PRESENTATION ON THE PROPOSED SETTING UP OF FIDELITY BANK'S ASIA REGIONAL OFFICE IN SINGAPORE.
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Transcript of PRESENTATION ON THE PROPOSED SETTING UP OF FIDELITY BANK'S ASIA REGIONAL OFFICE IN SINGAPORE.
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PRESENTATION
ON THE PROPOSED SETTING UP
OF
FIDELITY BANK'S
ASIA REGIONAL OFFICE
IN
SINGAPORE
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Fidelity Bank Singapore
Comparisons Of the Options of Establishing Singapore Office
Subsidiary Company vs. Branch Office vs. Representative Office
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11/15/10
Fidelity Bank Singapore
Setting Up Options
• Phased Approach• First 1-2 years operating as Representative Office(Representative Office operates purely as a cost center as it is not permitted to conduct commercial activities)
• Year 3 onwards, conversion to a Regional Office(Regional Office operates as a full Business Unit with its own P&L)
• Full-Scaled Launch• Starting from Year 1 as a Regional Office or Subsidiary Company(Regional Office/ Subsidiary Company operates as a full Business Unit with its own P&L)
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5
Fidelity Bank Singapore
Projected Costs FY2011 to FY2015
* Calculations include Selling & Marketing, General & Administration andFinance Expenses less Non-Trade Income
As Representative Office (Business Unit)
As Regional Office (Business Unit)
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Assumptions
• Order Book Target are based on securing at least one large scale deal per year from FY2013 onwards
• Total Estimated Revenue for first 5 yrs = S$25,000,000
• Total Estimated Costs = S$7,200,000
• Head count: Year 1 & 2 = 3 staff; Year 3 & 4 = 4 staff , and Year 5 = 6 staff
• Targeted Clients :Tier One = Sembcorp, Keppel, ST Engr; Tier Two = KS Energy, Baker Tech, CSE Global, Frasers Hospitality, Amara Hldgs, GMAPS, etc., Tier Three: SMEs & consultants, eg., Vega Foods, Infotech Global, Jurong Consultants, Surbana, etc..; Will also target clients from China & other Asian as well as Middle East markets.
• Typical fee structure for large scale deals range from 0.5% to 2.5% of total cost of project; with upfront fees payable upon deals signed and remaining amount to be paid progressively & final payment upon financial close.
• First 2 yrs Rep Office will refer deals and earn fees booked thru’ internal a/c parked at Fidelity Bank HQ to defray costs;
• FY2013 onwards, Singapore will operate as a “Business Unit” with its own P&L and self financing; 6
Fidelity Bank Singapore: Regional Office
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• Sembcorp Signs Contract for US$1 Billion Salalah Independent Water and Power Project In Oman
• Sembcorp Industries is pleased to announce that it has achieved financial close for its approximately US$1 billion combined power and desalination plant in Salalah, Oman.
• Sembcorp Marine's Jurong Shipyard Secures US$384 Million Contract To Build Two Jack-up Rigs With Options For Another Four Jack-up Rigs From Seadrill
• Sembcorp Marine's Jurong Shipyard Secures S$351 Million FPSO Conversion Contract
• Sembcorp Marine’s Sembawang Shipyard Secures FPSO Conversion And Upgrading Contracts Worth S$75 Million
• Sembcorp Seals Gas Deal Worth US$5.5 Billion
• SembUtilities acquires 40% interest in Fujairah Independent Water and Power Plant in UAE valued at US$1.8 Billion
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Fidelity Bank Singapore: Regional Office
Example of Potential Deals and Projects from Sembcorp Group
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• Keppel FELS secures new contracts worth US$101 million
• Keppel secures S$341 million contract for second phase of the Greater Manchester Energy-From-Waste Project
• Keppel FELS enters into Letter of Intent with Mermaid for two new-build Jack-up rigs worth US$360 million
• Keppel secures S$170 million worth of Brazilian projects from SBM and QGOG
• Keppel Shipyard secures conversion contracts worth $160 million
• Keppel-J. Ray joint venture wins Brazil’s P-61 TLWP contract worth about US$ 1 billion
• Keppel to upgrade and repair 2 Noble drill ships for US$304 million in Brazil
• Keppel FELS to build seventh ENSCO deepwater rig worth US$560 million
• Keppel to build Scorpion’s first semi-submersible for US$405 million
• Keppel to build GSP’s eco-friendly multi-purpose vessel for S$181 million
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Fidelity Bank Singapore: Regional Office
Example of Potential Deals and Projects from Keppel Group
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• ST Engineering's Aerospace Arm Clinches S$1b Engine MBH™ Contract
• ST Engineering's Aerospace Arm Secures S$370m Worth of Airframe Heavy Maintenance Contracts in 3Q2010
• ST Engineering's US Shipyard wins US$165m Contract to Build 4th Fast Missile Craft
• ST Engineering Awarded S$66.5m Integrated Waste Management And Engineered Landfill Project in Brunei
• ST Engineering's Land Systems Arm Establishes Construction Equipment Company in India with a total investment of about S$50m.
