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EurOrient Financial Group Mission
1. Discover the EurOrient Financial
Group
2. Contents
What is the EurOrient Financial Group?...............................................................................................3
Our Challenge………………………………………………………..………………………..6
What is Finance for Development?.........................................................................................................7
What are the Millennium Development Goals?....................................................................................9
EurOrient Financial Group on Development………………………….……………………..11
The Role of the EurOrient Financial Group in a Changing World…………………………...12
Our Work…………………………………………………………………….……………....13
What we do?..............................................................................................................................................15
Where do we invest?................................................................................................................................17
What is our source of funds?..................................................................................................................19
How we do it?...........................................................................................................................................22
Our defining characteristic…………………………………………………………………...24
The EurOrient Financial Group - client relationship…………………………………………27
3.
- What is the EurOrient Financial Group?
“EurOrient Financial Group is the world’s first private-sector
global development finance institution and the only development
agency with a global charter to invest in both public as well the
private sector.”
We live in a world so rich that global income is more than $31 trillion a year. In this world, the
average person in some countries earns more than $40,000 a year. But in this same world, 2.8 billion
people—more than half the people in developing countries—live on less than $700 a year. Of these,
1.2 billion earn less than $1 a day.
As a result, 33,000 children die every day in developing countries. In these countries, each minute
more than one woman dies during childbirth. Poverty keeps more than 100 million children, most of
them girls, out of school.
The challenge of reducing these levels of poverty, while the population continues to grow—by an
estimated 3 billion people over the next 50 years—is enormous.
EurOrient Financial Group (“EurOrient” or the “Group”) is the world's first private sector global
development financial institution. EurOrient's mission is to mobilize financial, technical and human
resources for the benefit of developing economies seeking sustainable economic development and
poverty reduction. It provides debt and equity and equity like financing, policy advice and technical
assistance. EurOrient Financial Group today consists
of five jointly-owned financial institutions with a
common mission and distinct mandates towards its
fulfillment.
The EurOrient's principal objective is to reduce
poverty and promote sustainable economic growth.
EurOrient Financial Group invest in projects and
programs that promote social development, build
human capacities, and address host government
4. priorities for investments in physical infrastructure that also enhances social development. These
projects include roads, transportation and communication systems, water, sanitation and other types
of investments with social development outcomes such as improved quality of life and increased
human knowledge and skills.
Founded in 1988, since its formation, EurOrient Financial Group has dedicated its resources to
provide financing and technical assistance to project sponsors, suppliers, government and other
bidding consortia in structuring and implementing financial transactions for major international
public, project and corporate financing ventures. EurOrient finances investments with its own
resources and by mobilizing capital in the international capital markets.
Not a bank, but rather a specialized agency. The EurOrient Financial Group is not a “bank” in
the common sense, but rather a specialized agency. EurOrient is a private sector global development
financial institution accredited by the United
Nations General Assembly on Financing for
Development. Our mission is to support the
economic and social development efforts of
the less developed countries as they, in
particular, seek to achieve the Millennium
Development Goals ("MDGs").
The EurOrient Financial Group is
transforming from a relatively
straightforward project financier institution
into a full-fledged private sector global
development bank responding to a wide
range of development needs. As the needs
of the developing countries continue to
implement economic reforms; as their needs for infrastructure, human resources, and new
technology grow; as investments in environmental protection become more pressing; and as
socioeconomic concerns like poverty, education, health and population, water supply and sanitation,
and urban development and housing become more urgent, the EurOrient faces increasing demands
on its assistance and services.
The EurOrient's way of operating has changed over the years and has undergone rapid change since
the beginning of the 1988s as it has sought to adapt to the changing needs of emerging countries
and economies in transitions in a globalized world economy. Most recently, the EurOrient's
Chairman of the Board of directors, Mr. Ron Nechemia, has launched an ambitious reform agenda,
aimed at increasing the EurOrient's development effectiveness in four priority and related areas:
refueling current business activities; refocusing the development agenda; retooling the EurOrient's
knowledge base; and revamping institutional priorities.
The EurOrient name draws inspiration from a ring, which has been used cross-culturally for
thousands of years as a symbol of partnership and commitment. The ring serves as a connector, a
bridge between the Eastern and the Western cultures with the rest of the world “This represents our
underlying brand values of trust, enduring partnerships for development and fruitful relationships”,
5. explains Mr. Ron Nechemia, the founder of EurOrient Financial group and the founding father of
private sector development banking. “We see ourselves as international public servants, we seek to
form relationships and partnerships based on integrity and trust wherein we can provide innovative
services reflecting our commitment to support a wide range of developing countries’ needs at all
stages of development”.
