Broad Street Capital Group to lead an international Trade Mission to Uzbekistan.

For Immediate Release

BSCGLogoNew York, August 26, 2018. Fresh from its success of developing a pioneering $250 million, 20-year OPIC insured, capital markets financing, Broad Street Capital Group announced today that it will lead an international Trade Mission to Uzbekistan between September 5th and 9th, 2018.

The goal of the Trade Mission is to identify and engage large project development and financing opportunities in the areas of health care, distributed and renewable energy generation, agriculture, ICT and aerospace

With its proven ability to develop and structure complex financing solutions ranging from $100 to $500 mil., and utilizing support of Export Credit Agencies (ECAs)such as US EXIM Bankand of US government development institutions,
such as Overseas Private Investment Corporation (OPIC), Broad Street Capital Group is uniquely positioned to bring low-interestlong-term financing to projects to be developed by the Trade Mission participants and supported by the Government of Uzbekistan.

The mission participants will also introduce an innovative Grey2White™ initiative designed to assist local companies in becoming more bankable and transparent to western partners and international financial institutions.

Joining Broad Street Capital’s team during the upcoming Mission will be representatives of US, UK and Israeli companies, international law firms and professional organizations. The delegation will be led by Mr. Alexander Gordin, Managing Director of the Broad Street Capital Group and will meet with a number of federal and local Government Officials, project sponsors and company owners in Tashkent.

Uzbekistan represents a tremendous opportunity for international project development and international business cooperation,” said Alexander Gordin. “Policies implemented by President Mirziyoyev have been very effective in attracting foreign investment, supporting technology transfer and focusing on growing key areas of the Uzbekistan’s economy,” added Gordin.

About the Broad Street Capital Group

Based in the heart of New York City’s Financial District, Broad Street Capital Group (www.broadstreetcap.com) is an international private merchant bank, which since 1988 has served several foreign governments, multiple state-owned companies, as well as SMEs in emerging markets. Through its member companies, the Group focuses on developing project financing in the $100 million to $1 billion range, providing political risk mitigation, export management services and cross-border market development advisory. The Firm maintains a permanent presence in Astana, Kazakhstan and Kyiv, Ukraine.  Since its founding, Broad Street Capital Group has done business in over 35 countries, spanning the emerging markets landscape from Bangladesh to Ukraine.

The Firm works closely with all trade and development agencies of the U.S. Government and Export Credit Agencies of several European and North American countries. Since its inception, Broad Street Capital Group has been involved in multiple high-profile cross-border transactions in IT/telecom, aerospace, health care, energy generation, food security, nuclear safety, hospitality and franchising sectors. The firm’s current advisory and export management portfolio exceeds $900 million and expected to exceed $1.5 billion by November 15th, 2018.

For more information contact: Rustem TursynRepresentative for Central Asia
+1 212 705 8765 ext. 707, or via email rtursyn@broadstreetcap.com

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Moody’s assigns Aa2 rating to Energoatom transaction supported by OPIC political risk insurance

cropped-ukrainefi180profile_page_1.jpgWe at Broad Street Capital Group are excited and proud to be part of this historic financing. Moody’s unprecedented credit rating underscores the hugely positive effect of US Government’s credit enhancement to offer long-term, low-rate financing in emerging markets, such as Ukraine, for large infrastructure projects containing US exports.

 

Moody’s assigns Aa2 rating to Energoatom transaction supported by OPIC political risk insurance

Global Credit Research – 18 Jan 2018

London, 18 January 2018 — Moody’s Investors Service, (Moody’s) has today assigned a definitive Aa2 rating on the approximately U.S. $250,000,000 of senior secured Notes (the Notes) to be issued by Central Storage Safety Project Trust (the Issuer). The outlook on the rating is stable.

