European Bank for Reconstruction and Development
Local Currency Financing
Instrument description
The European Bank for Reconstruction and Development (EBRD) offers debt instruments in local currencies, such as loan financing, subordinated loan financing or bond issuances. EBRD is therefore able to:
- Eliminate foreign exchange risks and improve the creditworthiness of projects that only generate revenues streams in local currency.
- Support borrowers in managing currency mismatches between their assets and liabilities.
- Extend the maturity of local currency loans available in the market.
Eligible projects and transactions
EBRD’s local currency financing is used for loan and bond transactions as well as for bond issuances. Projects financed through these instruments are not pre-determined. Among others, local currency financing is used for funding small and medium-sized enterprises in EBRD’s target countries.
Eligible regions*
- Southeastern Europe: Albania, Bosnia & Herzegovina, Bulgaria, Cyprus, Macedonia, Greece, Kosovo, Montenegro, Romania, Serbia
- Central Europe and the Baltic States: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic, Slovenia
- Southern and Eastern Mediterranean: Egypt, Jordan, Lebanon, Morocco, Tunisia, West Bank, Gaza
- Eastern Europe and the Caucasus: Armenia, Azerbaijan, Belarus, Georgia, Moldovia, Ukraine
- Central Asia: Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, Uzbekistan
- Others: Russia, Turkey
* It is not confirmed if lending in local currencies is offered in all countries where EBRD is active.
Construction Support Facility
Instrument description
The European Bank for Reconstruction and Development (EBRD) offers a Construction Support Facility (CSF) to mitigate liquidity risks during construction of infrastructure projects. EBRD provides a letter of credit during the construction period for ensuring timely liquidity to the engineering, procurement and construction (EPC) contractor.
The CSF protects against a range of risks:
- Construction delays and caused liquidated damages
- EPC contractor replacement costs
- Senior bond recovery in case of project termination due to EPC contractor default
Eligible projects and transactions
Infrastructure projects in emerging markets are eligible.
Eligible regions
It is not confirmed if EBRD principally offers liquidity facilities in all its target countries.
Key features
- Size of coverage: The coverage of the unfunded CSF is 15 per cent of the EPC’s contract value.
Revenue Support Facility
Instrument description
The European Bank for Reconstruction and Development (EBRD) offers liquidity facilities to mitigate liquidity risk during operation of infrastructure projects. The Revenue Support Facility (RSF) functions as a subordinated, standby instrument. In case of a public sector entity’s inability to service debt and other payment obligations, the RSF will cover the emerging costs. As the RSF only covers counterparty non-payment risk, it cannot be used to cover payment defaults caused by cash flow shortfalls due to operational or underperformance issues.
Eligible projects and transactions
Infrastructure projects in emerging markets are eligible.
Eligible regions
It is not confirmed if EBRD principally offers liquidity facilities in all its target countries.
Key features
- Tenor of coverage: approximately 3 years on average for servicing debt payments to bridge public sector entities’ obligations or prepaying bondholders until arbitration is finished.
Eligible Countries
-
Albania -
Armenia -
Azerbaijan -
Belarus -
Bosnia & Herzegovina -
Bulgaria -
Croatia -
Cyprus -
Czech Republic -
Egypt -
Estonia -
Gaza Strip -
Georgia -
Greece -
Hungary -
Jordan -
Kazakhstan -
Kosovo -
Kyrgyzstan -
Latvia -
Lebanon -
Lithuania -
Macedonia -
Moldova -
Mongolia -
Montenegro -
Morocco -
Poland -
Romania -
Russia -
Serbia -
Slovakia -
Slovenia -
Tajikistan -
Tunisia -
Turkey -
Turkmenistan -
Ukraine -
Uzbekistan -
West Bank