Mongolia; VTB Capital organized lending to second-biggest phone company in Bulgaria Vivacom; Vneshekonombank organized financing of the completion of the 3rd and 4th blocks of the NPP “Mochovce” (Slovak Republic). – Several credit lines were provided to specialized financial intermediaries for the financing of SMEs sector in IIB member states: Bulgarian Development Bank (Bulgaria); SME Bank (Russian Federation); Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank); BTLeasing (Romania); Trade and Development Bank ofMongolia. – Provision of a credit line to Roseximbank (Russian Federation) for the financing of foreign trade operations in different economicareas. – Lending to Bank Center-Invest for the financing of thesmall and medium business.

NEW TARGET-ORIENTED ORGANIZATIONALSTRUCTURE

– which complies with the current international standards. It provides maximum transparency and effectiveness to the corporate management system. The international professional team facilitates the Bank’s development and achievement of its operational and strategic objectives.

CONTINUED ONNEXT PAGE

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IMPLEMENTATION OF NEWSTRATEGY 14 PARTNERSHIP NETWORK

– IIB has dozens cooperation agreements with financial institutions and government bodies of member states. – IIB is cooperating with leading multilateral development banks: ADB, BSTDB, CEB, EBRD, EDB,CAF (Memorandum

• f Understanding),EIB, EIF,IBRD, IDB, IFC(joinedMaster CooperationAgreement),NIB, FMO, KfW,OeEB,Vnesheconombank,

andothers. – IIB is a member of the Banking Association for Central and Eastern Europe and the Association of Development Financing Institutions in Asia and the Pacific, Institute of International Finance. IIB is a member of National Committee for Economic Cooperation with Latin American Countries (NC CEPLA). IIB is also an observer at the annual meetings of ADB, BSTDB, EBRD andIDB. – IIB joined United Nations Global Compact – the largest international initiative in the area of sustainable development. – IIB generally applies the highest financial standards – the Bank joined the regulatory environment relating to derivatives designed to increase the stability of the over-the-counter (OTC) derivative markets throughout the EU, the European Mar- ket Infrastructure Regulation (EMIR). In early 2014 it signed Adherence Letters and joined the ISDA 2013 EMIR NFC Rep- resentation Protocol and ISDA 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol as a Sending Entity Existing Multilateral Memorandum on Cooperation between the IIB and ECAs of its member states. – IIB has granted Observer Status to Vnesheconombank, VTBGroup, Eurasian Development Bank, Bulgarian Development Bank, Russian Export Centre, Republic of Belarus.

ADVANTAGES OF WORKINGWITH IIB

IIB IS ANINTERNATIONAL ORGANIZATION

enjoys the status of preferred partner for its member states. Statutory documents grant IIB a special regime of banking regulation and a general tax exemption

IIB HAS AN INTERGOVERNMENTAL STATUS

which guarantees support from public authorities of the member states

IIB HAS A WIDE REGIONAL COVERAGE

which gives opportunity to increase regional presence and to enter the markets of the member states

RELIABILITY OFCOOPERATION

affirmed by investment grade creditratings from Moody’s, Fitch Ratings, Dagong andS&P Global Ratings

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CORPORATE GOVERNANCE STRUCTURE

EXPERT GROUP OF AUTHORIZED REPRESENTATIVES INTERNAL AUDIT DEPARTMENT LENDING COMMITTEE BUDGET COMMITTEE IIBCOUNCIL AUDIT COMMITTEE

Main principles of IIB good governance: transparency,accountability, responsibility and disclosure

IIBBOARD CHAIRMAN DEPUTYCHAIRMEN

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STRATEGY COMMITTEE PROCUREMENT COMMITTEE FINANCE COMMITTEE

ADMISSION OF NEW PARTICIPANTS IS SEEN AS A STRATEGIC DEVELOPMENT OPTION LEADING TO ACCELERATED GROWTH

FULL MEMBER

(for states andIFIs) – Participates in IIB businessactivities – Provides capital contribution to Tier 1 capital – Full presence in IIB Managementbodies

