0295b6d941da1bba1179c5295f3c5fef.ppt
- Количество слайдов: 34
European Bank for Reconstruction and Development Potential Co-Operation with European Commission in Western Balkans Brussels, 27 th January 2011
Structure of Presentation 1. Introduction to EBRD 2. EBRD and Agribusiness 3. Financing with EBRD 4. Possible routes of cooperation with EC on rural financing 5. Selected transactions in the region 6. EBRD contact
1. Introduction to EBRD
What is the EBRD? l l International financial institution owned by 61 countries and two inter-governmental institutions. Capital base of EUR 30 billion with capital increase approved in Zagreb in May 2010. Operates through the Head Office in London and Resident Offices in 30 countries of operation. Works in both the public and private sectors. Financing is provided directly or through financial intermediaries.
What are the EBRD’s objectives? l Support economic growth in its countries of operation. l Promote entrepreneurship, competition and privatisation. l l l Promote adoption of strong corporate governance, including environmental sensitivity. Promote foreign direct investment and mobilise domestic capital. Provide technical assistance.
EBRD’s cumulative investments amount to EUR 52. 7 billion up to the Sept 2010 Cumulative commitments (billions €) l l l Unaudited as at 30 September 2010 l The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. As of the end of September 2010, the Bank had cumulative commitments of € 52. 7 billion. Private sector > 76% of EBRD finance Debt 80%, Equity 20% of EBRD finance Investments in 2010 – EUR 9. 0 billion from EUR 7. 9 billion in 2009 2010 investments in WB – EUR 1 billion
EBRD Operations l l EBRD is providing financing to the local corporate companies through loan financing, equity and quasi-equity participations and guarantees. Also the Bank is providing loans for financing of industrial energy efficiency projects. Minimum financing of EUR 1 million. In response to the crisis, the Bank remains committed to: – support its existing private sector clients as well as to financing commercially viable private sector projects with both local and foreign investors; – provide long-term funding to local banks for on-lending to private SMEs; and – continue to provide financing for infrastructure projects in the transport, power and municipal sectors.
2. EBRD and Agribusiness
EBRD and Agribusiness Strategy • From 2000, the EBRD has invested EUR Downstream 6. 5 billion in over 422 projects in the Agribusiness sector. Agricultural inputs & production • 2010: 63 projects signed with EUR 836 million committed investments vs. 59 projects with EUR 639 million in 2009. • One of the largest sector teams within the EBRD with 33 bankers in London and Resident Offices accounting for around 40% of the projects in the EBRD’s corporate sector portfolio. • Client network of leading global and regional players. Upstream Primary & secondary processing Retail & Packaging & distribution Food Service • All activities along the food and drink production • • chain are included and rather focused on increasing demand than supply. Vertical approach addresses specific risks and features attached to agribusiness ventures. Downstream investments are mainly in vertical integrated companies with positive spill-over effects to primary agriculture. Indirect support to smaller farmers and food enterprises via SME credit lines. As a result, EBRD has a conservative approach towards direct land investments.
Important to maximise supply potential and identify bottlenecks along the entire food value chain Investments along the value chain Consumer Distribution Foodservice Seeds Farm Machinery Agricultural Chemicals Bio-tech Distributors/ Services Agricultural Inputs Grains Oilseeds Livestock Dairy Fish Production Edible oil Millers Malters Grain Handling Primary Processing Packaging Production Food Processors Glass Bottles/ Jars PET Bottles Cans Carton Containers Meats/Poultry Baked Goods Confectionery/ Snacks Beverages/Beer/Water Dairy/UHT/Cheeses Frozen Foods Fish Pet Food retailers Distributors Caterers Wholesale Markets
EBRD and Agribusiness: sector views Transition gaps in distribution and retail - Specialised distribution is underdeveloped - Rail infrastructure assets, esp. wagons, are rapildly depreciating Distribution Foodservice - Computerised logistics systems are still rare - Little know-how transfer from processers to independent distributors - Underdeveloped specialised wholesalers - Limited number of distribution centres Wholesale - Quality storage and wholesale is lacking - Little quality control on the wholesale level - Outside CEB competitive foreign retailing only exists in the capitals Retail - Retail hygiene and quality standards are very heterogeneous and lag behind international standards, especially in rural areas. - Computerised logistics is still not very widespread
EBRD and Agribusiness: sector views Potential responses Developing appropriate strategies in dealing with market challenges l l l Retail consolidation is happening but competition is healthy: higher competition in retail will create larger choices for suppliers and consumers. Regional expansion: higher growth opportunities in western Balkan countries including higher brand recognition then in the EU as well as understanding of consumer preferences – establishing early entrance – subsidiaries or JV. Strong processors are the key to a healthy sector; as they provide a sustainable market for agricultural products. A better legal and institutional framework is a must for farmers and processors to get the financing they need – as a result of EBRD – introduction of warehouse receipts financing.
