Working with the European Bank for Reconstruction and

Development in Cyprus

September 2017

What is the EBRD?

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EU 27 Countries (1)

58.7% EBRD region excluding EU

13.8%

Others 8.7%

USA 10.1%

Japan 8.6%

Shareholding structure

(1) Includes European Community and European Investment Bank (EIB) each at 3%.

Among other EU countries: France, Germany, Italy, and the UK each holds 8.6%

• An international financial institution, with the

mandate to promote transition to modern and

well-functioning markets in 36 countries from

Central and Eastern Europe, Caucasus, Central

Asia and the Southern and Eastern Mediterranean

– SEMED region.

• Owned by 65 countries and 2

inter-governmental institutions (EU, EIB).

• Capital base of €30 billion

• Highest credit rating (AAA/Aaa) from all three

main rating agencies (S&P, Moody’s and Fitch)

• In January 2016, China became our 67th

shareholder

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We invest in 36 countries, including 12 EU Member States (“EU-12”)

Russian

Federation

Kazakhstan Mongolia

—Kyrgyz Republic

—Tajikistan

—Moldova

—Jordan

Azerbaijan

—Morocco

Belarus

Ukraine

Romania Serbia

—Kosovo Georgia—

Armenia—

Tunisia—

Croatia—

Bosnia & H.— Montenegro—

Albania—

Macedonia FYR

—Turkmenistan

—Bulgaria

Estonia—

Latvia—

Lithuania—

Poland

Slovenia—

Slovakia —

Hungary —

Uzbekistan

Egypt—

Greece

Cyprus

Turkey

Since EBRD Inception 1991*

More than €115 million in

over 4,700 projects

Private sector accounted

for 80% share

In 2016

€9.4 billion invested

in 378 projects

Private sector accounted

for 69% share

EBRD Investment Summary

* Data as of December 2016

Invest in a diverse range of Enterprises

Infrastructure

18% Transport &

Municipal

Environmental,

Infrastructure

Energy

17% Power & Energy,

Natural Resources

Financial

Institutions

37% Bank Debt/Equity,

Small Business

Finance, Insurance and

Financial Services

Corporate

28% Manufacturing and

services, Agribusiness,

Equity Funds, Property

& Tourism,

Information-

Communication

Technologies

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Loans

Senior, subordinated, convertible

Long term (up to 10yr. or more) or short term

Floating/Fixed rates

Choice of currencies (€, US$, etc.)

Equity

Common stock or preferred

Minority position only (up to 35%)

Mezzanine debt

Private equity, VCs

Technical Cooperation

As a Multilateral Development Bank, EBRD can bring in additional financing

and technical assistance to economically viable projects

Other: PPPs, guarantees, swaps, etc.

Potential to complement some EBRD products/programmes with those from other IFIs

EBRD Product Flexibility tailored to project

needs

Cyprus – EBRD Recipient Country in 2014 - 2020

• EBRD Annual Meeting decision that Cyprus become a recipient country in May 2014

• We are now present with fully staffed Resident Office in Nicosia

• Country strategy for Cyprus approved by the shareholders in May 2015

Our operational priorities in Cyprus:

• strengthening the financial sector to build up resilience and improve governance

• supporting the privatisation programme / public private partnerships (PPPs),

including Limassol port concession

• supporting non-financial corporations and small and medium-sized enterprises,

emphasis on green economy investments

EBRD in Cyprus

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Cyprus – EBRD activity as of December 2016

EBRD in Cyprus

• Resident Office in Nicosia opened in December 2014

• Cumulative investments of Euro 245 million as of September 2017

• Key transactions:

• equity in two largest local private banks

• financing for maritime sector / Limassol port concession

• the fourth most active trade finance facilitation programme among EBRD countries of

operations in 2016

• financing of solar power generation increase in Cyprus by more than 10 per cent

• advice for small businesses to over 60 SMEs

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EBRD in Cyprus – Bank Recapitalisations

EBRD in Cyprus

• In September 2014, the EBRD made an equity investment of €107.5 million in the Bank of

Cyprus for a stake of just over 5 per cent.

• In September 2015, the EBRD made an equity investment of €20 million in Hellenic Bank

for a stake of over 5 per cent.