EurOrient Financial Group employs people from every region of the world. While our employment
diversity initiatives are well-established in its global context, EurOrient aims to achieve employment
diversity to the extent that our development professionals are representatives from nearly every
country in the world working in the EurOrient's Los Angeles headquarters or in its country offices.
6. - Our Challenge
At the EurOrient Financial Group (“EurOrient” or the “Group”) we have made the world's
challenge—to reduce global poverty—our challenge and global agenda is our agenda.
The EurOrient Financial Group focuses on achievement of the Millennium Development Goals
that call for the elimination of poverty and sustained development. The goals provide us with targets
and yardsticks for measuring results.
Our mission is to support the economic and social development efforts of the less developed
countries as they, in particular, seek to
achieve the Millennium Development
Goals ("MDGs").
EurOrient Financial Group aims at
delivering its strategic agenda through
a selective, planned, country-focused,
and technically viable program of
assistance to the benefit of the
developing nations. The overall
strategic approach of EurOrient is
determined by its long-term strategic
framework, the medium-term strategy,
and the poverty reduction strategy;
and its strategic priorities take into A group photo of the High-level Plenary Meeting of the
consideration global and Sixtieth Session of the General Assembly (2005 World
internationally accepted perspectives Summit). The World Summit, being held from 14 to 16
and goals. September 2005, is the largest gathering of world leaders
in history.
The overarching goal, strategic
objectives, and operational themes
and priorities of EurOrient Financial Group are translated into an individual Country Investment
Strategy and Program (CISP) for each developing nation through the planning and programming
cycle. The elements used for this translation are:
(i) clear linkage between the individual Country Investment Strategy and Program and
EurOrient Financial Group’s strategic priorities and objectives, and alignment with
the long-term strategic framework, the medium-term strategy, and the poverty
reduction strategy;
(ii) economic, thematic, and sector assessments of the emerging economies and
economies in transitions;
(iii) strategic, thematic, and sector focus, and selectivity for investment programs; and
(iv) The EurOrient Financial Group thematic product will invest in securities based on
national themes and is designed to identify longer-term trends in the marketplace
7. and to mobilize capital, human resources and technology for the benefit the
individual investment selection.
8. - What is Finance for Development?
“…..infrastructure development in emerging markets continues to expect significant long-
term financing needs estimated at $21 trillion for 2008-2017.”
Most of the world's nations lack investment funds that could promote economic development –
funds needed to build roads, schools, clinics and factories. As a result, their economies languish and
their populations remain poor.
EurOrient Financial Group (“EurOrient” or the “Group”) is committed to sustainable and equitable
development of developing economies. EurOrient shares the widely held belief that substantial
foreign direct investment is needed to boost development in developing countries. “The World Bank,
for instance, in 2000 suggested that Infrastructure funding gaps in developing economies are staggering. Africa faces an
infrastructure financing gap of US$35 billion per year (World Bank, 2008). For Asia, it is estimated that the total
infrastructure financing gap averaged around USD420 billion per year over the period of 2006-2015...” EurOrient
strongly believes, however, that debt or equity financial resources alone are insufficient to support
development. Well-trained and healthy human capital, technology and knowledge transfer,
institutional strengthening, equal access to the international marketplace and the discipline and
balance of public-private development partnerships must also be available in order for emerging
societies to be truly transformed.
For developing countries, higher growth often translates into reduced poverty, better education and
health care, and greater economic
opportunity. That growth, in turn, depends on
cost-effectively built and efficiently managed
modern infrastructure. Without adequate
roads and ports to link towns and continents,
stable energy production to power factories
and sewage systems, clean water and effective
sanitation services to help lower health care
costs and improve the quality of life, and
modern communications technology to
exchange ideas and information, the promise
and benefits of a fully integrated international
economy will not be realized or equitably
shared.
In March 2002, the United Nations held an
International Conference on Financing for Mr. Ron Nechemia the Permanent Representative to the
United Nations and the Chairman of the Board of Governors of
Development to address this problem. The the EurOrient financial Group being briefed at the project site
conference focused on six different sources
for development funds - domestic resources (such as savings and taxation), foreign direct
investment, international trade, international aid, debt relief, and finally systemic reforms. NGOs
and others independent voices proposed alternative sources of financing, including especially global
9. taxes and fees. They also asked fundamental questions: who should receive the financing, and for
what kind of development? Furthermore, they asked, can poverty be erased if power and wealth are
increasingly concentrated in the global economic system? This page contains information on the
different ways to mobilize finances for development, and provides information on the international
conference on financing for development, its preparation, and follow-up.
Working to cut poverty. At present, more than a billion people are living on less than $1 a day, and
more than three-quarters of a billion people are malnourished. The EurOrient's role in low-income
countries is changing as these countries grow and mature. But its central goal remains the same: to
help promote economic stability and growth, laying the ground work for deep and lasting poverty
reduction. Its current main priority is to help low- and middle-income countries cope with the
adverse effects of the
global economic
crisis. To that effect,
it is stepping up
investment and
lending to low-
income countries to
combat the impact of
the global recession.
