1. AZERBAIJAN: EXPERIENCE ON EQUITY INVESTMENTS, TRADE FINANCE, AND SME LENDING

2. PRESENTATION OVERVIEW • BRIEF PROJECT OVERVIEW • EQUITY INVESTMENTS • SME / TRADE FINANCE LENDING

3. PSCEP OVERVIEW

4. Equity Investments • Demand up significantly due to Soviet-era depreciated investments, financial crisis • Key strategic relationships with government and quasi-government investment funds • Azerbaijan Investment Company (AIC) • Caspian International Investment Company (CIIC) • Azerbaijan – Kuwait Investment Fund (AKIF) • Working on ICT related GDAs and Cold Chain and logistics joint ventures Partnerships with AIC, CIIC, and AKIF one of great timing, synergies

5. Equity Investments • Providing assistance on: • sector selection, analysis • deal flow (regional investment road shows) • company assessments / due diligence • transaction structure • Currently reviewing 6 transactions requiring investments exceeding $40 million Partnerships with AIC, CIIC, and AKIF one of great timing, synergies

6. Trade Finance / SME Lending • Selected six “middle market” banks to initiate programs • building on ongoing but soon ending USAID financial sector project • strong management interest in participating, existing SME lending programs • signed MOUs with commitment to allocate $6 million dollars each in trade finance products • Introduction of “new” trade finance products • purchase order financing • inventory financing • leasing Banks appear to have liquidity to lend; moving away from entirely collateral based lending key challenge through crisis