The Issuer will use the proceeds of the Notes for the purpose of funding a senior term loan facility of up to $250,000,000 (the Loan) to State Enterprise National Nuclear Energy Generating Company “Energoatom” (Energoatom or the Borrower), pursuant to a credit agreement between the Issuer and the Borrower (the Credit Agreement), and to fund related reserves. Energoatom will use the proceeds of the Loan to finance a portion of the costs of constructing the first stage of a long-term central spent nuclear fuel storage facility on dedicated land in the Chornobyl exclusionary zone, which will be completed, in part, pursuant to a supply contract with Holtec International. Under the Credit Agreement, the Borrower has an unconditional obligation to pay debt service. The Government of Ukraine (the Guarantor) has issued an irrevocable and unconditional guarantee (the Guarantee) of the Borrower’s payment obligations under the Credit Agreement.

Moody’s rating of the Notes is based solely upon its view of the credit benefit of a political risk insurance policy provided for the benefit of the Issuer by the Overseas Private Investment Corporation (OPIC), an agency of the government of the United States (Government of United States of America, Aaa stable). The insurance policy covers expropriation (limited to nonpayment of an arbitral award and denial of justice) (the OPIC Policy) in relation to the Credit Agreement and the Guarantee. The OPIC Policy insures the Issuer against nonpayment of an arbitral award by the Borrower and the Guarantor or denial of justice on the part of the Guarantor.

Commenting on the rating action, Christopher Bredholt, a Moody’s Vice President and Senior Analyst, said “The Energoatom transaction is one of a number we have seen incorporating credit enhancement from development finance institutions and multilateral development banks, as they seek to crowd-in risk averse private sector capital to support infrastructure investments in more challenging sovereign environments in emerging markets”. Mr. Bredholt continued “The underlying transaction structure, with New York law obligations and submission to arbitration, in the context of the Issuer’s available reserves, supports our view of the credit benefit of the OPIC policy”.

Energoatom is a state enterprise organized under the laws of Ukraine (Government of Ukraine, Caa2 positive), and is the largest electricity producer in the country, with nearly 15 gigawatts of nuclear capacity, contributing approximately 50% of Ukraine’s electricity.

Central Storage Safety Project Trust is a State of Delaware statutory trust formed under the Delaware Statutory Trust Act, and operates pursuant to a Trust Agreement. So long as any of the Notes remain outstanding, the Issuer will have no power to engage in any business activity, or to create, assume or incur indebtedness or other liabilities, other than in the performance of its duties and obligations as contemplated in the Trust Agreement. The Issuer is a bankruptcy-remote, limited-purpose financing trust and its activities will generally be limited to making the Loan, acquiring and owning the OPIC Policy, issuing the Notes and making payments thereon, and related activities.

RATINGS RATIONALE

The Aa2 rating on the Notes reflects as strengths: (1) the political risk insurance policy provided by OPIC; (2) the Issuer has access to liquidity adequate to cover approximately 2 years of debt service in the event of instigating a consolidated arbitration process following payment default by Energoatom and the Government of Ukraine, as well as reserves to cover legal and administrative expenses, which Moody’s considers appropriate given the deal structure and insurance claims process; (3) the project is a stated policy priority for the U.S. and Ukrainian governments, as the facility will be developed to store spent fuel from three of Ukraine’s four nuclear power plants, offering an efficient and secure process that will reduce Ukraine’s dependence on Russia; (4) the key transaction documentation is governed by New York law, the obligations of Energoatom are unconditional, corporate obligations (Issuer is not directly exposed to project-related risks), and the Government of Ukraine waives sovereign immunity in respect of the Guarantee; (5) the OPIC Policy requires a valid arbitral award against the Guarantor, but does not require the enforcement of the arbitral award in either a US or a Ukrainian court, and in Moody’s view this limits potential sources of delay to a timely recovery under the OPIC Policy; and (6) the transaction parties have contractually agreed to a resolution of disputes by a single, consolidated arbitration process to be conducted under expedited arbitration procedures of Article 30 of the International Chamber of Commerce Rules, located in New York.