10. - What are the Millennium Development
Goals?
The Millennium Development Goals (“MDGs”) are eight goals to be achieved by 2015 that
respond to the world's main development challenges. The Millennium Development Goals are
drawn from the actions and targets contained in the Millennium Declaration that was adopted by
189 nations-and signed by 147 heads of state and governments during the United Nations
Millennium Summit in September 2000. The MDGs represent a compact between all the world’s
major economic players. Poorer countries pledged to improve policies and governance and increase
accountability to their own citizens; wealthy countries pledged to provide the resources. Since the
commitment to achieve the goals comes from the highest political levels, for the first time, entire
governments are committed to their achievement – including the trade and finance ministers who
hold the world’s purse strings. And major international financial institutions – the World Bank, the I
International Monetary Fund, the EurOrient Financial Group, the regional and development banks,
and increasingly, the membership of the World Trade Organization – have made explicit that they
will be accountable for achieving the goals also.
The Millennium Development Goals:
• synthesise, in a single package, many of
the most important commitments made
separately at the international
conferences and summits of the 1990s;
• recognise explicitly the interdependence
between growth, poverty reduction and
sustainable development;
• acknowledge that development rests on
the foundations of democratic
governance, the rule of law, respect for
human rights and peace and security;
• are based on time-bound and General view of the opening session of the
measurable targets accompanied by Millennium Summit as Tarja Halonen (Finland), Co‐
chair of the Summit, addresses the Assembly.
indicators for monitoring progress; and
• bring together, in the eighth Goal, the
responsibilities of developing countries with those of developed countries, founded on a
global partnership endorsed at the International Conference on Financing for Development
11. in Monterrey, Mexico in March 2002, and again at the Johannesburg World Summit on
Sustainable Development in August 2002.
The Goals
1. Eradicate Extreme Poverty and Hunger
Halve the proportion of people in extreme poverty, and the proportion of people who
suffer from hunger, by 2015.
2. Achieve Universal Primary Education
Ensure by 2015 that all boys and girls complete a full course of primary schooling.
3. Promote Gender Equality and Empower Women
Eliminate gender disparity in primary and secondary education, preferably by 2005, and
at all levels by 2015.
4. Reduce Child Mortality
Reduce by two-thirds the mortality rate among children under age five by 2015.
5. Improve Maternal Health
Reduce by three-quarters the maternal mortality ratio by 2015.
6. Combat HIV/AIDS, Malaria, and Other Diseases
Halt and begin to reverse the spread of HIV/AIDS, the incidence of malaria, and
other major diseases by 2015.
7. Ensure Environmental Sustainability
Reverse the loss of environmental resources; by 2015, reduce by half the proportion
of people without sustainable access to safe drinking water; and by 2020, improve
significantly the lives of at least 100 million slum dwellers.
8. Develop a Global Partnership for Development
Develop further an open, rule-based, predictable, nondiscriminatory trading and
financial system, and address the
special needs of the least
developed countries, landlocked
countries, and small island states;
deal comprehensively with the
debt problems of developing
countries; develop and
implement strategies for decent
and productive work for youth;
provide access to affordable
essential drugs; and make
available the benefits of new
technologies
12. - EurOrient Financial Group on
Development
Poverty in all its forms is the greatest challenge to the global
community. Of special concern are the 1.2 billion people living
on less than $1 a day and the additional 1.6 billion living on less
than $2 a day. Four-fifths of the people of the world are living
in the developing countries, most with improving conditions.
But the number in absolute poverty and despair will still be
growing. All people are made less secure and vulnerable by the
poverty that exists in the world.
The moral imperative of support for development is self-
evident, it is now clear that not only environmental, but also
social, cultural and political sustainability of development efforts
are essential for the security and well-being of people and the
functioning of the complex, interdependent global system now
emerging.
EurOrient Financial Group (“EurOrient” or the “Group”)
solidarity with the people of all countries causes us to seek to
expand the community of interests and values needed to manage the problems that respect no
borders from environmental degradation and securing energy future, to bridging the digital divide
between the industrialized and developing countries.
One of the key leadership challenges of our time is to find new ways to harness the innovation,
technology, networks and problem-solving skills of the private sector, in partnership with others, to
support the United Nations Millennium Development Goals and other international development
goals, and to do so in a manner that makes sound business sense, and does not replace or undermine
the role of government. Without such investment, hopes for conquering poverty – and therefore for
creating peaceful, stable, functioning societies on all continents -- will remain unfulfilled and will
leave the world at greater risk of violence and other ills.
Without development and hope, there will be no peace.
