Financing mining projects. Environmental and H&S aspects in
EBRD decision making MINEX Central Asia 2014 2 April 2014
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2 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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3 EBRDs economic footprint 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 Key figures
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4 EBRDs financial solutions What can EBRD offer? Flexible loan
structure. Senior/subordinated, mezzanine, project finance,
convertible debt, reserve-based lending, bond issues. Up to 1/3
project costs. Long tenors. Up to 20 years, tailored to needs. A/B
syndication structures. Preferred creditor status. Mobilization of
commercial credit Co-financing / parallel lending. Equity Common
and preferred stock. Typically, up to 20% minority stake. Support
to strategic investors. Long term partnership. Long exit horizons
(5-10 years) IPO participation as anchor investor. Increased
credibility and comfort to investors. Board representation.
Positioning as neutral party (honest broker), provides
commercial/technical advice, promote Corporate Governance
practices. Debt
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5 Natural Resources at the EBRD Dedicated sector approach and
multidisciplinary team Key sectors O&G extraction,
transportation, refining Mining & Services Our Team 10
professional bankers focused on Russia and Central Asia Permanent
presence in: Almaty, Astana, London, Moscow 2 in-house mining and
petroleum engineers. Technical appraisal, due diligence and
monitoring. Access to additional expertise (consultants).
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6 EBRD Environmental Policy In order to support environmentally
sound and sustainable development the Bank has developed a set of
detailed environmental policies to which all bank-financed projects
must adhere Compliance with applicable national environmental laws
and EU standards EBRD environmental requirements closely mirror
those of the World Bank/IFC and other IFIs The EBRD supports a
precautionary approach.. EBRD Environmental Policy
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7 Summary of EBRD Environmental Requirements Audit of any
existing facilities EIAs for new developments Compliance with
national legislation European Union or similar international
standards ILO Core Standards (forced labor, child labor and
discrimination) 10 Performance Requirements (similar in scope to
IFC and therefore Equator Principles)
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8 Environmental and Social Policy Effective Date: 12 November
2008 Environmental/Social Management Labour and Working Conditions
Pollution Prevention Community Health, Safety and Security
Resettlement Biodiversity, Conservation and Sustainable Management
of Living Natural Resources Indigenous Peoples Cultural Heritage
Financial Intermediaries Information, Disclosure and Stakeholder
Engagement
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9 Evolution of EBRD EHS Policy *Environmental Management, The
Banks Policy Approach Different pagination and includes guidelines
EBRD is Currently Revising ES Policy Part of routine update ( five
years) Draft for consultation in early 2014 Will be rolled out
before year end 2014
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10 Recent Trends in Scope/Issues of Concern Social Indigenous
Peoples Gender Carbon and Climate Biodiversity Water
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11 Trends? Not Scientific Journals but will Influence Public
Perception and Bank Shareholders
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12 Main Environmental Issues Induced Access to large remote
areas (Mongolia, eastern Russia and Kazakhstan) Solid Waste
Management Waste Rock Piles/Acid Rock Drainage Dewatering and Water
Balance Stability of Tailings Cyanide Management Facility
Closure
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13 Contacts Yerlan Ramazanov Principal Banker, Energy &
Natural Resources Russia and Central Asia Tel: +7 717 258 0204
Email: [email protected]@ebrd.com