# Presentation: 139129

## Opportunities for U.S. Companies Sanford Owens, Senior Commercial OfficerUS Commercial Service-EBRD Liaison OfficeTrade Winds Europe Finance Panel  Istanbul, Turkey: April 14, 2008

**Doing Business with the EBRD**

**Notes:**
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## What is the EBRD?

**AAA-rated international financial institution founded in 1991, owned by 61 national and two inter-governmental institutions**
**EBRD, promotes transition to market economies in 29 countries from Baltics to  Mongolia**
**The largest lender and private equity investor with EUR 20 billion capital base**

## Committed and Growing

- > EUR 36.9 billion in more than 2,500 projects
- Private sector > 80%
- Debt 77%, equity 23% of portfolio

*Cumulative commitments EUR 36.9 billion*

## A large field network

**29 Countries**
**33 Offices**

## EBRD objectives:

**Promoting transition~ to market economies by investing mainly in the private sector**
**Additionality~financing projects which would not be funded by commercial banks**
**Sound banking principals~ supports privatization, restructuring and municipal services to improve people’s lives**
**Sustainability~ensuring environmentally sound and sustainable development**

## Key Industries

## EBRD Financing instruments

**Equity**

**Loans **

**Guarantees**

**Senior, subordinated, convertible**
**LT (up to 10y or more) or  ST revolving**
**Floating/ fixed rates**
**Choice of currency**
**Syndication possible for large amounts**

**Common stock or preferred **
**Minority position only (up to 35%)**
**Mezzanine debt**

**of specific risk (i.e. political)**
**Commodity-backed  instruments**
**Trade facilitation program (with participation of local banks)**

**Notes:**
EBRD offers a full range of financial products.
Guarantees include: 1) political risk (war, unfair tax, discriminatory treatment) on Bank loans / equity. 2)  Credit enhancement (guarantee to purchase commerical paper)  and  3) TFP with number of Banks.
Loans -  all types of loans, different level of recourse, currency and tenor.
Equity - full range of equity with emphasis on quasi-equity products.

## Working with the EBRD

**The EBRD works with U.S. companies in three ways:**
** **
**Borrowers/ investors in private sector projects **
**2) Suppliers of equipment, works, and services on Bank financed public sector projects**
**3) Consultants under the Bank's Technical Cooperation program and Bank financed projects**

## Procurement Opportunities 

-  3 types of opportunities:
- Banks’ own procurement
- Technical Assistance Consultancies
- Bank-funded project procurements
- Competitive bidding conducted by borrower  and overseen by the MDBs
- Visit bank websites for tender notifications and details

## Trade Facilitation Program – How does it work?

**EBRD supports trade by providing**
- guarantees that cover risks arising from trade 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

## TFP – Guarantee Transaction

- 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 exporter (“Confirming Bank”)
- The trade finance instrument (e.g. L/C) ensures that the exporter receives payment upon or after delivery
- EBRD Guarantee covers payment risks of the Issuing Bank to the Confirming Bank

## Instruction for Exporters & Importers

- Check under  www.ebrd.com/tfp, for which Issuing Banks and tenors the EBRD guarantees payment;
- Ask your buyers/suppliers to check if an Issuing Bank under the TFP would be ready to issue the required trade finance instrument;
- Ask a Confirming Bank of your choice to confirm the payment instrument under the guarantee of EBRD

## Slide 13

## Contact Information: 

**Sanford Owens, Senior Commercial Officer**
** ****U.S. Commercial Liaison/Advocacy Center - EBRD**
**One Exchange Square**
**London, EC2A 2JN**
**Tel: +44 20 7588 8490  Fax: +44 20 7588 8443**
**Email: **_[Sanford.Owens@mail.doc.](mailto:Sanford.Owens@mail.doc.gov)__[gov](mailto:Sanford.Owens@mail.doc.gov)_
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**Websites:  **_[www.](http://www.buyusa.gov/ebrd)__[buyusa](http://www.buyusa.gov/ebrd)__[.](http://www.buyusa.gov/ebrd)__[gov](http://www.buyusa.gov/ebrd)__[/](http://www.buyusa.gov/ebrd)__[ebrd](http://www.buyusa.gov/ebrd)_
- 	          _**www.ebrd.com**_