The EBRD is a large investor in central and Eastern Europe, as well as central Asia. It provides companies with the following forms of direct financing:
- loans are tailored to meet the particular requirements of a project. The credit risk may be taken entirely by the Bank or partly syndicated to the market;
- equity investments may be undertaken in a variety of forms. When the EBRD takes an equity stake, it expects an appropriate return on its investment and will only take a minority position;
- guarantees are also provided by the Bank to help borrowers gain access to financing.
The Bank tailors solutions to client and project needs and to the specific situation of the country, region and sector. It assigns a dedicated team of specialists with expertise in project finance, the region and sector, law and environment.
- 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;
- additional funding by sponsors and other co-financiers is required. The EBRD may identify additional resources through its syndications programme;
- typical private sector projects are based on at least one-third equity investment;
- Significant equity contributions are required from the sponsors. Sponsors should have a majority shareholding or adequate operational control. In-kind equity contributions are accepted.
Projects may be considered for EBRD assistance if they:
- are located in an EBRD country of operations;
- have good prospects of being profitable;
- have significant equity contributions in cash or in kind from the project sponsor;
- would benefit the local economy;
- satisfy EBRD's environmental standards as well as those of the host country.
One of the EBRD’s key aims is to support the development of micro, small and medium-sized enterprises (SMEs). To do this, the Bank makes equity and loan financing available to SMEs through a range of intermediaries throughout its countries of operations. These intermediaries include banks in which the EBRD has an equity stake or with which it has signed a loan, and investment or venture capital funds in which the EBRD has made an investment.
For more information, please visit the EBRD website.