SACE in RussiaSace Moscow office
21th April 2010
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Our strengths
Over 30 years of providing risk management
solutions to small and medium-sized businesses and
large corporations
EXPERIENCE
Aa2 credit rating (Moody’s)
Shareholders’ equity: € 5.9 BnFINANCIAL SOUNDNESS
Outstanding commitments for over € 50 Bn to
insure commercial and financial transactions in
over 180 countries
RELIABILITY
Insured business: € 34 Bn, + 22% yoy
Consolidated net income: € 460 Mn, + 32% yoy
Gross written premiums: € 430 Mn, + 13% yoy
FINANCIAL RESULTS
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Risks insured by geographical area
We cover political and commercial risk in over 180 countries
Outstanding Guarantees
Others27 %
Sub Saharian Africa2 %
Asia Pacific6 %
Balkans3 %
European Union 28 %
LATAM6 %
North America4 %
Russia & CIS16 %
Turkey8 %SACE Exposure
Top 3 Countries
SACE Exposure Top 3 Countries
Italy 15%
Russia 13% € 4.4 Bn
Turkey 8%
Italy 15%
Russia 13% € 4.4 Bn
Turkey 8%
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SACE’s activities in Russia
2009 has been a difficult year worldwide. However, Russia continued to offer opportunities for medium and long-term investments and remained a primary market both for Italian export and SACE.
During 2009, SACE’s total exposure in Russia increased by 20%, reaching € 4.4 Bn.
In Russia SACE is strongly concentrated in commodity-oriented sectors (oil and gas, metals) and top 10 largest borrowers represent 52% of the portfolio.
Current pipeline is ample however still concentrated in traditional sectors (oil and gas, petrochemicals, steel).
The current project pipeline for 2010 may increase SACE’s exposure to Russia by over 100% (close to 20% of SACE’s total exposure worldwide).
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SACE’s support in Russia
Total Exposure
38 new operations in 2009, for a total amount of
€ 2 BnNew Guarantees
Over 20 potential transactions for 2010, for a
total amount of € 2.2 BnPipeline
€ 4.4 Bn (13% of total portfolio, 2nd Country in
terms of total exposure)
…and by CounterpartySACE’s Russian exposure by Sector…
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SACE’s support in CIS Countries
Outstanding Guarantees
TOTAL € 800 Mn
New Guarantees issued in 2009
TOTAL € 287 Mn
Notwithstanding the difficult market conditions, during 2009 SACE maintained a consistent level of
support to Italian business in CIS Region. New guarantees increased by 30% in terms of volume
compared to 2008.
In 2009, following certain improvements in the economic situation and the positive collaboration
between local authorities and the IMF, SACE’s Board approved a new € 50 Mn insurance ceiling for
Belarus.
SACE Business Lines
Traditional Business
Purpose: to support the Italian exports and diversify SACE’s portfolio
Export credit Insurance Political Risk
Insurance
National Interest Programme
Purpose: to support the Internationalisation of Italian companies and any strategic interest for the
Italian Economy
Internationalisation Market Window
“Non marketable” business, bound by Consensus Rules
“Non marketable” business, off Consensus Rules, supporting the Italian investments abroad
New “marketable” business, supporting the Internationalisation of Italian Economy
New “marketable” business, supporting any strategic interest for the Italian Economy
Export Credit: Sales of goods & services
Structure
Italian Companies
Foreign Entities
Export of goods and services
Payment of exported goods
Insurance policy
Target Clients
Main Features
Foreign subsidiary
Tailoring
SACE
Italian Companies and/or their Foreign Subsidiaries exporting goods and services who are interested in granting their foreign counterparts short/medium/long term deferred payments
• Risk cover for single transactions abroad• Coverage up to 100% of the insured amounts • Coverage against non-payment, unilateral termination of contract, destruction/damages, requisition,
seizure, unfair call of bonds, caused by political or commercial events• Monetization of assets through assignment “without recourse” of the insurance policy to a bank or
financial institutionStandard:
“Supplier Credit”: for any coverage need on single transactions risks abroad.
Easy:
“Basic”: easy and fast tool for contracts up to € 500.000, coverage against non-payment within 36 months tenor, also available on line: www.exportplus.it
“Plus One”: for contracts up to 5 Mln euro, coverage against non-payment up to 5 years tenor, available on line: www.exportplus.it
Export Credit: Framework Agreement
Structure
Target Clients
Main Features
Italian and foreign banks interested in financing and insuring credits deriving from the confirmation of documentary credits or buyer’s credits, in connection to Italian exports or related activities (e.g. services, studies and design work abroad). The maximum acceptable tenor is 5 years.
• Countries and financed banks - accepted within pre-agreed cap • Simplified procedures and insurance cover via simple notification by the bank• % of coverage up to 100% of the financed amount for political and commercial risks
Confirmation of Documentary Credit Time 1
Time 2Time n
Italian Company Foreign Company
Foreign Bank (acting for the Foreign
company)
Bank (Italian or foreign operating in Italy)
L/C requestCredit payment
Export ofgoods/services
Confirmation ofDocumentary
CreditInsurance Policy
SACE
Export Credit: L/Cs Confirmation
Structure
Target Clients
Main Features
Italian and foreign banks interested in insuring credits deriving from the confirmation of documentary credits issued by a foreign bank (located in a country other than that of the confirming bank), in connection to Italian exports or related activities. The maximum acceptable tenor is 5 years.
