EBRD Project Finance Achievements in the region Hildegard Gacek Director, Romania January 2003

1.  EBRD Project Finance Achievements in the region Hildegard GacekDirector, RomaniaJanuary 2003

2. Sectors • Telecom • Agribusiness • Real estate • PPP in municipal water financing

3. Telecom: Limited Recourse Long-Term Debt Finance CONNEX GSM ROMANIA (1997 and 1999) • Project Finance “Deal of the Year” 1997 • US$85 million senior and subordinated debt package • Construction of a greenfield GSM 900 network • Part of US$190 million and US$105 million debt facilities

4. Telecom: Limited Recourse Long-Term Debt Finance • Final Maturity: 7.5 years • Grace Period: 4 years • Repayment: semi-annual instalments • Comprehensive security package • Floating interest rate, plus a hedge swap • Main agreements: • Loan Agreements • Security Agreements • Project Funds (Limited Recourse) Agreement

5. Agribusiness: selected Project Finance Kesko Case Study - Baltics • Complete financing package (€68M) for the company’s expansion: • €43M: EBRD (Equity, Long-term & Operating loans) • €25M: Syndication by EBRD • Flexible structure to meet the client’s needs: • Equity contribution • Long-term (10yrs) flexible loan with 2yrs grace for site acquisition and development • Operating loan (4yrs) for equipment and working capital needs

6. The development and operation of a 16,900 sqm class A office complex in Bucharest; Total project cost USD 21.7 million. EBRD’s role: Senior A/B loan USD 18 million EBRD: USD 7.6 million A loan; Raiffeisen Zentralbank Oesterreich: USD 10.4 million B loan. Key terms 11.5-year term; Limited recourse to Sponsor until certain events; Security: First ranking mortgage, assignment/pledge of shares and assets, cash, receivables, contracts, assignment of leases, insurance policies and construction bonds; Pricing: LIBOR + margin. Decreasing margin upon completion and with increased level of tenancy. Victoria Office Building

7. The renovation and operation of an existing hotel. The hotel will be developed to a 275-room five-star hotel, to be operated by the international hotel management company Hilton International Total project cost USD 61.4 million EBRD’s role USD 14.3 million senior debt Key terms Construction period + 10-year repayment Turnkey construction contract Security on leasehold interests, assets Performance guarantee, project funds guarantee, retention monies guarantees Pricing: LIBOR + margin Athenee Palace Hotel

8. PPP Projects in the Municipal Water Sector • Almaty (Kazakhstan) • Brno (Czech Republic) • Budapest (Hungary) • Maribor (Slovenia) • Sofia (Bulgaria) • Tallinn (Estonia) • Zagreb (Croatia) • Bucharest (Romania)

9. Background The Bank worked closely with the Municipality of Sofia since 1995 in the concessionaire selection and concession structuring; The concession involves full responsibility for refurbishing, developing and maintaining the entire urban water and wastewater system; The concession was let on a 25 year basis to Sofijska Voda, a newly set up company, established by IWL and the existing water companies. Terms Size: Euro 31 million senior loan Maturity: Fifteen year loan with a five year grace period Pricing: Six month LIBOR + margin, decreasing thereafter subject to certain conditions involving cover ratios, city rating and successful performance Security: Pledge of IW Sofia’s shares, Direct Agreement with City, Sponsor Funds Agreement Sofia Water Sources and Uses of Funds Co-financing Depfa: € 5 million one other bank already selected

10. Apa Nova - Bucharest • Borrower: Apa Nova. No recourse to sponsors or to the City (except for special circumstances defined in Direct Agreement) • Direct Agreement with the City of Bucharest -confirming the City’s compliance with its obligations under the concession agreement and regulation of the lenders’ step-in rights

11. Apa Nova - Bucharest