• ST Engineering's Electronics Arm Awarded S$44M Contract to Build a Third Generation Command & Control System for the Singapore Police Force
• ST Engineering's Electronics Unit Awarded $255m Shared Services Contract From MINDEF And Incorporates New Subsidiary To Focus On e-Government Services
• ST Engineering's Electronics Arm Wins S$12m Contracts From Bangladesh Chittagong Port Authority
• ST Engineering's Electronics Arm Awarded S$36.7m Contract By Thales Australia For Air Traffic Control System 9
Fidelity Bank Singapore: Regional Office
Example of Potential Deals and Projects from ST Engineering Group
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• KS ENERGY ACQUIRES INDONESIAN DRILLING COMPANY WITH US$66 MILLION DRILLING CONTRACT
• KS Energy wins $65m charter contract for 50%-owned new rig KS Endeavor . The recent deployment of KS Endeavor to West Africa will also pave the way for the group to make further inroads into Africa.
• CSE Global: Wins Two Contracts Totaling S$55 Million In The Middle East And Russia.
• Baker Tech has been featured as one of eight companies from Singapore on Forbes Asia’s “Best Under A Billion” list. The annually published list showcases 200 of the Asia-Pacific region’s top-performing small and midsize companies.
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Fidelity Bank Singapore: Regional Office
Example of Potential Deals and Projects from Mid-Cap SGX listed Companies
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Fidelity Bank Singapore: Regional Office
Services to be offered through Singapore Office
The team in S’pore will work closely with HQ to assist in marketing and promoting the following services & products:
• Banking Facilities in Ghana
• Term Lending
• Structured Debt Finance
• Project Finance
• Property Finance
• Structured Trade and Commodity Finance
• Performance Bonds & Banker’s Guarantees
• Letter of Credits
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Fidelity Bank Singapore: Regional Office
SWOT Analysis
• Close working relationship with clients
• Amongst the few key players in the same industry
• Extend balance sheet
• Establish credibility
• Close relationship with government
• Full business engagement from advisory through to financing
• Local bank anchored with strong international best practices, leadership and governance
• Boutique Bank focusing on targeted tier 1 and 2 clients
• Longevity – 15 years establishment in leadership
• Established leadership with presence in Asia
Strength Weakness
• Main technical expertise from HQ in Ghana;
• May need time to respond to clients reqmt;
• Higher costs until local resources get up to speed;
• Lack of international ratings
• Not yet a global and African brand
• Market cap?
• Low brand awareness
• Perception of African, companies
• Perception of political risks, stability
• Transparency or opaqueness of business environment in Africa, regulations etc
• Position of Fidelity Bank
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Fidelity Bank Singapore: Regional Office
SWOT Analysis
• Gain “First mover” advantage in a growing business environment
• Asia – global growth hot-spot for next 5 to 10 years
• Singapore is the global & regional hub for Oil & Gas as well as Finance sectors.
• Corporate Finance & M&A Deals offers good margins;
• Opportunity to be a real African partner
Opportunity Threat
• Competitors constantly knocking at clients’ door
• Market entry may be costly;
• Rapidly changing environment;
• Potential change of clients’ leadership.
• Clients may want to continue to deal with established banks
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Fidelity Bank Singapore
Representative Office: Fee Charges Structure
CLIENT FIDELITY HQ
FIDELITY BANK HQ SIGNS CONTRACT WITH CLIENT FOR
100% OF PROJECT FEE
FIDELITY S’PORE REP OFFICE PROVIDE
GENERAL ADMINMINISTATION SUPPORT/MARKETING ONLY*
FIDELITY HQ SETS ASIDE 50% OF FEES
TO SPECIAL A/C FOR S’PORE REP OFFICE
*ALL CONTRACTS MUST BE SIGNED OUTSIDE SINGAPORE BY DIRECTORS FROM FIDELITY BANK HQ.
SPECIAL INTERNAL A/C FOR
FIDELITY SP REP OFFICE
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Fidelity Bank Singapore
Thank You