Presentation by Francis Malige

EBRD – a quarter century of successful investments in Ukraine 30 March 2016 Francis Malige, Managing Director, Eastern Europe and Caucasus

EBRD in Ukraine: 355 projects worth â‚Ź12 billion Cumulative business investment since inception of operations in Ukraine

Equity, 7%

Public sector 28%

Equity Funds 2%

Loans, 93%

Natural Resources Municipal 3% & Env. Inf. 5%

Property and Tourism ICT 1% 2%

Financial Institutions 33%

Power and Energy 12%

Manufacturing and Services 11% Transport 14%

Agribusiness 17%

Private sector 72%

EBRD in Ukraine: Municipal and Environmental Infrastructure 18 Signed Projects in 11 Cities: Cherkassy, Chernivtsi, Dnipropetrovsk, Ivano-Frankivsk, Kyiv, Lviv, Lutsk, Odessa, Ternopil, Vinnitsa, Zhytomyr Total EBRD MEI Portfolio:

â‚Ź 0.4 billion

418 16 75

Key Sectors:

357 10 80

Water and Wastewater

District Heating and Energy Efficiency

327 267

Urban Transport Portfolio

Pipeline

Financing Mechanism:

Long-term loans to municipal companies under municipal guarantees (sovereign guarantees for metro projects)

Procurement:

EBRD Procurement Policies and Rules

Pilot Biogas Project in Lviv Financing Structure

Total : € 31.5 million

EBRD – long-term loan with grace period NEFCO – long-term loan with grace period

5.0

E5P Fund – investment grant

7.5

Local financing – city and municipal

4.0

company

Investment Programme: •

Installation of biogas collection facilities/cogeneration units

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Rehabilitation of grit chambers at existing wastewater treatment plants

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15.0

Installation of a chemical precipitation plant

Key Benefits: •

Annual production of up to 39.4 GWh of electricity

•

Reduction of GHG emissions by 128,609 tonnes of СО2 per year

EBRD Ukraine – Agribusiness Sector Investments in Ukraine’s Agribusiness Sector •

Technical Cooperation and Advisory

EBRD is one of the largest investors in agribusiness sector of Ukraine with annual investments of up to €250m

•

Almost €440 m invested over 2014 and 2015

•

Strong support for Ukraine’s grain sector, up to 70 per cent of annual agribusiness investments in the country

•

•

13 active projects (10 national and 3 regional)

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Circa $4.5m of funding available

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Main areas:

As of March 2016, EBRD’s Agribusiness portfolio comprised 39 projects totaling around €700m in Ukraine

1995-2016: over € 2.1 billion invested

 Capacity building  Advisory  Policy dialogue and partnerships

Themes: Investment climate Policy environment Sustainability / inclusiveness Food Quality and Safety Production efficiency Regional integration Innovation

Case Study: Kischenzi (SME, Dutch owned) The Company:

The Project:

•

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US$ 5 million long term loan for modernisation of agri machinery park.

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The Loan is covered by a first loss guarantee from an EU grant under the DCFTA EU SME Direct Support Facility

•

The Facility is aimed at supporting SME competitiveness, ease their access to finance and new trade opportunities, and compliance with new food safety, technical and quality standards, as well as with environmental protection measures

Kischenzi was founded by Dutch farmer Kees Huizinga over a decade ago. Over the years, Kischenzi has evolved from a Soviet Kolkhoz into a large farm covering 15,000 hectares on the fertile black soil of Ukraine

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Kischenzi is based in the Cherkassy region of central Ukraine

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The Company is a diversified agricultural producer engaging in a variety of businesses from grain and vegetable production to dairy and pig farming

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Around 60 per cant of its output is exported to the European Union and other markets

5 April, 2016

6

Partnership with Wageningen University Educational project at University of Wageningen launched in December 2015 and Supported by the Netherlands Enterprise Agency Target audience: 80 private entrepreneurs operating in Ukraine and Western Balkans Purpose: share Dutch know-how, technologies and investment experience with agribusiness operators Focus of work in Ukraine: work with individual companies on

 upgrading food standards  to access advanced markets  adopt climate change mitigation adaptation technologies

Small Business Initiative: Planned actions under the EU4Business Partnering with business support institutions in 15 regions of Ukraine to create a network of Business Support Centres

Analyses for SMEs on market opportunities/website

Advisory projects Investment projects preparation

Awareness raising communications campaign

Trainings for consultants and SMEs

EBRD offices

Participation in exhibitions

Planned EBRD offices

Business Support Centres

EBRD Trade Facilitation Programme (TFP) Objectives: 

Help local banks in EBRD region to create track records with foreign correspondent banks



Fill the market gaps and provide continuity of support for trade



Strengthen the trade finance capabilities of local banks

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Support the development of factoring services

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Strengthen EBRD relationships with local banks, develop opportunities for further operations

Key tools: 

Guarantees that cover risks arising from trade finance transactions



Short-term loans to banks for trade finance purposes



Trade finance training and advisory service to local banks

EBRD Trade Facilitation Programme (TFP) Case Study • A Dutch exporter sells shipbuilding equipment to Ukraine • An Ukrainian Issuing Bank under the TFP opens a Letter of Credit to a Dutch Confirming Bank, payable in several instalments before, at and after delivery • EBRD guarantees up to 100% of the political and commercial payment risk Achievements so far in Ukraine Since its inception in 2001 the TFP has supported over 900 trade transactions worth over almost €2 billion in Ukraine Issuing Banks in Ukraine currently participating in the TFP •

Credit Agricole

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Megabank

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OTP Bank

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Raiffeisen Bank AVAL

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State Export Import Bank of Ukraine

EBRD: your partner for investment projects in Ukraine • Trading with Ukrainian firms • Developing Ukrainian market • Establishing local presence  Equity  Financing  Advice • Strengthening your relationship with authorities • Our strengths to make you stronger:  On-the-ground experience (80 people based in Kiev)  Wide sector experience  Risk appetite  Private sector focus EBRD: we invest in changing lives