Treasury overview
The EBRD Treasury is organised into six main business areas combined with a Treasury-wide quantative analytical support unit and market data administrator.
The six main units are:
Funding
The EBRD has issued in 60 different currencies, including "vanilla" benchmark bonds, green bonds, social bonds and structured, tailor-made products. The Bank's debt instruments take the form of eurobonds, global bonds and domestic issues in selected markets.
Portfolio Management - Credit
The Portfolio Management-Credit desk manages the long-term credit portfolio of the Bank. The portfolio is managed with the dual objective of protecting the Bank’s capital and optimising returns on the portfolio within defined market, liquidity and credit risk parameters, as well as with due consideration of sustainability risks. In taking exposures, the Bank is guided by the principles of conservative and responsible investment, expressed through the credit quality and, increasingly, through the ESG characteristics of assets invested.
Hard Currency Balance Sheet Management
The Hard Currency Balance Sheet Management (HCBSM) group has functional responsibility for the management of all financial hard currency risks in the Bank’s balance sheet. It is organised along three core activities:
- Managing the interest rate and currency composition of the Bank's balance sheet;
- Investing in a highly liquid pool of government securities that form part of the liquidity pool of the Bank; and
- Raising and managing short dated liquidity, including through ECP issuance and investing in short dated assets.
Local Currency Balance Sheet Management
The Portfolio Management – EMEA Group is the nexus for the local currency operations of EBRD’s Treasury. The desk has functional responsibility for the management of all financial risks to the Bank associated with the Bank’s local currency activities.
The core function of Portfolio Management – EMEA is the management and provision of liquidity in support of the Bank’s local currency lending activities. As such the team manages EBRD's local currency interest-rate, FX and liquidity risks.
Furthermore, as the core of practical financial markets expertise in the Bank the Portfolio Management – EMEA desk leads the policy dialogue to support the creation of an efficient interest transmission mechanism. As such it is involved in supporting policy dialogue on monetary policy design and implementation and all elements that support the local banking system being able to manage the risks associated with a more dynamic interest and FX market. As such, the team leads the Bank’s work to develop money and derivatives local currency markets.
Client Solutions Group
The Client Solutions Group (‘CSG’) is both an advisory and transaction group which focuses on the Bank’s clients across its countries of operations. It provides structuring expertise, advice and execution services on all derivative and debt capital market products. CSG is by definition focused on the provision of prudent, sustainable financing solutions to clients and offers robust financial risk management expertise to the Banking division. The product range includes financial derivatives (FX, interest rate and commodity), debt capital market execution services as well as advising on local currency lending and guarantees. A few notable transactions structured by CSG can be found below.
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BAKAD: European transport deal of the year
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A hedged loan participation debut in Kazakhstan
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Providing a commodity-hedged loan in Turkey
- A vote of confidence in Turkey’s new risk-free rate
CSG also advises on LIBOR transition. Find out information on LIBOR transition and the EBRD-proposed LIBOR Replacement Rate in loan agreements.
Equity Capital Markets
ECM is in charge of the execution of all equity capital market transactions – investments and divestments - undertaken by the Bank. An important part of its function is to provide market intelligence and insight to the Equity Committee and other forums. Working with the Equity and Risk teams, it is involved in the active monitoring and management of the Bank’s listed equity portfolio.