PERMANENT REPRESENTATIVE TO THE UNITED NATION; AND
EURORIENT FINANCIAL GROUP
RON NECHEMIA
Chairman of the Board of Governors
13. - The Role of the EurOrient Financial
Group in a Changing World
EurOrient Financial Group (“EurOrient” or the “Group”) is a private sector global development finance
institution accredited financial institution by United Nations General Assembly on Financing for
Development. The mission of the EurOrient Financial Group is to support the economic and social
development efforts of the less developed countries as they, in particular, seek to achieve the Millennium
Development Goals ("MDGs").
EurOrient Financial Group works to generate shared and sustainable prosperity in developing
economies. The EurOrient actively creates, applies and integrates knowledge from lessons learns from
operations across world to address development challenges.
Founded in 1988, since its formation, EurOrient Financial Group has dedicated its resources to provide
financing and technical assistance to project sponsors, suppliers, government and other bidding
consortia in structuring and implementing financial transactions for major international public, project
and corporate financing ventures. EurOrient finances investments with its own resources and by
mobilizing capital in the international capital markets.
The EurOrient's principal objective is to
reduce poverty and promote sustainable
economic growth. EurOrient Financial
Group invest in projects and programs
that promote social development, build
human capacities, and address host
government priorities for investments in
physical infrastructure that also
enhances social development. These
projects include roads, transportation
and communication systems, water,
sanitation and other types of
investments with social development
outcomes such as improved quality of
life and increased human knowledge and
skills.
The EurOrient's primary activities and programmes seek to:
• Change the way that growth strategies are conceived, designed, and implemented
• Reinvent production-related policies to facilitate countries' move to higher productivity
activities
• Extend markets to the underserved and empower the disenfranchised
• Improve service delivery in education, health, and other social services
• Design institutions, policies and practices that promote sustainable development that meets
human needs while conserving the earth's life support systems
14. - Our Work
EurOrient Financial Group (“EurOrient” or the “Group”) notes that a revolutionary change has
swept the globe resulting in the global economic integrations, private capital flows are at least five
times greater than official assistance, where many different actors (from multilateral banks to
nongovernmental organizations) now play a much greater role in development, and where
technological change has revolutionized the way business is done.
Recognizing the remarkable scale of these changes, EurOrient Financial Group is convinced the
world is at a pivotal juncture. The EurOrient believes that these changes mandate a full review of
EurOrient’s investment policy priorities and a complementary retooling and restructuring of the
principal instruments of this policy. The EurOrient Financial Group also notes that the necessity to
enhance the effectiveness investment operation by 2010 adds an additional imperative--the need to
review the investment operations with a careful eye to ensuring the most cost-effective use of these
increasingly scarce dollars.
EurOrient Financial Group further notes that while this year EurOrient has accelerates this process,
it by no means finishes it. The road ahead will be an arduous one and the decisions facing by the
Treasury Board of EurOrient Financial Group will be increasingly difficult.
Finally, the EurOrient Financial Group notes with special attention the seriousness with which it
accepts these responsibilities. Our actions in the area of investment operations are perhaps unique in
that they directly affect the lives and security of millions of less fortunate human beings around the
world.
Working to cut poverty. At present, more than a billion people are living on less than $1 a day, and
more than three-quarters of a billion people are malnourished. The EurOrient's role in low-income
countries is changing as these countries grow and mature. But its central goal remains the same: to
help promote economic stability and growth, laying the ground work for deep and lasting poverty
reduction. Its current main priority is to help low- and middle-income countries cope with the
15. adverse effects of the global economic crisis. To that effect, it is stepping up investment and lending
to low-income countries to combat the impact of the global recession.
EurOrient Financial Group seeks to promote country and community ownership of development
efforts in order to respond quickly to crisis; supporting increased investments in human
development, specifically for marginal groups; and encouraging private sector-led and equitable
shares in economic growth. EurOrient has established and maintains going diplomatic and working
relationships with the various representatives, offices and departments of central governments as
well as provincial and local government
officials, multilateral and bilateral
development financial institutions, and
officers and executives of public and
private financial institutions.
The EurOrient Financial Group is using a
broad range of financing instruments,
tailored to specific projects or programs.
The main instruments are loans, equity
investments and guarantees. The
EurOrient applies sound banking and
investment principles in all its operations.
16. - What we do?
Financing emerging countries and economies in transition is what we do.
EurOrient Financial Group (“EurOrient” or the “Group”) is an innovator in global finance, serves
the financial needs of corporations, governments and municipalities, institutional clients, and high
net worth individuals worldwide. Founded in 1988, EurOrient Financial Group through its affiliates
development financial institutions and part of its body organ maintains leadership positions in
emerging market equity and fixed income sales, investment banking, private investment
management, asset management and private equity. The EurOrient is headquartered in Los Angeles,
California, and operates in a network of offices around the world.
