empower your business 1 sace in kazakhstan: a valuable partner september 2007
TRANSCRIPT
EMPOWER YOUR BUSINESS1
SACE in Kazakhstan: a valuable partner September 2007
EMPOWER YOUR BUSINESS2
Index
Why SACE
Kazakhstan economy
Credentials
SACE in Kazakhstan
SACE’s network
SACE Group
EMPOWER YOUR BUSINESS3
SACE’s network
Why SACE
Kazakhstan economy
Credentials
SACE in Kazakhstan
SACE Group
EMPOWER YOUR BUSINESS4
SACE supports companies in developing their business abroad,
offering a wide range of credit insurance and reinsurance products,
investment protection, surety and advanced financial solutions
SACE supports companies in developing their business abroad,
offering a wide range of credit insurance and reinsurance products,
investment protection, surety and advanced financial solutions
SACE Group
Credit insurance, reinsurance and guarantees for Italian exports and investmentsCredit insurance, reinsurance and guarantees for Italian exports and investments
Short-term insurance services both in the domestic and foreign markets.Short-term insurance services both in the domestic and foreign markets.
Leader in surety business, specifically in the construction industryLeader in surety business, specifically in the construction industry
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SACE Group: a 30 year-experience in credit insurance
Establishment of SACE as public entity under the surveillance of the Ministry of Economy & Finance (MEF)
SACE is transformed into an independent institution
SACE is transformed into a joint stock company, whose capital is wholly owned by MEF
SACE creates SACE BT, entering the short-term credit insurance market
SACE enlarges its area of business to the support of “made by Italy” abroad
SACE BT acquires 70% of Assedile, leading operator in the surety sector
Moody’s assigns SACE a first time insurance financial strength rating of Aa2, with stable outlook
1977
1998
2005
2004
Further enlargement of SACE SpA operational perimeter to include the concept of supporting “ Italian Interest ”2006
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2006
A strong financial partner
Key figures, mln €
16.081
17.073
2005 2006
New guarantees (€ mln)
+6,2%
+21,6%
Gross written premiums (€ mln)
197,7
2005 2006
240,5
+22%
+12%
-33%
-39%
-26%
-
+4%
Gross written premiums
Outstanding
Net Profit
Claims
Net Equity
Rating (Moody’s)
Employees
240,5
33.473,91
510,1
44,3
6.742,02
Aa2
463
Δ%
197,7
29.890,81
757,4
73,9
9.092,1
Aa2
445
2005
(1) Principal + interest (net of reinsurances)(2) Post Equity reduction (feb 2007)
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Africa15,10%
Central America4,83%
South America7,10%
North America0,18%
Oceania0,10%
Asia6,36%
Europe38,32%Middle East
28,00%
SACE Exposure
SACE Exposure: sectors
SACE Exposure: geographic area
Italy8,80%
Russia9,60%
Turkey10,50%
Egypt11,00%
Iran16,40%
Otherscountries
43,7%
0%
10%
20%
30%
40%
50%
Iran Egypt Turkey Russia Italy Otherscountries
SACE Exposure: main countries
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Kazakhstan economy
Credentials
SACE in Kazakhstan
SACE’s network
SACE Group
Why SACE
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Why SACE: beyond export
Yesterday Today Tomorrow
From “made in” to “made by” Italy
From “made by” to supporting the
internationalization of Italian companies
From the internationalization of Italian companies to “national
interest” and competitiveness
A. Broadening our area of intervention
B. Products Development
Traditional Products New Products Next development
Buyer Credit
Supplier Credit
Civil works
Political Risk Insurance
L/C confirmation
Financial Guarantee (loan, bonds, working capital needs) - export or investment related
Surety
Local Currency FinancingRisk Sharing Guarantee
Leasing/Factoring
Securitization
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(*) Such threshold is reduced to 10% for listed companies.
SACE has widened its eligibility criteria:
SACE is now able to provide cover for the financing of:
supply contracts signed by an Italian company;; or
supply contracts signed by a foreign company participated for at least 20%* by an Italian company, or
Italian origin supplies under contracts signed by a non-Italian company, and
local costs, in application of OECD Regulation Framework
Italian origin of goods is not an eligibility requirement, as SACE could cover all goods/services (of Italian, EU, or extra EU origin) provided under such contract
SACE New Range of Activities: 1) Export Related Products
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Exporter’s Country (*)
Italy
Foreign country
Italy
Foreign Country
1 - Eligibility of Italian content
Limited flexibility to cover the financing of non Italian supplies
3 - Eligibility of non Italian content (*) of the export contract signed by an Italian company(*) Local content eligible within the limits set by OECD Regulatory Framework
2 – Eligibility of Italian content
Financing Cover for non Italian supplies is not allowed
4- Eligibility of supplies by foreign companies
participated by Italian companies
New
eligibility
criteria
New
eligibility
criteria
SACE New Range of Activities: Export Related Products (con.d)
From
to
to
Traditional
eligibility
criteria
From
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(*) Participated at least 20% by an Italian companies. Such threshold is reduced to 10% for listed companies.
