sector management - aquaculturechallenge.com · • tabungan mantap • maxima savings account •...
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Sector Management
Vietnam, December 6th 2016
Indonesia Aquaculture Industry
Rabobank Group & Rabobank IndonesiaI
Rabobank Group & Rabobank IndonesiaI
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Rabobank Group presents in 40 countries across the globe
40 countries F&A focus
Toronto
New York
Mexico City
Sao Paulo
Buenos Aires SydneySantiago
Willemstad
Calgary
Washington DC
Chicago
AtlantaDallas
El Centro
San Francisco
Perth
MelbourneWellington
Cedar Falls
St Louis
London
MadridMilan
Antwerp Frankfurt
Warsaw
Utrecht
Hong Kong
Singapore
Mumbai
Shanghai
Jakarta
Tokyo
Beijing
Delhi
Kuala Lumpur
Moscow
Istanbul
Dublin
Labuan
Amsterdam
Paris
AA rating
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Rabobank Group hiện diện tại 40 quốc gia trên khắp thế giới
40 quốc gia Tập trung F&A
Toronto
New York
Mexico City
Sao Paulo
Buenos Aires SydneySantiago
Willemstad
Calgary
Washington DC
Chicago
AtlantaDallas
El Centro
San Francisco
Perth
MelbourneWellington
Cedar Falls
St Louis
London
MadridMilan
Antwerp Frankfurt
Warsaw
Utrecht
Hong Kong
Singapore
Mumbai
Shanghai
Jakarta
Tokyo
Beijing
Delhi
Kuala Lumpur
Moscow
Istanbul
Dublin
Labuan
Amsterdam
Paris
Hạng AA
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Global Network and Sector Coverage at Rabobank’s FAR Department
Utrecht
Mumbai
Sydney
Mexico City
São Paulo
New York Beijing
Shanghai
Hong Kong
Singapore
New Delhi
Christchurch
MelbourneBuenos Aires
St. Louis
Chicago
London
Dar es Salaam
Fresno
Animal Protein
Beverages F&A Supply Chains
Dairy Farm InputsConsumer Foods
Fruit & Vegand Flowers
Grains, Oilseeds &
Sugar
Seafood
80 research analysts across the globe in 12 different countries
Jakarta
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Introducing Rabobank Indonesia
• Rabobank opened its office in Indonesia in 1990.
• Recently shifting focus to Banking for Food strategy, financing only
Food and Agribusiness.
• Focus commodities such as: Poultry, Aquaculture, Coffee, Cacao,
Palm Oil & Value added
• Currently Rabobank Group has 34 branches in Indonesia,
employing around 1,000 FTE.
• Rabobank’s local contacts, knowledge of local markets and
regulations are used to leverage opportunities for our International
clients.
The long term presence of Rabobank in Indonesia
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Products and Services
Products and
Services
• Reguler Time Deposit
• Deposito On Call
• Foreign Currency Time Deposit(USD,
EURO,SGD)
Savings Accounts
• Tabungan Mantap
• Maxima Savings Account
• Maestro Savings Account
• Tabunganku
Loans and Trade Facilities
• Commercial and SME loans
• Overdraft
• Bank Guaranty and L/C
• Multi-purpose loan
Time Deposit
• Rabo Worldpass
• Rabo Access Center
24-Hour Banking
• Rabo Online Personal
• Rabo Online Business
Rabo Online Internet Banking
• Rupiah Current Account
• USD Giro
• SGD Giro
• Euro Giro
Current Account
Savings
Current Account
Time Deposit
Loans & TradeFacilities
Rabo Online
24-Hour Banking
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Aquaculture Sector OutlookII
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Indonesia Fishery Sector Outlook
Volume Production 2010 – 2014 wild-catch & aquaculture in million tons
Source: BPS Directory of Marine and Fishery
5.4
5.7
5.8
6.1
6.4
6.3
7.9
9.7
13.3
14.3
2010 2011 2012 2013 2014
Wildcatch Aquaculture
Rabobank Branches and Aquaculture Main Area Production
• With total production of 14,3 tons, Indonesia has become the 2nd largest
aquaculture producer in the world after china. (exclude wild catch)
• Ever since 2003 the trend of aquaculture production is constantly increasing
with average increment of 27.23% per year.
