Trade Facilitation Programme (TFP) WWE Conference, Kiev Rudolf Putz Deputy Director, TFP Kiev, October 2015

Where we invest 6 November, 2018

EBRD Trade Facilitation Programme (TFP) Objectives: Help local banks in EBRD region to create track records with foreign correspondent banks Fill the market gaps and provide continuity of support for trade Strengthen the trade finance capabilities of local banks Support the development of factoring services Strengthen EBRD relationships with local banks, develop opportunities for further operations Key tools: Guarantees that cover risks arising from trade finance transactions Short-term loans to banks for trade finance purposes Trade finance training and advisory service to local banks 10 3

EBRD Trade Facilitation Programme (TFP) – How does it work? EBRD supports trade by providing guarantees that cover risks arising from trade finance transactions short-term advances/financing to banks in the Countries of Operation for trade finance purposes trade finance training and advisory service to local banks 3

EBRD TFP Guarantees: Example - Artificial Snowmaking project - Georgia A Georgian company buys snow making equipment from Austria TBC Bank, Georgia issues confirmed letters of Credit for total value EUR 2,280,820.74 with post-financing by Raiffeisen Bank International, Austria EBRD covers 100% of the political and commercial payment risk

Green TFP TFP Supply Chain Development Initiate Facilitation and increase in trade of sustainable energy technologies in EBRD countries of operations (CoOs). Improve access to trade finance for sustainable energy technology suppliers and installers, often SMEs Create competitive markets for sustainable energy/resource technologies Increase the availability of sustainable energy technologies and promote uptake Contribute to the expansion of partner banks’ markets Support the development of the Bank’s TFP - unlock additional trading potential. Potential Sectors & Technologies Farming Logistics Companies Printing Textile Office Building Metal Processing 6 November, 2018

EBRD TFP Guarantees: Example – Import of turbines from Czech Republic into Ukraine A Ukrainian renewable energy project developer imported a turbine from the Czech Republic to be installed in a micro hydropower unit OTP Bank Ukraine issued confirmed letters of Credit for total value EUR 523,000 EBRD covers 100% of the political and commercial payment risk EBRD’s Ukraine Energy Efficiency Programme (UKEEP) helped to assess profitability of the investment. Expected Operational Results Annual green energy production of 4,700 MWh Expected Investment Profitability Annual renewable energy revenues of EUR 526,400 Payback period of 2 years (in present value terms) 98% Internal Rate of Return on the investment

8 Issuing Banks (IB) in Ukraine Raiffeisen Bank AVAL Megabank OTP Bank Sberbank Ukraine State Export Import Bank of Ukraine Unicredit Bank UkrSibbank VTB Bank Ukraine 6 November, 2018

EBRD TFP Guarantees: Example – Export of melamine boards and laminate from Ukraine to Belarus A Ukrainian exporter, Krono Ukraina, sells melamine boards and laminate to a Belarus importer Priorbank Belarus issues a counter-guarantee for EUR 200,000 in favor of Credit Agricole, Ukraine EBRD covers 100% of the political and commercial payment risk

Exports from Ukraine to Egypt A Ukrainian company sells production equipment for a sugar refinery to a company in Egypt RB Aval Ukraine issues a counter-guarantee, based on a performance guarantee, in favour of the Egyptian confirming bank EBRD guarantees 100% of the political and commercial payment risk

TFP Ukraine Export of grain to Armenia Intra-regional Transactions Export of grain to Armenia Export of diagnostic equipment to Moldova Export of electrical equipment to Azerbaijan Export of buses to Georgia Export of cranes to Uzbekistan Export of trucks and car tyres to Russia Import of water heating boilers from Poland Import of bottling equipment from Hungary 6 November, 2018

EBRD Trade Facilitation Programme (TFP) Annual Business Volumes 1999 – 2014

TFP – 1,756 Transactions in 2014 1. Russia 2. Ukraine 3. Armenia 4. Georgia 5. Belarus 6. FYR Macedonia 7. Azerbaijan 8. Moldova 9. Kazakhstan 10. Bulgaria 11. Mongolia 12. Morocco 13. Croatia 14. Serbia 15. Turkey 16. Romania 17. Tunisia 18. Kyrgyz Republic 19. Jordan 20. Bosnia and Herzegovina 21. Tajikistan 22. Egypt

800 Confirming Banks in 77 Countries

EBRD TFP – Top 20 Confirming Banks Ranked by Number of Transactions in 2014 1. Commerzbank 2. Unicredit Bank 3. Deutsche Bank 4. BHF Bank 5. KBC Bank 6. UBS 7. Raiffeisen Bank International 8. ING Bank 9. WGZ Bank 10. ABN Amro 11. BNP Paribas 12. Intesa Sanpaolo 13. Credit Agricole 14. Yapi ve Kredi Bankasi 15. Landesbank Baden-Württemberg 16. Turkiye IS Bankasi 17. Societe Generale 18. Credit Suisse 19. Ukreximbank 20. Banco de Sabadell

EBRD TFP - Co-Financing Partners ACE Global Markets (AGM) & Lloyds of London AKA Bank, Germany Arab Trade Finance Program, Abu Dhabi Confirming Banks Donor Risk Sharing Funds Export Credit Agencies FMO Netherlands OPEC Fund for International Development, Vienna Private Investment Funds

EBRD: Capacity Building Projects EBRD – Blended Learning Solution

Donors TFP TC Projects are funded by: The Early Transition Countries Fund The Shareholder Special Fund European Union Norwegian, Swiss, Italian, Canadian, Taiwanese funding and other donors.

