EBRD – a quarter century of

successful investments in Ukraine

30 March 2016

Francis Malige, Managing Director, Eastern Europe and Caucasus

Financial

Institutions

33%

Agribusiness

17%Transport

14%

Manufacturing and

Services

11%

Power and Energy

12%

Municipal

& Env. Inf.

5%

Natural Resources

3%

Equity Funds

2%

ICT

2%

Property and

Tourism

1%

EBRD in Ukraine:

355 projects worth €12 billion

Loans,

93%

Equity,

7%

Private

sector

72%

Public

sector

28%

Cumulative business investment since inception of operations in Ukraine

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: € 0.4 billion

Key Sectors:

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

Procurement: EBRD Procurement Policies and Rules

327267

75

80

16

10

Portfolio Pipeline

Water and Wastewater

District Heating and Energy Efficiency

Urban Transport

357

418

Pilot Biogas Project in Lviv

Financing Structure Total : € 31.5 million

EBRD – long-term loan with grace period 15.0

NEFCO – long-term loan with grace period 5.0

E5P Fund – investment grant 7.5

Local financing – city and municipal

company

4.0

Investment Programme:

• Installation of biogas collection facilities/cogeneration units

• Rehabilitation of grit chambers at existing wastewater

treatment plants

• 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

• 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

• As of March 2016, EBRD’s Agribusiness

portfolio comprised 39 projects totaling

around €700m in Ukraine

1995-2016:

over

€ 2.1 billion

invested

Technical Cooperation and Advisory

• 13 active projects (10 national and 3

regional)

• Circa $4.5m of funding available

• Main areas:

Capacity building

Advisory

Policy dialogue and partnerships

Themes:

Investment climate

Policy environment

Sustainability / inclusiveness

Food Quality and Safety

Production efficiency

Regional integration

Innovation

5 April, 2016 6

Case Study: Kischenzi (SME, Dutch owned)

The Company:

• 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

• Kischenzi is based in the Cherkassy region

of central Ukraine

• The Company is a diversified agricultural

producer engaging in a variety of businesses

from grain and vegetable production to

dairy and pig farming

• Around 60 per cant of its output is exported

to the European Union and other markets

The Project:

• US$ 5 million long term loan for modernisation

of agri machinery park.

• 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

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

EBRD offices Planned EBRD offices Business Support Centres

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

Advisory projects

Investment

projects

preparation

Trainings for

consultants and

SMEs Participation in

exhibitions

Awareness raising

communications

campaign

Analyses for SMEs

on market

opportunities/website

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

Support the development of factoring services

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

• Megabank

• OTP Bank

• Raiffeisen Bank AVAL

• 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