Working with partner
organizations and using a
variety of mechanisms, the
EurOrient Financial Group
helps client countries mobilize
the financing needed to
promote economic and social
development. This includes
support through innovative
financial mechanisms, such as
the- Clean Technology Fund,
sovereign and municipal bond
issuance, as well as direct
EurOrient lending and
investment.
EurOrient Financial Group fosters sustainable economic growth in developing countries by
financing private and public sector initiatives, mobilizing capital in local and international financial
markets, and providing advisory and risk mitigation services to businesses and governments. The
EurOrient Financial Group vision is to become a full-fledged global development bank, as it
evolving from mere project financier, which is dedicated to address emerging challenges of
development and circumstances, and the financial risks, which are posed by global trends as we
move into 21st century. In fiscal year 2010, the EurOrient Financial Group will issue securities for a
total volume equivalent to US$4 billion. For fiscal year 2011 and beyond, annual securities issuance
is expected to be around US$4 to 5 billion
Community Investment Strategies
EurOrient Financial Group is a socially responsible investor. EurOrient is integrating traditional
fundamental analysis of projects and programs with in-depth assessment of select social and
environmental factors in the investment decision-making process. The EurOrient investment model
embraces core commercial competencies, skills and products, while others are being established as
profit-making ventures and business activities. Within this framework, socially responsible
17. investments are focused on improving the access of low-income households, entrepreneurs and
communities to essential products, services, resources and opportunities while also providing
support to the national development strategy.
EurOrient Financial Group
is continually presented
with opportunities and
requests for financing of all
types in support of a
country’s national
development agenda from
both public and private
entities. These prospective
transactions are initially
screened for development
impact assessment. In
analyzing these requests,
EurOrient evaluates
projects using
Development Impact Key
Indicators, which is a
score-card-style rating
system. EurOrient weighs
each investment decision in
terms of four impact
factors, they are: commercial, social, environmental and good governance. Under our vision,
sustainable growth in developing countries is not possible without a healthy private sector.
EurOrient Financial Group therefore seeks to maximize the development impact of its investments
for private entrepreneurs, businesses and financial institutions in developing countries.
Through its investments the EurOrient Financial Group promotes:
■ economic growth in its countries of operations
■ entrepreneurship, competition and privatisation
■ stronger financial institutions and legal systems
■ infrastructure development
■ adoption of strong corporate governance, including environmental sensitivity
■ structural and sectoral reform
18. - Where do we invest?
EurOrient Financial Group (“EurOrient” or the “Group”) invests in projects and programs that
promote social development, build human capacities, and address host government priorities for
investments in physical infrastructure that promote and enhance social development. These projects
include roads, transportation and communication systems, water, sanitation and other types of
investments with social development outcomes such as improved quality of life and increased
human knowledge and skills.
The EurOrient Financial Group targets investment opportunities in such industries as:
• Electrical generation and distribution, including independent power projects, power
transmission, power storage;
• Telecommunications systems and related services, including wireline/wireless
equipment and facilities, cable and satellite transponder systems;
• Transportation, including airports, seaports, toll roads, bridges, and rail and mass
transit systems;
• Petroleum, including exploration, production, refining and transportation;
• Petrochemicals, including additives, natural gas such as pipelines and LNG facilities,
liquefied petroleum gas (“LPG”) and compressed natural gas (“CNG”);
• Hi-tech systems and related services such as infrastructure technology, information
technology, engineering process innovations;
• Science and technology, including media, and biotech;
• Financial services such as banking and insurance; and
• Land development such
as commercial and
residential real estate
development and public
spaces
• Any other infrastructure
project of similar
nature, notified by
EurOrient Financial
Group.
19. Target Investment
The following are broad categories of the type of infrastructure investment actively sought or considered by
EurOrient:
I. Companies undergoing post-privatization restructuring or engaged in mergers and
acquisitions as a result of industry consolidation in the most mature and active sectors and
countries;
II. Privatization of commercial public services (such as power, gas, telecommunications, water,
roads, railroads, ports, and airports); and
III. Selective start-ups and green field projects
Sectors the EurOrient Financial Group does not finance
The EurOrient Financial Group will not provide financing for defense-related activities, the tobacco
industry, selected alcoholic products, substances banned by international law and stand-alone
gambling facilities.
20. - What is our source of funds?
EurOrient Financial Group (“EurOrient” or the “Group”) is the world’s first private-sector global
development finance institution accredited
by the United Nations General Assembly on
Financing for Development. EurOrient is
the only development agency with a global
charter to invest in both public as well the
private sector.
In pursuing its vision, EurOrient’s main
instruments comprise investment, loans,
technical assistance, advice, and knowledge.
