Annual Review 2022 PDF
Annual Review 2022 PDF
Annual Review 2022 PDF
Review
2022
Contents
01 About the EBRD
02 President’s message
03 Introduction
06 Where we invest
30 Abbreviations
The Bank’s goals are closely aligned with those of the United Nations 2030
Agenda for Sustainable Development, which aims to deliver economic, social and
environmental progress.
The EBRD invests in projects that cannot be funded solely by the private sector, but
which follow sound banking principles. It works mainly with private clients, though it
also finances public entities that deliver essential infrastructure, goods and services.
It also partners with donors that provide funding for advisory and technical assistance
projects crucial to the success of Bank investments.1
The EBRD is owned by 71 shareholder governments, the European Union and the
European Investment Bank. It operates from its Headquarters in London, with a
network of Resident Offices and satellite offices in 35 countries.
The year 2022 was like no other in the I must also acknowledge our staff’s efforts to deliver Annual
Bank Investment of €13.1 billion, the highest in our history.
EBRD’s history. A member country, one Their determination to focus on the task in hand was truly
of our largest markets, was subjected admirable – especially for those facing personal upheaval
and displacement, but also so many others who share our
to a relentless military invasion that has commitment to making our countries stronger and more
brought death, destruction and terror. We successful.
have committed all of our efforts and taken The vast majority of our investment in 2022 – 74 per cent –
went to the private sector. As I travelled throughout our regions
considerable risk to support Ukraine, as the during the year, I saw first hand the impact of our backing for
Annual Review makes clear. We have done infrastructure projects, for small businesses, for trade finance
this, while maintaining our focus on our and so many other areas. The capacity-building that goes
alongside these projects is equally impressive, with our advisory
strategic priorities and continuing to support and policy activities among the most distinctive elements of our
the economies where we work. work on the ground.
This is often made possible by funding from our donors and
Over the course of two years, by the end of 2023, we will have partners. The European Union is the Bank’s largest donor and
deployed at least €3 billion in Ukraine, half of which will be on our has played a key role in our work in Ukraine, alongside the
balance sheet, the remainder backed by the unwavering support extraordinary contributions of other shareholders, including the
of our shareholders. At the end of 2022, that figure had already United States of America, Norway, the Netherlands, Canada,
reached €1.7 billion, with a further €200 million mobilised by France, Germany and the United Kingdom. Other donors
partner banks as a result of our efforts. have also provided grants to vital causes such as small and
The investments have gone into many areas of Ukraine’s real medium-sized enterprises, capacity-building, policy reform and
economy – energy supply, transport links, food security and municipal infrastructure. I am grateful to all of our partners in this
pharmaceuticals. We have also helped the country to organise endeavour.
its response by repurposing our Ukraine Reform Architecture Never has that support been more necessary or more welcome.
programme, and we played an important role in convening We have often been tested in a crisis, but this one is different.
international partners, coordinating their support. We must stay the course and find new ways to expand our
The effects of the war have been felt by all countries in our support and ensure that our expertise has the greatest impact.
regions, with high levels of inflation just one of the consequences. We have made a good start, but there is much more to do.
The EBRD stood by its clients and countries of operations to
provide exceptional support in these circumstances. While
investing in areas such as energy and food security, we have
kept sight of our key goals: tackling climate change, supporting
more equal societies and building digital capacity in our investee
economies. As 2022 drew to an end, the global community
gathered in Egypt for COP27, and we were proud to be the
country’s lead partner in its ambitious new push for more
renewable energy and less reliance on inefficient fossil fuels. Odile Renaud-Basso
EBRD President
What is more, we delivered on our promise to align all of the Bank’s April 2023
activities with the Paris Agreement from the start of 2023. This is an
important landmark that brings us closer to our net-zero ambitions.
€ 53.5 billion 2
€ 8.8 billion
Trade deals worth €3.6 billion completed under the TFP: Financing provided to partner financial institutions in support
of on-lending to micro, small and medium-sized enterprises:
2 This figure includes outstanding portfolio operations in Cyprus, where the Bank’s mandate concluded at the end of December 2020, with no new investments made thereafter.
