Financing from the Black Sea Trade and Development Bank

1. Financing from the Black Sea Trade and Development Bank

2. BSTDB - Brief History • January, 1998 - BSTDB founded with SDR 1 billion (approximately $ 1.4 billion) of subscribed capital • June, 1999 - BSTDB Inaugural Ceremony and beginning of operations

3. BSEC Members - Shareholders of BSTDB Ukraine 13,5% Russia 16,5% Moldova2% Georgia 2% Azerbaijan 2% Romania13,5% Bulgaria 13,5% Armenia 2% Albania 2% Turkey 16,5% Greece 16,5% This map is for illustrative purposes only.

4. Objectives of BSTDB • To contribute to the transition process of the Member States towards the economic prosperity of the people of the Region. • To finance regional projects of the public and private sectors in the Member States, and support trade activities in the BSEC region.

5. BSTDB Products • Project finance • Corporate finance • Equity • Guarantee Program • Trade finance

6. Project Finance • Green field projects • Capacity expansion programs • Capital Expenditure and modernization programs • Working capital needs • Post-privatization investments

7. Trade Finance • Guarantee Program • Pre-Export Finance Program • Single Buyer Credit Program • Multiple Buyer Credit Program • Single/ Multiple Supplier Refinancing Program

8. Loans • BSTDB loan: • Min USD 5 million • Max USD 22 million • Up to 35% of the total project costs for green-field projects • 3-7 years maturity, depending on the type and structure of project • Competitive pricing and grace period

9. Frequently Asked Questions

10. Why BSTDB? • Stringent but quick approval process • Ability to process “small” projects • Team blending international and local expertise • No political or macroeconomic conditionality attached to the financing • Unique provider of trade finance

11. How to apply? • Send a proposal (business plan) to the contact person at the end of this presentation • The proposal should be in English and as detailed as possible in order to speed up BSTDB decision • A pro-forma list of initial information requirements is available for interested parties

12. Eligibility Review Concept Clearance Credit Committee Approval Board Approval Disbursement Signing What is BSTDB’s Project Cycle?

13. Eligibility Review 2-4 weeks Concept Clearance 1-2 months CreditCommitteeApproval BoardApproval Disbursement Signing How long does it take from “first call” to “signing”? 3-4 months

14. What security does BSTDB require? Depending on the Project, the following may be required: • Mortgage / pledge of fixed assets • Standard pledge of shares, bank accounts, etc. • Off shore security • Guarantee from Sponsors • Sovereign guarantee is not required

15. What is the maturity structure of BSTDB loans? • Preferably 3-7 years • Possible 10 years • In exceptional cases more than 10 years

16. What has BSTDB achieved so far? (Signed Operations) TOTAL $ 492,119,315 Project Finance 34 Projects $ 410,424,315 • Trade Finance 11 Projects $ 67,107,000 • Equity 2 Operations $ 5,750,000 • Guarantee 2 Operations $ 8,838,000

17. Is BSTDB interested in co-financing? • Yes. Very much so. • Co-financing with International Fianancial Institutions or commercial banks • Parallel Financing • Syndications

18. BSTDB Operations in Romania Total Financing in Romania: $ 70,059,553 1) PROJECT FINANCE • Rompetrol $ 18,000,000 • Petrom $ 10,000,000 2) SME Financing • Banc Post $10,000,000 • Banca Romaneasca- • KfW Guarantee $6,053,500 • UniCredit SME Leasing $7,000,000 3)Equity • Trans-Balkan SME Equity Fund $4,000,000

19. BSTDB Operations in Romania 4) TRADE FINANCE 15,006,053 • Termoelectrica $15,000,000 • Banca Transilvania $6,053.00

20. Whom to contact? Orhan Aytemiz Director – Manufacturing Finance Tel: (+ 30 2310) 290 439 Fax: (+ 30 2310) 290 432 e-mail: oaytemiz@bstdb.org Web site: www.bstdb.org