Opportunities with theOpportunities with theEuropean Bank for European Bank for

Reconstruction & DevelopmentReconstruction & Development

Sanford OwensSanford Owens

Banking on DevelopmentBanking on Development

New Orleans New Orleans

March 16, 2007March 16, 2007

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 Promotes transition to market economies in 29 market economies in 29 countriescountries

€€20 B capital base20 B capital base

€€5 B Annual loan/equity 5 B Annual loan/equity commitmentscommitments

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

Shareholding of the EBRDShareholding of the EBRD

USA 10.1%

Others 12.7%

Japan 8.6%

CEE & CIS 12.4%

EU 56.2%

US is the largest shareholder of the Bank with a US is the largest shareholder of the Bank with a capital subscription of €2 billion. capital subscription of €2 billion.

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

Specialised knowledge of central and eastern Specialised knowledge of central and eastern Europe, Caucasus, Russia and Central AsiaEurope, Caucasus, Russia and Central Asia

Multi-national staff from our member countriesMulti-national staff from our member countries

Dedicated teams with expertise in a variety of Dedicated teams with expertise in a variety of sectorssectors

In-depth legal know-howIn-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 service 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 37 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

US - 214 transactions US - 214 transactions EUR 156.6mEUR 156.6m

(TRANSACTIONS RANGE FROM 30K TO 10.6 m)(TRANSACTIONS RANGE FROM 30K TO 10.6 m)

www.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

telecommunications equipment to Uzbekistan

electrical equipment to Yugoslavia

soya beans to Azerbaijan

chicken and meat to Georgia

Check-List for U.S. CompaniesCheck-List for U.S. Companies

Check under Check under 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 Policies and EBRD’s Procurement Policies and RulesRules

www.ebrd.com/oppor/procure/index.htm

AC-EBRD – join e-mailing listAC-EBRD – join e-mailing list

Procurement methods

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 U.S. 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: Sanford.Owens@mail.doc.gov

Gurjit.Bassi@mail.doc.gov

Web: www.buyusa.gov/ebrd

Register on-line: www.ebrd.com