The value of the outstanding portfolio of EBRD investments in Cyprus was €196 million on 31 December 2022.
Number of projects 3
431 413 411 452 395
Transfers of net income approved by the (123) (80) (115) (117) (130)
Board of Governors8
Net (loss)/profit after transfers of net income (1,240) 2,422 175 1,315 210
approved by the Board of Governors
Paid-in capital 6,217 6,217 6,217 6,217 6,215
Reserves and retained earnings 13,119 14,128 11,674 11,613 10,068
To learn more about the EBRD’s financial results, see the Financial Report 2022.
3 The number of projects to which the EBRD made commitments in the year.
4 Annual Bank Investment (ABI) is the volume of commitments made by the Bank during the year. This includes: (i) new commitments (less any amount cancelled or
syndicated within the year); (ii) restructured commitments; and (iii) amounts issued under the TFP during the year and outstanding at year end.
5 Annual mobilised investment is the volume of commitments from entities others than the EBRD made available to the client due to the Bank’s direct involvement.
6 Private direct mobilisation is financing from a private entity on commercial terms due to the Bank’s active involvement.
7 Total project value is the total amount of finance provided to a project, including both EBRD and non-EBRD finance, and is reported in the year in which the project first
signs. EBRD financing may be committed over more than one year, with ABI reflecting EBRD finance by year of commitment (see footnote 4). The amount of finance to be
provided by non-EBRD parties is reported in the year the project first signs.
8 Transfers of net income are accounted for as a transaction with equity holders recognised in the statement of changes in equity.
34 32
33 35
31 South-eastern Eastern Europe Central Asia
Europe and the Caucasus 24 Kazakhstan
10 Albania 18 Armenia 25 Kyrgyz Republic
30
26 Mongolia
Southern and eastern 11 Bosnia and Herzegovina 19 Azerbaijan
27 Tajikistan
12 Bulgaria 20 Belarus*
Mediterranean 13 Kosovo 21 Georgia 28 Turkmenistan
30 Egypt 33 Morocco 14 Montenegro 22 Moldova 29 Uzbekistan
31 Jordan 34 Tunisia 15 North Macedonia 23 Ukraine
32 Lebanon 35 West Bank and Gaza 16 Romania 36 Greece
17 Serbia 37 Russia*
38 Türkiye
Central Europe and the Baltic states (CEB) South-eastern Europe (SEE)
Map Cumulative Active Map Cumulative Active
ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio ref. Economy 2022 2021 2020 2019 2018 to end 2022 portfolio
01 Croatia 297 176 151 123 171 4,456 989 10 Albania 154 201 194 148 284 1,934 1,050
02 Czech Republic 111 8 – – – 1,340 166 Bosnia and
11 120 140 187 315 195 2,947 1,234
03 Estonia 74 56 126 36 54 893 241 Herzegovina
12 Bulgaria 103 247 103 38 185 4,401 912
04 Hungary 215 63 84 63 124 3,513 840
05 Latvia 76 113 21 85 42 985 306 13 Kosovo 91 50 36 118 52 589 342
06 Lithuania 208 125 116 64 141 1,382 593 14 Montenegro 23 22 160 38 30 724 319
07 Poland 990 598 789 833 556 12,401 3,894 15 North Macedonia 252 134 61 160 164 2,492 1,039
08 Slovak Republic 114 86 59 145 101 2,864 689 16 Romania 709 546 340 372 443 10,280 2,544
09 Slovenia 265 40 65 118 77 1,489 587 17 Serbia 648 499 679 517 396 7,927 2,593
Total 2,350 1,266 1,412 1,467 1,267 29,3229 8,305 Total 2,099 1,839 1,760 1,705 1,749 31,295 10,033
Private-sector share of the Sectoral distribution of CEB Private-sector share of the Sectoral distribution of
CEB portfolio: Annual Bank Investment (ABI): SEE portfolio: SEE ABI:
9 This figure includes investments made in the Czech Republic before 2008.
10 In April 2022, the EBRD Board of Governors decided to suspend Belarus’ access to Bank resources in response to the invasion of Ukraine. The Bank has closed its
offices in Minsk. Belarus continues to be a shareholder of the Bank.
