Αυγούστα Βραχνού Principal Banker, Ευρωπαϊκή Τράπεζα Ανασυγκρότησης και Ανάπτυξης Augusta Vrachnou Principal Banker, European Bank for Reconstruction & Development (EBRD)

EBRD support across the agribusiness value chain AgriBusiness Forum 2018 Serres, November 2018

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Introduction to the EBRD

European Bank for Reconstruction and Development

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• International financial institution, promoting efficient market economies by investing mainly in private sector development and entrepreneurship

• Owned by 66 countries and two intergovernmental institutions

• Largest single investor in the region of operations (38 countries from central Europe to central Asia and the southern and eastern Mediterranean)

EBRD at a glance

• Established in 1991

• 43 resident offices, 6 regional offices, HQ in London

• AAA-rated (S&P, Moody’s, Fitch)

• Capital base of EUR 30 billion

• EUR 120 billion invested in more than 5,000 projects since 1991

1. Data at end December 2017

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Where EBRD invests

Projects in all key business sectors

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Transport

Agribusiness

Financial Institutions

Manufacturing & Services

Municipal & Environmental Infrastructure

Power & Energy

Natural Resources

Property & Tourism

Telecomm, Informatics

& Media

Equity Funds

Nuclear Safety

Climate Finance

In 2017 EBRD Top 10 investee countries in 2017 (€m)

1 Turkey 1,540

2 Egypt 1,413

3 Ukraine 740

4 Poland 659

5 Greece 614

6 Kazakhstan 586

7 Romania 546

8 Azerbaijan 456

9 Serbia 382

10 Tunisia 324

EBRD Product Flexibility tailored to project needs

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Debt Equity

• Loans to the private sector (up to 35% syndicating the rest), including SME

• Debt co-financing, working with commercial banks and IFIs

• Project finance loans (incl. PPP) • Fixed/floating rates • Syndication under preferred creditor status • Access to capital markets

• Investing with majority sponsor to reduce equity burden and add partnership value. No more than 25%

• Common or preferred stock • Privatisation and initial public offering

(IPO) • Mezzanine equity and subordinated debt • Infrastructure funds • Private equity and VC Funds

Technical Cooperation

EBRD brings in additional financial capital and technical assistance (TC) to economically viable projects

Greece as an EBRD Country of Operation

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• EBRD’s engagement is to tackle the consequences of the financial and economic crisis and assist in addressing the structural challenges embedded in the country’s economy

• EBRD’s activities are intended to contribute to the momentum of its recovery and strengthen the reform process of Greece’s economy

• EBRD has a primary focus to:

o encourage foreign and domestic investment

o strengthen the role of the private sector

o deepen regional integration

o help to build an economy which is competitive, integrated, well-governed, green, resilient and inclusive

EBRD activity in Greece to date: 40 projects

€2.0 billion Cumulative EBRD investment

100% Private sector

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EBRD’s Strategy in Greece

Corporate Sector Support the resurgence and enhance the resilience of the corporate sector through a shift to a more export-oriented growth model. Financial Sector Support the stabilisation of the financial sector and deepen intermediation to unlock private sector access to finance. Energy & Infrastructure Sector Support private sector participation and commercialisation in the energy and infrastructure sectors to enhance regional integration and improve quality of utility services.

Our country strategy was approved by the Bank’s BoD in June 2016: www.ebrd.com/documents/strategy-and-policy-coordination/greece-country-strategy.pdf

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Agribusiness at the EBRD

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Agribusiness at the EBRD

€11.4 billion invested through

666 projects since 1991

2017: €806 million

invested through 60 projects

Active portfolio of 220 projects or €3.2 billion

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Financing the entire food chain

Agricultural Inputs

Production

Primary Processing

Food Processors

Packaging Production

Food Service Distribution

Consumers

• Seeds • Fertiliser • Farm

machinery • Agricultural

chemicals • Bio-tech • Distributors

• Grains • Oilseeds • Livestock • Poultry • Dairy • Fish • Horticulture • Produce

• Crushers (sunflower, soya bean)

• Millers • Grain

handling • Produce

market • Meat • Bakery • Snacks • Beverages • Frozen foods • Fish • Pet food

• Glass bottles and jars

• PET bottles • Cans • Carton

containers

• Restaurants • Supermarkets • Institutions • Distributors

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Select agribusiness clients and partners

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Agribusiness Sector Support Tools

Direct Investments

€10 million Invested in 2016

€10m bond loan to finance additional

working capital and refinance part of

existing loan obligations

€40 million Invested in 2018

€40m loan to finance

€10 million Invested in 2016

€10m equity commitment to

support investing in growth-stage SMEs

in Greece

€20m equity commitment to

Diorama Hellenic Growth Fund to

support investing in SMEs

€20 million Invested in 2015

Funds Investments

Alternative Support Tools

To date €0.5 billion provided to five Greek banks through EBRD’s Trade Facilitation Programme to support imports and export trade of Greek companies also in the agribusiness sector.

€250 million into the Inclusive Tourism Framework for the Eastern Mediterranean aiming to promote a more diversified tourism model focused on stronger backward linkages into the local economies.

Cooperatives and business associations focused workshops to add value across the entire value chain.

Advisory for Small Businesses program with 50% of applicants from the agribusiness and food processing sector.

We’ve helped over 20,000 enterprises in 30 countries since 1993

With our help, SMEs access the know-how they need to grow, often employing more people and accessing external finance.

