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

TIME PROVED PARTNERSHIP 2018 WWW.IIB.INT

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 of up to EUR 341 million) Total equity – E U R 392.8 million International investment grade credit ratings: Long-TermIssuerDefault Rating (IDR)of «Baa1», outlook « 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 » , outlook «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 1

MEMBER STATES 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 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 2

OPERATING ENVIRONMENT MEMBERSHIP BASE REPRESENTS A SIGNIFICANT GDP GROWTH FACT AND PROJECTION, % ECONOMIC BLOCK WITH COMBINED GDP OF MORE 2016 THAN EUR 2,000 BN (AS OF2016) 2017f 2018f 1600 2019f 2020f 1400 14,0 12,0 1200 10,0 1158.5 1000 8,0 800 6,0 600 4,0 2,0 400 173.4 112.2 184.7 169 0,0 79.7 80.9 47.3 200 BULGARI HANGAR MONGOLI SLOVAKI 10.2 RUSSI ROMANI VIETNA CUB -2,0 CZECH A A . REP M Y A A 0 A A -4,0 HANGAR SLOVAKI BULGARI MONGOLI RUSSI ROMANI VIETNA CUB -6,0 CZECH A A REP . M Y A A A A -8,0 Data sources: Business Monitor International, national statisticsinstitutes Data sources: Business Monitor International 3

MISSION AND OBJECTIVE OF THE BANK OUR MISSION OUR OBJECTIVE is to contribute to the social and economic develop- is to be recognized globally, by our ment, to the growth of the population wellbeing and shareholders in particular, as one of the to the economic cooperation between the member prominent development finance institutions, states. Supporting small and medium – sized enter- providing efficient and tailor-made prises in member states of the Bank by increasing development assistance andsolutions. the access of SME sector to sustainable and con- Consequently, IIB aims to become a preferred stant sources of funding. Contributing to the further partner in its member states for clients integration of our member states in the international and multilateral or nationaldevelopment tradeflows. institutions. THE BANK PROVIDES THE BANK FINANCES financing, including syndicated lending with leading national and internationalinstitutions national development banks, leadinginterna- for the investment projects on the territory of tional and national financial institutions and its memberstates. companies of IIB memberstates. 4

MAIN BALANCE SHEET INDICATORS LIABILITIES STRUCTURE ASSET STRUCTURE 450 363 400 350 300 306.3 600 250 491.3 500 412.3 240.3 200 389.6 390.1 397.7 355.1 355.7 283.7 400 343.1 162.8 241.1 150 100.1 71.5 135.9 300 123.2 117.7 111.8 100 103.7 102.7 200 96.0 111.2 96.4 225.3 91.8 51.0 34.3 100.4 45 100 49.1 50 58.0 39.1 8.2 12.0 13.9 8.4 65.7 59.4 54.0 19.3 € 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 Cash and cashequivalents Equitycapital Totalliabilities Interbank placements Investmentsecurities Net loan portfolio Fixed and otherassets 5

MAIN BALANCE SHEET INDICATORS LOAN PORTFOLIOGROWTH PAID-IN CAPITAL 953 900 __ 800 __ 726 700 600 500 431 414 381 400 316 316 400 314.9 300 313.1 303.1 244 320 272.6 241.3 200 170 240 150 165.2 128 96 160 100 80 € m 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 € m 31.12.2012 31.12.2013 31.12.2014 31.12.2015 31.12.2016 31.12.2017 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. 6

INTERNATIONAL INVESTMENT GRADE CREDIT RATING Long-term Issuer Default Rating Short-term Issuer Default Rating Outlook Dateof revision (IDR) (IDR) “Baa1” – “ Positive ” May05,2017 “ВВВ“ “F2” “ Positive ” December 06,2016 “А” – “Stable” October 27,2015 “BBB” “A - 2” “Stable” June 09,2016 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 of employeemotivation. 7

INCREASE OF THE FUNDING BASE BONDS PLACEMENT 8

FORMS OF FINANCING 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: CREDIT LINES FOR SMEs THROUGH SYNDICATED LOANS FOR FINANCIAL SELECTEDFINANCIAL INSTITUTIONS INSTITUTIONS IN THE MEMBER STATES (loan maturity from 1 to 7 years, (loan maturity from 1 to 15 years, loan volume up to EUR40 m); loan volume up to EUR50 m); SYNDICATED LOAN FACILITIES FOR SMEs SYNDICATED LOANS FOR INVESTMENT PROJECTS (loan maturity from 1 to 7 years, loan volume up to EUR40 m); (loan maturity from 3 to 15 years, loan volume up to EUR50 m); EQUITY INVESTMENTSIN SMEs EQUITYINVESTMENTS (clear exit strategy from 3 to 7 years, investment volume up to EUR10 m); (clear exit strategy from 3 to 7 years, loan volume up to EUR20 m). PROJECT FINANCE LOANS FOR FINANCIAL INSTITUTIONSIN THE MEMBER STATES INVESTMENTS IN FUNDS IN LINE WITH IIB STRATEGY (loan maturity from 3 to 15 years, loan volume up to EUR50 m); 9

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: Agricover Credit Xac BankLLC, Mongolia Vietnam Bank for Slovak Gas Holding Khan Bank, Mongolia Financing ofSMEs Industry and Trade Syndicated financing, Syndicated financing ofSMEs Syndicated Partner: UniCreditBank Partner: IFC financing ofSMEs Financing of theSMEs Partner: EBRD Acron Bank of Investment and Pilsen Toll BT Leasing Huverpharma Development ofVietnam Syndicated Financing Transilvania IFNS.A Syndicated loan The loan facilities will be Partner: SocieteGenerale Realization of program of Partner: Citibank Financing of leasing directed for the operations support of the SMEs programs for the of its metallurgical-engi- RomanianSMEs neering plantPILSEN STEEL Transcapitalbank Syndicated financing ofthe Eurohold power efficient projects. TRADE & DEVELOPMENT BANK Partner: IFC The funds will be used by Fabrica DeLapte Trade and Development the company to increasethe Brasov SA Bank of Mongolia capital of Euroins Romania Co-financingdeal Syndicated financing and Euroins Bulgariawith Partner: BSTDB Partner: FMO Urban MobilityCentre the aim to develop insurance (Netherlands Develop- Eurolease Group Syndicated financing, business in the territories of ment FinanceCompany) Partne: Bulgarian Syndicated financingof SMEs Romania and the Republic Partner: VTBCapital Development Bank of Bulgaria 10