© European Bank for Reconstruction and Development 2010 | SOUTHERN & EASTERN MEDITERRANEAN REGION European Bank for Reconstruction and Development Milan May 2013

2 EBRD: a snapshot 06/06/2016

3 EBRD: Snapshot An International Financial Institution established in 1991 to support the transition to market economy and democracy in the former communist countries. Owned by governments of 64 countries and two inter-governmental institutions (EU, EIB). Headquartered in London and investing in 31 countries in Eastern Europe and Central Asia, and, since September 2012, also in Egypt, Jordan, Morocco and Tunisia. Cumulative commitments of €80.26 billion, of which 73% private sector.

4 Capital base of €30 billion, AAA rated by all 3 Agencies. Invested over €80.26 billion in more than 3,700 projects since new projects signed in 2012 with commitments of over €8.9 billion. Debt 84%, Equity 16% of EBRD finance. EBRD: Snapshot (2)

5 Cumulative commitments by sector Cumulative commitments EUR 80.3billion Unaudited as at 30 April 2013

Where we operate

7 EBRD operations 06/06/2016

8 EBRD Financing Solutions LoansEquity Senior, subordinated, convertible Long term (up to 10y or more) or short term revolving Floating/ Fixed rates Choice of currencies (EUR, USD, RUB etc.) Syndication Common stock or preferred Minority position only (up to 35%) Mezzanine

9 Operational Strengths of the EBRD Having a high-risk taking capacity: EBRD is willing to share risks, including political risks. Providing finance to both private and public sector clients. Acting as a catalyst to access additional equity, debt and trade finance, mobilising up to 2.5 times from other sources. Having a very good knowledge of local economy, business environment and practices, through extensive local presence. Focusing on corporate governance, including protection of minority interests.

10 Institutional Strengths of the EBRD Strong, internationally recognised financial partner with long-term perspective. Close working relationships with all public and private stakeholders. Political leverage due to EBRD’s unique mandate and shareholding structure (all countries of operations are shareholders). Preferred Creditor Status. 1:1 gearing ratio at €26 billion.

11 Additional EBRD is Additional to the Commercial Banking Sector EBRD does not lend or invest when commercial banks or private investors can do it alone. EBRD invites other banks to participate in its operations (syndication, co-financing). EBRD leads the market with innovative products, local currency and longer tenors. EBRD provides technical assistance for project preparation and implementation where such assistance is required.

12 EBRD in the Southern and Eastern Mediterranean Region (SEMED) 06/06/2016

13 The Arab Spring of 2011 has created new major transition challenges in the SEMED region (Egypt, Jordan, Morocco and Tunisia). The May 2011 G8 Summit launched the Deauville Partnership to support democratic transition, transparent government and sustainable growth. By end 2011, EBRD shareholders approved the expansion of the Bank’s mandate to 4 SEMED countries. Since September 2012, the EBRD has been able to invest in Jordan, Morocco, and Tunisia, and since November 2012, in Egypt. Host Country Agreements have been signed with Tunisia and Jordan; negotiations are in progress with Morocco and Egypt. Temporary offices are in place in all countries. Tunisian permanent office will open in June Key milestones

14 Three phased fast start Reflecting progress in ratification SPECIAL OPERATIONS ORDINARY INVESTMENT OPERATIONS 23 TECHNICAL ASSISTANCE 1 Market demand studies, project preparation, plus advisory services for small businesses Almost 80 technical cooperation projects received funding* (Total amount: EUR 37 M). TC projects are donor-funded: -SEMED multi-donor account: €20 million -EU neighbourhood facility: €20 million -EBRD net income: €20 million. Countries remain ‘potential’ and not full countries of operation of EBRD. Operations funded through a Special Fund (€1 billion EBRD net income), not regular capital resources 8 investment projects have already been signed *. After the Amendment to Article 1 of the Agreement establishing the EBRD, the Bank will be able to finance investment operations from its ordinary capital resources. Egypt, Jordan, Morocco and Tunisia will then be given full country of operations status. Resources COULD allow up to €2.5 billion p.a. of business in the medium term. From 3 rd – 4 th Quarter 2013 Since September 2012 * as of end April 2013

15 Progress to date Temporary offices are operational in all 4 countries, with permanent offices to be opened from 2013 onwards and staffed later over the year. Tunisian permanent office will be opened in June Overall the Bank will increase its staff by 107 employees of which 50% will be nationals of the SEMED Region. Delineation of country strategies and project pipelines is well underway.

16 Operational priorities in the region Supporting the private sector, with a particular emphasis on SMEs. Developing non-sovereign financing solutions for infrastructure development, including PPP structures. Promoting sustainable energy and energy efficiency initiatives. Supporting and developing local capital markets.

17 Priority Sectors 1) Financial Sector Working through local banks to finance the SME Sector. Providing trade facilitation and other services. Supporting the restructuring and institutional building of selected banks. Supporting Microfinance and other specialized institutions.

18 2) Infrastructure Supporting reform agenda for State-owned enterprises, including corporatisation, subsidy reduction and privatisation. Assisting in introducing legal and regulatory framework for PPPs and concessions. Making direct investment in selected projects (ports, transport, waste management, etc.). Priority Sectors (Cont.)

19 Priority Sectors (Cont.) 3) Financing Private Enterprises Manufacturing and Services including large corporates. Agribusiness and related industries (Food chain). Direct support for the SME Sector. Financial restructurings in selected cases.

20 4) Energy efficiency Promoting power sector reform (liberalisation, commercialisation, unbundling). Supporting the development of renewable energy. Financing natural resources, preferably in less favoured regions. Priority Sectors (Cont.)

21 06/06/2016 EBRD: Investment Projects Pipeline (April 2013) In EUR million 10 projects 9 projects 6 projects 4 projects

22 06/06/2016 EBRD: Investment Projects (March 2013) 8 projects signed across the region: 4 Trade Facilitation Programme Agreements signed (2 in Jordan, 2 in Morocco) for a total value of €113M

23 Conclusion To Achieve Political, Economic and Financial Sustainability in the Mediterranean Region Political Stability. Predictable business environment. Continuation of the reform processes. Job creation based on investments through FDI but also local investments by the private sector

24 Jordan: Heike Harmgart Head of Office, Amman Tel: Morocco: Laurent Chabrier Director, Casablanca Tel: TUNISIA: Marie-Alexandra Veilleux Head of Office, Tunis Tel: EGYPT: Philip Ter Woort Director, Cairo Tel: + 20 (0) Hildegard Gacek Managing Director - SEMED Tel: +44 (0) Hassan El Khatib Director - SEMED Industry, Commerce & Agribusiness Tel: To contact us: