1. Financing Opportunities through the EBRD

2. What is the EBRD?

3. International financial institution, owned by 60 countries and two inter- governmental institutions Promotes transition to market-based economies in 27 countries from central Europe to central Asia AAA Institution/Capital base of € 20 billion Cumulative commitments € 22.7 billion

4. A network of 32 offices in 27 countries

5. What EBRD Delivers Strong Partner - EBRD Mandate –Support transition to market-based economies through private/entrepreneurial initiative –Improve investment climate –Promote good corporate governance –Encourage environmentally sound and sustainable development

6. What EBRD Delivers EBRD investments have attracted an additional € 47 billion from domestic and foreign investors The EBRD uses donor funding to assist project preparation and catalyse foreign investment Cumulative additional funds mobilised € 45.8 billion

7. Varied Financing Instruments Loans Loan Syndications (A/B structures) Equity investments (straight / portage) Partial Risk Guarantee Specified Event Guarantee Lengthening maturity of debt Mezzanine / subordinated debt

8. EBRD risk profile Takes political risks Shares financial risks Takes long maturity Shares equity risk Have sound management Take operational risks EBRDSponsors

9. EBRD in Romania

10. Sector Distribution of EBRD Portfolio in Romania € 2.4 billion across more than 100 projects

11. Success through Partnerships in Romania

12. Selected Transactions in Romania Total commitments in Romania € 2.4 billion over more than 100 projects ClientAmountType of Financing (Eur m) BCR163Debt and pre-privatisation equity Danone7Equity: regional multi project facility Lafarge70Equity: regional multi project facility LNM Holdings: Sidex84Debt: post-privatisation Michelin25Equity Petrom84Debt: pre-privatisation Romanian Development Bank65 Debt and equity: privatisation to Societe Generale Terapia4Equity United Romanian Breweries28Debt Victoria Office Building5Debt Wienerberger2Equity: regional multi project facility

13. EBRD Financing Guidelines

14. EBRD Direct Investment Guidelines Investments with strategic investors with proven sector experience. Maximum project exposure of 35% of total project cost. Minimum project exposure of €8 million when debt is sought and €5 million in the case of equity investments. Debt: no more than two thirds debt to one third equity. Equity: contribution may be in-kind (equipment, plant, and machinery) or cash.

15. Advantages of EBRD involvement Extensive knowledge of the country and business climate. DEBT Long maturity periods of up to 12 years. Private sector projects usually up to 8 years with 2 years grace period. Availability of financing for working capital. EQUITY Long term partner committed to the country, its lasting development and prosperity. Substantial political and investor influence in Romania.

16. EBRD Strategic Priorities

17. The Challenges Ahead for the EBRD To increase the depth and quality of financing available for the private industrial sector in Romania. To contribute to the further growth of foreign direct investment with strategic partners. To extend the coverage of financing for SMEs. To meet the growing demand of financing for infrastructure projects with preference for private infrastructure projects (concessions, BOT schemes). To promote the development of the non-banking financial sector (leasing, mortgage, insurance, pensions, equity).

18. EBRD Strategic Priorities for 2004 Infrastructure development including privatization /commercialization of public utilities in the energy and transport sectors; co-financing with EU pre-accession funds. Private sector development, including improvement of investment climate, level playing conditions, completion of privatization. Further strengthening of the financial sector (including non-banking) and SMEs.

19. Contact Information James Hyslop; Deputy Head of Office EBRD Romania; Gina Patrichi 8; Sector 1; Bucharest +40 21 202 7100