ASSOCIATED MEMBER

(for states andIFIs) – Participates in IIB businessactivities – Provides subordinated loan in Tier 2 capital – Limited presence in IIB Management bodies

ASSOCIATED PARTNER

(for financial institutions,funds) – Participates in IIB businessactivities – Provides subordinated loan in Tier 2 capital – Limited presence in IIB Management bodies

OBSERVER (no financial commitment)

(for states, IFIs, national developmentbanks) – Does not participate inIIB activities – Does not make financialcontributions – No presence in IIB Managementbodies

Key rationale for potential participants

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Accessto 9 markets locatedin diversified geographies Status of an international organization not licensed bynational authorities and exemptfrom anytaxes Developmentimpact on national economy Efficient scalable operational platform Widenetwork of international partners

PARTNERSHIPS

State Specialized Russian Export-ImportBank State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” Trade and Development Bank of Mongolia (TDB Mongolia) International Finance Corporation (IFC) Netherlands Development Finance Company(FMO) European Bank for Reconstruction and Development (EBRD) Banca de Export Import a Romaniei EximBank S.A. (EximBank Romania) Black Sea Trade and Development Bank (BSTDB) Bulgarian Export Insurance Agency (BAEZ) Eurasian Development Bank (EDB) Export Guarantee and Insurance Corporation(EGAP) VTB Group (VTB) Association of Development Financing Institutions in Asia and Pacific (ADFIAP) The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) JSC“Spurt” Khan Bank of Mongolia (Khan Bank) Banking Association for Central and Eastern Europe (BACEE) Open Joint-Stock Company “Russian Bank for Small and Medium European Investment Bank (EIB) Enterprises Support” (SME Bank) KfW Vietnam Joint Stock CommercialBank for Industry and Trade (VietinBank) NIB (Nordic InvestmentBank) Xac Bank Rosbank, Societe Generale Group(Rosbank) Transcapitalbank ExportInsuranceAgency RaiffeissenBank

• f Russia (EXIAR)

Sberbank (Eximbank of Russia) ADB (Asian Development Bank) Bulgarian Development Bank BankCenter-invest Export-Import Bank of the Slovak Republic (EximbankaSR) Slovak Guarantee and Development Bank (SZRB) Absolut Bank Bank for Foreign Trade of Vietnam (Vietcombank) Capital Bank of Mongolia (Capital Bank) Vietnam Bank for Agriculture and Rural Development (Agribank) Asian-Pacific Bank (APB) Czech Export Bank Hungarian Export-Import Bank (Eximbank) Housing Development Bank (HD Bank) International Asset Bank(IAB) BT Leasing Transilvania IFN S.A. (BT Leasing) Banсa Transilvania

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19 CONTACTINFORMATION

FOR CORPORATELENDING

+7 495 604 75 37 e-mail: credit@iibbank.com

FOR FINANCIAL INSTITUTIONS

+7 495 604 76 00 / 76 01 e-mail: fi@iibbank.com

FOR TREASURYISSUES

+7 495 604 76 10 e-mail: treasury@iibbank.com

FOR PARTNERSHIPSAND INTERNATIONAL ISSUES

+7 495 604 76 44 / 74 53 e-mail: finintegration@iibbank.com

FOR PUBLIC AND MEDIA RELATIONS

+7 495 604 74 47 / 74 53 e-mail:press@iibbank.com

INTERNATIONAL INVESTMENT BANK

7Mashi Poryvaevoy str., Moscow, RussianFederation tel: +7 495 604 73 00 Fax:+7 499 975 20 70 e-mail: info@iibbank.com www.iib.int

IIB EUROPEAN REGIONAL OFFICE

Eurovea Central1 Pribinova4 Bratislava, 81109 Slovak Republic Tel: +421 2 3235 3300 Fax: +421 2 3235 3399 e-mail: bratislava@iibbank.com

WWW.IIB.INT