11 This table does not include investments in the West Bank and Gaza (map reference 35), which began in 2018 and are financed through a trust fund. For 2022, these
investments totalled €22.3 million.
12 The Bank has made no new investments in Russia since 2014. In April 2022, the EBRD Board of Governors decided to suspend Russia’s access to Bank resources in
response to the invasion of Ukraine. The Bank has closed its offices in Moscow. Russia remains a shareholder of the EBRD.
The EBRD moved quickly to maintain the flow of electricity The EBRD addressed energy shocks in Ukraine with a loan of up
to Ukraine’s economy after the Russian invasion. Backed by to €300 million to help gas company Naftogaz make emergency
guarantees from the EU and the United Kingdom, an existing gas purchases and secure heating and electricity for households
and undisbursed EBRD loan to electricity transmission company and businesses in time for winter. The EBRD finance was backed
Ukrenergo to modernise key infrastructure was repurposed and by partial risk cover from the United States of America, Canada,
delivered as emergency liquidity funding in two tranches worth a Germany and France. Norway agreed to provide a €190 million-
total of €147.3 million. equivalent grant to top up the EBRD loan.
Supporting repairs to Ukraine’s power system €300 million loan to safeguard energy security in Moldova
As Russia’s attacks on Ukraine’s civilian energy infrastructure The EBRD provided a €300 million revolving loan to Moldova,
intensified, causing widespread damage and dealing a huge including €200 million for the purchase of emergency gas
blow to energy supplies, the EBRD agreed a financing package supplies to safeguard the needs and economic livelihoods of
worth €370 million – backed by a US guarantee and including 2.7 million Moldovans and refugees from Ukraine. An earlier
a €70 million grant from the Netherlands – so Ukrenergo could €100 million tranche allowed state-owned energy trader JSC
make swift emergency repairs as winter set in. Energocom to procure gas on EU hubs.
Supporting EU energy integration in Lithuania Keeping the energy flowing with financing for a major
Slovenian supplier
EBRD investments in a sustainability-linked bond from A €30 million financing facility for Petrol Group of Slovenia
Lithuania’s energy transmission system operator aimed to help provided liquidity to help the company tackle the challenges of
the country diversify energy supplies and bolster energy security. the energy crisis arising from the war on Ukraine. Petrol Group
The project supports Lithuania’s ambition to synchronise its is the leading energy supplier in Slovenia and a key player in
electricity grid with the EU network by 2025. The country is Croatia as well as south-eastern Europe (SEE).
currently part of the BRELL electricity ring.
The EBRD helped a major grain importer in Tunisia maintain A €24 million loan to agribusiness group MHP helped secure
international purchases as the war on Ukraine disrupted trade the continued supply of food in Ukraine despite the Russian
flows. A €150.5 million loan to the ODC funded imports of soft invasion. The financing provided working capital to back MHP’s
wheat, durum wheat and barley, corresponding to some 15 crop-farming operations, helping to maintain supply chains and
per cent of Tunisia’s annual consumption. It also supported safeguard livelihoods.
reforms to the grain sector.
Joining Raiffeisen Bank to support yeast producer Enzym Securing lending to Ukrainian food producers with bank guarantees
The Bank teamed up with Raiffeisen Bank through an EBRD The EBRD helped ensure supplies of food for the people of
risk-sharing facility to back a working-capital loan to Enzym, Ukraine by issuing risk-sharing instruments that boosted local
Ukraine’s leading baker’s yeast producer. The loan is helping financing for companies engaged in producing, processing,
Enzym, which supplies more than 50 per cent of all yeast for transporting or importing food. The Bank covered €30 million of
bread production in Ukraine, to maintain production levels for a total €53.3 million of this lending by ProCredit Bank, OTP Bank
the 2022 and 2023 seasons. Ukraine and OTP Leasing.
