EBRD Programme for DCFTA

1. EBRD DCFTA Programme
Kiev, 6 October 2015
OFFICIAL USE

2. 16.10.15 2
•
An international financial institution,
promotes transition to market
economies in 35 countries from
central Europe to central Asia and
the Southern and Eastern
Mediterranean – SEMED region.
•
Owned by 65 countries and 2
inter-governmental institutions (EU,
EIB).
•
Capital base of €30 billion.
•
EBRD has AAA rating from all three
main rating agencies (S&P, Moody’s,
Fitch)
OFFICIAL USE
What is EBRD

3. The EBRD in Ukraine
16.10.15 3
The largest financial investor in the country with
over 20 years of experience in Ukraine
Focused on long-term financing of equity and debt
Total amount invested in Ukraine is €10.4 billion, funding
344 projects as of January, 2015 .
Almost €1 billion invested in each of the last 4 years
OFFICIAL USE

4. EBRD strategic directions in Ukraine
16.10.15 4
Strengthening energy efficiency and energy security
Unlocking Ukraine’s agricultural and industrial potential
Providing good quality and reliable infrastructure
Dealing with the legacy of the crisis in the financial sector
Development of local capital markets
OFFICIAL USE

5. EBRD support to SMEs
16.10.15 OFFICIAL USE

6. Click icon to
add picture
What is an SME?
SME stands for small and medium-sized enterprises - as defined in
EU law.
The main factors determining whether a company is an SME are:
1. Number of employees
2. Either turnover or balance sheet total
16.10.15 6
.
Company category Employees Turnover or Balance sheet total
Medium-sized < 250 ≤ € 50 m ≤ € 43 m
Small < 50 ≤ € 10 m ≤ € 10 m
Micro < 10 ≤ € 2 m ≤ € 2 m
OFFICIAL USE

7. 16.10.15 7
DCFTA
Comprehensive support for SMEs
•
Improve the availability and terms of
long term financing for SMEs (Window 1)
•
Facilitate cross border trade (Window 2)
•
Provide Business Advice for SMEs (Window 3)
•
Improve local business environment
through policy dialogue (Window 4)
•
Provide direct lending to SMEs (Separate window)
Strengthen SMEs in Georgia, Moldova and Ukraine to
support DCFTA-related priority improvements
OFFICIAL USE

8. Regional Programme
16.10.15 8
EBRD plans to start the programme in early 2016 in Georgia,
mid 2016 in Moldova and late 2016 / 2017 in Ukraine, with
certain components already operational
OFFICIAL USE

9. Size and funding
16.10.15 9
Funds
(€ million)
DCFTA funding 380.0
Direct lending 60.0
EU contribution: technical assistance, incentives,
visibility, etc.
35.3
Total 475.3
OFFICIAL USE

10. 16.10.15 10
Investment & risk sharing incentives
Technical assistance
•
Investment Incentives for SMEs (estimated allocation 2/3 of incentives)
•
First Loss Guarantee to PFIs on SME portfolio (estimated allocation 1/3
of incentives)
Window 1: SME access to long term
finance
•
Technical assistance to support PFIs in (i) understanding financial
needs and (ii) assessing eligibility of SMEs
•
Advisory services will be provided through Project and Verification
Consultants

Synergies with all Windows

Coordination and cooperation with other IFIs and PFIs
To enhance SMEs’ ability to implement DCFTA-related
projects with investment grants and improved access to long
term debt
OFFICIAL USE

11. Window 2: Trade Finance
16.10.15 11
•
No subsidies
•
Market pricing
•
Technical
Assistance for
training of PFIs
•
€300 million* of financing
for trade operations will be
extended
•
500* trade operations will
be supported
•
20* PFIs will participate
To enhance short and medium term trade financing access for
businesses to facilitate cross border trade and domestic
distribution operations
* Only DCFTA countries/EU trade included
OFFICIAL USE

12. Window 3: Business Advice for SMEs
16.10.15 12
To enhance technical, managerial, market
knowledge and investment project
development capacity
€6.3 million over 3 years
•
120 SMEs will receive assistance
•
Additional own contribution from SME clients
Projected result:
•
50% of assisted SMEs will increase turnover and
exports
•
65% of assisted SMEs will improve productivity
•
15% of assisted SMEs will access additional
external finance
OFFICIAL USE

13. Window 4: Policy Dialogue
16.10.15 13
To improve domestic operating
environment for SMEs in close
cooperation with EU Delegations –
results achieved so far in Ukraine:
•
Ukraine business ombudsman – 337
complaints received and investigated during
first month of operation (https://boi.org.ua/)
•
Ukraine banking sector reform, Ukraine
National Reforms Council
OFFICIAL USE

14. Direct Lending
16.10.15 14
Builds on extensive experience of the EBRD in
SME finance in its countries of operation
•
EUR 60 million of projects to be supported by EUR 9
million of EU first loss risk sharing and EUR 1
million of technical assistance funds
•
Eligible products – loans, equity, quasi-equity EBRD
investments and EBRD risk sharing in commercial
bank products
•
DCFTA eligibility – export promotion/expansion to
the EU and/or increase of competitiveness within
the country/introduction of EU standards or
certification
OFFICIAL USE

15. Direct Lending
16.10.15 15
First transaction in each country identified:
•
CAPEX finance for digital broadcasting operator in
Georgia
•
CAPEX finance for leasing company in Moldova
(risk sharing with a local bank)
•
CAPEX finance for a retailer in Western
Ukraine/Transcarpathia region, acting as regional
SME accelerator – includes opening of a training
centre to educate SME suppliers about EU
standards/certification
OFFICIAL USE

16. 16
Marina Ismaila
Senior Banker, Regional Head SME
Tel: +380 44 277 1120
Email: ismailam@ebrd.com
www.ebrd.com/smallbusiness
Kateryna Rigg
National Programme manager,
SBS
Tel: +380 44 277 1143
Email: riggk@ebrd.com
www.ebrd.com/knowhow
Contacts
OFFICIAL USE