The rating does, however, reflect the following challenges: (1) the OPIC policy does not provide a guarantee of payment under the Notes, and is not intended to directly or indirectly transmit an unconditional OPIC guarantee of Energoatom’s payment obligations under the Credit Agreement; (2) if the Issuer is unable to obtain a final arbitral award prior to the full depletion of its available liquidity, the Noteholders would not receive scheduled debt service; (3) there is only a limited, relatively untested track record of the International Chamber of Commerce (ICC) expedited arbitration procedures which have only applied to arbitration agreements executed since March 2017; (4) it may be difficult to prove that any efforts by Ukraine to frustrate obtainment of an arbitral award will satisfy the conditions for a valid Denial of Justice claim under the OPIC Policy.

RATING OUTLOOK

The outlook on the rating is stable.

WHAT COULD CHANGE THE RATING — UP/DOWN

Moody’s does not currently consider there is scope for an upgrade.

Moody’s could downgrade the rating on the Notes if: (1) the United States government bond rating were downgraded; (2) in Moody’s view, there is a material, detrimental change in the standing of OPIC as a U.S. government agency, or to the full faith and credit of the United States which has been pledged to secure the full payment by OPIC of its obligations under the insurance policy; or (3) Moody’s considers there is a non-negligible risk of the arbitration process either (1) taking longer than anticipated and materially eroding the Issuer’s available liquidity or (2) returning an unfavourable outcome.

The principal methodology used in this rating was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017. Please see the Rating Methodologies page on http://www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on http://www.moodys.com.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see http://www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on http://www.moodys.com for additional regulatory disclosures for each credit rating.

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OPIC STATEMENT AT UKRAINE SIGNING CEREMONY FOR ENERGOATOM SPENT NUCLEAR FUEL PROJECT

Happy Holidays and all the Best in the New Year!

Featured Image -- 4182
We at Broad Street Capital Group are proud to have been an integral part of this amazing cutting-edge project financing. As a Financial Developer, Broad Street Capital has provided project facilitation, selection of the Placement Agent, as well as insurance application development and financial support for the project. This unique transaction provides for a 20-year! low-interest loan to Energotom to help construct a centralized spent nuclear fuel storage facility in the exclusionary zone in Chernobyl Ukraine.  The loan is funded by a US capital markets bond offering, which is insured by OPIC, rated by a major agency and guaranteed by the Government of Ukraine. Press release below describes the transaction in greater detail. For more information on this project, please write

December 21, 2017

Photo, 2 men signing documents while others look on, OPIC, Energoatom, Kyiv, Ukraine, Overseas Private Investment Corporation, Holtec, Camden, New Jersey, spent fuel storage casts, Depty Prime Minister Volodymyr Kistion, Minister of Finance Oleksandr Danyliuk, Deputy Chief of Mission George Kent, OPIC President and CEO Ray Washburne, Bank of America, Merrill Lynch, Broad Street Capital Group, credit agreement, political risk insurance

UKRAINE – Today, the government of Ukraine hosted a signing ceremony in Kyiv for the Energoatom Central Spent Nuclear Fuel Storage Facility Project, which helps move Ukraine closer to energy independence by giving Ukraine the capability to domestically store spent nuclear fuel. OPIC is providing $250 million in political risk insurance and Holtec International, based in Camden, New Jersey, is providing the spent fuel storage casts and other equipment.

The documents included the credit agreement, the sovereign guarantee, the arbitration agreement, and the foreign enterprise support agreement. Representatives from Energoatom, Bank of America/Merrill Lynch, Broad Street Capital Group, and an OPIC trustee were in attendance.