Helping SMEs affected by the Ukraine war, addressing food security €20 million for lending to Romanian farmers to enhance food
security
13 The numbers for mitigation, adaptation and other environmental activities add up
to more than €6.4 billion as some projects have multiple benefits.
The Bank continued its rapid rollout of the Green Cities It will provide financial institutions, corporate and municipal
programme in 2022, with 16 projects signed, worth a total clients, as well as policymakers with access to tailored advisory
of €762.7 million, for an annual reduction in CO2 emissions services to help them upgrade their corporate climate governance
of 3,174 tonnes, equivalent to taking 689,982 cars off the and plan a green transition to bring them in line with international
road each year. More than 50 cities are now signed up to the best practice.
programme.
Climate adaptation focus
One highlight of the urban regeneration programme was the
Against a backdrop of extreme weather conditions in 2022 –
completion of the Green Cities action plan for the western
heatwaves in Central Asia, flooding across the Balkans, wildfires
Ukrainian city of Khmelnytskyi, despite the war with Russia.
in the eastern Mediterranean and droughts in North Africa – the
Resuming the programme to improve living conditions in the city, EBRD stepped up its work on climate adaption, building resilience
on hold since the February 2022 invasion, had become all the to climate change.
more urgent as a result of the strain on services following a large
The Bank developed an ambitious Climate Adaptation Action Plan
inflow of internally displaced people fleeing the conflict.
to catalyse its transformation, investment and policy activity over
The Bank finished the year with the rollout in December of its the next three years in the economies where it operates.
largest renewable project ever, arranging finance worth US$ 520
The plan involves accelerating the mainstreaming and policy
million (€487 million) to deliver two wind power plants with total
integration of climate adaptation activities across the Bank,
installed capacity of 1 GW in Uzbekistan’s Bukhara region.
developing partnerships and capacity building for enhanced
Its provision of EBRD green finance through the banking system, impact, and establishing proactive business development and
including via Green Economy Financing Facilities (GEFFs), totalled private-sector mobilisation.
€2.2 billion for the year.
In 2022, the EBRD took a major step forward in its promotion of
green hydrogen as a low-carbon component of the energy mix.
The EBRD made an important contribution to the The EBRD invested in a bond issued by renewable power
decarbonisation of the fertiliser sector in Egypt and beyond with producer Scatec ASA to support a portfolio of six solar plants
a US$ 80 million loan (€75 million) to build Egypt’s first green in Benban, Egypt. It was the first private green project bond
hydrogen facility. The project consists of a 100 MW electrolyser, issuance in Egypt and the wider SEMED region and will have the
powered by a 55 MW solar photovoltaic (PV) plant and a 200 effect of mobilising new private and institutional capital for the
MW windfarm. The plant will produce green hydrogen for the renewables sector.
production of green ammonia for the domestic and foreign
markets.
The EBRD launched its new €500 million GEFF in Türkiye with a
€53.5 million loan to TSKB, co-financed by the Clean Technology
Fund. This first green credit line under the new facility aims to
help the country achieve its climate goals.
Russia’s war on Ukraine has been a stark Boosting the role of women in addressing
reminder of the importance of the human climate change
In 2022, the EBRD scaled up its efforts to support equality of
angle – the imperative of safeguarding and opportunity and an increased role for women in addressing
developing human capital – across the entire climate change.
spectrum of the EBRD’s activities. A crucial economic imperative for the Bank is to harness
the ingenuity, potential and business acumen of women to
Already one of the three priorities of the EBRD’s Strategic and successfully identify and deliver solutions to climate change and
Capital Framework for 2021-25, equality of opportunity has been other global challenges.
at the heart of projects launched in Ukraine and other countries
At the COP27 climate talks in Egypt, in partnership with the African
affected by the Russian invasion.
