EBRD: Financing metals and mining projects

1. EBRD: Financing metals and mining projects • Astana Mining and Metallurgy • 13 June 2014

2. What is the EBRD?Key facts about our Bank • Supranational Institution. • Founded in 1991 and owned by 63 countries, including Australia. • 1,600 professionals, 37 offices, 35 countries of operations. Half of banking team is based in the Bank's region. • AAA/Aaa/AAA rating, stable outlook. • Capital base of EUR 30 billion. Strong shareholders’ support. Conservative risk policy. • The EBRD promotes transition to market economies. The EBRD invests mainly in the private sector but also in the public sectorsupporting privatisation and restructuring of former state-owned companies. The EBRD promotes policy dialoguewith regards to investment climate business environment and policy matters. The EBRD encourages environmentally sound and sustainabledevelopment. • EBRD is a catalyst of capital and FDI. EBRD co-invests equity and provides financing alongside commercial banks and other IFIs. Each 1 EUR invested by EBRD mobilises ca. 2 EUR of additional debt/equity investments.

3. EBRD’s economic footprint • Key figures • €86bninvested since 1991 • 3,965 projects to date • €38bn current portfolio • 1,831 activeprojects • 78%debt,22%equity • 72% of portfolio in the private sector • €8.6bn invested in 2013 • 392 projects signed in 2013

4. EBRD’s financial solutionsWhat can EBRD offer? • EBRD operates commercially but has a higher risk appetite than the private sector as it can provide longer tenors, local currency loans in selected countries and other tailor-made products • EBRD is willing to share political and commercial risk under different financing structures • EBRD invests in a broad range of instruments across the capital structure: • Debt • Equity • Flexible loan structure. Senior/subordinated, mezzanine, project finance, convertible debt, reserve-based lending, bond issues. • Up to 1/3 project costs. • Long tenors. Up to 20 years, tailored to needs. • A/B syndication structures. Preferred creditor status. Mobilization of commercial credit • Co-financing / parallel lending. • Common and preferred stock. Typically, up to 20% minority stake. • Support to strategic investors. • Long term partnership. Long exit horizons (5-10 years) • IPO participation as anchor investor. Increased credibility and comfort to investors. • Board representation. Positioning as neutral party (“honest broker”), provides commercial/technical advice, promote Corporate Governance practices.

5. Natural Resources and Manufacturing at the EBRDDedicated sector approach and multidisciplinary teams • Key sectors • O&G extraction, transportation, refining • Mining & Metallurgy • Our Team • 10 professional bankers focused on Russia and Central Asia • Permanent presence in: Almaty, Astana, London, Moscow • 12 in-house centers of excellence including mining engineer • Technical appraisal, due diligence and monitoring. Access to additional expertise (consultants).

6. EBRD Environmental Policy Manufacturing & Services: Non-Ferrous Metals • EBRD is looking for opportunities to finance commercially sound projects with primary and secondary producers in the mining and metals sector • Capex and working capital finance to support private and entrepreneurial initiatives by engaging in long term partnerships, mining and metallurgy • Pre-privatisation and privatisation support to foreign and local investors where private investment will lead to a modern and efficient industry • Energy efficiency and environmental financing to achieve significant savings especially in energy intensive industries, i.e. aluminium • Mobilising parallel commercial banks’ financing to provide structured financing solutions for working capital and capex • Financial restructuring of distressed balance sheet to ensure continued viability of this strategic industry during economic difficulties  

7. C. CASE STUDIES

8. Eti Aluminyum Project Summary • Eti Aluminyum is the sole primary aluminium producer in Turkey, producing 65,000 tonnes per year and meeting around 15% of Turkish demand • EBRD’s loan will finance the modernisation of production facilities by switching to the use of pre-baked anodes • The resulting reductions in energy consumption and increasing production efficiency will enable Eti Aluminyum to increase production capacity whilst reducing total production costs Client Eti Aluminyum Signed in 2013 Turkey Country Product Loan Sector Non-ferrous metals Amount USD 30 million Highlights

9. Sofia Med – Viohalco Group Project Summary • Sofia Med, 100% owned by Halcor, part of the Viohalco Group is a leading producer of copper, titanium-zinc and brass products • EBRD’s investment will assist the company in financing CAPEX for energy and production efficiency and in restructuring its working capital lines • Major benefits will include an increase of capacity for producing extruded copper bars, introduction of production of high performance alloys, increased usage of scrap and improvement of energy consumption Client Sofia Med Signed in 2013 Country Bulgaria Product Loan Sector Non-ferrous metals Amount EUR 40 million Highlights

10. Severstal, Russia Project Summary • EBRD has financed three projects with Severstal, the largest steel maker in Russia • The latest project, signed in 2008, was a EUR 600 million A/B loan (EUR 450 million syndicated) to finance the implementation of 17 energy efficiency projects at Cherepovets steel plan, including the reduction of the company’s primary energy consumption • This is EBRD’s largest energy efficiency loan so far, and the investment program is expected to show a major transformation in the energy efficiencies of the Russian steel industry • EBRD’s previous transactions with Severstal include: • financing the construction and operation of a hot dip galvanising line (Severgal signed in 2003) • financing construction and operation of an on-site air separation plant to upgrade quality and reliability of oxygen (Air Liquide – Severstal JV signed in 2005) Client JSC Severstal Signed in 2008 Country Russia Product Syndicated Loan Sector Metals Amount EUR 600 million Highlights

11. ArcelorMittal: Kazakhstan, Romania, Ukraine Project Summary • EBRD has financed ArcelorMittal projects in Kazakhstan (in 1997), Romania (in 2001), FYR Macedonia (in 2005) and Bosnia and Herzegovina (in 2005) • EBRD’s latest project with the company is providing ArcelorMittal Krivyi Rih a USD 200 million loan for the modernisation of the largest steel mill in Ukraine • EBRD’s investment includes an energy efficiency component of more than USD 60 million, as the project aims at optimising the use of the company’s current production capacity and increasing productivity and energy efficiency • Through its financing, EBRD is also supporting the largest foreign direct investment in Ukraine Client ArcelorMittal Kriviy Rih Signed in 2006 Country Ukraine Product Loan Sector Steel Amount USD 200 million Highlights

12. Contacts • Yerlan Ramazanov • Principal Banker, • Energy & Natural Resources • Russia and Central Asia • Tel: +7 717 258 0204 • Email: ramazany@ebrd.com