EBRD: Financing opportunities for Natural Resources projects in Central Asia MINEX Central Asia 2015, Astana, Kazakhstan 19 March 2015

Agenda What is EBRD EBRD in Central Asia Energy and Natural Resources, Russia and Central Asia team EBRD goals The New Subsoil Use Code EBRD products and approval process

EBRD in numbers €95bn invested since 1991 4,188 projects What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts €95bn invested since 1991 4,188 projects €38,7bn portfolio in 2014 85% debt and 10% equity and guarantee 5% 70% of portfolio in the private sector in 2014 €8.6bn invested in 2014 377 projects signed in 2014 AAA/Aaa rated institution

38 offices and 34 countries. Half of banking team in the region. Where do we operate? What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts 38 offices and 34 countries. Half of banking team in the region.

Present in Central Asia since 1993 What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts Portfolio Composition Presence on the ground 6 offices Number of projects to date 547 Net cumulative Bank investment €9,178*m Portfolio €3,263*m Operating assets €2,248*m Private share of portfolio 59% Number of projects in 2014 71 Annual Bank Investment in 2014 €803*m * data for January 2015 Annual Bank Investment & Operations © European Bank for Reconstruction and Development

ERCA: Dedicated sector approach and multidisciplinary teams What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts Key sectors O&G extraction, transportation, refining Mining & Services Power Our Team 11 professional bankers focused on Russia and Central Asia Permanent presence in: Almaty, Astana, London, Moscow Technical expertise through in-house engineers Power, petroleum, downstream, mining engineers

EBRD goals What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts Support of the private sector and transition to market economy Environmental and Social Policy plays a crucial role (IED, BAT) Energy, Resource and Material Efficiency, helping companies to advance on the cost curves Supporting transparency in the sector (e.g. EITI, PWYP) Attraction of other lenders and third party finance Regulatory best practices Long-term agenda to reduce GHG emissions through market based mechanisms, Gas Flaring Reduction

The New Subsoil Use Code What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts The Bank is engaged with the Government, industry associations and companies to develop a new Subsoil Use Code. The new Subsoil Code will regulate all operations covering exploration and production activities for oil, gas, metals and commonly occurring mineral resources. Ministerial Working Group. The Bank invited as a participant to focus on: Preparation of the plan for transfer from the Soviet GKZ reserves and resources evaluation standards to internationally recognised standards; Improvement of HSE regulations in subsoil use; Improvement of administration of the subsoil use contract and decreasing the level of Government regulation in the subsoil sector. What would help to make projects bankable: Guaranteed transition from exploration into production stage Subsoil users shall have more freedom in making investment and engineering decisions when the Government would focus on HSE and social aspects of the project Introduction of international standards, including reserve and resources evaluation standards Possibility to pledge subsoil use contract to banks Tax incentives to early stage prospecting or exploration projects

Market conditions and trends in financing What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts Price dynamics of certain commodities New asset development This type of investment project is very rare in the current market conditions and availability of investments Modernisation and improvements of an existing asset The companies are interested in improvements of existing assets to reduce cost base (cost curve) and increase efficiency of operations: investments in new mining equipment; energy efficiency and increased production efficiencies at processing and metallurgical stages, EHS aspects, etc.

EBRD Product Flexibility and Approval process What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts Loans Equity Project-based financing to public or privately-owned companies and concessionaries Senior, subordinated, convertible LT (up to 10 years or more) or ST revolving Floating / Fixed rates. Choice of currencies (€, $, KZT) Possibility to structure A/B financings and syndicate to market Common stock or preferred Minority position only (up to 35%) Mezzanine Other Partial guarantees Currency swaps Bonds TCs and facilities Approval Process Concept Review Structure Review Final Review Board Approval Signature Due Diligence Technical/Commercial feasibility Final negotiation

Contacts Aida Sitdikova Yerlan Ramazanov What is EBRD EBRD in Central Asia ERCA team EBRD goals Subsoil Use Code Project Support Instruments Contacts For all further enquiries, please contact: Aida Sitdikova Director Energy & Natural Resources Russia & Central Asia Tel: +7 495 787 1111 (ext. 103) Email: SitdikoA@ebrd.com Yerlan Ramazanov Principal Banker +7 7172 580 204 (ext. 113) Email: RamazanY@ebrd.com EBRD, One Exchange Square London, EC2A 2JN United Kingdom www.ebrd.com