EBRD – Guarantee Schemes Novi Sad, 20 November 2014

Contents EBRD’s activities EBRD in Serbia Guarantee Schemes Medium-Sized Co-financing Facility (MCFF) Contact 14 October, 2018 © European Bank for Reconstruction and Development 2012

What is the EBRD? EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Cumulative business volume of €86bn as of 2013 Triple-A rated international financial institution, promotes transition to market economies in 35 countries from central Europe to central Asia In 2011, the Bank expanded its operations to include Egypt, Morocco, Tunisia, and Jordan (Southern and Eastern Mediterranean – SEMED region) Owned by 64 countries and two inter- governmental institutions Capital base of €30 billion 14 October, 2018 © European Bank for Reconstruction and Development 2012

EBRD finances diverse range of enterprises EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Note: Unaudited as at 31 December 2013 14 October, 2018 © European Bank for Reconstruction and Development 2012

Where we invest EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact 14 October, 2018 © European Bank for Reconstruction and Development 2012

EBRD Product Flexibility tailored to project needs EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Equity Common stock or preferred Minority position only (up to 35 percent) Mezzanine Other guarantees currency swaps Loans Senior, subordinated, convertible LT (up to 10y or more) or ST revolving Floating/ Fixed rates Choice of currencies (€, US$, RUB etc.) 14 October, 2018 © European Bank for Reconstruction and Development 2012

General Information Country of operation since 2001. EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Country of operation since 2001. Total cumulative commitments of €3.8 billion as of October 2014. Total outstanding portfolio of €2.5 billion, comprised of 130 active operations. Private sector participates with 54 per cent in total cumulative commitments but with 84 per cent in total projects. Team of 26 people in Resident Office in Belgrade. Objectives: To promote a sound investment climate, good corporate governance and stronger institutions. 14 October, 2018 © European Bank for Reconstruction and Development 2012

Cumulative Commitments Composition (value) EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Total cummulative comitments: €3.8 billion 14 October, 2018 © European Bank for Reconstruction and Development 2012

Cumulative Commitments Composition (number of projects) EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Cummulative number of projects: 182 14 October, 2018 © European Bank for Reconstruction and Development 2012

2013 results: €424 million in 24 projects EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Project name Industry Signed € million Agri Europe (f.MK Equity) Agribusiness 05 July 2013 50.0 Axereal - Debt 21 June 2013 7.0 Serbia WHR - Credit Agricole Funded 31 May 2013 Mid Europa Fund IV Equity Funds 27 Sept 2013 8.0 3TS CEE Fund III 1.8 Earlybird Digital East Fund 06 Nov 2013 0.5 Unicredit Leasing Serbia II Financial Institutions 17 May 2013 15.0 Intesa Leasing Serbia 20 Dec 2013 10.0 Societe Generale Leasing Serbia - SME Credit Line 17 Dec 2013 Société Générale Serbia Partnership for Growth Loan 28 Aug 2013 UCB Serbia - SME Credit Line European Fund for Southeast Europe (EFSE) III 14 Nov 2013 5.5 WeBSEFF II: Banca Intesa Belgrade 18 Dec 2013 6.0 PSSF - Societe Generale Banka Srbija SME Competitiveness 22 July 2013 5.0 Vojvodjanska Banka - Cross Currency Swap 31 Oct 2013 4.0 Regional TFP: Eurobank EFG a.d. Belgrade 14 Feb 2011 1.5 07 Oct 2013 1.0 Draexlmaier Group Manufacturing & Services LEF: Forma Ideale Furniture 2.0 Belgrade Bus Renewal Programme Municipal & Env Inf 30 Jan 2013 65.0 Belgrade Public Transport and Traffic Infrastructure 30.0 Municipal Infrastructure Development Fund 01 Nov 2013 12.0 Zemun Retail Park Property and Tourism 06 Feb 2013 11.3 Europolis Restructuring - Equity 28 June 2013 0.6 Europolis Restructuring - Loan 25 June 2013 Road Rehabilitation and Safety Project Transport 27 Nov 2013 100.0  TOTAL:   423.7 14 October, 2018 © European Bank for Reconstruction and Development 2012

