The United States of America is the EBRD’s single largest shareholder and US companies planning to operate in the region are actively encouraged to contact the EBRD.

What is distinctive about the EBRD ?

Understanding Turkmenistan: A strength of the EBRD in Turkmenistan is its in-depth knowledge of the country. As one of the largest foreign investors in the Turkmenistan’s private and public sector, the EBRD is aware of its problems and the potential. Working closely with foreign private investors, the Bank’s staff understand their concerns about investment in the region and the political and economic uncertainty.

To coordinate local activities, the EBRD has established a Resident Office in Turkmenistan. This office is fully involved in generating new projects and in monitoring the growing number of Bank operations. Staffed by both internationally and locally recruited professionals, the office is playing an increasingly important role in expanding the Bank’s involvement role in the country.

Accepting the risks: One of the Bank’s main advantages is its willingness and ability to bear risk as a result of its shareholders base. This allows the EBRD to extend the boundaries of commercial possibilities in its countries of operations. It also shares the project risk by acting with other private sector bodies, such as commercial banks and investment funds, as well as multirateral lenders and national export credit agencies. With its AAA credit rating, the Bank is able to raise funds at the best rates from the international capital markets. The EBRD’s long-term relationship with Turkmenistan allows it to mitigate certain risks, making it an attractive partner. Its experience makes it well placed to assess risks and its access to technical cooperation fund enables it to help prepare projects carefully. Offering a broad range of project tailored financing One of the Bank’s strengths is that it has the range of financing instruments and collective skills to enable it to operate in both the public and the private sectors, taking project entities through the tansition from state-owned to privately owned. Operating as both a merchant and development bank, the EBRD provides funds for private or privatisable enterprises and for physical and financial infrastructure projects to support the private sector.

Direct financing instruments: Loans are tailored to meet the project’s particular requirements and the borrowers ability to repay. The credit risk may be taken entirely by the Bank or partly syndicated. A loan may be secured by a bor-rower’s assets or be equity linked. As "lender of record", the EBRD provides participating opportunities for commercial banks which may benefit from the Bank’s preferred creditor status.

Equity and equity equivalents of all forms are available. The EBRD expects an appropriate return on its investment, will have a clear exit strategy and will take only a non-controlling position. The Bank may also underwrite a share issue.

Guarantees from the EBRD may help borrowers gain access to financing and allocate risks to match the appetite of the EBRD and its financing partners. Credit criteria are the same as for direct loans.

The EBRD is keen to encourage co-financiers to take part in its operations - in fact it usually limits its own involvement in private sector projects to 35 per cent. By acting as a catalyst to attract other inves-tors to the region, the EBRD can use its funds to support a wider range of projects. For its countries of operations, co-financing introduces borrowers to international capital markers and commercial lenders, and promotes foreign direct investment.

Financing through intermediaries: Instruments for financing SMEs: The EBRD has established links with a variety of financial inter-mediates to provide financing for projects the are too small be funded directly. This allows the Bank to support SMEs, which are vital for generating a strong private sector. Credit Lines: The EBRD provides direct medium to long - term funding in the form of credit lines to selected financial intermediaries to finance the demand for loans from borrowers.

Co-financing facilities: The EBRD occasionally enters into framework co-financing arrangements with local banks and investment funds where the bulk of the due diligence work on individual sub-projects is substantially delegated to the local partner.

Equity participation in investment funds: The EBRD participates in investment funds, which in turn invest in medium-sized privately owned companies that need to expand their businesses.

Trade facilities: through its Trade Facilitation Programmes, the EBRD aims to help local banks es-tablish a reputation for reliability and increase their acceptance in international financial markets. Equity participation in banks: The EBRD makes equity investments in the course of privatisation and in private sector banks to support and develop a sound and competitive financial services sector. EBRD in Turkmenistan As of 1 January 2008 the EBRD had signed a number of projects in Turkmenistan:

• SME Credit Line - US$ 35 mln. loan to the Central Bank of Turkmenistan for disbursement to local SMEs through local commercial banks;
• US$ 13,847 mln. equity participation and US$ 17,503 mln. loan to GAP-Turkmen, a private textile plant;
• US$ 30 mln. loan for the rehabilitation of the port of Turkmenbashi on the Caspian sea;
• US$ 50 mln. loan for the upgrading of the highway Ashgabat - Mary;
• $40,772 mln. direct investment into development of offshore hydrocarbon reserves in the Caspian Sea;
• $1,831 mln. direct equity investment in medium-size companies

In addition to its projects, the EBRD also operates a number of facilities in the Central Asian region:
•Direct Investment Facility - aimed at supporting local companies and joint-ventures through capital injections in the form of equity participation in their share capital;
•Trade Facilitation Programme - aimed at improving the region’s trade relations through guarantee-ing a portion of L/Cs issued by local banks.

The main objectives of the EBRD are private sector development and attraction of foreign capital into the country. Areas of interest in Turkmenistan include food processing and packaging, wholesale, tele-communications, oil and gas, textiles and development of financial institutions.

Contact names

If you plan to operate in the Central Asian region or if you have a business proposal or need additional information, please fax or send your request to the following address:

Stijn Albregts, Director
Michael Delia, Deputy Director
Azerbaijan / Kyrgyzstan / Tajikistan / Turkmenistan Country Team
Banking Department
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2EH
United Kingdom
Tel: +44 171 338 6069
Fax: +44 171 338 7681

Neil McKain, Head Of Mission
Resident Office - Turkmenistan
54 Turkmenbashi Ave., Suite 201
744000 Ashgabat
Turkmenistan
Tel (+993-12) 45 51 18 / 45 39 16
Fax (+993-12) 45 39 22