Investments made by Italian companies / Italian subsidiaries’(*)
Transactions of “strategic interest” for the Italian economy:
Strategic imports (power, gas, oil, raw materials for re-exports);
Strategic foreign customers/partners to Italian companies in their activities abroad;
Infrastructures (including domestic infrastructures) supporting: (a) the internationalization of the Italian economy (terminals, railways, roadways, etc), or (b) diversification of sources of energy for the domestic market (pipelines, regasification plants, etc;
Internationalization of Italian banks;
Employment and economic growth in Italy;
Strategic industries: renewable energies, environment, technological innovation
Investments made by Italian companies / Italian subsidiaries’(*)
Transactions of “strategic interest” for the Italian economy:
Strategic imports (power, gas, oil, raw materials for re-exports);
Strategic foreign customers/partners to Italian companies in their activities abroad;
Infrastructures (including domestic infrastructures) supporting: (a) the internationalization of the Italian economy (terminals, railways, roadways, etc), or (b) diversification of sources of energy for the domestic market (pipelines, regasification plants, etc;
Internationalization of Italian banks;
Employment and economic growth in Italy;
Strategic industries: renewable energies, environment, technological innovation
SACE New Range of Activities: 2) Non-Export Related Products
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(*) Such threshold is reduced to 10% for listed companies.
First demand guarantee: from insurance policies to 100% unconditional and irrevocable guarantees (all risks including documentary risk are covered) - Advantages for the borrower: reduction of costs and supporting documents;
Corporate/Project bond issuance - advantages for the borrower: (i) lower cost of funding against traditional buyer’s credit, (ii) diversification of funding sources and preservation of room in its credit lines with the banking system; (iii) access to a high number of investors in the Capital Markets;
Working capital facilities granted to (i) foreign corporate/SPV participated by Italian investors, (ii) Italian exporters;
Equity loan cover for the benefit of Italian investors;
Political cover for overseas investments;
Bid/performance/advanced payment bonds;
Local Currency Facility;
Securitisation - credit enhancement;
Islamic Finance
First demand guarantee: from insurance policies to 100% unconditional and irrevocable guarantees (all risks including documentary risk are covered) - Advantages for the borrower: reduction of costs and supporting documents;
Corporate/Project bond issuance - advantages for the borrower: (i) lower cost of funding against traditional buyer’s credit, (ii) diversification of funding sources and preservation of room in its credit lines with the banking system; (iii) access to a high number of investors in the Capital Markets;
Working capital facilities granted to (i) foreign corporate/SPV participated by Italian investors, (ii) Italian exporters;
Equity loan cover for the benefit of Italian investors;
Political cover for overseas investments;
Bid/performance/advanced payment bonds;
Local Currency Facility;
Securitisation - credit enhancement;
Islamic Finance
SACE new financial products: some examples
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Credentials
SACE in Kazakhstan
SACE’s network
SACE Group
Why SACE
Kazakhstan economy
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8,0%
8,5%
9,0%
9,5%
10,0%
10,5%
11,0%
2004 2005 2006s 2007p 2008p
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
Foreign Debt/GDP GDP
Kazakhstan macroeconomics
GDP• In 2006 the GDP real rose by 10,6%• Foreign Debt/GDP ratio expected around 90%
Key factors
• Kazakhstan has sustained very strong macroeconomic performance since the start of the decade
• Inflation should decrease below 8% during 2007
Public finances
• External debt has risen significantly
• Economic growth in the forthcoming years should continue to be strong
Foreign Debt/GDP
Sources: SACE’s Country Risk Department
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
2004 2005 2006 2007 2008
mln
US
$
-4
-3,5
-3
-2,5
-2
-1,5
-1
-0,5
0
0,5
1
1,5
%
Balance Current Transaction Balance Current Transaction/GDP
Balance
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-3.000
-2.000
-1.000
0
1.000
2.000
3.000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Import Export balance
mine1,4%
footwear4,8%
chemical2,5%
transport3,8%
forniture5,8%
others7,3%
electronic5,9%
textile6,3%
steel9,0%
mechanics53,3%
Italian Import/Export with Kazakhstan
Kazakhstan – Italy: International Trade
Source: ISTAT
Italian Exports to Kazakhstan by industrial sector
• Increase of Italian imports due
to strong demand for mining
products
• Italian exports concentrated in
machinery & Equipments
• Italian exports had an increase
of 55% during 2006
• The amount of direct
investments reached the
amount of USD 10 billion
during 2006. Italy is the ninth
country for amount invested in
Kazakhstan
mlneuro
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Why SACE
Kazakhstan economy
Credentials
SACE’s network
SACE Group
SACE in Kazakhstan
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Benefits of SACE’s support
Buyers /
Borrowers
Banks
Longer tenors Bigger tickets Diversification of financing sources Additional credit capacity without affecting bank’s lines Competitive all-in cost of financing
Release of capital which can be used for other investments Zero-weighted credit as per Basel 1 & 2 Competitive pricing
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Rating
OECD
Sovereign/Bank/Corporate Risk: Open
Sovereign/Bank/Corporate Risk: Open
SACE CoverPolicy
Country Category 4/7 Country Category 4/7
S&Ps: BBB Moody’s: A2 Fitch: BBB
S&Ps: BBB Moody’s: A2 Fitch: BBB
Kazakhstan: Market & ECAs classification
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Why SACE
Kazakhstan economy
SACE in Kazakhstan
SACE’s network
SACE Group
Credentials
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Commitment: € 18.5 mln
Supplier: Officine Meccaniche Villa &
Bonaldi S.p.a.
