Working with the European Bank for Reconstruction and Development (EBRD)

Shareholding structure What is the EBRD? An international financial institution, with the mandate to promote transition to modern and well-functioning markets in 36 countries from Central and Eastern Europe, Caucasus, Central Asia and the Southern and Eastern Mediterranean – SEMED region. Owned by 65 countries and 2 inter-governmental institutions (EU, EIB). Capital base of €30 billion. Highest credit rating (AAA/Aaa) from all three main rating agencies (S&P, Moody’s and Fitch) In January 2016, China became the EBRD’s 67th shareholder Shareholding structure (1) Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8.6%

Where we invest – increasing footprint Estonia— Latvia— Russia Lithuania— Belarus Poland Czech Republic— Ukraine —Slovakia Kazakhstan —Moldova —Hungary Mongolia Slovenia— —Romania Croatia— —Serbia Bosnia and Herzegovina— —Bulgaria Uzbekistan— Montenegro— —Kosovo Georgia— —Kyrgyz Republic Albania— Armenia— FYR Macedonia Turkey —Tajikistan Greece Azerbaijan —Turkmenistan Tunisia— Cyprus —Morocco SBI-related activities will be presented by region, whilst remaining country focused —Jordan Egypt— SEMED Western Balkans Turkey Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine Central Asia (incl. Mongolia) Central Eastern Europe Cyprus Greece

EBRD largest investor in the region Since 1991, EBRD invested over €116 billion in around 4,723 projects across private and public sectors in its countries of operations In 2016: €9.4 billion / 378 projects Private sector accounted for 76% share Debt 87%, Equity 9% & Guarantee 4% NCBI = Net Cumulative Bank Investment Note: unaudited as at 31 December 2016

Portfolio distribution by sector and region EBRD Portfolio (at 31 December 2016): € 41,750 million EBRD Portfolio (at 31 December 2015): € 41,574 million Sector Region Note: unaudited as at 31 December 2016

The EBRD, its objectives and key strengths Strong, internationally recognised financial partner with long-term perspective Operates on a commercial basis Wide product, currency, tenor range Facilitates inward and cross border investments in the region to enhance regional integration Promotes through policy dialogue improvements in the investment climate and necessary sector reforms Close working relationship with governments and shareholders Extensive knowledge of local economy, business environment and practices based on 25 years experience and local presence in 36 countries Structuring expertise and project preparation and implementation support available Catalyst to access additional equity, debt and trade & project finance to both private and public sector clients Objectives To promote transition to modern and well- functioning markets by investing both in the private and state sectors To support private sector development, privatisation and enterprise restructuring To improve competitiveness and promote innovation to enhance energy and resource efficiency To encourage environmentally sound and sustainable development To support better municipal services to improve people's lives To mobilise significant foreign direct investment

EBRD working with commercial investors EBRD does not compete with commercial investors. 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 cooperates with other investors (supporting strategic equity investors). EBRD leads the market with innovative products and longer tenors. EBRD investment of €1 “mobilises” another €3 for the project EBRD employs donor grant funds to blend with its projects.  Donor funds and the Bank’s own resources are used to fund technical assistance for project preparation and implementation, where such assistance is required, infrastructure investments, for risk-sharing facilities and incentive payments, etc. EBRD provides assistance in structuring and executing investments with significant energy and resources efficiency gains as well as reduction in emissions of greenhouse gases.

EBRD region 8

EU-10: Central Europe (including Croatia),Bulgaria and Romania Strategic priorities/investment opportunities Advanced transition countries: Croatia, Romania and Bulgaria: energy efficiency, security, interconnectivity; regional integration in infrastructure and energy sectors; corporate sector restructuring and privatisation; restructuring and commercialisation of public sector enterprises; sustainable financial sector and capital markets; strengthening the financial sector and broadening access to finance; enhancing private sector role and competitiveness. supporting private sector competitiveness.

Western Balkans Regional Context The region is surrounded by EU countries – increasing market integration The Western Balkan economies have significantly transformed and are on the path of EU approximation: Reform momentum – improvement in investment climate Substantial EU funds for strategic areas: Infrastructure, Environment, Energy and Private sector development Strategic priorities/investment opportunities Support regional integration, including through leveraging EU funds Transport Energy Efficient and sustainable use of resources Assist in economic reform process Support private sector competitiveness

SEMED Strategic objectives Priority sectors Support for the private sector with particular emphasis on small and medium-sized enterprises (SMEs). Developing non sovereign financing solutions for infrastructure including PPP structures. Promoting sustainable energy and energy efficiency initiatives. Supporting and developing local capital markets. Priority sectors Energy efficiency : Power sector reform (liberalisation, commercialisation, unbundling). Development of renewable energy. Natural resources, preferably in less favoured regions. Infrastructure: Support reform agenda for state enterprises including corporatisation, subsidy reduction and privatisation. Introduction of legal and regulatory framework for PPPs and concessions. Direct investment in selected projects (ports, transport, waste management, etc.) Financial sector: Working through local banks to finance the SME sector. Trade facilitation and other services. Support for restructuring and institutional building of selected banks. Microfinance and other specialised institutions. Financing Private Enterprises: Manufacturing and Services including large corporates Agribusiness and related industries (food chain). Direct support for the SME sector. Financial restructuring in selected cases. Property and Tourism. Information and Communication Technology.

