Presentation for xxxxxxxxx Date
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Transcript of Presentation for xxxxxxxxx Date
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Presentation for
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Date
STRUCTURED FINANCE – EXPORT FINANCE
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Agenda
1. Facts & Figures about BayernLB3
2. Export Finance at BayernLB 6
3. Export Finance Transactions 14
4. Typical Types of Financing21
5. References and Awards29
Page
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Facts & Figures about BayernLB
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Group Corporate Structure of BayernLBAssociation of
Bavarian Savings Banks
Bayerische LandesbankLegal corporation incorporated under public law
Free State of Bavaria
AAA/Aaa¹
BayernLB Holding AG
5.97% 94.03%
100%
100%89.9% 100%
100% state guarantee
¹
¹ Standard & Poor‘s, Moody‘s
100%100%
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Highlights 2010 – key messages
3
4
5
6
7
Investors benefit from good operating earnings
Deleveraging: Substantial reduction of risks, costs and total assets
Well capitalized – even under the new Basel III regime
Well balanced funding potential and moderate needs
2 All earnings before taxes came from core activities
1 Solid earnings before taxes of EUR 885m in 2010
BayernLB is one of the leading corporate financiers with good loan quality
BayernLB is on track with its customer oriented business model
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Export Finance at BayernLB
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Part of Structured Finance
Board: Jan-Christian Dreesen
Structured Finance
Alexander von Dobschütz
InfrastructureMichel Rousseau
EnergyAndy Brown
Dr. Paul KunkelBeate Mayer
CIS / CEE / SEE / BalticsElke Wurth-Weis
New York BranchJames King
Project Finance Export Finance Leasing, Factoring,Rolling Stock
EMEA, Americas, AsiaRalf Engelberg
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Export Finance Department
Beate Mayer (Head of Department)Tel.: +49 (89) 2171-23772
E-Mail: [email protected]
Volker Kuntz (Senior Specialist)Tel.: +49 (89) 2171-23965
E-Mail: [email protected]
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The Team
Herta AlbertTel.: +49 (89) 2171-23802
E-Mail: [email protected]
Hans GrutzaTel.: +49 (89) 2171-23514E-Mail: [email protected]
Doris WimmerTel.: +49 (89) 2171-23977
E-Mail: [email protected]
Andreas LettowTel.: +49 (89) 2171-23647
E-Mail: [email protected]
Evan Sirowinski Tel.: +49 (89) 2171-23998
E-Mail: [email protected]
Elke Wurth-Weis Tel.: +49 (89) 2171-23774
E-Mail: [email protected]
The TeamThe Team Section „CIS / CEE / SEE / Baltics“
Richard LawrynowiczTel.: +49 89 2171-23513
E-Mail: [email protected]
Harm ClasenTel.: +49 89 2171-26388
E-Mail: [email protected]
Export Finance
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What are our Strengths?
People
• Export & Trade Finance experience for more than 30 years
• Supporting growth of our customers in their markets in the long run
• Structuring capabilities
• Large underwriting capabilities
• Placing / syndication power
• Tailor-made solutions and services
• Know how in specific regions (Europe, CIS, Asia, N&M East, Americas)
• Expertise in specific sectors (Utilities, Metals, Oil/Gas, Telecom, M&E, Aviation)
• Dedicated staff in key markets
Competence
Long-termrelationship
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What are our Products?
Trade Finance
• Multi-source financing of up to 100% of project value• long tenors (often > 10 years)• Lending on basis of corporate risk• Credit enhancement by ECA and/or PRI and/or off-take structures
Structured
Export Finance
• Documentary business• Short term trade finance (e.g. advances, post-shipment finance)• Forfaiting
• Hedging instruments for FX, interest and commodities• Emission Certificates (Joint Implementation Certificates,
Clean Development Mechanism)• Emission trading• Consulting and advisory services
Cross-sellingproducts
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Who are our Partners?
