Post on 09-Jun-2020
SACE and the shipping finance: new financing solutionsNaples, 3 rd October 2013
SACE and the shipping finance: new financing solutionsNaples, 3 rd October 2013
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SACE and shipping industry
SACE’s support to shipowners
Appendix
Introduction3
SACE’s support to shipyards
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SACE and the shipping finance: new financing solutions
Overview
SACE and the shipping finance: new financing solutions 3
MARKET
� Cargo demand shortage� Oversupply� Freight rate slump� Decrease value and price of
newbuilding� Scrapping increase� Fall in the volume of shipbuilding
orders
BANKS
� Scarcity of bankfinancing
� Less risk appetite
� Increasing cost of funding
� Reduction LTV (≤70%) � Overcollateralization
Fro
m
Sep
tem
ber2
008
Introduction
� New structures in financing (joint venture, bond, leasing)
� New players (private equity funds, ECAs)
Peak cargo owner’s risk
Peak shipowner’s riskFre
ight
rate
pai
dby
shi
pper
Time
TODAY?
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Company profile and history
Factoring and discounting of credit with the public sectorShort-term credit insurance, sureties and construction risks
Data acquisition and credit recovery
Export credit, credit insurance, investment protection, sureties, reinsurance, financial guarantees, project & structured finance
100%100%
SpA
History1977 2004 2005 2008 2010 2012
Establishment of SACE as public entity under the surveillance of the Italian Ministry of Economy & Finance (MEF)
SACE enters the short-term credit insurance market through the establishment of SACE BT
SACE enters the surety market through the acquisition of ASSEDILE
SACE BT creates SACE Servizi, specialised in business info and recovery solutions
SACE BT enters the factoring market through SACE Fct
SACE enters CDP Group
SACE is transformed into a
joint stock company, whose
capital is wholly owned by MEF
SACE and the shipping finance: new financing solutions
Introduction
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We support companies’ competitiveness
Over 30 years of providing risk management solutions
EXPERIENCE
€ 6.2 billion Shareholders’ equity and A- credit rating
(Fitch)
FINANCIAL SOUNDNESS
With SMEs and large corporations in 189
countries
FLEXIBILITY
We offer solutions for theintegrated management
of commercial and political risks
� Export credit and project finance� Protection of foreign investments� Financial guarantees� Credit insurance� Surety and construction risks� Factoring
Introduction
SACE and the shipping finance: new financing solutions
Our products
Export credit and project financeExporting at favourable payment terms?
Protection of foreign investmentLooking to invest in high-risk countries?
Financial guaranteesDifficulty getting access to domestic credit?
Credit insuranceNeed to grant extended payment terms?
Sureties and construction risksBidding for contracts in Italy and abroad?
FactoringNeed to unfreeze credits?
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Introduction
SACE and the shipping finance: new financing solutions
Shipping risk backed by SACE
As of 30th Jun 2013, SACE’s exposure to shipping industry, amounted to,approximately, € 2,8 Bn.
SACE and shipping industry
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8,8%
17,7%
2,0%0,8%
0,4%
70,4%
RORO SPECIAL VESSEL PRODUCT TANKERLNG BULK CONTAINER CROCIERISTICO
SACE and the shipping finance: new financing solutions
Buy a ship
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SACE supports entire ship life cycle with customized solutions
SACE and shipping industry
SACE and the shipping finance: new financing solutions
Our products to supportshipping industry
SACE S.p.A. – Corporate Presentation
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ORDERING BUILDING USINGShip life cycle
BUYER CREDITGuarantees on loans granted by banksto foreign borrowers in ordered tofinance Italian ship orders
SURETY� Guarantees covering contractual and legal
obligations (bid bonds, performance bonds, advance payment bonds, retention money bonds), for transactions in Italy and abroad
SUPPLIER CREDIT POLICY � To hedge the risk of unfair bond calling and
the production risk - i.e. orders revocation
POLITICAL RISK INSURANCE
To safeguard shipowner from thefinancial implications of politicalturmoil in developing countries,protecting vessel overseas.