Development Bank and the Agence Française de Développement,
Under its Resilience and Livelihoods Framework, the EBRD invested the EBRD unveiled the Gender Equality in Climate Action (GECA)
in projects that preserved and improved the livelihoods of people initiative.
affected by the war and supported business continuity, ensuring an
This included the launch of a new tool – the GECA Accelerator – to
equitable and inclusive response to the Ukrainian crisis.
help companies across sectors improve the gender responsiveness
The Bank delivered emergency financing to energy companies, of their corporate climate governance. It also guides ministries in
food producers, transport providers and local authorities so they promoting gender-sensitive sectoral climate policies and strategies.
could continue their operations, pay salaries to their staff and
The Bank stepped up its support for gender equality in the
support the Ukrainian economy despite the disruption of war.
climate finance sector, with training for more than 400 staff and
The EBRD helped keep trains running and strengthened management, of which over 35 per cent were women, at
logistics services to maintain the delivery of goods and allow 14 partner banks across the EBRD regions via the GEFFs that
millions of Ukrainians to seek refuge away from the most violent support green investment by businesses and households.
theatres of war.
By organising a series of events and workshops on gender-
Bank staff also collaborated closely with the Ukraine Government responsive green finance, the Bank has now reached more
Commissioner for Gender Equality Policy to address a significant than 750 stakeholders. More than 55 per cent of them have
increase in gender-based violence and harassment (GBVH), been women from business, banking and industry associations,
ensuring that the EBRD addressed through its projects the regulators and partner banks, building important networks to boost
violence that had become prevalent during the war. women’s role as agents of change in the green transition.
Outside Ukraine, EBRD funding helped ensure that millions Promoting skills and a “just transition”
of refugees who fled to safety had access to accommodation
or could find work, especially women, who accounted for the One stand-out 2022 example of promoting equal opportunities
overwhelming majority of Ukrainians leaving their homeland. in skills and employment comes from the EBRD’s first waste-
management project in North Macedonia, which integrated
inclusive procurement in the solid waste sector – a blueprint for
other economies in the Western Balkans.
The project aims to open up skills and employment opportunities
for underserved groups, providing training for the local
population, including women, and people from the Roma
community, who have traditionally been involved in informal
waste-picking activities in North Macedonia and face significant
barriers to economic inclusion.
14 “Gender SMART” is a process to enable the systematic integration of gender into EBRD projects.
Advancing digitalisation in Greece with financing for telecoms group A loan to finance the purchase of Albanian metal-mining group
AlbChrome by Turkish group Yildrim Holding will promote digital
skills for workers in plants in underserved regions of the country
through a training programme mainly for older staff. The project
also supports AlbChrome’s development of a roadmap for
effective climate action.
The EBRD backed Croatia’s first sustainability-linked bond, an The EBRD’s participation in an ESG-linked debt issue by French
issue by business-process outsourcing provider Meritus ulaganja automotive technology group Faurecia will promote access to
d.d. to support the expansion of its geographical footprint and digital and automation skills training for its workers in Türkiye to
service offering, including the further development of robotic and meet demand for more technologically sophisticated production
AI digital channels. The group is also committing to green and lines. It will also support the group’s decarbonisation and
sustainable growth, with goals to cut greenhouse gas emissions e-mobility targets in the Czech Republic, Poland and the Slovak
and increase women's participation in management roles. Republic.
The EBRD’s first Polish project under the Digital Approach was a
€5 million loan to fintech factoring company PragmaGO, helping
it to increase its offering of cost-efficient financing tools for SMEs.
It also helped PragmaGO to embed its financial offering into the
business-to-business (B2B) online selling platforms of prominent
partners with a critical mass of users, such as Polish e-commerce
company Allegro.
Exchange rates
Non-euro currencies have been converted, where appropriate, into euros
based on the exchange rates current on 31 December 2022 (approximate
euro exchange rate: US$ 1.0677).
www.ebrd.com ebrdhq
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