1. Energy & Climate Change – the BSTDB Experience
6th Annual International Scientific Conference
On Energy & Climate Change
October 2013

2. BSTDB At A Glance Headquarters: Thessaloniki, Greece
First Operation: November 1999
Employees: 100
Shareholders: 11 countries of the Black Sea Region
Authorized Capital: EUR 3.5 billion (doubled in 2008)
Cumulative Portfolio: EUR 2.7 billion (257 projects)
Active Portfolio: EUR 1.27 billion (106 projects)
Credit Ratings: A3 by Moody’s (August 2013) A-/A-2 from S&P (October 2013).The ratings are 5 notches higher that the average rating of the shareholders. BSTDB is the best rated financial institution in the Black Sea region.

3. Shareholding Structure

4. Outstanding Operations by Country (at 31/12/2012)

5. Sectoral Distribution of Projects (Outstanding Operations at 31/12/2012)

6. Operations by Product Type (Outstanding Portfolio at 31/12/2012)

7. Energy & Infrastructure Portfolio (at 31/12/2012)

8. BSTDB: Energy & Infrastructure
Primary Type of Transactions:
Project Finance
Up to 35%
Sponsor equity of about 30% and remainder co-financed
Corporate Finance
Well established Corporates with a strong record of healthy IFRS audited financials
All projects must:
Have a solid business plan & IFRS statements
Pass KYC, Corporate Governance, and Creditworthiness checks of Sponsor / Borrower
Pass due diligence checks (market, financial, technical, EHS, legal, etc.)

9. BSTDB Energy Portfolio (1)
BU: Maritza East I
Construction of 600MW lignite-fired power plant, owned by AES
Participant in EUR 1.1b debt facility
BU: Suvorovo Wind Farm
Construction of 60MW wind farm, with Spanish sponsor
Participant in EUR 62m debt facility
RO: Petrom
Corporate loan to largest Romanian oil & gas group to finance various components of strategic environmental program
Participant in EUR 275m debt facility

10. BSTDB Energy Portfolio (2)
TU: Koprubasi
Construction of 74MW Hydro Power Plant
Participant in USD 28m debt facility

11. BSTDB Energy Portfolio (3)
UA: Alfa Nafta
Finance expansion of gas filling station network
USD 36m debt facility
UA: Chornomornaftogaz
Support development of existing oil & gas reserves on Black Sea
USD 21m debt facility
UA: Galnaftogaz
USD 44m debt facilites
UA: Gas Transit
Construction of compressor on existing Ananyev-Izmail gas pipeline.
Participant in EUR 97m debt facility

12. BSTDB Experience Energy & Climate Change Conventional Energy
European energy demand is increasing
What does it mean for BSTDB - projects
Conventional Energy
Limited number of projects with very long lead times and greater environmental hurdles
Renewable Projects
Explosion of new projects some with questionable viability
We have reviewed numerous projects in BU, GR, RO, RU, TU, UA
Energy Efficiency
Sometimes and add-on to existing projects

13. BSTDB Renewable Energy Experience (1)
EU and the 20/20/20 Objective
By 2020 the EU should produce 20% of energy from renewable sources & 20% more energy efficiency.
Support Mechanism: FiT vs. GCs vs. Market
Feed in Tarrifs (e.g. BU, GR, UA etc)
Green Certificate Schemes (e.g. RO, PL)
Market (i.e. TU – min. Tariff for Government offtake)
Reality: Price Increases, Demonstrations, Elections, and Uncertainty
Demonstrations in BU & RO. Regulatory changes in RO.
Need of restructuring by all parties.
Size of Differential between Subsidy & Market
An important element for bankability

14. BSTDB Renewable Energy Experience (2)
BU: NEK payment delays
Need of restructuring by all parties and will affect all.
GR: FiT too lucrative to believe
Difficult to believe will remain the same after 2012 Debt default and arrears in RES Account.
RO: GCs with market mechanism
Trying to create GC market with market discipline
Recent regulatory changes too much for many to absorb thus creating further uncertainty
TU: Minimum price guarantee on spot market.

15. BSTDB Renewable Energy Experience (3)
‘If tariffs are too good to be true’ they definitely won’t last in the long term!

16. Thank You! Roman Matkiwsky Director, Energy & InfrastructureE: