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EBRD: Financing metals and mining projects
Astana Mining and Metallurgy
13 June 2014
What is the EBRD?
Key facts about our Bank
 Supranational Institution.
Founded in 1991 and owned by 63 countries, including Australia.
 1,600 professionals, 37 offices, 35 countries of operations.
Half of banking team is based in the Bank's region.
 AAA/Aaa/AAA rating, stable outlook.
Capital base of EUR 30 billion. Strong shareholders’ support. Conservative risk policy.
 The EBRD promotes transition to market economies.
The EBRD invests mainly in the private sector but also in the public sector supporting
privatisation and restructuring of former state-owned companies.
The EBRD promotes policy dialogue with regards to investment climate business
environment and policy matters.
The EBRD encourages environmentally sound and sustainable development.
 EBRD is a catalyst of capital and FDI.
EBRD co-invests equity and provides financing alongside commercial banks and other IFIs.
Each 1 EUR invested by EBRD mobilises ca. 2 EUR of additional debt/equity investments.
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EBRD’s economic footprint
Key figures
 €86bn invested since 1991
 3,965 projects to date
 €38bn current portfolio
 1,831 active
projects
 78% debt, 22% equity
 72% of portfolio in the
private sector
 €8.6bn invested in 2013
 392 projects signed in 2013
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EBRD’s financial solutions
What can EBRD offer?
EBRD operates commercially but has a higher risk appetite than the private sector
as it can provide longer tenors, local currency loans in selected countries and other
tailor-made products
EBRD is willing to share political and commercial risk under different financing
structures
EBRD invests in a broad range of instruments across the capital structure:
Debt
Equity
 Flexible loan structure.
Senior/subordinated, mezzanine,
project finance, convertible debt,
reserve-based lending, bond issues.
 Common and preferred stock.
Typically, up to 20% minority stake.
 Support to strategic investors.
 Long term partnership.
Long exit horizons (5-10 years)
 Up to 1/3 project costs.
 Long tenors.
Up to 20 years, tailored to needs.
 IPO participation as anchor investor.
Increased credibility and comfort to
investors.
 A/B syndication structures.
Preferred creditor status. Mobilization
of commercial credit
 Board representation. Positioning as
neutral party (“honest broker”), provides
commercial/technical advice, promote
Corporate Governance practices.
 Co-financing / parallel lending.
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Natural Resources and Manufacturing at the EBRD
Dedicated sector approach and multidisciplinary teams
Key sectors
O&G extraction, transportation, refining
Mining & Metallurgy
Our Team

10 professional bankers focused on Russia and Central Asia
Permanent presence in: Almaty, Astana, London, Moscow

12 in-house centers of excellence including mining engineer
Technical appraisal, due diligence and monitoring. Access to additional expertise (consultants).
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Manufacturing & Services: Non-Ferrous Metals
EBRD is looking for opportunities to finance commercially sound projects
EBRD
Environmental
Policy
with
primary
and secondary
producers in the mining and metals sector
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Capex and working capital finance to support private and entrepreneurial
initiatives by engaging in long term partnerships, mining and metallurgy
Pre-privatisation and privatisation support to foreign and local investors where
private investment will lead to a modern and efficient industry
Energy efficiency and environmental financing to achieve significant savings
especially in energy intensive industries, i.e. aluminium
Mobilising parallel commercial banks’ financing to provide structured financing
solutions for working capital and capex
Financial restructuring of distressed balance sheet to ensure continued viability
of this strategic industry during economic difficulties
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C. CASE STUDIES
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Eti Aluminyum
Project Summary
Client
Eti Aluminyum
Signed in
2013
Country
Turkey
Product
Loan
Sector
Non-ferrous metals
Amount
USD 30 million
Highlights
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Eti Aluminyum is the sole primary aluminium producer in Turkey, producing 65,000 tonnes per
year and meeting around 15% of Turkish demand
EBRD’s loan will finance the modernisation of production facilities by switching to the use of prebaked anodes
The resulting reductions in energy consumption and increasing production efficiency will enable
Eti Aluminyum to increase production capacity whilst reducing total production costs
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Sofia Med – Viohalco Group
Project Summary
Client
Sofia Med
Signed in
2013
Country
Bulgaria
Product
Loan
Sector
Non-ferrous metals
Amount
EUR 40 million
Highlights
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Sofia Med, 100% owned by Halcor, part of the Viohalco Group is a leading producer of copper,
titanium-zinc and brass products
EBRD’s investment will assist the company in financing CAPEX for energy and production
efficiency and in restructuring its working capital lines
Major benefits will include an increase of capacity for producing extruded copper bars,
introduction of production of high performance alloys, increased usage of scrap and
improvement of energy consumption
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Severstal, Russia
Project Summary
Client
JSC Severstal
Signed in
2008
Country
Russia
Product
Syndicated Loan
Sector
Metals
Amount
EUR 600 million
Highlights
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EBRD has financed three projects with Severstal, the largest steel maker in Russia
The latest project, signed in 2008, was a EUR 600 million A/B loan (EUR 450 million syndicated)
to finance the implementation of 17 energy efficiency projects at Cherepovets steel plan,
including the reduction of the company’s primary energy consumption
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This is EBRD’s largest energy efficiency loan so far, and the investment program is expected to
show a major transformation in the energy efficiencies of the Russian steel industry
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EBRD’s previous transactions with Severstal include:
 financing the construction and operation of a hot dip galvanising line (Severgal signed in
2003)
 financing construction and operation of an on-site air separation plant to upgrade quality
and reliability of oxygen (Air Liquide – Severstal JV signed in 2005)
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ArcelorMittal: Kazakhstan, Romania, Ukraine
Project Summary
Client
ArcelorMittal Kriviy Rih
Signed in
2006
Country
Ukraine
Product
Loan
Sector
Steel
Amount
USD 200 million
Highlights
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EBRD has financed ArcelorMittal projects in Kazakhstan (in 1997), Romania (in 2001), FYR
Macedonia (in 2005) and Bosnia and Herzegovina (in 2005)
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EBRD’s latest project with the company is providing ArcelorMittal Krivyi Rih a USD 200 million
loan for the modernisation of the largest steel mill in Ukraine
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EBRD’s investment includes an energy efficiency component of more than USD 60 million, as
the project aims at optimising the use of the company’s current production capacity and
increasing productivity and energy efficiency
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Through its financing, EBRD is also supporting the largest foreign direct investment in Ukraine
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Contacts
Yerlan Ramazanov
Principal Banker,
Energy & Natural Resources
Russia and Central Asia
Tel: +7 717 258 0204
Email: [email protected]
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