EBRD Trade Finance Training Courses in Ukraine Factoring Seminar Structured Trade Finance Training TF & Factoring Advisory Services Fraud Prevention Seminars

EBRD Trade Finance Training Courses in Ukraine Crisis Response Training ISBP for Documentary Transactions Role of Sanctions in International Trade Finance Banking

EBRD ICC e-Learning Programme 104 Ukrainian students registered for full programme 55 successfully graduated 20% of Top 25 Graduates from Ukraine 330+ registered for ITF in 2015 100+ successfully graduated in 2015 Picts & list of ukr top graduates & basic stats

EBRD ICC e-Learning Programme Best students receive further scholarships and sponsored training programmes in leading European confirming banks and training companies: Commerzbank, Germany ICC PARIS ICC Vienna Banca Popolare di Sondrio, Italy BHF-Bank, Germany Ukrainian Students consistently amongst TOP GRADUATES 6 November, 2018

TFP Award Winners UKX Academic excellence award 2012 (Trade Finance Department) Most active Factoring Bank, 2008, 2009 2012 e-Learning award AVAL Best Trade Finance Country Feature 2012 Sergey Kostogryz won EBRD Award of Excellence for outstanding contribution to e-Learning Programme development 6 November, 2018

TFP e-Learning: International and Domestic Factoring First part now launched! On-line training developed by the leading factoring associations and international experts Offered in English, Russian and French Covers domestic and international aspects of factoring Certificates of Achievement upon successful completion of the course Target audience: Relationship Managers in Banks and Factoring companies Importers and Exporters Lawyers & Risk Managers Contact: Murodjon Farmanov - farmanom@ebrd.com T: +442073387599

TFP cooperation with ICC Austria Workshop on: Case Studies in Trade Finance : 5-9 October 2015 International Standard Banking Practice/ Risk Mitigation in Trade Finance Documentary Credits incl. Forfaiting & Bank Guarantees - 7 & 8 October 2015 Factoring – 9 October 2015 ICC Austria Trade Finance Week : 6-10 June 2016 11th Global Conference on Bank Guarantees – 6 & 7 June 2016 Case Studies on Bank Guarantees and Letters of Credit – 8 June 2016 10th Global Conference on Letters of Credit – 9 & 10 June 2016 For information and current up-dates check out: www.tradefinanceweek.org Update 6 November, 2018

TFP Trade Exchange Magazine Launched in 2011 9 publications to date Dedicated to Trade Finance and EBRD Technical Assistance Projects 5,000 Readers from 1,000 Banks Reports on: News & Events Regional Focus Features In Depth sector Key Issues Trade Projects

Best Development Bank in Trade Readers of Trade & Forfaiting Review (TFR), Global Trade Review (GTR) and Trade Finance Magazine have voted the EBRD in 2014 “ Best Development Bank in Trade” EBRD invites other development banks, commercial financial institutions, export credit agencies and donors to co-finance or co-finance with the EBRD

EBRD TFP - Instruction for Exporters & Importers Check under www.ebrd.com/tfp, for which Issuing Banks and which tenors EBRD may guarantee the payment; Ask your buyers/suppliers to check if an Issuing Bank under the TFP would be ready to issue the required trade finance instrument; Ask a Confirming Bank of your choice to confirm the payment instrument under the guarantee of EBRD 7

Contacts Trade Facilitation Programme European Bank for Reconstruction and Development One Exchange Square London EC2A 2JN United Kingdom E-mail: Group-TFPOps@ebrd.com Web-site: www.ebrd.com/tfp; Rudolf Putz Deputy Director Tel: +44 207 338 7776 E-mail: putzr@ebrd.com Sara Velco Analyst Tel: +44 207 338 8261 E-mail: velcos@ebrd.com Kamola Makhmudova Senior Banker Tel: +44 207 338 7731 E-mail: makhmudk@ebrd.com Rebecca Franklin Senior Officer, TFP Tel: +44 207 338 6474 E-mail: franklir@ebrd.com Join us in social networks: Twitter: www.twitter.com/ebrdtrade Facebook: www.facebook.com/ebrdtfp LinkedIn: www.linkedin.com/groups?gid=4667852

6 November, 2018