•Increasing banks potential volumes in L/C confirmation business •Encouraging foreign banks to issue L/Cs for the benefit of Italian exporters•% of coverage up to 100% of the financed documentary credit amounts for the political and commercial risks
Export of goods and services
Insurance Policy
Payments for the exports of goods and services
Foreign Company
Confirmation and financing of Documentary Credit
Bank (Italian or foreign operating in Italy)
Foreign Bank (Operating for the Foreign Company)
Italian Company
Issuance of L/C
L/C request
SACE
Export Credit: Cross Border Investment & Preshipment Facilities
Structure
Target Clients
Main Features
Italian corporates and /or their Foreign Subsidiaries/Affiliates in search of financing for strategic investments abroad, namely: (I) M&A, JVs, setting up of new production units as well as new subsidiaries (Trade Related & Cross Border Investment Facilities) and (II) working capital needs (Pre-Shipment)
• First demand guarantee in favour of the funding bank• Risk participation with the funding bank, on a % to be agreed, against non-payment risk• Release of the bank’s regulatory capital (the guarantee is zero weight for Basel II)• Freeing up borrowers credit lines• Participation Fee paid by the funding bank to SACE on an up front / running basis• More competitive borrower’s all-in cost of funding
Guarantee
Funding
Italian related business
Italian entities and /or their
Foreign SubsidiariesBanks Guarantee
Time 1Time 2Time n
Italian EntitiesItalian Related
Business
Banks
Working Capital financing
(I) Cross Border Invest. Facility(I) Cross Border Invest. Facility (II) Pre - Shipment(II) Pre - Shipment
CapitalMarkets
Funding
SACE SACE
Export Credit: Internationalisation activities
Structure
Target Clients
Main Features
Banks and Financial Institutions financing Small and Medium Enterprises (SMEs) for internationalization purposes. This product allows the collection and possibly the subsequent securitization of loans.
Guaranteed Loans Portfolio: •must be at least of almost 50% SMEs and, for the remaining part, of enterprises with total annual revenues under € 250 mln.•Loans contracted at market price for enterprises exporting at least 10% of their production, with a rating established between SACE and the bank.•Risk sharing between SACE and the Financing Bank •The financed quota guaranteed by SACE (normally up to 70%) The financed quota guaranteed by SACE (normally up to 70%) is weighted equal to that of the Italian State •SMEs easier access to financial markets, also on a m/l term basis, without drawing on their credit lines
Step 1
Loans Portfolio Assignment
Step 1 Financing to Italian
Exporters Tranche 1
Tranche 2
Tranche …
Equity
Tranche nSPV
Step 2
Securitisation
Step 3 Guarantee
Bank
Italian exporters
Italian Company
1°
Italian Company
2°
Italian Company
n
Italian Company
……
A: Loans collectionA: Loans collection B: Loans securitisationB: Loans securitisation
Bank Step 2
Guarantee
SACE
SACE
Export Credit: Capital contribution abroad
Structure
Target Clients
Main Features
Italian Companies and/or their Foreign Subsidiaries interested in establishing companies abroad or holding a stake in foreign company.
• Investment carried out through:• Capital contributions (capital goods, technologies, licenses and patents, design services civil works management and others), or Shareholding subordinated loans /Guarantees • Financing of foreign investments through the possibility of assigning the insurance policy to a bank• Coverage up to 100% of the investment value as a consequence of a political event• Possibility to insure also “indirect” investments, namely those carried out by an Italian company through a foreign subsidiary
Guarantee
Capital contribution /
FinancingItalian
CompanyForeign
Company
(Recipient)
A
Controlling Stake
Capital contribution /
FinancingForeign Subsidiary
Italian Company
Guarantee
Foreign Company
(Recipient)
BSACE SACE
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SACE’s International Network
MOSCOW
* To be opened in 2010
SAO PAULO
MUMBAI*
BUCHAREST*
JOHANNESBURG
ISTANBUL*
HONG KONG
15
HEAD OFFICERomePiazza Poli 37/42 - 00187 RomeTel. +39 06 67361 • Fax +39 06 6736225
ITALY
BariVia Amendola 172/5 - 70125 BariTel. +39 080 5467763 • Fax +39 080 5467764
LuccaVia Dante Alighieri 167 - 55100 LuccaTel. +39 0583 40071 • Fax +39 0583 400790
MilanVia A. De Togni 2 - 20123 MilanTel. +39 02 4344991 • Fax +39 02 434499749
ModenaVia Elsa Morante 71 - 41123 ModenaTel. +39 059 891240 • Fax +39 059 820832
Monzac/o Unione Industriali Monza e BrianzaViale Petrarca 10 - 20010 MonzaTel. +39 039 3638262 • Fax +39 039 3638208
RomePiazza Poli, 37/42 - 00187 RomeTel. +39 06 6736309 • Fax +39 06 6736770
Turinc/o ICE - Via Bogino 13 - 10123 TurinTel. +39 011 836128 • Fax +39 011 836425
VeniceViale Ancona 26 - 30172 Venice MestreTel. +39 041 2905111 • Fax +39 041 2905103
WORLDWIDE
China40/f Suite 4001 - Central Plaza 18Harbour Road - Wanchai, Hong KongTel. +852 36202323 • Fax +852 36210227
South AfricaTwo Commerce Square 39, Rivonia Road Corner Melville Road Sundhurst2196 Sandton, JohannesburgTel. +27 11 2680623 • Fax +27 11 2680617
BrazilAvenida Paulista 1971 - 4° andar01311-300 Sao PauloTel. +55 11 31712138 • Fax +55 11 32664051
How to contact us
Russiac/o ICE - Office n.1202 Krasnopresnenskaja Naberejnaja 12123610 MoscowTel. +7 49 52582155 • Fax +7 49 52582156
Svetlana Gromiko Piradova [email protected]
Dmitry [email protected]
