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

2. 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

3. 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

4. 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.

5. 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
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
Annual Bank Investment in 2014 €803*m
* data for January 2015
Annual Bank Investment & Operations
© European Bank for Reconstruction and Development

6. 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

7. 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

8. 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

9. 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.

10. 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

11. 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: (ext. 103)
Yerlan Ramazanov
Principal Banker
(ext. 113)
EBRD, One Exchange Square London, EC2A 2JN United Kingdom