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EBRD in Bosnia and

Herzegovina
November 2015

What is the EBRD?

International financial institution,
promotes transition to market
economies in 35 countries from
central Europe to central Asia
In 2011, the Bank expanded its
operations to include Egypt,
Morocco, Tunisia and Jordan
(Southern and Eastern
Mediterranean – SEMED region)
In 2014, the EBRD welcomed
Cyprus and Libya as a recipient
country and member respectively.
Owned by 65* countries and two
inter-governmental institutions
Capital base of €30 billion
*Libya is yet to become a fully ratified member of
the EBRD
3/18/16

Cumulative business volume of
€95.3 billion as at end of 2014
100
90
80
70
60
€ Billion
50
40
30
20
10
0
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Note:
Note: Unaudited
Unaudited as
as at
at 31
31 December
December 2013
2013
2

Where we invest 3/18/16 3 .

000 projects since 1991 10.000 400 8.000 • Private sector accounted for 70% share 3.85 billion invested in 377 projects 5.000 50 1.EBRD’s objectives achieved through financing the private sector Triple-A rated multilateral development bank Invested nearly €100 billion in more than 4.000 Results in 2014: 6.000 450 9.000 150 100 2.000 350 7.000 300 250 200 4.000 Note: as at 31 December 2014 0 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 ABI (reported rate) Number of operations (#) 3/18/16 4 .000 • €8.

7 billion. • Plan to disburse close to EUR 100 million 3/18/16 5 .EBRD is a major investor in BiH EBRD engagement in BiH since August 1996: • EBRD signed 119 projects with cumulative business volume of EUR 1. In 2015: • Working on a number of projects totaling approximately EUR 150 million. • Mobilised co-financing of EUR 2.1 billion.

convertible • Minority position only (up to 35%) • LT (up to 10y or more) or ST revolving • Mezzanine • Floating/ Fixed rates • Other • Choice of currencies (€.) • guarantees • currency swaps 3/18/16 6 . US$. RUB etc. subordinated.EBRD Financing of Private Sector Equity Loans • Common stock or preferred • Senior.

February 14 7 . • In Jan-2012. Bingo is the most important locallyowned retail company in the country.5m senior loan under LEF (EUR 650ths IISF funds) to support the expansion of the regional network in BiH.Case Study: BINGO Company Information • Est. in 1993 by Mr.6 for further expansion retail network in Bosnia and Herzegovina (acquisition of selected TUS stores) and energy efficiency improvements of its outlets. EBRD and Bingo signed a loan of up to €30. operating over 140 stores First project signed in 2010 EBRD Finance • EUR 6. Senad Dzambic. the Bank signed EUR 5.4m under WeBSEDFF (EE investments in a subsidiary) and • In Apr-2013 additional EUR 17m loan (expansion of the retail network and building EE cooling chambers) • In June 2015.

• EUR 6m under WeBSEDFF and EUR4m under LEF for the construction of a biomass-fired boiler (6. EBRD Finance • In 2006 the Bank provided EUR 11m to finance CAPEX. In 2011 the Bank provided additional EUR 11m for long term W/C. Rare example of a successful privatization and significant FDI in BiH’s. Both loans are fully disbursed (outstanding EUR 8.9m).11% ).Case Study: Natron Hayat Company Information • Leading medium size integrated pulp and paper producer in the region of WB.7 Mwe) net for sale to the national grid as a qualified RES generator. February 14 8 . • Owned by Kastamonu Entegre Agac Sanayi ve Ticaret (49.11%) and Hayat Kimya Sanayi Anonimi Sirketi (49.

Canton Municipality • Commercial terms (possible longer maturity than market) Corporate: • Unsecured loans to public companies • Commercial terms (possible longer maturity than market) . margin 1% Sub-sovereign: • Lending to. Entity.EBRD Financing of Public Sector Sovereign / Sovereign Guaranteed Loans: • Max 15 years include grace. or under guarantee from.

no “soft loans” • Main shareholder has substantial money at risk before EBRD • Small size (<€5m for EBRD) is difficult directly from EBRD but special facilities are available (MSME financing products) • Compliance over time with EU environmental standards 3/18/16 10 .Project Criteria for EBRD Involvement • The operation is located in our countries of operation • Investments have beneficial effect on local economy • We are not “crowding out” private money (Additionality) • The Project makes economic sense .

Case Study: Corridor Vc 2008: Loan of EUR 180 m for construction of priority motorway sections of TransEuropean Corridor Vc through Bosnia and Herzegovina. Parallel (possible longer maturity than market) financing provided by EIB. 2013: Loan increase of EUR 25 million for two sub-sections of the motorway. 2015: New project under preparation in the amount of EUR 60 million for two sections: Pocitelj – Buna and Zenica .

5m from EU and Sida. 12 . Grant co-financing of EUR 10.Case Study: Bijeljina Water and Wastewater Project 2007: EUR 7m loan to help finance construction of a waste water network and reconstruction of water supply network. 2010: Additional EUR 5m loan for the construction of a wastewater treatment plant and the expansion of the wastewater collection network.