• OJK in coordination with the Ministry of Marine and Fisheries and the
Institution for Financial Services (Lembaga Jasa Keuangan / LJK) have
organised a program called JARING 2015. It consist of a series of activities
to support the development of the economy, including the sector of marine
and fisheries, where banks should take part in
Indonesia’s main locations for Aquaculture production are:• South Sulawesi with total production of 2,6 Mio ton;• NTT with total production of 1,8 Mio ton;• Central Sulawesi with total production of 1,2 Mio ton;• South-east Sulawesi with total production of 1 Mio ton;• East Java with total production of 0,99 Mio ton;
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Aquaculture Value Chain Mapping
Value Chain Segment
Farm Input Collector
Description
Challenge
Processing Company
Aquafarmer
• Technical Expertise
• Know-how practice –includes mortality rate, disease handling, & better management
• Biosecurity Discipline
• Competitions rely heavily on availability of cash
• Dependency on grand-parents supply from overseas
• Many farmers are still unaware with the benefit of vaccines
• Traders• City collectors
Export or Local Market
• Smallholder aquafarmer
• Integrated aquafarmer
• Logistic – poor infrastructure
• Sustainability and traceability in exporting
• Regulation in Export
• Export player• Local Retailer
• Fish Feed• Fingerling• Vaccination
• Fillet• Can Processor
• Cold chain system from the upstream supply
Rabobank Offering
• Import Finance• Machinery Financing• Factory Expansion• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain
Financing
• Land Expansion• Equipment Financing• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain
Financing
• Pre-Export Financing• Post-Export Financing• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain Financing
• Machinery Financing• Factory Expansion• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain
Financing
• Equipment Financing
• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain
Financing• Logistic &
Transportation
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Risk in Aquaculture Business
•Pole is positioned at the location prone to flooding
•Mechanical breakdown or accidental damage to machinery and other installations
•Pollution which could adversely impact surrounding environmentTechnical Risk
•Outdated operational policy
•Management and staff capability to operate the business
•Low productivity due to disease outbreak, climate change, low quality of seeds/seedling, low quality of feed.
•Social issues
Operational Risk
•Inadequate supply (i.e Farm Input)
•Unsellable product due to low quality product and uncompetitive price
•Government intervention
•Competitive edge/product positioning/company’s position in the market/emergence of new competitors
Commercial Risk
•Price/currency fluctuation
•Uncollectible receivable
•Low capital
•Misuse of bank financing
Financial Risk
Financing from RabobankIII
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Rabobank Entities According to Farmer Type
Rabobank International Wholesale
Rabobank International Commercial
Rabobank International Commercial
Rabobank International SME
Rabobank Foundation
Micro finance and non-for-profit
organizations
Largefarmers &
agribusiness
Medium size farmer (emerging) & farmer
organisations
smallholders in Cooperatives
Official poverty lineFinancial below standard
• Organisation is legally registered andhave track record minimum 3 years
• 3 years of financial statement
• Higher limit facillity
• Require collateral
• Organisation is legally registered andhave track record minimum 3 years
• 3 years of financial statement
• Rural area with focus on social impact tosmallholders farmer
• Require no collateral
• Government, NGO, Grants
• Customised solution for big corporation
Banking Segment Segment ConditionBusiness Segment
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Term Loan – Investment in Shrimp Pond Expansion
Financing Objective Process Steps
1. Borrower (the subsidiary of PT. XYZ) to submit:• Construction budget for the shrimp
pond investment (RAB);• 3 years financials statement (up to FY
2015) and in-house financials 2016• Business plan for the investment
2. Rabobank Indonesia to do preliminary assessment based on the submitted data and issue Indicative Term Sheet to get consensus on facility structure.
