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How EBRD projects are financed

Worker in blue overalls on factory floor

The EBRD project cycle consists of the following stages, all of which are reflected in our Project Summary Documents:

Concept review

Typically, EBRD management approve the project concept and overall structure, including the proposed financing structure and supporting obligations. At this stage, the EBRD and the client usually sign a mandate letter, which outlines the project plan, development expenses and responsibilities.

Final review

Once the basic business deal (including a signed term sheet) has been negotiated and due diligence has been substantially completed, the project is submitted for Final Review by EBRD management.

Board Approval

The EBRD President and operations team present the project to the Board of Directors for approval unless Board approval has been delegated to management. 


The EBRD and the client sign the deal and it becomes legally binding.


Once repayment conditions are agreed and the Bank’s conditions met, the funds are transferred from the Bank’s account to the client’s account.

Disbursement handbook for public sector loans, July 2019

Disbursement handbook for public sector loans, January 2013 - Russian

Guidelines to Loan Disbursements for Non-Sovereign Operations. November 2013


The client repays the loan amount to the EBRD under an agreed schedule.

Sale of equity

 Preparation: In line with the contractually agreed exit process and timing either:

-  the investee company or EBRD appoints a sell side advisor and organises a competitive process EBRD’s stake in the business, or

-  the investee company is prepared for an IPO, or

-  in case of put/call arrangement the put option value is determined

Review: Once the exit parameters (including valuation) have been substantially established, the project receives a Final Review by EBRD management

Exit: legally binding agreements are signed and the transaction affected subject to all necessary external approvals.


The loan has been fully repaid and/or the EBRD’s equity investment divested.


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