EBRD in Turkey: at a glance EBRD investments: € 9.038 billion / 217 projects Sector distribution of the EBRD portfolio Regional context: EBRD largest country of operations; 18th largest economy in the world and 7th largest in Europe; GDP increased > 3 times over the last 10 years; Attractive Investment Climate: prudent fiscal policies, strong resilient domestic banking system; Centrally located between Europe and Asia, largest market in the Eastern Mediterranean; Trade opportunities (Customs union with the EU since 1996; WTO membership); Significant infrastructure needs; Qualified and competitive labour force. Priority sectors: Agribusiness; Manufacturing; Information and Communication Technology; Infrastructure: transportation, municipal, social infrastructure (i.e. hospitals), based on PPP model or investments into private operators; Energy: IPPs, renewables and power transmission. Note: as at 31 December 2016

EBRD in Central Asia: at a glance EBRD investments: € 11.37 billion / 662 projects Sector distribution of the EBRD portfolio in Central Asia Regional context: Crossroads of numerous trade routes (Western Europe – Western China, China-Iran, Russia-South Asia); Trade opportunities (EEU market, WTO membership, preferential trade regimes with former Soviet Union countries); Natural resources: hydrocarbons (Kazakhstan, Turkmenistan, Uzbekistan), metals (Kazakhstan, Kyrgyzstan, Uzbekistan), resources for development of renewable energy (Kazakhstan, Turkmenistan, Tajikistan, Uzbekistan), fertile land with agricultural production traditions; Human resources; Efforts to improve inv. climate and attract foreign investments. Priority sectors: Agribusiness; Manufacturing; Information and Communication Technology; Infrastructure: transportation (incl. PPP in Kazakhstan), logistics, municipal; Energy: generation, incl. renewables and power transmission; Natural Resources: modernisation and development of resource deposits, oil & gas (midstream and downstream), gas distribution and storage. Note: as at 31 December 2016

Eastern Europe and the Caucasus: at a glance The largest financial investor in eastern Europe and the Caucasus with more than 20 years of experience Focused on long-term financing of equity and debt Total invested to date is over €22.24 billion, funding 1,042 projects More than €1.5 billion invested in each of the past 5 years Annual investment €m Number of projects 14 14

Eastern Europe and the Caucasus Strategic location: Region is important part of China-Europe corridor (Silk Road) Excellent access to the EU, Customs Union Developed road, rail, sea/river links between Europe, Caucasus and Russia/Central Asia Important power grid lines, oil & gas pipelines run through the region Key industries: Agribusiness (including logistic solutions for all types of commodities) Oil & Gas Exploration Mining Alternative power generation (biogas/mass, wind, solar and hydro) Excellent comparative advantages: Highly skilled and affordable labour force Ideal location for production base (proximity to Europe, Russia, Central Asia) All countries in the region are members of either DCFTA or EEU agreements

Partners together: Canada-EBRD 16

Canada Canadian banks are also involved in the Trade Facilitation Programme (TFP), through which the EBRD guarantees the payment of trade finance instruments (such as letters of credit or payment guarantees) issued by banks in the EBRD’s countries of operations to foreign confirming banks. January 2017 Canada is a founding member of the EBRD with a 3.4 per cent capital share and a representative on the Board of Directors. Operating from central Europe to Central Asia, the Western Balkans and the southern and eastern Mediterranean (SEMED) region, the EBRD is owned by 65 countries and two intergovernmental institutions. Working together with the private sector, the Bank invests in projects, engages in policy dialogue and provides technical assistance that builds open-market economies. €40 million 3.4% Joint Canada-EBRD Investment 19,700 transactions €14.7bn value 47 Export & Import transactions of Canadian companies with €33.9m value 95 banks 26 countries 800 Foreign confirming banks includes 7 Canadian banks procurement 4 contracts €3m value For EBRD public sector projects from 2012-2015 Joint Canada-EBRD Breakdown consultancy The Government of Canada was a major donor to the EBRD, contributing a total of €40 million since 1992, mostly for technical cooperation, and provided fully untied funds between 2007-2014. Its priorities included poverty alleviation through private sector development, environmental investments and good governance. The Europe Regional Program, through which Canada provided most of its support to the EBRD, closed in December 2012.                                                         In recent years Canada has focused on Ukraine, and specifically in areas where the EBRD does not normally operate. Canada also participated in multi- donor initiatives such as the Early Transition Countries (ETC) Fund and the European-Western Balkans Joint Fund, and represents three of the four SEMED countries (Morocco, Jordan and Tunisia) on EBRD’s Board of Directors.   44 contracts €1.4mn value Areas of expertise were SME, financial institutions and municipal infrastructure sectors 28 contracts €409k value Awarded by the Small Business Support team for provision of management and specialist industry advice From Washington folder Selected clients Canada is an important source of foreign direct investment in the EBRD’s countries of operations.

Contacts For all further enquiries, please contact: Name: Michele Small Title: Director, Head of Representative Office, North America Tel: +1 202 846 1316 Email: smallm@ebrd.com Name: Leonor Fontoura Title: Business Development Representative Tel: +1 202 846 1316 Email: fontourl@ebrd.com EBRD Representative Office, North America Suite 640 815 Connecticut Avenue NW Washington DC 20006 USA www.ebrd.com