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Investment and Investment Finance


BBVA SPAIN Fernando Alonso September, 8th 2017

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Other: Uncertainty of

economic policy,

one- offs,…

Good fundamentals, but still low flows in new production

Despite the economic recovery, credit stock to companies is still decreasing

Structural factors that will continue having an influence in the medium term:

Financial

Structure Deleverage

New production. Companies

(CAGR, %)

8,9 13,0

2,7 8,0

-18,6

8,0

-32,8

0,2

2014 2015 2016 7M17

Up to 1 MM > 1 MM

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3

Ultimately, internal funding has been key

Investment and financing flows

(% of NFC GVA)

INTERNAL FUNDING (GROSS SAVING)

FINANCIAL ASSETS

OTHER

GROSS FIXED CAPITAL FORMATION

EXTERNAL FINANCING

Source: BoS

Reso

urc

es

Jobs

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4

Different policies could help boosting the flow of new credit and investment

Increasing size and fostering exports

01

Digitalization 02

Alternative finance 03

Private public partnership programs 04

Index

More solid and solvent demand

Complete the credit offer

Companies

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5

Increasing size and fostering exports

01

Source: OCDE Entrepreneurship at a Glance (2013)

Productivity and size of Companies, 2010 US$ per worker, en PPA 1

0

20

40

60

80

100

120

140

160

1-9 10-19 20-49 50-249 250+

España UE8

PVAS

CAT

MADRIO

VAL

NAV

ARAMURESP

CAN

CLM

GAL

AND

CYLBAL

AST

CNT

EXT

94

95

95

96

96

97

97

0 1 2 3 4 5 6 7

% d

e m

icro

em

pre

sa

s (0-9

) s

/ to

tal e

n

20

14

Nº de empresas exportadoras por cada 1.000 habitantes en 2014

Number of exporting companies per thousand inhabitants and % of microenterprises in 2014 (%)

Source: BBVA Research FROM INE & ICEX

SPAIN

NUMBER OF EXPORTING COMPANIES PER 1000 INHABITANTS

% O

F M

ICR

OEN

TER

PR

ISES

UE8

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BBVA, long and extensive experience helping customers with their international plans

Retail Banking in >30 countries

Commercial Banking in 17 countries

RM responsible for the global customer relationship

Onboarding

Reward for employes

Data base

IT platform

Cross border Strategic dialogue Global Footprint

Sectorial coverage

Capex

M&A

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Financial solutions to help our customers in their strategic decision making

Specialist in RENTING

Specialist in INTERNATIONAL

EXPANSION

Specialist in GLOBAL MARKETS

Specialist in WORKING CAPITAL

1 RELATIONSHIP MANAGER

Specialist in LONG-TERM FINANCING

Specialist in INVESTMENT

BANKING

Specialist in TRADE FINANCE

Specialist in MEANS OF PAYMENT

Specialist in TRANSACTIONAL

SERVICES

B U S I N E S S E X P E R T S

TEAM

1+9

Specialization in commercial banking

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Digitalization 02

Digitization is a tool to deal with a more complex and globalized world

The growth generated by innovation and digital transformation has five sources:

New markets New goods and services

New production and distribution

methods

Change in productive

factors

Changes in the organization

and

management of companies

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Alternative finance 03

New production. Private sector (% new credit production banking sector)

0,12% 0,18% 0,56%

0,03% 0,02%

0,07%

0,07% 0,11%

0,10% 0,75% 0,50%

0,58% 0,01%

0,01%

0,03% 0,01%

0,01%

0,03%

2,29% 2,09%

2,42%

2014 2015 2016

MARF MAB Venture capital Private equity Business Angels Crowdfunding Corporate debt

Strong growth in alternative financing but:

Still incipient volume: less than 4% of the new production.

Crucial role as a complement to bank financing, for the early phases of the project and to make the leap of growth

2016 3,8%

3,0%

3,3%

Source: MARF, MAB, Asociaicón Española de Crowdfunding, BdE

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Key Benefits for Banks Recent BBVA-EIB Intermediated Loans and Guarantees

Private public partnership programs

Preferential terms : Long tenors and attractive pricing, which are passed through to the final beneficiaries

Positive signalling effect towards our clients

Alignment of EIBs goals in supporting EU public Policy objectives with Bank’s commercial strategy

New structures allowing an efficient risk management and capital relief in order to increase current lending business

Lines for SMES and midcaps: EUR 200mn

Thematic lines: Lines for SMEs targeted to finance investments in the following sectors

• Agriculture: EUR 50mn

• Vehicle Fleets: EUR 150 mn

• Environmental and social cohesion: EUR 200 mn

• Innovation and digitalization: In negotiation

• Climate change: In negotiation

Risk sharing (partial credit guarantees): guarantees for an existing portfolio of project finance and/or midcaps and large corporates with capital relief for BBVA, enabling BBVA to provide new loans to SMEs

ICO Lines: ICO-Exporters and ICO-enterprises and Entrepreneurship

BBVA has been intermediating loans from the European Investment Bank and ICO for more than 25 years

Despite the current environment of high liquidity due to the ECB’s expansionary monetary policies, BBVA , EIB and ICO continue working actively on i) the traditional business of intermediated loans, including new sectors such as innovation and digitalization, and ii) new financial instruments under the Juncker Plan such as Risk sharing and Synthetic securitizations

04

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Synthetic Securitization

Under the Juncker Plan, EIB and EIF are providing a mezzanine guarantee of EUR 143 million to BBVA. BBVA retains the Equity and Senior Debt tranches.

The mezzanine guarantee will provide capital relief to BBVA. BBVA commits to provide new funding of EUR 1 billion to SMEs.

First mezzanine guarantee under the Juncker Plan and the biggest synthetic securitization in Spain and Europe

EIB and EIF

Guarantee of

EUR 143 million for the

Mezzanine Tranche

BBVA can provide

new loans for SMEs up

to EUR 1 billion

Senior Debt

Mezzanine Tranche

Regulatory

Capital

Relief

Equity

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BBVA SPAIN Fernando Alonso September, 8th 2017

investment and investment finance › attachments › general › events › ... · fernando alonso...

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