Deputy Prime Minister Volodymyr Kistion and Minister of Finance Oleksandr Danyliuk delivered remarks. The U.S. Embassy’s Deputy Chief of Mission George Kent read the following statement from OPIC President and CEO Ray W. Washburne, who was unable to attend:

Thank you all for the invitation to attend today’s signing ceremony in support of the Energoatom Central Spent Nuclear Storage Faculty. I regret that I was unable to attend this important milestone. Many of you have worked very hard to get us here today and I thank you for your commitment.

I am very proud that OPIC has been able to support such an important project here in Ukraine. When I became the head of OPIC just a few months ago, the first international trip I took was to Ukraine. I was very impressed with what I saw here. Despite some challenges facing Ukraine, we see the potential for high-impact development projects here – particularly in the energy sector.

It is a pleasure for the United States to help move Ukraine towards energy independence by providing the capability to store spent nuclear fuel in-country, thus eliminating the need to ship the spent fuel to Russia for storage.

With total project costs of $410 million, Energoatom cannot self-finance the entire project. Therefore, OPIC has committed up to $250 million in political risk insurance to support the development, construction, and commissioning of the Energoatom Central Spent Nuclear Fuel Storage Facility in Ukraine.

This storage facility will be developed to store spent fuel from three of Ukraine’s four nuclear power plants, offering an efficient and secure process. The United States-based company, Holtec International – located in Camden, New Jersey – will supply dry storage casks, transportation casks, ancillary equipment, and engineering and training to the facility over an expected five-year period.

I’d like to thank our partners at Bank of America/Merrill Lynch without whom this deal would not be possible. They will arrange for the sale of OPIC’s $250 million commitment in the U.S. capital markets in the form of fixed-rate bond securities. The proceeds will fund the 20-year loan to Energoatom. We are very pleased that Ukraine will support the OPIC-insured loan financing by issuing a sovereign guarantee for repayment of the loan.

This is the first OPIC deal structured in this fashion and we are pleased to partner on an innovatively financed project. By working together, we will help Ukraine meet its energy needs, while supporting the U.S. economy with the creation of manufacturing jobs.

Thank you.

###

The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.

OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.

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How One Burger Chain Profits From Turmoil Abroad

By , Businessweek.com


A Fatburger outlet in Karachi, Pakistan

Photograph by Rizwan Tabassum/AFP via Getty Images A Fatburger outlet in Karachi, Pakistan

Political protests, disease outbreaks, terrorist campaigns—U.S. business owners considering expanding internationally would be forgiven for deciding to stay at home. But name a tumultuous spot abroad—Hong Kong, Iraq, Egypt—and Andy Wiederhorn has probably opened a burger shop there in the past seven years.

Wiederhorn has taken his Los Angeles-based franchise, Fatburger, from a struggling also-ran to a $125 million company by opening in 32 countries since 2007. He has 200 international locations now and an additional 350 in development, including in places rocked by unrest, such as Tunisia and Libya. Despite the advances of Islamic State, a second store in Iraq is also in the works.

“Consumers all over the world love American brands, especially burgers, shakes, and fries,” he says. Facing increasing competition from other specialty burger brands at home, “I knew there was a huge opportunity for us overseas,” he says. Wiederhorn began Fatburger’s global expansion after serving a stint in prison a decade ago, having pleaded guilty to charges related to paying an illegal gratuity and filing a false tax return in a financial scandal at his previous company.FI3Indices

Fatburger is unusual in its adventures abroad: Less than 1 percent of America’s 30 million companies regularly export, according to the U.S. Commercial Service, a percentage that’s significantly lower than in all other developed countries. And of the American businesses that do export, most sell to just one other country. That’s a major missed opportunity, considering that more than 70 percent of the world’s purchasing power is located outside the U.S.

SlovakRepublicPicProfile_Page_1

So how do small and midsize companies venture beyond their own backyards and into parts of the world that may be challenging?  

[ A great place to start is with a Fluent In Foreign Company Profiles, that feature Fi3F indices™ rating attractiveness of 180 markets for franchisors seeking to expand. 

                                                                                READ MORE

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