GTR Egypt Trade Export Finance Conference Cairo 15

GTR – Egypt Trade & Export Finance Conference – Cairo 15 th November 2016 The Role of Multilaterals in supporting Egyptian Trade “Introduction to the EBRD’s Trade Facilitation Programme” Marco Nindl

What is the EBRD? • An international financial institution, with the mandate to promote transition to modern and well-functioning markets in 36 countries from Central and Eastern Europe, Caucasus, Central Asia and the Southern and Eastern Mediterranean – SEMED region. • Owned by 65 countries and 2 inter-governmental institutions (EU, EIB). Shareholding structure USA 10. 1% Japan 8. 6% Others 8. 7% • Capital base of € 30 billion. • Highest credit rating (AAA/Aaa) from all three main rating agencies (S&P, Moody’s and Fitch) • In January 2016, China became our 68 th shareholder 16 June 2021 (1) Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8. 6% 2

EBRD - Where we in invest

TFP Objectives • Support and develop trade, both inter- and intra-regional • Help local banks create track records with foreign banks • Provide liquidity to the trade finance system • Strengthen EBRD relationships with local banks, develop opportunities for further operations • Institutional development is a key goal 16 June 2021 4

TFP Application Areas Facilitates financing of all stages of the trade chain 16 June 2021 5

TFP – How does it work? EBRD supports trade by providing GUARANTEES that cover risks arising from trade finance transactions in favour of Confirming Banks • TFP guarantee agreements are signed with local issuing banks (IBA) plus agreement with confirming banks (CBA) all over the world 16 June 2021 SHORT-TERM ADVANCES/FINANCING to banks in the Countries of Operation for trade finance purposes • TFP Revolving Credit Agreements (RCA) are signed with local banks 6

EBRD TFP Facilities Two Main Components Trade Facilitation Programme (EUR 1. 5 billion framework) Trade Finance Guarantee Facility (fully operational since 1999) 16 June 2021 Trade Finance Cash Facility Revolving Credit Agreement (RCA) (launched in 2000) 7

TFP - Guarantee Transaction • Always involves a local bank (“Issuing Bank”) which issues a trade finance instrument (e. g. a letter of credit) and a foreign bank which confirms it to the exporter (“Confirming Bank”) • The trade finance instrument (e. g. L/C) ensures that the exporter receives payment upon or after delivery • EBRD Guarantee covers payment risks of the Issuing Bank to the Confirming Bank 16 June 2021 8

TFP - Structure and Application 16 June 2021 9

Parties to the TFP Issuing Banks - 110 banks in 26 countries Confirming banks – over 800 confirming banks and subsidiaries in 88 countries 16 June 2021 10

800 Confirming Banks in 88 Countries

6 Issuing Banks in Egypt • National Bank of Egypt • Commercial International Bank • QNB Al. Ahli • National Bank of Kuwait • Barclays Bank • Credit Agricole

EBRD TFP Guarantees: Example – Import of medicine from India to Egypt • Egyptian company buys medicine from India • Egyptian bank issues a letter of credit, confirmed by an Indian bank • EBRD guarantees 100% of the political and commercial risk to Indian Bank

EBRD TFP Guarantees: Example – Import of grain silos from Denmark to Egypt • Egyptian company buys grain silos from Denmark • Egyptian bank issues a letter of credit, confirmed by a German Bank • EBRD guarantees 100% of the political and commercial risk to Indian Bank

TFP - Benefits For Issuing Banks and Customers • No cash collateral required from Issuing Banks, hence cheaper financing terms for exporters/importers – Clients: more competitive exports and imports – Issuing Banks: enhance competitiveness vis-à-vis other banks – EBRD: reduce costs of transactions • Assistance to Issuing Bank in structuring trade transactions • Issuing Banks: develop expertise • ERBD: institutional building 16 June 2021 15

TFP - Benefits For Confirming Banks : • Additional export business to Central & Eastern Europe CIS and SEMED countries with mitigated risks • Improvement of services to exporting clients • Advertising & business development 16 June 2021 16

Trade Finance Cash Facility 16 June 2021 17

Case study – Import of Grain into Egypt • Romanian based exporter sells grain to an importer in Egypt • Bank in Egypt request a cash disbursement from the TFP of the EBRD • EBRD disburses USD 20 million for 6 months to cover the postimport financing

TFP – 1, 035 Transactions in 2015 1. Armenia 2. Ukraine 3. Georgia 4. Egypt 5. Turkey 6. Belarus 7. FYR Macedonia 8. Mongolia 9. Bulgaria 10. Azerbaijan 11. Romania 12. Morocco 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Serbia Moldova Croatia Kyrgyz Republic Tunisia Jordan Cyprus Tajikistan Kazakhstan Bosnia and Herzegovina Turkmenistan

EBRD TFP – Top 20 Confirming Banks Ranked by Number of Transactions in 2015 1. Commerzbank 11. BNP Paribas 2. Unicredit Bank 12. Intesa Sanpaolo 3. Deutsche Bank 13. Credit Agricole 4. BHF Bank 14. Yapi ve Kredi Bankasi 5. KBC Bank 15. Landesbank Baden. Württemberg 6. UBS 7. Raiffeisen Bank International 8. ING Bank 9. WGZ Bank 10. ABN Amro 16. Turkiye IS Bankasi 17. Societe Generale 18. Credit Suisse 19. Ukreximbank 20. Banco de Sabadell

TFP Trade Finance Training & Advisory Projects 2010 -2016 TOPICS • • • Trade Finance Practices Advanced and Structured Trade Finance Factoring UCP 600 Fraud Prevention Correspondent Banking Restructuring Trade Finance Deals Legal Proceedings in connection with defaulted trade finance transactions e-Learning 16 June 2021 21

EBRD ICC E-Learning Programme • The ICC’s technology partner Coastline Solutions has assisted EBRD to develop an online training programme, incorporating ICC content on rules and operations in trade finance • Project funded by the EBRD’s special shareholder’s fund and offered free of charge to Issuing Banks in EBRD’s countries of operations • To date over 1, 200+ students from over 150 institutions in 25 countries have enrolled 16 June 2021 22

EBRD ICC E-Learning Programme Best students receive further scholarships and sponsored training programmes in leading European confirming banks and training companies: • Commerzbank, Germany • ICC PARIS • ICC Vienna • Banca Popolare di Sondrio, Italy • BHF-Bank, Germany 16 June 2021 23

Introduction To Trade Finance ØCourse available in English, French and Russian ØTarget Audience: 1. Relationship Managers, Product Sales team 2. SMEs, corporates engaged in international trade 3. Legal, Risk Management, Back office teams supporting trade finance operations

ERBD – Best Development Bank in Trade Readers of Global Trade Review (GTR), Trade & Forfaiting Review (TFR) and Trade Finance Magazine have voted the EBRD “Worldwide Best Development Bank in Trade “ every year since 2010 EBRD invites other development banks, commercial financial institutions, export credit agencies and donors to co-finance or cofinance with the EBRD 16 June 2021 25

www. ebrd. com/tfp 16 June 2021 26

Contacts Trade Facilitation Programme European Bank for Reconstruction and Development One Exchange Square London EC 2 A 2 JN United Kingdom Marco Nindl Principal Banker Tel: +44 207 338 7614 E-mail: nindlm@ebrd. com Anna Brod Associate Banker Tel: +44 207 338 7856 E-mail: broda@ebrd. com 16 June 2021 27