Trade Finance
• Exporters
• Importers
• Export Credit Agencies (ECAs)
• Private Risk Insurance Companies
• Commercial Banks
• Multinational Finance Institutions (MFIs)
• Exporters
• Trading Companies
• Commercial Banks
• Off-takers
• Private Insurance Companies
StructuredExport Finance
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Our Main Partner Banks in Russia
Advantages:
• Efficient Work Flow
• Close Cooperation
• International Documentation Standards
• Track Record
Existing Basic Agreements for ECA covered Buyer‘s Credits
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Export Finance Transactions
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Risks and Time Flow
Acquisition Purchase / Production Delivery/ies
Term of Payment
t0 tnt1 t2
Supplier‘s Credit
Buyer‘s CreditDisbursement Period Repayment Period
Forfaiting
Assembly / Acceptance Warranty
Conclusion of Contract
Average Delivery Date
Readiness for Operation
Political Risk: war / riot / confiscation ban on imports / embargo risk of conversion and transfer of currency interdiction of payment / moratorium
Commercial Risk: insolvency non-payment („protracted
default“)
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Good operating business – BayernLB „back on track“
Payment Conditions in Export Contracts• currency (EUR / USD / CHF)• handling of payments / payment instrument (e.g. L/C)• payment conditions according to OECD consensus • place of payment• type of payment collateral (e.g. guarantees)• allocation of costs for handling of payments• allocation of costs for payment collateral• allocation of costs for financing• payment of the ECA premium
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Governmental Support for Exports:OECD Consensus „Gentlemen‘s Agreement“ of the OECD countries about rules of governmental support of exports Target: avoid distortion of competition Valid for all state-aided export finance transactions with a credit period of more than 2 years
• (National) Export Credit Insurance (ECA)• Direct credits or refinancing schemes• Subsidies for interest payments• Insurance against unlawful claim of guarantee
Instruments
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OECD Consensus (cont’d)
min. 15 % of the contract value Down / Interim payments
85% of the contract value covered by ECA
10 years maximum tenor (for category II countries)
Repayment in equal, semi-annual instalments, the first
to be due 6 months after „Starting Point“
e.g. last essential delivery, mean weighted delivery,
readiness for operation
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Euler Hermes Kreditversicherungs AG, HamburgGerman „Export Credit Agency“ (ECA) manages the official export credit guarantee scheme on behalf and for account
of the Federal Government, such scheme granting coverage of political and commercial risks resulting from receivables and loans agreed in foreign contracts.
Vital preconditions for granting cover:• Eligibility of goods (deliveries / services must substantially be of
German origin (foreign content max. 30 - 49 %))• Fungibility of risks / no public budget constraints
• Application for cover needs to be filed before conclusion of contract • OECD conform payment conditions
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Multi Source / ECA Desk
Bayern LB is Partner for Public Export Credit Agencies (ECAs)
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Typical Types of Financing
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ECA-covered Buyer’s Credit• Definition: the principal bank of a foreign contractual partner
of the exporter („buyer“) or the buyer is granted a loan whereas the borrowed funds are
disbursed directly to the exporter for payment of the purchase price
• Loan Amount: 85% of the contract value plus100% of the ECA premium pluspart of local costs if eligible for ECA cover
• Additional uncovered financing possibilies: possible financing of the down/interim payments qualified financing of remaining local costs
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ECA-covered Buyer’s Credit (cont’d)
Additional Collateral required by the ECA:• Exporter‘s undertaking• Financial statements according to IRFS in case the buyer is
acting as borrower
• Guarantees (as the case may be)• Pledge of assets (as the case may be)
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Exporter Importer (Buyer)
ECA(Export Credit Agency)
Domestic Bank
(“Borrower”) Buyers Credit
Export Contract
ECA Cover **
15% Cash Down and / or Interim Payment *
Repayment
Disbursement of 85% through L/C pro rata deliveries / services
* potential uncovered financing of down payment / interim payments
** potential ECA premium financing
L/C advising
Opening of L/C
Bayern LB
Loan Agreement
Scheme:Buyer‘s Credit (bank)
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Exporter Importer (Buyer)“Borrower”
ECA(Export Credit Agency)
Domestic Bank
Loan Agreement / Buyer's Credit (“tied export credit”)
Export Contract
ECA Cover ** Guarantee support
(optional)
15% Cash Down and / or Interim Payment *
Repayment Disbursement
of 85% through L/C pro rata deliveries / services
* potential uncovered financing of down payment / interim payments
** potential ECA premium financing
L/C advising
Opening of L/C
Bayern LB
Scheme:Buyer‘s Credit (corporate)
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Supplier’s Credit Forfaiting • Supplier‘s Credit:
The supplier is granting a loan to the foreign buyer by by way of concession of a grace period for payment. This period may be refinanced via forfaiting.
• Forfaiting: Purchase without recourse of abstractly documented receivables, e.g.
receivables from bills of exchange deferred payment letters of credit book claims
The bank takes over the commercial and political payment risk
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Forfaiting (cont’d)
Requirements for Forfaitability:
• Additional collateral as might be required by the ECA or the bank
• Export contract has to allow assignment of claims• Export contract has to foresee yearly presentation of
financial statements according to IFRS• Purchased claims have to be free of objections and/or
counterclaims under the export contract
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Forfa
iting
Agr
eem
ent
1a. Export Contract
2. Term of Payment
1b. ECA cover
Rem
ittan
ce o
f Int
eres
t and
R
epay
men
t Am
ount
s5. Interest and Repayment
À-fo
rfait
Pur
chas
e an
d D
isbu
rsem
ent
German Exporter Buyer / Payment Obligor
ECA(Export Credit Agency)
BayernLB
3a.
Assignment of Claims from- the Export Contract- the Exporter‘s ECA cover- L/C or Payment Guarantee
4. 6.
3b.