EurOrient Financial Group obtains
operational and investment resources by
offering its securities and those of its
investment funds, to international public
and private institutional investors. These include multilateral and bilateral development banks,
pension funds, insurance companies, commercial banks, endowments and foundations, mutual
funds, private trusts, corporations and accredited individual investors. EurOrient seeks to diversify
its sources of financing by offering its securities in the international capital markets and in multiple
currencies.
The EurOrient Financial Group was founded in 1988 and issued its first security in 1990. Since then,
it has continuously developed innovative debt and equity products, opened up new markets for
issuance, and built-up a broad investor base around the world.
EurOrient Financial Group debt and equity securities are offered in all major international
borrowing currencies. EurOrient issues debt and equity securities in different currencies to fund
economically viable development projects in emerging countries and economies in transition. The
objective is to provide investors with a broad choice of currencies. In many instances, this involves
opening new markets for bond and equities issuance, thereby promoting local capital market
development.
The EurOrient's financing requirements are primarily determined by its investment and lending
activities for development projects. As EurOrient Financial Group investment and lending has
changed over time, so has its annual financial mobilization programs. In fiscal year 2010, the
EurOrient Financial Group will issue securities for a total volume equivalent to US$4 billion. For
fiscal year 2011 and beyond, annual securities issuance is expected to be around US$4 to 5 billion.
EurOrient Financial Group has adopted a lending and investment methodology, and policies and
procedures based on it, which is intended to assure the creation of a portfolio of assets of consistent
financial soundness and credit quality. EurOrient’s investment and lending policies and procedures
21. focus heavily on project design, project evaluation and portfolio risk management. EurOrient aims
to achieve an investment grade credit rating for itself that is higher than that achievable by many
emerging market countries and projects. That savings on funding costs in part may be used to
strengthen EurOrient Financial Group and in part passed on to EurOrient’s clients.
The EurOrient Asset Management Group agencies the EurOrient Private Equity Management
Group (“EPEMG”), EurOrient Merchant Banking Group (“EMBG”), EurOrient Asset
Management Group (“EAMG”) and their agencies, the private sector lending and investment
affiliate of the EurOrient Financial Group, also offers debt and or equity instruments.
Securities Characteristic
Socially Responsible Investing (“SRI”) is one of many terms used to describe an investment strategy
aiming to maximize social good and financial returns. Others include social, sustainable, ethical, and
mission-based investing
The mission of the EurOrient Financial Group (“EurOrient” or the “Group”) is to support the
economic and social development
efforts of the less developed
countries as they, in particular,
seek to achieve the Millennium
Development Goals ("MDGs"),
in a sustainable way by investing
in projects and programs that
promote social development,
build human capacities, and
address host government
priorities for investments in
physical infrastructure that
promote and enhance social
development. These projects
include roads, transportation and
communication systems, water,
sanitation and other types of
investments with social
development outcomes such as
improved quality of life and
increased human knowledge and
skills. This made EurOrient Financial Group debt and equity securities suitable for investors with
such an investment strategy.
EurOrient's debt and equity securities finance projects that emphasize the need to (1) invest in
people, particularly through strengthening basic health and education systems, (2) protect the
environment by strengthening governance and reducing environmental degradation, (3) support
private business development, (4) strengthen the ability of governments to deliver quality public
services, (5) promote reforms to create stable macroeconomic environments, and (6) foster social
22. development, inclusion, governance and institution-building as key elements of poverty reduction.
For more information about the socially responsible investing nature of EurOrient Financial Group
debt and equity securities.
Sustainable Investing in EurOrient Financial Group Securities
EurOrient Financial Group (“EurOrient” or the “Group”) is the world’s first private-sector global
development finance institution and the only development agency with a global charter to invest in
both public as well the private sector. Using the Millennium Development Goals as a roadmap to
reducing poverty, the EurOrient uses its financial resources, its highly trained staff, and its extensive
knowledge base to help each developing country onto a path of stable, sustainable, and equitable
growth. Proceeds from EurOrient Financial Group securities are used for projects that:
• Invest in people, particularly through making investment and in basic infrastructure, health
and education
• Support rural development
• Protect the environment
• Support the governments to deliver quality services, efficiently and transparently
• Promote reforms to create a stable macroeconomic environment, conducive to investment
and long-term planning
• Focus on social development, inclusion, governance, and institution building as key elements
of poverty reduction.
23. - How we do it?
EurOrient Financial Group (“EurOrient” or the “Group”) is acting in Partnerships. The objective
of EurOrient Financial Group partnership program is to address the challenge of formulation of
high-impact, service delivery that tackle major global development challenges through expanded
partnerships.
