23 April 2012Cairo

© European Bank for Reconstruction and Development 2010 | www.ebrd.com

Introduction to the EBRD and its Mandate in Egypt

Rudolf Putz Francis MaligeDeputy Director Financial Institutions Director Financial InstitutionsHead of Trade Facilitation Programme Mediterranean and Ukraine

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What is the EBRD?

International financial institution

Owned by 63 countries and twointer-governmental institutions

Created 1991 to promote the transition to advanced market economies of countries from central Europe to central Asia

In 2011, expanded operations to the southern and eastern Mediterranean (SEMed) including Egypt, Jordan, Morocco and Tunisia

Capital base of €30 billion*

Cumulative commitments:

€71bn

* Total equity as at 31/12/2011: €13.3bn, includes €3bn called capital. Additional callable capital €27bn

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EBRD: Shareholding Structure and AAA Rating As at 1/9/2010; percent

Others11.3%

USA10.1%

Japan8.6%

EU 27

Countries(1)

62.7%EBRD region

excluding EU(2)

7.3%

(1) Includes European Community and European Investment Bank (EIB) each at 3%, France, Germany, Italy, and the UK each at 8.6%

(2) Includes Russia with 4%

EBRD is rated

AAA by S&P,

Moody’s and Fitch

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2011 Annual Business Volume by region

Eastern Europe

& Caucasus20%

Central Europe

& Baltics15%

Turkey10%

Central Asia5%

South-eastern Europe

17%

Russia32%

Cumulative commitments €71.1 bn

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A broad range of products for banks

• Loans to support corporate / SME (investment and working capital) and retail business (senior unsecured)

• Trade Facilitation Programme (TFP)

• Syndicated facilities under EBRD A/B structure

• Donor-supported lending programmes: for SMEs, for municipalities, for energy efficiency and for environmental projects

• Mortgage lending

• Structured products (securitisation, asset-backed bonds)

• Subordinated debt

• Equity

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Geographic Expansion of the Bank

2011 decision to expand operations to Egypt, Morocco, Tunisia and Jordan

Currently in the shareholder ratification process

Use of Technical Co-operation Funds in the region is already approved; a number of projects under way

Temporary offices in Egypt, Morocco and Tunisia are already in place. Jordan will open on 25 April 2012. Senior banking representatives are acting as heads of offices

Investable funds should be available from the summer

Mid-term target: €2.5 to 3bn annual investments in the southern and eastern Mediterranean region

Full operations to start in 2H 2012

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Operational Priorities in Egypt

Development of financing of private enterprises

Modernisation of agribusiness value chain

Modernisation of financial sector

Increase in energy efficiency and in the use of clean energy

Mobilisation of private sector infrastructure investment

Development of a more decentralised municipal infrastructure

Boost job creation and economic competitiveness and growth

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Modernising the Financial SectorKey objectives

Broaden financial access for SMEs and individuals

Deepen financial intermediation by addressing impediments to the extension of private sector credit, including the lack of credit information and the high cost of underwriting and servicing

Develop new forms of financing

Contribute to reducing state participation in the banking sector

Enhance the banking system’s capacity and diversify the range of

products offered

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Why choose EBRD in financial institutions

• Responsive to customer needs and flexible in approach to financing

• Successful track record in deal-making

• 108 dedicated professional staff

• A business model combining specialists in financial institutions with a commercial background, extensive regional knowledge and on-the ground presence

• Continued dialogue and support throughout the project life

EBRD provides value

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Financial Institutions Portfolio – Bank Equity & Debt

0.8 1.11.6 1.8 1.8 1.7 1.5 1.7 1.8 1.9

2.2 2.4 2.6 2.8 3.1

4.0

5.3

0.10.2

0.30.3 0.5 0.6 0.7

0.70.9 0.9

1.0 0.91.0

1.00.9

1.2

1.3

1.01.3

1.82.2 2.3 2.3 2.2

2.42.7 2.7

3.2 3.33.6

3.8 4.0

5.2

6.5

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Financial Institutions Portfolio€bn, 1994-2010

• Equity and debt products tailored to client needs

• Over 320 client relationships• Currently 51 equity investments in 25

countries• A track record of successful exits

and strong IRRs• A comprehensive trade finance

network and facilities• Major provider of medium to long

term funding to be on lent to local SMEs. Over 220,000 sub-loans

• Areas of growth: – energy efficiency loans– mortgage financing– co-financing

Equity in banks

Bank debt

Total operating assets

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Partner Bank Selection CriteriaTFP issuing banks

• Acceptable credit standing

• Diversified loan portfolio; limited lending to related parties

• Transparent ownership structure

• Integrity of owners and management

• Corporate governance

• Money laundering procedures

• Environmental due diligence

• Readiness to develop trade finance business with local importers and exporters

• Partnership spirit

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Small Business Support (SBS)

• Capital funding is vital… but only part of the success

• Business expertise is the catalyst

• SBS helps MSMEs access bespoke advice on a co-financing model

• > 12,000 projects to date in 23 countries of operations

– Enterprise Growth Programme (1,870)

– Business Advisory Services (10,200)

– Market development activities (595)

• More than 25% of assisted enterprises secure external investments in the following year (total €1.45bn)

• Being rolled out in Egypt

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Supporting Women in BusinessExample from the South Caucasus

• Key achievements of the Women in Business programme for the South Caucasus:

Over 100 projects to enable women entrepreneurs to access advisory services (almost half in rural areas)

Majority of projects developed MIS (41%) and marketing (37%) mainly in the services sector (fashion, tourism, retail and IT)

91% of projects rated “successful” or better in improving business performance and enhancing competitiveness

On average, companies increased turnover by 56%, improved productivity by 29% and increased employment by 23%

In 2009, BAS implemented a store card system that increased sales by 30% in this woman-owned enterprise in Georgia.

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Your contacts in Financial Institutions

Francis MaligeDirector - Financial InstitutionsMediterranean and Ukrainemaligef@ebrd.com+44 207 338 7047

Rudolf PutzHead of the Trade Facilitation Programme (TFP)putzr@ebrd.com+44 20 7338 7776

Oksana PakSenior Banker- Financial InstitutionsMediterranean and Ukrainepako@ebrd.com+44 20 7338 7338

Marco NindlAssociate Banker, TFP nindlm@ebrd.com+44 20 7338 7614