2014 YTD results: €340 million in 14 projects EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Project name Industry Signed € million Eurobank EFG Belgrade Financial institutions 15 January 5.0 Project Media Information & Communication Technologies 24 January 24.4 Atlatnitc grupa – Serbia Agribusiness 10 February Accession Mezzanine Capital III Equity funds 24 April 1.5 Axereal - Equity 28 April 2.5 UCB Serbia - SME Credit Line 16 June 15.0 UCBSerbia - Mortgage Loan 25 June 20.0 Intesa Leasing Serbia 11 August Nectar Regional 29 August 18.0 Societe Generale Leasing Serbia - SME Credit Line 03 September 10.0 Digital Switchover 19 September 24.0 Victoria Group Working Capital 15 October The Deposit Insurance Agency of Serbia 23 October 200.0  TOTAL:   340.4 14 October, 2018 © European Bank for Reconstruction and Development 2012

Guarantee Schemes - Rationale EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Guarantee schemes can support credit growth via: Allowing local Partner Banks (“PBs”) to finance specific segments or borrowers for which internal risk limits have been reached. Capital relief: EBRD’s risk participation for part of the loan amount is designed to allow the PB to achieve capital relief for the share of the loan that EBRD is at risk for. Hence PBs can use extra capital to expand lending. EBRD would require PBs to apply EBRD environmental and integrity assessment standards with regards to sub-loans. 14 October, 2018 © European Bank for Reconstruction and Development 2012

Guarantee Schemes - Products EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Risk sharing on portfolio basis EBRD guarantees to PBs X% of certain portfolio, e.g. SMEs or mortgages, in return EBRD receives a risk compensation fee specific to the transaction. Risk sharing of specific exposures Medium-Sized Co-financing Facility (MCFF), provides risk sharing on a funded and unfunded basis. EBRD’s guarantee for the non-recourse portion would be irrevocable and unconditional. MCFF in use in the following countries: Macedonia, Moldova, Turkey, Albania, Azerbaijan, Armenia, Georgia, Kyrgyz Republic, Mongolia and Tajikistan. 14 October, 2018 © European Bank for Reconstruction and Development 2012

MCFF MCFF is a Co-Financing facility between EBRD and PBs EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact MCFF is a Co-Financing facility between EBRD and PBs EBRD and PB can provide sub-loans to medium-sized companies of up to EUR 20 million and up to 10 years. EBRD shares up to 50% of risk in the sub-loan (which can increase up to 100% in exceptional cases). EBRD’s share cannot be below EUR 500.000. EBRD’s risk participation in MCFF can be funded or unfunded MCFF Funded: EBRD’s funded risk participation up to 50%. MCFF Unfunded: EBRD’s unfunded risk participation up to 50% (“non-recourse portion”), i.e. EBRD guarantee to PB covering 50% of PB loan exposure to Sub-borrower. 14 October, 2018 © European Bank for Reconstruction and Development 2012

MCFF Facility size: EUR 385 million EBRD’s activities EBRD in Serbia Guarantee Schemes MCFF Contact Facility size: EUR 385 million Currency: Euro (local currency is also an option, but pricing for Serbia is likely to be too high). Sub-borrowers: majority privately owned local companies with good credit history, clean integrity background and strong financial performance. Sub-loans: mostly for capital expenditure purposes, as well as working capital needs. EBRD can also finance / guarantee existing exposures. 14 October, 2018 © European Bank for Reconstruction and Development 2012

Primary Contacts European Bank for Reconstruction and Development EBRD’s activities EBRD in Serbia Guarantee Schemes Selected Investments Contact Aleksandra Vukosavljevic, Principal Banker Tel: (+381) 11 21 20 638 Email: vukosava@ebrd.com Johannes Busse, Associate Banker Tel: (+381) 11 21 20 534 Email: bussej@ebrd.com European Bank for Reconstruction and Development Blue Center, Španskih boraca 3 11070 Belgrade Serbia Tel: +381 11 21 20 530 Fax: +381 11 21 20 534