European Bank for Reconstruction and Development (EBRD)
Private Sector Operations

LONDON

The European Bank for Reconstruction and Development was established in 1991 when communism was crumbling in Central and Eastern Europe and ex-Soviet countries needed support to nurture a new private sector in a democratic environment. The EBRD uses the tools of investment to help build market economies and democracies in 27 countries from Central Europe to Central Asia.

Eligibility: To be eligible for funding, projects must be located in an EBRD country of operation. The project must have good prospects for profitability and include a significant contribution in cash or in kind by the project sponsor. Projects must benefit the local economy and comply with the environmental standards of the EBRD and the host country.

Types of Projects Funded: The EBRD funds projects in most sectors depending on the needs of private investors. Projects that are in line with the EBRD's strategy for a given country are likely to receive preference. The EBRD will not fund defence-related activities, the tobacco industry, substances banned by international law, or stand-alone gambling facilities.

For examples of EBRD-funded projects, see:
http://www.ebrd.org/projects/index.htm

Financial Instruments: The EBRD can finance private sector projects for amounts ranging between €5 million - €250 million. The average amount of involvement is €25 million. The EBRD funds up to 35% of the total project cost for a greenfield project or 35% of the long-term capitalisation of an established company Loans: The EBRD lending terms are designed based on project needs. Maturities can range up to 15 years and can include a grace period. EBRD can lend on both corporate and project finance terms. Interest rates are set at market rates.

Equity: EBRD offers a variety of equity products including ordinary and preferred stock, debentures, and income notes. The Bank will invest in the range of €2 million - €100 million in industrial, financial sector, or infrastructure projects. EBRD will hold only a minority position and requires that a clear exit strategy be determined prior to any investment.

The EBRD can also offer a variety of guarantees covering specific partial risks or all risks for a given project. This includes debt and equity guarantees, and local currency loan guarantees.

How to Apply for Financing: An initial online application form is available on the EBRD website. The form requests information on the investor, the host country, the amount of financing required and a project description.

A list of EBRD contacts is available at:
http://www.ebrd.org/about/contacts/index.htm