EBRD and Agribusiness: sector views Recognised strategies of sub-sectors l Branded food and beverages producers with clear regional expansion strategies - l Growing local and international retailers - l Projects with: Somboled (Serbia), Tikves (FYR Macedonia), Zdravje Radovo (FYR Macedonia), Vitalia (FYR Macedonia) Marbo (Serbia), Grand (Serbia), Droga Kolinska (Slovenia), Stark (Serbia), Atlantic Group (Croatia), Agrokor (Croatia), Dukat (Croatia) Projects with Idea (Serbia), VF Komerc (Bosnia and Herzegovina), Kaufland (regional), Billa (regional) Processors such as edible oil, meat and juice producers - Projects with Victoria (Serbia), Boni (Bulgaria), Nectar (Serbia) l And most recently – Investments in primary agriculture (Agroinvest, Ukraine)
Western Balkans Agribusiness Strategy An overview l Western Balkans: important region for agribusiness. l Western Balkans made 13 % total agribusiness in 2010. l 10 transactions in 2010 and 13 in 2009 as a crisis tool. l l Trademark deals in 2010: Atlantic Group and WHR in Serbia In Turkey, the Bank had two projects in 2010: Noble Turkey and Ulker.
Agribusiness portfolio – Western Balkans Agribusiness team transactions in 2009 in cooperation with the EBRD offices in the region l l l Victoria Group (EUR 40 m, Serbia; agribusiness) l l Spar (EUR 25 m, Croatia; retail) Žitoluks (EUR 3. 7 m, FYR Macedonia; bakery) l Konzum Bi. H (EUR 50 m, Bi. H; retail) l l l Bimal (EUR 4 m, Bi. H; edible oil) l Zdravje (EUR 1 m, FYR Macedonia; dairy) l l l VF Komerc (EUR 1. 25 m, Bi. H; retail) Devolli (EUR 6 m, Serbia (Kosovo); food and beverage) Albi (EUR 5 m, Serbia (Kosovo); retail) Tikveš (EUR 2. 5 m, FYR Macedonia; wine) Mesopromet (EUR 2 m, Montenegro; meat processing) Voli (EUR 4 m, Montenegro; retail) Vitaminka (EUR 0. 8 m, FYR Macedonia; food)
Agribusiness portfolio – Western Balkans Agribusiness team transactions in 2010 in cooperation with the EBRD offices in the region l l l Atlantic Group Equity (EUR 27. 5 m, Croatia) Atlantic Group Debt (EUR 30 m, Croatia) Bingo (EUR 3. 7 m, Bi. H) l l l MIK Sveti Nikola (EUR 1. 6 m, FYR Macedonia) l Pestova (EUR 0. 5 m, Kosovo (under 1244)) l Societe Generale WHR (EUR 20 m, Serbia) Albi (EUR 1. 6 m, Kosovo (under 1244)) Haxhijaha (EUR 0. 9 m, Kosovo (under 1244)) Banca Intesa WHR (EUR 10 m, Serbia) CHS Regional facility (EUR 13. 4 m, Serbia)
Agribusiness Portfolio Serbia 2006 2008 2009 2010 Somboled EUR 10 m Victoria Group EUR 45 m Idea EUR 70 m Victoria Group EUR 40 m Societe Generale WHR EUR 20 m (cross border) Deals 2007 (working capital/EE) (restructuring / retail) (restructuring/ working capital) Banca Intesa WHR EUR 10 m Stark EUR 10 m (cross border) Mladost. Sid EUR 10 m (working capital) Total - # Nectar EUR 10 m (expansion) (commodity backed financing) Agroinvest EUR 10 m CHS EUR 13. 4 m (working capital) (cross-border) EUR 30 m EUR 65 m EUR 70 EUR 40 m EUR 43. 4 m 3 3 1 1 3
Agribusiness Portfolio Croatia 2006 2008 2009 2010 Agrokor EUR 110 m Getro EUR 28. 8 m Idea/Agrokor – EUR 70 m Spar EUR 25 m Atlantic Group EUR 27. 5 m (restructuring/ cross border) Deals 2007 (restructuring) (cross-border) Dukat/Somboled EUR 10 m (expansion) Konzum EUR 50 m (cross-border) (acquisition finance) (restructuring/ cross border) Total - # Atlantic Group EUR 30 m EUR 120 m EUR 28. 8 m EUR 70 m EUR 75 m EUR 57. 5 m 2 1 1 2 2
3. Financing with EBRD
The EBRD offers a variety of different financing instruments Loans l l l Equity Senior, subordinated, convertible l Long term l Working capital l Fixed / floating interest rates l Major (USD, EUR) and local currencies (e. g. Romania, Russia, Poland) Political risk guarantees Common / preferred shares Mezzanine financing Exclusively minority participations (up to 35%) “Portage Equity“ Syndication l In-house syndication unit l Lender of record l EBRD‘s Preferred creditor status attracts other financiers
EBRD financing requires careful upfront risk assessment and a clear investment strategy Financing requirements Ensure appropriate returns by carefully assessing the risks: Ø Management strength and strategy Ø Clear business plan and project costs Ø Transparency of operations Ø Disclosed identity of final shareholders and corporate structure Ø Identified and limited tax liability risk Ø Recourse to subsidiaries generating profits and holding assets How to obtain finance? Ø Provide EBRD with an overview of proposed investment Ø Commitment to cooperation § clarify role of EBRD § mandate to initiate transaction § mutual understanding of corporate integrity issues Ø Project / business plan, market analysis, strategy, ownership structure, financial analysis, risk assessment Ø Exit strategy
4. Possible routes of cooperation with EC on rural financing
How is EBRD assisting in development of rural areas l l l EBRD is not directly providing rural financing, but is dedicated to foster rural development and integration in its projects through its Transition impact is a compulsory element in each of the Bank’s projects It can be defined as: – Backward linkages with suppliers – Certain % of sales outside the capital/urban areas – Investments in rural areas – Demonstration effects – Increasing standards & workers trainings