3. Upon Agreement on Indicative Term Sheet, Rabobank Indonesia to do further due diligence and proceed with the transaction
Security
1. Proper due diligence on the subsidiary of PT.XYZ is necessary;
2. We recommend PT. XYZ to support the transaction with solid Corporate Guarantee
3. Invested assets shall be pledged to Rabobank Indonesia to support the facility
1. PT. XYZ is seeking for Term Loan Facility (TLF) for its shrimp breeding subsidiary. The purpose of the loan is for shrimp pond expansion.
2. Borrower for the facility will be the subsidiary of PT. XYZ.3. Indicative amount on the investment requirement is not yet disclosed
as PT. XYZ is yet to receive the final construction budget
Financing Scheme
PT. XYZ
Subsidiary of
PT. XYZ
Corporate Guarantee (if deem necessary)
Term Loan Facility
Fixed Asset Pledge
Off-takeContracts
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Working Capital – Financing the Farm Input
Shrimp FarmerPT. XYZ
Approved Buyer 1
Fish Feed
Farm Input Provider
Shrimp Fingerling
Shrimp
Approved Buyer 2
Approved Buyer 3
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1
3
3
3
4
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Flow1. Farm input provider supplies fish feed & shrimp fingerling to the shrimp farmer;2. Rabobank will provide financing up to 80% of the invoice value; Shrimp farmer delivers goods to
the approved buyer (i.e. the Processing Company;3. Shrimp farmer delivers goods to the approved buyer (i.e. the Processing Company);4. On the invoice due date, approved buyer makes payment to Rabobank account. 5. Upon receipt of the payment, Rabobank will debit the Escrow’s account for loan repayment.
Residual amount will be transferred to supplier operating account.
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Benefit for Shrimp Farmer:
• Cash-in the AR, improve liquidity
• Reduce financing cost in the supply chain
• Enhance supplier- buyer relationship
Working Capital (Supply Chain Financing)
Where financing is granted against delivery, payment order, and underlying documents (i.e. invoice) accepted by the Principals to enable
the Suppliers to obtain cash up-front.
Flow1. Shrimp farmer delivers goods to the approved buyer (i.e. the Processing Company);2. Upon the delivery, supplier request the invoice and the delivery order to be signed
when the goods have been received.3. Shrimp farmer sends the signed hard copy invoice to Rabobank.4. Rabobank will provide financing up to 80% of the invoice value;5. On the invoice due date, approved buyer makes payment to Rabobank account. 6. Upon receipt of the payment, Rabobank will debit the Escrow’s account for loan
repayment. Residual amount will be transferred to supplier operating account.
With recourse to supplier
Amount Up to 80% of invoice value
Pricingcalculation
In arrear with flexible tenor or Fixed up front
Financing Tenor
Max 180 days
Repayment Source
Direct payments from Buyer to pre-agreed escrowaccounts in RII.
Disclosure requirement
Notice of assignment of receivable to buyer
Facility Conditions
- Buyer's accepted invoice
- All Invoices must state payments from Principal areto be made to the Supplier’s designated account withRII.
Shrimp Farmer
Approved Buyer
(Processing Company)
Signed Invoice fromapproved buyer
Payment (80%)
Invoice & Delivery Order
Shrimp
Repaymentafter tenor
1 2
3
4
5
6Repayment after
principal, interest, & fees settlement
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This presentation has been prepared exclusively for the benefit and internal use of the reader and its group entities and does not carry any right of publication or disclosure other than to the reader and its relevant
group entities. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”). The
information in this presentation reflects prevailing market conditions and our judgement as of this date, all of which may be subject to change. This presentation is based on public information. The information and
opinions contained in this document have been compiled or arrived at from sources believed to be reliable, but no representation or warranty, express or implied is made as to their accuracy, completeness or
correctness. The information and opinions contained in this document are wholly indicative and for discussion purposes only. No rights may be derived from any potential offers, transactions, commercial ideas et
cetera contained in this presentation. This presentation does not constitute an offer or invitation. This document shall not form the basis of or be relied upon in connection with any contract or commitment
whatsoever.
Thank you