Scheme:Forfaiting
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References and Awards
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Deal Highlights
EUR 115,500,000Export Finance
Facility
OAO Kabbalkgips
Mandated Lead Arranger (Russia)
2010
Mandated Lead Arranger (Turkey)
EUR 149,351,984Euler Hermes covered
Export Finance Facility
2010
Lead Arranger
EUR 26,205,806Wind Energy
Converters Turkey Export Credit FacilityEuler-Hermes Cover
2010
EUR 1,878,700,000
6 submarines Type 214 Hermes covered
Export Finance Facility
Undersecretariat of Treasury
Mandated Lead Arranger
2010
Mandated Lead Arranger (Russia)
EUR 1,500,000,000Syndicated Pre Export
Finance
2010
Mandated Lead Arranger (Russia)
EUR 325,000,000 for SIF
Revolving Collateralised Loan
Facility
2010
Participating Lender(Hungary)
USD 475,000,000
Issuance of Import LOCs
2010
€ 3,900,000,000
Gas PipelineBaltic Sea RegionMandated Lead
Arranger
2010
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Deal Highlights (cont’d)
EUR 255,000,000EBRD A/B-Loan
FacilityFirst project under new
Sustainable Energy Action PlanMandated Lead Arranger
(Kazakhstan)
2008
USD 80,500,000Road Infrastructure
Export Finance Facility
Co-Arranger (Azerbaijan)
Azeryolservis OJSC
2008
Indramayu Power Project
USD 592,224,258Export Credit Facility
Sinosure CoverSenior Lead Arranger
(Indonesia)
2008
Jamshedpur Expansion Project
EUR 264,000,000Export Credit FacilityEuler-Hermes Cover
Mandated Lead Arranger
(India)
2009
EUR 69,892,500Wind turbine generators EulerHermes coveredExport Finance Facility
Lead Arranger(Turkey)
2009
EUR 262,350,000Fantanele Windfarm
347.5 MWEuler Hermes coveredExport Finance Facility
Tomis Team / M.W. Team
Invest
Agent & MLA
2009
Vyksa Steel WorksEUR 346,920,200
Euler Hermes covered Export Finance Facility
Mandated Lead Arranger (Russia)
2009
EUR 524,000,000Multi-Source Master
Export Finance FacilityMandated Lead
Arranger (Russia)
2009
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Deal Highlights (cont’d)
Participating Lender(Russia)
USD 50,000,000Refinancing of the Leasing Portfolio
2007
USD 47,500,000Euler Hermes Covered
Export FinanceFacility
Sole Lender (Kazakhstan)
LLP KaR-Tel2008
Mandated Lead Arranger (Russia)
USD 300,000,000EBRD A/B-Loan Facility
Environmental Loan
2007
EUR 218,000,000
Export Credit Facility
Finnvera-covered
Mandated Lead Arranger (Russia)
2007
CHF 45,000,000Refinancing of the Leasing Portfolio
Participating Lender (Russia)
2008
EUR 60,000,000Euler Hermes Covered
Export FinanceFacilities
Sole Lender (Russia)
2008
Mandated Lead Arranger (Russia)
EUR 278,800,000Euler Hermes covered
Export Finance Facility
2008
Arranger (Russia)
EUR 600,000,000EBRD A/B-Loan Facility
Energy Efficiency Loan
2008
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Deal Highlights (cont’d)
EUR 300,000,000Power Project
Export Finance Facility
„AzerEnerji“ JSC
Mandated Lead Arranger
(Azerbaijan)
2005
USD 307,237,810Commercial Loan
+USD 174,606,198
Export FinanceEuler-Hermes Cover
Participant (Turkey)
2007
EUR 613,000,000
Ermenek Dam and HEPP OeKB covered
Export Finance Facility plus Commercial Loans
Lead Arranger
Undersecretariat of Treasury
2002
EUR 185,000,000 HERMES-covered
EUR 74,500,000 SACE-covered
USD 238,000,000Finnvera-covered
Mandated Lead Arranger (Russia)
2005
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International Awards (since 2009)
Trade Finance Deal of the Year Awards 2009
Russia - NLMK - ECA-backed financingRussia - Vyksa - ECA-backed financing
Trade & Forfaiting Review - Deal of the Year Awards 2009
Russia - NLMK – ECA-backed financing
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Awards Project Finance since 2009 Category: Deal of the Year
R1 – Europe Infrastructure Deal of the Year
M25 – Europe PPP Deal of the Year
Dolphin –Middle East Oil & Gas Deal of the Year
Shuweihat –Gulf Power Deal of the Year
Nord Stream – Gas Deal of the Year
Centrica/TCW Windfarm Portfolio – Portfolio Deal of the Year
GSM-Rail – Europe Telecoms Deal of the Year
Castor – Europe Oil & Gas Deal of the Year
Barka III & Sohar II – Middle East Power Deal of the Year
GTRBest Deals of
2009