Business advice: Strategy, Operations, Organisation, Quality Management, Marketing, ICT, Accounting and Financial Reporting, Resource Efficiency, Engineering Solutions, etc.

In Greece since March 2018

We connect local SMEs with local consultants and international advisors

We contribute to the cost of the consulting project (67%-88%)

Advice for Small Businesses

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SME ASB submissions in Greece (2018)

agribusiness and food processing

beveragies construction

energy manufacturin

g

media

packaging and printing

industry

pharma

services

tourism wholesale/re

tail

Sectors

Geographical distribution

Attica

Central Macedoni

a East

Macedonia &

Thrace

Epirus

North Aegean

Peloponnese

Sterea Ellada

Thessaly West

Macedonia

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Selected Case Studies

Project Summary

Frutarom – Debt financing for regional acquisitions

• Frutarom is a leading producer of flavours and specialty fine ingredients for the food industry. Established in 1933, it is one of the world's 10 largest companies in the flavours and specialty fine ingredients segment and is publicly listed in Tel Aviv and London.

• The EBRD provided a €50m loan for the acquisition of companies in Poland and Slovenia.

• The project marks the EBRD’s first project in the growing flavours & fragrances sector and brings FDI to the sector in Slovenia, as well as support to research and development in order to strengthen competitiveness on external markets.

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Signed in

2016

Project Summary

FoodMaster (Lactalis) – Financing expansion of the leading dairy group in Kazakhstan

• FoodMaster is one of the leading dairy producers in Kazakhstan and an affiliate of Lactalis, the leading dairy products group in the world.

• The EBRD will provide a loan of up to €15m equivalent in Kazakh Tenge to finance capital expenditures in the company’s dairy processing plants and dairy farms.

• The project will enable FoodMaster to increase the output and quality of locally-produced dairy products, in line with the best international practices.

• In addition to the financing, together with the Food and Agriculture Organization of the United Nations (FAO), the EBRD initiated a technical cooperation programme with the private sector to improve milk production and collection, thus boosting milk supply and product quality in Kazakhstan.

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Signed in

2016

Project Summary

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Moji Brendovi – Acquisition financing alongside a private equity fund

• Moji Brendovi group comprises of three leading FMCG companies in Serbia and the region – Imlek (dairy), Bambi (confectionary and biscuits) and Knjaz Milos (water and beverages).

• The EBRD provided €20m in equity financing and a €60m mezzanine loan for the acquisition of the Danube Food Group led by Mid Europa Partners, a CEE-focused private equity group.

• The transaction will support:

• Launching of new products

• Achieving cost efficiencies

• Consolidation of quality and environmental standards in line with the best international practices

Signed in

2015

Project Summary

Doğuş Çay – A loan to leading tea producer

• Doğuş Çay is one of the top three tea producers in Turkey and also has a significant market share in the potato chip and snacks segment in Turkey.

• The EBRD provided €50m long-term loan to finance the company’s 2015-2016 investment programme, aimed at the expansion of its product range and refurbishing, additional working capital needs and extension of maturity of existing loans.

• Doğuş Çay is committed to implementing corporate governance improvements and resource efficiency action plans.

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Signed in

2015

Project Summary

Yasar – Supporting the growth of a major Turkish conglomerate

• Yasar Holding is a major food and beverage producer in Turkey.

• The EBRD subscribed to $40m of a $250m Eurobond issued by Yasar Holding.

• The EBRD financing supports:

• Diversification of the company’s funding base

• Construction of a new dairy plant in Southeast Turkey

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Signed in

2014

Project Summary

Juhayna – EBRD’s first investment in Egypt’s agribusiness sector

• Juhayna is a major Egyptian agribusiness, active in the sourcing, processing, sale and distribution of dairy, yogurt and juice products.

• The EBRD provided a EGP 500m loan.

• The EBRD financing supports:

• Introduction of new products, in accordance to high environmental standards

• Expansion of existing dairy processing capacities, logistics and distribution

• The EBRD is also providing technical assistance to the local dairy farmers who are an integral part of the Company’s supply chain through targeted training and transfer of best practices in farm management.

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Signed in

2014

Project Summary

Yorsan – Co-financing an acquisition of a dairy producer with a private equity fund

• Yorsan is one of the leading producers of branded dairy products in Turkey.

• The EBRD and the Abraaj Group acquired a majority stake in Yorsan.

• The investment is expected to lead to:

• Expansion of the Company’s product portfolio

• Growth in sales and distribution networks across Turkey and the Company’s export markets

• Enhancement of the corporate governance in the Company

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Signed in

2013

Project Summary

Sutas – A long-term loan in Turkey’s dairy sector

• Sutas is a leading Turkish dairy producer with regional presence.

• The EBRD provided a €50m long-term loan.

• The investment:

• Supports the Company’s regional expansion through the construction of two integrated milk producing and processing facilities

• Provides capital expenditure investments of the existing plants

• Supplies working capital for subsidiary companies in FYR Macedonia and Romania

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Signed in

2013

Project Summary

Vitafit – Investing in production efficiency of a major beverage producer in Mongolia

• Vitafit is one of the leading beverage producers and distributers of fruit juices and drinks, bottled water and ice teas in Mongolia.

• Vitafit was one of the first EBRD investments in Mongolia ever, and since 2007 the Bank provided loans to the company amounting to over €11m.

• The financing:

• Allowed for the construction of a new fruit juice bottling factory, including the purchase of bottling and canning equipment

• Provided for additional warehouse capacity and refurbished the existing premises

• Supported the Company during the economic crises with additional working capital

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Signed in

2012