Presented at the Annual Meeting of the MENA-OECD Working Group on Investment Policies and Promotion, March 2013

1. Irina Kravchenko
Senior Banker – Southern & Eastern Mediterranean Region
© European Bank for Reconstruction and Development 2010 | www.ebrd.com
Risk Sharing St. Downtown, Cairo
Risk Sharing / Mitigation Instruments
OECD – Annual meeting of the MENA-OECD Working Group
On Investment Policies and promotion
Paris – 19 March 2013

2. 2
Direct Risk Sharing
•Local Enterprise Facility (“LEF”)
•Local Currency Financing
Through intermediaries
•A/B loans
•Risk Sharing facility with local banks
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3. 3
What is LEF?
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• A delegated facility for equity and quasi-equity investments, as
well as tailor-made debt financing
• Established jointly by the EBRD and the Italian Government in 2006
• For investments in the Balkans (Albania, Bosnia & Herzegovina,
Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania,
Serbia), Turkey, and the SEMED region (Egypt, Jordan, Morocco,
Tunisia)
• To meet the growing financing needs of dynamic local SMEs, not
sufficiently supported by other financing sources

4. 4
Who is eligible for investments under LEF?
• Eligible investments: expansion, restructuring or
acquisitions of existing private businesses
• Eligible sectors: a wide range of sectors, with few
exceptions (weapons, spirits, tobacco, gambling). All
investments must be in line with sound environmental
principles
• Size of investments: LEF individual investment could
amount to up to EUR 10 million
• Target Stake: (preferably) in the range of 20 to 35% of the
capital of the company
• Time horizon: a period of 3 to up to 10 years (15 years for
project finance deals)
05/08/13

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LEF : Achievements to date
• Total available capital (31/01/13): EUR 400 million
• Total commitments: EUR 245.5 million
• Number of transactions: 100
• Number of borrowers/investee companies: 54
• Equity and Quasi-Equity: 40.2%
• Debt: 59.8%
• Operating Assets: EUR 129.5 million

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Local Currency Programme
• Approved by Board in February 2011. Operational in April
2011.
• Donors provided of guarantee for 100% first loss up to 15% of
portfolio. Donors grants to reduce EBRD credit margin.
• Allows EBRD to reduce credit margin.
• Eligibility
- Early transition countries.
- Initial capped at EUR 10 million per borrower
- All Senior Loans for Financial Institutions
- Private Corporates
- USD 187.1 million of approved / outstanding loans and USD 30.4
million of risk sharing grants

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Co-financing with Local banks
• Targeted clients: private SMEs
• Eligible Partner Banks
• Funded or Unfunded
• Up to 50% of the sub-loan amount
• Sub-loan amount: up to EUR 20 million and up to 10 years
maturity

8. 8
Thank you for your attention
05/08/13