How can EBRD assist in rural financing… l Even though EBRD is not providing rural financing directly, it can support rural financing through several channels: – Co-financing of CAPEX with EU grants as done in Romania and Bulgaria – Providing TC assistance to local companies – Helping in the projects preparation and implementation – Providing financing to local banks for this particular purpose – TAM/BAS programme l l By using TC granted by the donors, EBRD financed training program for cattle breeders in Ukraine with a goal to increase milk yields per cow. In order to enable farmers get easier access to financing, EBRD initiated introduction of WHR (Warehouse Receipt) in Serbia including the necessary legislation, trainings of officials and banks. Within the PHARE funding (succeeded by IPA), EBRD has provided financing to local banks in at the time accession countries which then on-lent the money. The final users were farmers and companies in rural areas. The banks/leasing companies were awarded % of performance fee depending on performance of their portfolio (% arrears)
… and what to focus on in the WB region l l High importance in providing assets/agricultural equipment in the region Focus on providing tangible assistance to final subborrowers not only banks/leasing companies, including cash incentives based on project completion as per prior agreed criteria Start with one country and than roll it over in others EBRD has prepared framework for 2011 for supporting SME in improving their competitiveness (all sectors, not agri only). First potential projects from Croatia and Serbia
… and what to focus on in the WB region l l Agribusiness is a very important sector for the region – especially in rural areas CPR and WHR (pre-harvest and post-harvest financing) Support to processors that will lead to backwards linkages (dairy, edible oil, meat, juice…) Lack of agronomists & relevant experts across the agribusiness value chain, problem in primary agriculture is evident through substantially lower yields
5. Selected transactions in the region
Selected transactions Agrokor (Croatia) l l Agrokor is the biggest food manufacturer and retailer in Croatia and the largest food group in the region with sales of EUR 3. 75 bn in 2008. 2006: the Bank provided EUR 110 million financing through an equity investment representing 8. 3% of the Company. 2008: syndicated loan to Serbian retail subsidiary Idea of EUR 70 m, out of which EUR 35 m by EBRD. 2009: syndicated loan to Bosnian subsidiary Konzum of EUR 50 m, out of which EUR 25 m by the EBRD.
Selected transactions Atlantic Grupa (Croatia) l l Atlantic Grupa d. d. is a leading Croatian company engaged in the production, development and distribution of fast-moving consumer goods in Croatia and the Western Balkans region. In July 2010, the Bank approved total financing of EUR 70 million out of which EUR 30 million through participating in the capital increase and the remaining EUR 40 million through subordinated debt facility. The funds are used for the purchase of the Slovenian conglomerate Droga Kolinska. In this way Atlantic Grupa became one of the biggest food producers in the South-eastern Europe.
Selected transactions Victoria Group (Serbia) l l l Victoria Group, the largest vertically integrated agribusiness processor in Serbia with combined annual crushing capacity of close to 500, 000 t of soybeans/sunflower with sales > EUR 300 m in 2008: the Bank provided EUR 45 m syndicated working capital loan collateralized by agricultural commodities to edible oil subsidiaries of Victoria Group, Sojaprotein and Victoria Oil, to secure sunflower seeds and soybeans and EUR 5 m for energy efficiency investments. 2009: the Bank invested EUR 40 m equity to improve corporate governance, buy seeds and reduce debt.
Selected transactions Nectar (Serbia) l l l Nectar is the leading producer of non-alcoholic beverages in Serbia with the 2009 revenues of EUR 57 and is one of the biggest juice producers in the Western Balkans. At the end of 2007, the Bank provided longterm loan in the amount of EUR 10 million for expansion of the operations in Serbia and neighbouring countries, development of the new brands in its product portfolio as well as distribution network expansion. Among other, the Company used the funds to launch two lines of new value-added juices and accompanying marketing campaign.
Selected transactions Marbo (Serbia) l l l Marbo is the biggest chips and snacks producer in South-eastern Europe with strong market presence in all countries in the region and production capacities in Serbia and Montenegro. In March 2003, EBRD approved long-term loan in the amount of EUR 10 million to be used for expansion of the production capacities and widening of the product portfolio through new brand development. After the completion of the investment program and expansion, in March 2008 Marbo was bought by Pepsi. Co.
Contact Miljan Ždrale Principal Banker Agribusiness Team Tel. : +44 207 338 6000 Fax: + 44 207 338 6109 zdralem@ebrd. com
0295b6d941da1bba1179c5295f3c5fef.ppt