FINANCIAL GUARANTEE
Guarantees on loans granted by banks inorder to finance vessel price
SACE PRODUCTS TO SUPPORT ITALIAN SHIPYARDS
SACE PRODUCTS TO SUPPORT ITALIAN SHIPOWNERS
SHIPOWNER SHIPYARD
SACE and shipping industry
SACE and the shipping finance: new financing solutions
Financial guarantees
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SACE’s support to shipowners
ITALIANSHIPOWNER
SHIPYARD
Guarantee
loan
price
vessel
Bank orExport Credit
Agency
How to make access to credit easier
SACE covers loans (pre and post delivery) for purchase of vessels to use abroador to cover requirements for working capital in connection with internationalcontracts
SHIPOWNER SHIPYARD
SACE and the shipping finance: new financing solutions
Financial guarantees
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Main features
Financial guarantees
• SACE guarantee is at first demand, irrevocable, unconditioned in favour ofthe financing bank
• SACE’s support is fully backed by the Italian Republic guarantee
• Risk sharing with the financing bank which is covered up to 80% of theloan, with respect to non-payment risk of principal and interest*.
• Payment of SACE Premium: retrocession (on a running basis) - from thefinancing bank to SACE or possibility to have upfront payment.
*Interests coverage capped at bank funding costs
SHIPOWNER SHIPYARD
SACE and the shipping finance: new financing solutions
Why SACE: Main advantages
Financial guarantees
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For the financing bank
� Loan non-reimbursement risk sharing
� Zero-weighting of the quota guaranteed by SACE (considered as fully backed by the ItalianRepublic) under Basel II-III calculation of regulatory capital ratios
� With SACE guarantee, the bank is more likely to grant you a medium/long-term financing forhuger amounts
For the financed company
� Possibility to finance: � Foreign investments carried out by Italian companies� The working capital needs related to foreign purchasers’ orders� Investments realised in Italy aimed at enhancing companies competitiveness and their
internationalisation process.� Saving, for the portion of loan guaranteed by SACE, of the company’s credit line with banking
and insurance system� Possibility to have access to longer-term loans� Possibility to replace pool loans with bilateral loans, reducing structural costs for the company
Financial guarantees
SHIPOWNER SHIPYARD
SACE and the shipping finance: new financing solutions
Political Risk Insurance “PRI”
SACE covers the risk of so called "ship loss" due to political events. In detail SACE can cover losses due to: (i) expropriation acts (expropriation, confiscation, requisition, nationalization of the asset), (ii) war and civil unrest.
The PRI may be included in security package of shipping financing transactions by insurance rights’ assignment to lenders
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Vessel abroad
Political risks coverage
SHIPOWNER SHIPYARD
SACE’s support to shipowners
SACE and the shipping finance: new financing solutions
Surety
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SACE covers contractual obligations (bid bonds, performance bonds, advance payment bonds, etc.) and performance of legal obligations (tax bonds, custom bonds, etc.), in connection to contracts undertaken in Italy and abroad
Direct issue
FOREIGNSHIPOWNER
ITALIAN SHIPYARD
Paym
ent
Bond issue
Vessel
Request for bond issue
Cover risk of unduecalling of bond
FOREIGNSHIPOWNER
ITALIAN SHIPYARD
ITALIAN OR FOREIGN
BANK
Vessel
Paym
ent
Bond issue
Cover risk of undue calling of bond
Request for bond issue
Bank guarantee
SACE’s support to shipyards
SHIPOWNER SHIPYARD
SACE and the shipping finance: new financing solutions
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Supplier Credit Policy
Supplier Credit Policy provides coverage to unfair calling of bonds and risk of order’s revocation of exported goods.