The EurOrient Financial Group aims to fulfill its mission of a professionally excellent institution
that responds quickly to the evolving and varying needs of its clients and provides a wide range of
high-quality services. These services operate through partnerships and act as a catalyst for private-
public collaboration that also serves to build capacity as a knowledge-based organization
The EurOrient Financial Group partnership strategy is focused on building a broad network of
partners at the global, regional and national
levels through stronger collaboration and
cooperation. Additionally, we are
continually seeking to further strengthen
our current collaboration efforts with
current development partners while
cultivating new strategic relationships as
well.
The EurOrient Financial Group
partnership strategy encompasses three
pillars that are also aligned with developing
countries’ own development strategy,
namely: (a) investment in environmental
protection and in clean energy; (b)
investment in infrastructure; and (c)
financial services.
Forging Partnerships:
The International Organizations (“IOs”): It is important for EurOrient Financial Group to
partner with international organizations, such as the United Nations, and the Organization of
Economic Cooperation and Development. These “organizations” play a major role in setting and
influencing the international development agenda. International organizations are the links
established between the provision of finance and the realization of specific policy outcomes
including the Millennium Development Goals, and frameworks and policy initiatives such as Poverty
Reduction Strategy Papers, the Fast Track Initiative, Managing for Development Results and the harmonization
of donor and of development financial institutions practices.
24. The International Financial Institutions (“IFI”), China as well as most of the less developed
countries are also Member States of Multilateral Development Banks (“MDBs”) such as the World
Bank, the Asian Development Bank, where partnership is based on common objectives that provide a
strategic advantage as well as added-value.
The National Government
EurOrient Financial Group actively seeks cooperation with organizations to strengthen the
effectiveness, quality, and sustainability of the services it provides. The dialogue enables EurOrient
Financial Group and its potential local partners to identify areas of complementary expertise leading
to the improvement of operational policies, project design and implementation.
The EurOrient Financial Group partnership for development approach emphasizes the need to
place committed governments, and their people, at the center of their development process.
EurOrient’s desire is to establish partnership with government agencies, such as but not limited to
the national development banks, state development investment corporations, the provincial and
other government investment agencies and with all major stakeholders around the country’s
development strategy, programs, and projects.
• Ministry
• Provincial Government
• Local government
• National Development Agencies
Mr. Ron Nechemia the Permanente Representative of United Nations and
the Chairman of the Board of Governors of EurOrient Financial Group
Addressing World Leaders at the United Nation Sponsored Summit on
Financing for Development in Monterrey, Mexico, March 19-22, 2002.
Ministerial Segment.
25. - Our defining characteristic
EurOrient Financial Group (“EurOrient” or the “Group”) produced a matrix of six development
agencies characteristics that can be used to evaluate and guide the work, systems and principles of
various agencies. A careful assessment of these characteristics can be useful in identifying the
presence of international development financial institutions and gauging its strength within a
particular context, and helpful in matching organizational goals to specific actions that will
encourage positive economic and social development.
“Development financial institutions and agencies” has occupied a central stage of global economic
and social development since 1944, yet they are difficult to define, inherently complex, and resistant
to being categorized or interpreted through a singular theoretical lens. As the development financial
institutions are not “banks” in the common sense, but rather a specialized agency.
Development financial institutions and agencies, like other groups and institutions in modern
societies, operate within and are conditioned by three types of systems: economic, political, and social.
Better defining the characteristics development financial institutions it is necessary prerequisite for
effective implementation. There are at least four features that define the characteristics: malleability,
complexity, opportunity, and gravity.
Risk
The Investment Pricing Market
The Institution: Mandate Characteri- Instruments
Charter Objective Strategy Response
stics
EurOrient Global Public and Count for Share the Loans, Has Aligned to
Financial Group Mandate the private development same risk as Investment, market global
sector impact (both other Guarantees pricing development
economic rate (institutional and Technical policy agenda, market
of return as ) investors Assistance driven, FAST
well social rate DOES responsiveness
of returns) accept performance &
Sovereign profit-oriented
Guarantees
The World Bank Global Limited to Count for Require Loans and Concessio- Politically
Mandate the Public development Sovereign Technical nal driven,
sector impact Guarantee Assistance; Funding, SLOW
payment for does NOT that is responsivenes
every make subject to s, good
transaction Investment meeting performance
political
26. agenda and
political
conditions
International Global Limited to Count for Share the Loans, Concessio- Politically
Finance Mandate the Private development same risk as Investment nal driven,
Corporation Sector impact (both other and Technical Funding SLOW
economic rate investors Assistance sources; responsivenes
of return as does NOT and has s and good
well social rate accept market performance
of returns) Sovereign pricing
Guarantees policy
Asia Regional Public and Achieve Require Loans, Concessio- Politically
Development Mandate the Private development Sovereign Investment nal driven,
Bank Sector impact Guarantee and Technical Funding, SLOW
payment for Assistance that is responsivenes
every Public subject to s, good
Sector meeting performance
transaction political
agenda and
political
conditions
Africa Regional Public and Achieve Require Loans, Concessio- Politically
Development Mandate the Private development Sovereign Investment nal driven and
Bank Sector impact Guarantee and Technical Funding, Market
payment for Assistance that is driven, Good
every Public subject to responsivenes
Sector political s, good
transaction agenda and performance
political & profit
conditions oriented
European Bank Regional Public and Count for Require Loans, Concessio- Politically
of Mandate the Private development Sovereign Investment nal driven and
Reconstruction Sector impact (both Guarantee and Technical Funding Market
and economic rate payment for Assistance that is driven, Good
Development of return as every Public subject to responsivenes
well social rate Sector meeting s,
of returns) transaction political performance
agenda and & profit
political oriented
conditions
27. The development landscape at the end of the 20th century was shaped by global integration and
localization. These forces offered EurOrient Financial Group
founding members’ unprecedented opportunities for growth,
and EurOrient was aiming to establish the first private global
development bank that catered to serve the public and the
private sectors of the emerging and transitional economies.