• With these investments, the EBRD supported the implementation of the on-going

restructuring plans of the two largest local private banks in the country.

• The stabilisation and successful restructuring of these banks is critical for the full recovery

of the country’s economy and the rest of the financial sector. As an active shareholder the

EBRD works towards best practice corporate governance.

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EBRD in Cyprus – Trade Finance Facilitation

EBRD in Cyprus

• Covers all types of trade finance instruments: letters of credit including deferred payment/post-financing; bank payment guarantees; bid bonds; performance bonds; advanced payment guarantees; standby letters of credit

• Always involves a local bank (“Issuing Bank”) which issues a trade finance instrument (e.g. a letter of credit) and a foreign bank which confirms it to the beneficiary (“Confirming Bank”)

• Issued only to Confirming Bank, not to exporters or importers, and ensures that the beneficiary receives payment upon or after delivery

• Cumulative Euro 105 million trade finance limits with 5 banks as of September 2017

• Cumulative Euro 70 million utilisation of TFP limits in 160 transaction supporting foreign trade with 24 countries in Europe, Africa, the Middle East and Asia

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EBRD Trade Finance in Cyprus:

Export of Construction Services to Egypt

• Export of construction services by a private Cypriot company to Egypt – construction of new road in the length of 90 km

• Issuing Bank in Cyprus – Confirming Bank in Egypt

• Covered by a double default protected guarantee under EBRD Trade Finance Programme

• Guarantee in local currency – Egyptian Pound – with 12 months maturity

• EBRD Trade Finance Deal of the Year for 2015

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• A shipyard in Limassol, Cyprus, imports a

floating dock from Ukraine

• Bank of Cyprus issues an L/C to ING Belgium

SA/NV in the amount of USD 7.3 million with a

tenor of 1 year

• The EBRD TFP guarantee covers 100% of the

payment risk of the Issuing Bank in Cyprus to

the Confirming Bank in Belgium

• EBRD Trade Finance Deal of the Year for 2016

EBRD Trade Finance in Cyprus:

Import of a floating dock from Ukraine

EBRD in Cyprus – Maritime Sector Financing

• US$ 11.4 million loan for Interorient Shipmanagement, a leading ship management company headquartered in Cyprus

• Support for the expansion of Interorient fleet under management through a series of investments to enhance the company’s capacity to increase its client base

• Financing for Interorient participation in Limassol port concession

• Contribute to the recovery of the Cypriot economy which should also lead to higher levels of activity in the shipping sector

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EBRD in Cyprus –Renewable Energy Projects

• EUR 6.25 million in non-recourse debt financing to CYPV Energy Ltd, LGEG Photovoltaic Ltd and LGEG Solar Power Ltd for the construction, development and operation of three solar photovoltaic parks of total capacity 7.4MWp located in the areas of Frenaros, Nisou and Dhali.

• EUR 4.1 million in non-recourse debt financing to TPM Abitenergy Ltd and Conbetter Ltd for the construction, development and operation of two solar photovoltaic parks of total capacity 4.5MWp located in the areas of Paliometocho and Malounta.

• EBRD supports renewable energy projects tapping the island’s huge potential in the sector and contributing towards Cyprus’ 2020 target for power generation from sustainable sources.

• Benchmark transactions for non-recourse financing in the Renewable Energy sector.

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EBRD in Cyprus – Small Business Support Services

EBRD in Cyprus

• The know-how to help small businesses grow: The EBRD can help small and medium-sized enterprises access advice as well as finance

• With our help clients expand their businesses, often employing more people and accessing external finance

• We also look to the long-term, helping build strong markets for business advice that will thrive long into the future

• Over 60 projects with local consultants:

• agribusiness companies,

• manufacturing and services companies,

• property and tourism companies

• International advisory project with Cypet, a local manufacturing company, focusing on strategic planning, supply chain management, exports, marketing, planning and budgeting

Project type

Quality management

Operations

Organisation

Marketing

Strategy

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Contacts

For all further enquiries, please contact:

Libor Krkoska

Head of Office

23 John Kennedy Avenue

Nicosia 1075, Cyprus

Email: krkoskal@ebrd.com

Tel: +357 22 39 55 00

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