The EBRD provides project-specific direct financing for private sector activities, restructuring and privatisation, or financing of infrastructure that supports these activities. Available to those wishing to invest in central and eastern Europe and central Asia.
Direct investments generally range from €5 million to €250 million. Smaller projects are financed both directly by the EBRD and through financial intermediaries.
EBRD typically funds up to 35% of the total project cost.
The Bank only invests in projects that could not otherwise attract financing on similar terms
The principal forms of direct financing that may be provided by the EBRD are loans, equity and guarantees.
The European Bank for Reconstruction and Development (EBRD) was established in 1991 when communism was crumbling in central and eastern Europe and ex-soviet countries needed support to nurture a new private sector in a democratic environment. It is now owned by 64 countries, the European Union and the European Investment Bank.
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 privatisation, restructuring state-owned firms and improvement of municipal services. The Bank uses its close relationship with governments in the region to promote policies that will bolster the business environment.
The mandate of the EBRD stipulates that it must only work in countries that are committed to democratic principles. Respect for the environment is part of the strong corporate governance attached to all EBRD investments.
EBRD does not finance the following sectors:
- Defence-related activities.
- Tobacco industry.
- Substances banned by international law.
- Stand-alone gambling facilities.
In addition, the Bank may not finance certain products or processes due to their environmentally harmful nature or if adverse impact cannot be adequately mitigated.
The European Bank for Reconstruction and Development does not provide loans etc outside of its "operating countries".
Companies and entrepreneurs may apply.
Projects may be considered for EBRD assistance if they:
- Are located in an EBRD country of operations.
- Have good prospects of being profitable.
- Have significant equity contributions in cash or in kind from the project sponsor.
- Would benefit the local economy.
- Satisfy EBRD's environmental standards as well as those of the host country.
Details of the current countries of operation can be found on the EBRD website.
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.
The ERBD finances projects in most sectors. These include:
- Climate finance.
- Equity funds.
- Financial institutions.
- Legal reform.
- Manufacturing and services.
- Municipal infrastructure.
- Natural resources.
- Nuclear safety.
- Power and energy.
- Property and tourism.
In the first instance, enterprises should complete a financing enquiry form, which is available to download from the EBRD website.
A response will be received from an EBRD representative within seven working days of submitting the form. Should the application be successful, it will proceed according to the stages of EBRD's standard project timeline.