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FOREIGN SHIPOWNER
ITALIAN SHIPYARD
Risk of order’srevocation
vese
l
FOREIGNSHIPOWNER
ITALIAN SHIPYARD
Risk of undue calling of bonds
Issu
ebo
nd
SHIPOWNER SHIPYARD
SACE’s support to shipyards
SACE and the shipping finance: new financing solutions
Buyer Credit
SACE guarantees loans to foreign shipowners for the purchase of made in Italy ships
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FOREIGNSHIPOWNER
ITALIAN SHIPYARD
Guarantee
Loan
price
vessel
ITALIAN OR FOREIGN
BANK
SACE’s support to shipyards
SHIPOWNER SHIPYARD
SACE and the shipping finance: new financing solutions
Cooperations
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Appendix
SACE cooperates with major trade associations and global financial players, with Simest, ABI e CDP: EXPORT BANCA
SACE and the shipping finance: new financing solutions
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Our sales network
� 4 branches and 8 offices� 51 agents*� 121 brokers*
� 8 representative offices serving the emerging economies
Sao Paulo
Johannesburg
Hong Kong
Moscow
We support enterprises looking to go far
* Credit insurance, surety and construction risk businesses only
Italian network Overseas network
Rome
Venice
ModenaMilan
Turin
Lucca
Bari
Monza
IstanbulBucharest
Verona
Mumbai
FlorencePesaro
Brescia
Mexico City
Appendix
SACE and the shipping finance: new financing solutions
Head office
Domestic branches Representative offices
RomePiazza Poli 37/42 • 00187 RomeTel +39 06 67361Fax +39 06 6736225
BucharestStr. Icoanei nr. 15, 3rd floor, sector 2 010472 BucharestTel +40 21 2102183 - Fax +40 21 2100613
IstanbulSüzer Plaza Askerocağı Cad. 9 K.21 Apt.02 Elmadağ Şişli - 34367 Istanbul Tel. +902122458430/1 - Fax. +902122458432
Hong Kong40/f Suite 4001 - Central Plaza 18Harbour Road - Wanchai, Hong KongTel +852 36202323 - Fax +852 36210227
JohannesburgBuilding 3, No 4 Karen Street, Bryanston, JohannesburgTel +27 011 4635131 - Fax +27 11 2680617
MoscowKrasnopresnenskaja Naberejnaja, 12123610 Moscow - Office n.1202Tel +7 49 52582155 - Fax +7 49 52582156
Mumbai84, Maker Chamber VIBackbay Reclamation, Nariman Point - 400 021, MumbaiTel +91 22 43473473 - Fax +91 22 43473477
Sao PauloAl. Ministro Rocha Azevedo, 456 - cjto. 101 Edificio Jau Cerqueira César - 01410-000 - São PauloTel +55 11 31712138 - Fax +55 11 32664051
Customer care
+39 06 6736000info@sace.it
WWW.SACE.IT
BariVia Amendola, 172/5 • 70126 BariTel +39 080 5467763 - Fax +39 080 5467764
BresciaVia Cefalonia, 60 • 20124 BresciaTel +39 030 2292259
FlorenceVia Lucchese, 84/c • 50019 Sesto Fiorentino (FI)Tel +39 055 536571 - Fax +39 055 5365600
LuccaVia Dante Alighieri, 167 • 55100 LuccaTel +39 0583 40071 - Fax +39 0583 400790
MilanVia A. De Togni, 2 • 20123 MilanoTel +39 02 434499701 - Fax +39 02 434499749
ModenaVia Elsa Morante, 71 • 41100 ModenaTel +39 059 891240 - Fax +39 059 820832
MonzaVia Damiano Chiesa, 3 • 20052 MonzaTel +39 039 3638247 - Fax +39 039 3638208
PesaroVia Cattaneo, 34 • 61100 Pesaro Tel. +39 0721 383229
RomePiazza Poli, 37/42 • 00187 RomeTel +39 06 6736309 - Fax +39 06 6736770
TurinVia Bogino, 13 • 10100 TurinTel +39 011 836128 - Fax +39 011 836425
VeniceVia Torino, 105 • 30172 VeniceTel +39 041 2905111 - Fax +39 041 2905103
VeronaPiazza della Cittadella, 12 • 37122 VeronaTel +39 045 8099460 - Fax +39 045 8041656
Appendix
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Disclaimer
This presentation has been prepared solely for information purposes and should not be used or considered as an offer to sell or a solicitation of an offer to buy any insurance/financial instrument mentioned in it.
The information contained herein has been obtained from sources believed to be reliable or has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, SACE does not represent or warrant that the information is accurate and complete.
Appendix
SACE and the shipping finance: new financing solutions