Bosnia and Herzegovina Small Business Financing Products 1 Sustainable Energy Financing • Renewable energy and energy efficiency projects • EBRD financing EUR 2 to EUR 6 million (representing max 70% of total project costs) • Potential 10% incentive (possible longer maturity than market) upon project completion • Commercial terms .

Bosnia and Herzegovina Small Business Financing Products 2 DFF . including acquisitions. working capital. expansion. pre.Investment horizon – 3 to 10 years . balance sheet restructuring and refinancing .Technical Cooperation funds available for project development.and post-investment technical assistance .Capex.SMEs companies .Projects up to EUR 10.Debt .Direct Financing Facility .0 million .

2m) existing loan refinance under LEF after successful equity investment (IRR of 16%).JAMI/VF Komerc JAMI VF Komerc Company Information Company Information • Est. • Senior long term loan EUR 1m (EUR 100ths from IISF) signed in 2012. The proceeds of the loan were used for: • the expansion of warehouse capacities including energy efficiency improvements • technical improvements on production lines • working capital financing February 14 15 . the Company has rapidly became one of the leaders in pastry and frozen foods production in BiH. EBRD Finance EBRD Finance • EUR 4m (IISF EUR 1. in 1989 as a small privately owned trading company. Proceeds were used for balance sheet restructuring. in 2005 as a greenfield operation. • Est. Current focus is on property management.

Technical Cooperation funds provided by the project preparation.a venture capital fund focusing on seed capital and early stage equity investments in innovative SMEs .Investment horizon – 3 to 10 years .Quasi equity investments tailor made to suit company needs (convertible loans.Direct Financing Facility . subordinated loans etc) .Projects up to EUR 10.Target Stake for equity investments: 20 to 35% of the capital of the company.ENIF .High growth SMEs: expansion.and postinvestment technical assistance .Bosnia and Herzegovina Small Business Financing Products 3 DFF .ENEF . pre.Quasi equity and equity .0 million .a private equity fund focusing on providing expansion capital to high growth SMEs . . restructuring or acquisitions of existing private businesses .

companies incorporated in Countries of Operations.For risk management and capital relief purposes . or incorporated outside.0 million . with local presence in these jurisdictions .Bosnia and Herzegovina Small Business Financing Products 4 RSF – Risk Sharing Facility .Investment horizon – up to 10 years .Banks and leasing companies.Up to EUR 10.

0 million) (possible longer maturity than market) • Loan decisions are made by the Partner Banks . microcredit institutions. leasing companies. funds • Commercial terms • Smaller size (up to EUR 2.Bosnia and Herzegovina Small Business Financing Products 5 FIF – Financial Intermediaries Framework • Banks.

23%) EBRD Finance • Senior loan in the amount of EUR 4 million (inc. EUR 500ths IISF) for on-lending to micro and small enterprises (MSEs) February 14 19 .MF Banka Signed in 2012 Company Information • Bought by Mikrofin LLC in 2010 as part of pioneering strategy to transform from an established NGO. into a full service bank • Owned by Mikrofin LLC (99.

raise corporate governance standards. ‒ Local consultants with proven track record in all areas of advice: from strategy to marketing. support companies in developing and adapting strategies. we provide opportunities to work with an international adviser who brings experience gained in the same . • Assist companies to introduce International Financial Reporting Standards and raise standards of financial management.EBRD Small Business Support (BAS & EGP) • Build up managerial capacity. • Assist companies to introduce/acquire new technologies and processes to ensure meeting ambitious growth plans. ‒ For businesses looking to compete internationally. EBRD contribution is 50% of the cost. from operations to energy efficiency and more.

EBRD Small Business Support – Women in Business Programme .

Social Welfare and Pension Reform WB 6. Rule of Law and Good Governance EU 5. with a ‘Lead IFI’ for each area: 1. Public Administration Reform EU EBRD & . Labour Market IMF &WB IMF&WB 3. Public Finance and Taxation 2.The Reform Agenda for BiH Reform Agenda has six subject areas. The Business Climate and Competitiveness IFC 4.

Implementation plans (‘Action Plans’) have been developed with details of laws to be drafted.The Reform Agenda for BiH The Reform Agenda is divided between actions that fall within the competance of the Council of Ministers (State) and those under the FBIH. and RS – ie there are 3 Reform Agendas. and by when In the area of Business Climate and Competitiveness (where EBRD has the lead) the actions agreed include: FBIH: • Restructuring programme for mines and railways • Privatisation of companies with a minority share of the FBIH Gov RS: • Programme for restructuring loss making public enterprises and privatisation • Restructuring programme for RS Railways . who is responsible.

EC2A 2JN United Kingdom www.com EBRD.com 3/18/16 21 . One Exchange Square London.Contacts For all further enquiries. please contact: Ian Brown Head of Office EBRD Bosnia and Herzegovina Tel: + 387 33 257 900 Email: browni@ebrd.ebrd.