At its 2014 Annual Meeting in Warsaw, the European Bank for Reconstruction and Development announced that it will invest up to € 700 million in Cyprus to 2020.
The EBRD was established in 1991 to assist the countries of central and eastern Europe and the former Soviet Union make the transition from planned to market economies. Today, the EBRD is owned by 64 national governments, as well as the European Union and the European Investment Bank. Since then, it has expanded its operations to Turkey, Egypt, Jordan, and Morocco.
The EBRD has a loan portfolio of € 18.86 billion and total assets of € 49 billion. The Bank is rated AAA/Prime-1 by Moody’s and AAA/Stable by Standard & Poor’s. According to S&P, the EBRD’s major investments are in Russia (24%), Ukraine (12%), Romania (8%) and Turkey (6%), as of March 2013.
Cyprus will be appointed a temporary investment recipient, meaning that new loans or equity investments will stop after 2020. The Bank has established the following priorities for investing in Cyprus:
Strengthening the financial sector
Supporting the privatisation programme
Assisting corporate restructuring
Providing finance to small and medium-sized enterprises.
The EBRD will work complementing the Troika restructuring programme in Cyprus. Its investment activities will cover the entire island, including both communities.
We anticipate that this added loan and investment portfolio will be of significant assistance to Cyprus. The EBRD’s due diligence and loan review process is a rigorous one, and can constitute a useful model for Cypriot financial institutions, investors and project sponsors.
Navigator has extensive experience with the EBRD, primarily in Ukraine, Russia and Central Asia. Some key project experience includes:
Navigator supported a EUR 37 million loan application to the EBRD for automotive starter battery capacity expansion in Ukraine. The project covered market demand analysis in Ukraine, Russia, Kazakhstan, Belarus, Italy, France and Germany.
Within the terms of the European Bank for Reconstruction and Development's Local Private Sector Framework, Navigator implemented a commercial and technical verification of a major Ukrainian producer of steel wire parts, including low carbon wire, zinc-coated wire, steel bolts, nails and other products. The project was a $ 7 million loan for factory expansion and working capital.
Navigator completed a pan-European market study for lead-acid automotive starter batteries, as part of a wider due diligence for a Ukrainian battery manufacturer. This project was implemented on behalf of the European Bank for Reconstruction and Development (EBRD), for a total loan investment of EUR 65 million.
In May 2002, Navigator was commissioned by the Ukrainian market leader in corrugated packaging to develop a comprehensive business plan for a $ 62.8 million investment in the corrugated packaging sector in Ukraine. The project was submitted to the European Bank for Reconstruction and Development (EBRD) for financing.
In October 2007, Navigator was commissioned by the European Bank for Reconstruction and Development to conduct a detailed due diligence for an Uzbek manufacturer of telecommunications, power and electrical cables and wires.
The rapid growth of the CIS agri-food sector requires adequate solutions for primary and secondary product packaging. The EBRD engaged Navigator to review the Ukrainian and Russian markets for glass packaging in light of existing and planned portfolio investments.
In April 2007, Navigator was commissioned by the European Bank for Reconstruction and Development to implement a strategic, technical and commercial due diligence of a leading Ukrainian ceramic tile firm.
For further information, please contact us.