Buyer: China Petroleum Material and
Equipment Corporation
Country: China
Structure: Supplier Credit Policy
September 2005
Commitment : € 22 mln
Exporter: Gruppo Comau
Beneficiary: Bayerische- HVB
Country: Germany, South Africa
Structure: Surety Bond
September 2005
Commitment: €230 mln
Supplier: Danieli & Officine Meccaniche S.p.a.
Buyer: OMK Steel (Russia)
Country: Russia
Structure: Strcutured Finace
June 2006
December 2005
Commitment: € 52 mln
Exporter: Ansaldobreda S.p.a.
Beneficiary: BNP Paribas
Buyer: Greater City Municipality of Kayseri
Country: Turkey
Structure: Buyer Credit Insurance Policy
Commitment :€ 1.7 mln
Debtor: Dainese S.p.a.
Beneficiary: Banca Intesa S.p.a.
Country: Italy
Structure: Credit Enhancement
November 2005
Commitment: € 1 bln
Insured: Italcementi S.p.a.
Beneficiary: Ciments Francais
Country: Egypt, India, Kazakhstan, Thailand
Structure: Investment Policy
November 2005
Commitment : € 13.5 mln
Insured: Permasteelisa S.p.a.
Buyer: Government of the State of Qatar
Country: Qatar
Structure: Civil Works Policy
October 2005
Commitment: € 3 mln
Insured: Rivoli Spa
Buyer :Parà - Secretaria Executiva de
Transportes -SETRAN
Country: Brazil
Structure: Civil Works Policy
October 2005
Commitment: € 1 mln
Supplier: Perfora S.r.l.
Buyers: Brazilian companies (5)
Country: Brazil
Structure: Supplier Credit Policy
Sept- Dec 2005
Commitment: € 25 mln
Supplier: Italdesign Giugiaro S.p.a.
Buyer: China Motor Corporation
Country: Taiwan
Structure: Supplier Credit Policy
September 2005
Commitment: € 21.1 mln
Exporter: Alenia Aeronautica
Beneficiary: Barclays Bank
Buyer: Air Deccan
Country: India
Structure: Buyer Credit Insurance Policy
October 2005
Commitment: € 50 mln
Exporter: Ansaldobreda S.p.a
Beneficiary: DSB- Material
Country: Denmark
Structure: Surety Bond
July 2005
Commitment: $ 1.2 bln
Insured: Bond Issued by Gazprom
Supplier: Snam,Saipem,Ilva,Nuovo Pignone
Country: Russia
Structure: Structured Finance Guarantee
July 2005
Commitment: € 3.3 mln
Exporter: Binacchi & C. S.r.l.
Beneficiary: Banco Santander Central Hispano
Buyer: Friboi LTDA
Country: Brazil
Structure: Buyer Credit Insurance Policy
May 2005
Commitment: € 0.8 mln
Debtor: Alessi S.p.a.
Beneficiary: Banca Intesa S.p.a.
Country: Italy
Structure: Credit Enhancement
November 2005
Credentials
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Why SACE
Kazakhstan economy
Credentials
SACE in Kazakhstan
SACE Group
SACE’s network
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Russia
Hong Kong
Cina
Next openings• San Paolo• Istanbul• Mumbai• North Africa
SACE’s network
Regional Offices• Milan• Modena• Rome (Headquarters)• Turin• Mestre Venice
Foreign Office• Moscow• Hong Kong• Shanghai
Italy
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This presentation has been prepared by SACE SPA solely for information purposes. The information contained herein has not been independently verified.Under no circumstances should this document 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 but SACE does not represent or warrant that it is accurate and complete. The views reflected herein are those of SACE and are subject to change without notice. The products mentioned in this document may not be eligible for sale in some states or countries, or suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.The forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary.The information herein may not be reproduced or published in whole or in part, for any purposes, or distributed to any other party, without the written permission of SACE S.p.A. By accepting this document you agree to be bound by the foregoing limitations.
Disclaimer