European Bank For Reconstruction And Development

Founded in 1991, the European Bank for Reconstruction and Development (EBRD) uses the tools of investment to help build market economies and "democracies" in 27 countries from central Europe to central Asia.

The EBRD is owned by 60 countries and two intergovernmental institutions. Despite its public sector shareholders, it invests mainly in private enterprises, usually together with commercial partners.

EBRD provides project financing for banks, industries and businesses, both new ventures and investments in existing companies. It also works with publicly owned companies to support privatization, restructuring state-owned firms and improvement of municipal services.

The EBRD’s mandate stipulates that it must only work in countries that are committed to democratic principles. The EBRD is directed by its founding agreement to promote, in the full range of its activities, environmentally sound and sustainable development.

COUNTRIES OF OPERATION

MEMBERS/SHAREHOLDERS

REQUIREMENTS FOR EBRD FINANCING

EBRD financing for private sector projects generally ranges from €5 million to €250 million, in the form of loans or equity. The average EBRD investment is €25 million.

Smaller projects may be financed through financial intermediaries or through special programmes for smaller direct investments in the less advanced countries.

Criteria

To be eligible for EBRD funding, the project must:

- be located in an EBRD country of operations

- have strong commercial prospects

- involve significant equity contributions in-cash or in-kind from the project sponsor

- benefit the local economy and help develop the private sector

- satisfy banking and environmental standards.

Project structure

The EBRD tailors each project to the needs of the client and to the specific situation of the
country, region and sector. The EBRD typically funds up to 35 per cent of the total project cost for a greenfield project or 35 per cent of the long-term capitalisation of the project
company. The Bank requires significant equity contributions from the sponsors, which must
equal or be greater than the EBRD’s investment.

There must be additional funding from the sponsors, other co-financiers or generated through the EBRD’s syndications programme.

Sectors supported by the EBRD

The EBRD finances projects in most sectors.

These include:

- agribusiness

- energy efficiency

- financial institutions

- manufacturing

- municipal and environmental infrastructure

- natural resources

- power and energy

- property and tourism

- telecommunications, information technology and media

- transport.

ORGANISATION

The powers of the EBRD are vested in the Board of Governors to which each member appoints a governor, generally the minister of finance. The Board of Governors delegates most powers to the Board of Directors, which is responsible for the EBRD's strategic direction. The President is elected by the Board of Governors and is the legal representative of the EBRD. Under the guidance of the Board of Directors, the President manages the work of the Bank.

EBRD PRESIDENTS

April 1991 – June 1993: Jacques Attali

September 1993 – January 1998: Jacques de Larosiere

September 1998 – April 2000: Horst Kohler

July 2000 – present: Jean Lemierre

HEADQUARTERS ADDRESS

One Exchange Square

London EC2A 2JN

United Kingdom

EXTERNAL LINKS

EBRD web site

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European Bank For Reconstruction And Development

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