EurOrient Financial Group founding members under the
leadership of Mr. Ron Nechemia, they established EurOrient
in 1988 with a vision of creating a privately owned global
development bank. EurOrient’s shareholding structure assures
that the EurOrient will remain private sector oriented and that
its operations will remain free and independent of any
government’s foreign policy and political agenda. This
independence will ensure that EurOrient development
assistance is efficiently and effectively managed, based on
good corporate governance and best practices, for the benefit
of its shareholders, investors, and society at large.
EurOrient Financial Group was created to be different, to be
dynamic, flexible and innovative in its delivery of Mr. Ron Nechemia, the Chairman
development financial services. EurOrient affirms the often of the Board of Governors of the
forgotten fact, that, development must represent "...a EurOrient Financial Group and the
transformation of society, a movement from traditional founding father of private sector
relations, traditional ways of thinking, traditional ways of global development banking
dealing with health and education, traditional methods of
production, to more 'modern' ways." And that development "is not about charity; it is about
inclusion and empowerment, education, good health, security, and opportunity." To EurOrient,
development is about putting people first, giving people a voice and better life and respecting their
fundamental human rights. Because development is not about charity, it is about delivering what
people want in a commercially viable, but socially responsible manner.
28. - The EurOrient Financial Group - client
relationship
EurOrient Financial Group (“EurOrient” or the “Group”) is the world’s first private-sector global
development finance institution and the only development agency with a global charter to invest in
both public as well the private sector. The EurOrient Financial Group is a peculiar global
development financial institution. Its main characteristics are the following:
- EurOrient Financial Group is the world’s first private-sector global development finance
institution
- Unlike private investment banks or commercial banks, the EurOrient Financial Group has
shareholders that do not receive dividends.
- Its investments are restricted to the emerging countries and economies in transitions.
- Unlike the World Bank which can invest in public institutions or International Finance
Corporation (“IFC”), which can invest only in private sector enterprises, the EurOrient
Financial Group can invest in both public and the private sector of the economy.
- Its investments have to respect environmental standards.
- Unlike private investment banks or commercial banks, EurOrient Financial Group count for
development impact (both economic rate of return as well social rate of returns)
- Unlike International Finance Corporation, and like the other multilateral development banks,
EurOrient Financial Group does accept sovereign guarantee payments.
- Its mandate stipulates that it must only work in emerging countries and economies in
transitions that are committed to democratic principles. Nevertheless, some investments
have been realized in certain countries that are far from being fully-edged democracies.
On a theoretical point of view, we consider the objective function of the EurOrient Financial Group
as identical as that of any multilateral development banks. The EurOrient's principal objective is to
reduce poverty and promote sustainable economic growth. EurOrient Financial Group invest in
projects and programs that promote social development, build human capacities, and address host
government priorities for investments in physical infrastructure that also enhances social
development. However, its objective is to maximize profits from investment in projects and in
programs by maximizing operational efficiencies and by deployment of new means to enhance
productivity and by adding values. EurOrient makes use of all the instruments available on the
financial markets to raise funds and protect its portfolio against risks.
However, its constraints are different. It must invest in a restricted geographic area precluding it to
diversify its portfolio with investments in safer places in the developed world. Therefore, in this
respect, the EurOrient Financial Group faces a harder constraint than any other investment bank or
commercial bank. On the other hand, not like in the case of the multilateral development banks, its
shareholders do not guarantee it virtually against bankruptcy, which is similar to the case for any
other private investment bank. This feature together farther challenging the EurOrient Financial
Group to raise funds at the best conditions and, simultaneously, face the high risks inherent to the
investments in emerging countries and economies in transitions.
