Hans Christian JacobsenHans Christian Jacobsen

Recent developments in Agribusiness in EBRDRecent developments in Agribusiness in EBRDRome 2005Rome 2005

Agribusiness in EBRD in 2004Agribusiness in EBRD in 2004

• Total EBRD commitments in 2004: €4.133bn

• Including €701m in the Agribusiness sector

• Record number of Agribusiness Projects: 53

• In 18 out of 26 countries of operations

• Co-financing: €343m (including unfunded risk participation)

EBRD & Agribusiness: Annual InvestmentsEBRD & Agribusiness: Annual Investments

To date: EUR 3.25 bn invested in over 220 projects

Growing annual commitments

209246

193

419

360

500

701

630

210

277

100150200250300350400450500550600650700750

95 96 97 98 99 00 01 02 03 04

EBRD annual investments in Agribusiness (million €)

EBRD & Agribusiness: Sector DistributionEBRD & Agribusiness: Sector Distribution

Commodities & Banks

Beverages 11%

Brewery

17%

27% Confectionery

6%

Dairy products 5%

Edible Oil 9%

Other and food processing

14%

Retail

3%

Food Distribution 8%

EBRD & Agribusiness: Country DistributionEBRD & Agribusiness: Country Distribution

CENTRAL ASIA 3%

BALTICS & UKRAINE &

BELARUS 11%

REGIONAL 18%

BALKANS 20%

CENTRAL EUROPE19%

RUSSIAN FEDERATION

28%

CAUCASUS 1%

Selected investments in 2004 Selected investments in 2004 Retail GetroRetail Getro

• Second largest retailer in Croatia.

• Two projects financed by EBRD€25 million (2002) & € 35 million (2004)

• Modern distribution and retail improves price transparency, competition and quality standards throughout the Croatian food chain.

• The projects offer reliable market outlets to farmers and local agro-processing enterprises

Retail in Agribusiness in 2004Retail in Agribusiness in 2004

Retail continues to be a strategic focus for the agribusiness sector.

• Strong linkages throughout the food chain

• Promotes quality improvement

• Promotes competitiveness • Offers better, cheaper products to consumers

• Other retail transactions in 2004 included: Cora, Boliari, Migros and Getro

Selected investments in 2004 Selected investments in 2004 Early Transition Countries:Early Transition Countries: M-ProM-Pro

• Largest dairy company in Azerbaijan

• US$ 5.7 million debt and equity financing

• Improving corporate governance through EBRD 25% equity stake and seat on the board.

• Contribution to backward linkages through improving the standards of milk collection through additional tanks and premium payments to farmers for better quality milk.

• Development of higher hygienic and quality standards through greater range of consistently packaged and presented dairy products for the consumer.

ETC in Agribusiness in 2004ETC in Agribusiness in 2004

Early Transition Countries have been and continue to be priority countries for the Bank.

• New instruments have been developed

• Additional resources have been allocated, including Technical Cooperation

• Other ETC projects in 2004 included: Iberia Refreshments and Teliani Valley wine in Georgia, Trans Oil in Moldova and Berad-Agro in Uzbekistan

Selected investments in 2004 Selected investments in 2004 Commodity Financing: EvrotekCommodity Financing: Evrotek

USD 10 m participation in USD 20 million working capital loan arranged by HVB Ukraine

Evrotek -one of leading Ukrainian edible oil companies, dynamic and fast growing

Facility is secured on the warehouse receipts, a newly established instrument actively promoted by EBRD

Financing is for procurement of the sunflower seeds for further processing (STOZHAR brand).

Commodity Financing in Agribusiness in 2004Commodity Financing in Agribusiness in 2004

Commodity financing continues to play an important role

• Grain Receipt law is now in place in main agriculture countries (Kazakhstan, Ukraine, Romania, Poland, but not Russia yet)

• Role of the Bank is changing– more risk sharing with local banks– more direct cooperation with large local traders/processors

• Other examples of commodity financing projects in 2004 included: Regional Commodity Programme, ATF, BTA and Bank Caspian in Kazakhstan, Aval and Toepfer in Ukraine

Selected investments in 2004 Selected investments in 2004 working with local entrepreneurs - Marboworking with local entrepreneurs - Marbo

EUR 10 m long-term debt

One of Serbian success stories in the agribusiness sector

Works with potato growers

Constant capacity increase which leads to increased demand of quality potatoes

Growing quantities of potatoes purchased and produced – over 25k t in 2004

Local Enterprise and Agribusiness in 2004Local Enterprise and Agribusiness in 2004

Local businesses represent growing investment opportunities.

• Companies become more transparent with improved corporate governance

• They have a performance track record

• Integrity remains an issue to consider carefully

• Other transactions with local enterprises in 2004 included: Frikom, Fresh & Co, Boliari, Evrotek, Cherkizovsky & Lenta

ConclusionConclusion

Bank is moving East

Working role with local businesses but higher risks

Finding different ways to continue to provide liquidity to

farmers

Emphasis on retail starting to pay off

Still a long way to go……..

How to contact the EBRDHow to contact the EBRD

Hans Christian Jacobsen Director, Agribusiness

Tel: +44 207 338 6669

E-mail: jacobseH@ebrd.com