VIENNA ECONOMIC FORUM Go South East

1
Working with Black Sea Trade Development Bank

• VIENNA ECONOMIC FORUMGo South East Invest in
  Moldova Invest in the Region
• Chisinau Meeting 20/21 February 2008

2
BSEC Members - Shareholders of BSTDB
Ukraine
Russia
Moldova
Georgia
Azerbaijan
Romania
Bulgaria
Armenia
Albania
Turkey
Greece
3
BSTDB objectives

• Facilitation of trade and investment activities
  among Member Countries
• Promotion of economic prosperity in Member States
  and a strong developmental impact
• Mobilization of domestic and foreign capital

4
BSTDB in 2007

• Portfolio (outstanding) US 745 million
• Portfolio growth 64
• __________________________________________________
  __________________________________________________
  
• Moldova US 17.4 million (2.35)
• Growth 3.7 times
• - preliminary estimates

5
BSTDB Products

• Project finance
• Corporate lending
• Asset-based finance
• Syndicated loans
• Trade finance
• Equity investments

6
BSTDB Lending

• Up to US 36.6 million BSTDB participation
• Up to 35 of the total project costs
• Medium to long term maturity depending on type
  and structure of project
• Pricing and grace period subject to appraisal and
  valuation

7
Equity

• Up to US 10 million BSTDB participation
• Minority stake (generally less than 25 and not
  more than 33 of total equity).
• No direct participation in company management
• Probable seat on the Board of Directors
• Possible Put option for BSTDB exit

8
Why BSTDB?

• Stringent but quick approval process
• Ability to process small projects
• Team blending international and local expertise
• No political or macroeconomic conditionality
  attached to the financing

9
BSTDB Project Cycle
10
Maturity of BSTDB loans

• Typical 2 - 7 years
• Possible up to 10 years
• In exceptional cases more than 10 years

11
BSTDB security requirements

• Standard pledge of shares, assets,
  corporate/parent guarantees, etc. depending on
  the project
• In a cross-boarder investment, the security can
  be based in the country of investment
• While possible, sovereign guarantee is not
  required
• Unsecured transactions

12
What is the minimum project size BSTDB would
consider?

• Project Size - 10 million
• BSTDB participation - 3 million

13
Non-Eligible Goods

• Weaponry or military goods
• Tobacco and alcohol related products
• Negative list of relevant countries
• Negative list of United Nations economic
  sanctions
• Negative list of World Bank

14
Eligibility Criteria

• last 2 - 3 years financial statements audited by
  international auditors
• has adopted International Accounting Standards
• have acceptable financial and operational
  performance,

15

• Thanks from
• the Banking Division of BSTDB
• www.bstdb.org