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Presentation on theme: "NOT AN OFFICIAL UNCTAD RECORD"— Presentation transcript:

International Partner in Natural Resources Marrakech, April 30, Margrit Nzuki

2 Content Why chose international partners to finance Oil & Gas projects in Africa Advantages Requirements KfW as your international finance partner Our approach Experience in Africa Guideline for eligible projects and structural elements Lessons learned Contacts

3 International Partners
Providing Political support Technical Expertise Providing access to international capital markets Allows for diversified lending base over coming local constrains Resources projects are typically of a scale to large for local/regional banking market Enhancing project creditability

4 Our Value Proposition We add value to our clients’ projects by:
Long-term lending reflecting our continuous support throughout the project cycle In-depth knowledge of our clients’ markets based on our sector expertise gained over years Tailor-made financing solutions meeting our clients’ needs Fast and reliable commitment to our partners at early project stages Strong underwriting capacity Long-term partnership with our clients also in challenging markets & times

5 Multi-sourcing Most extensive and decade-long experience with Euler-Hermes Long standing experience in multi-sourcing transactions and established business relationships with all major European ECAs (e.g. ECGD, SACE, COFACE, Atradius, OEKB, Finnvera) Dedicated in-house Credit Insurance Team, as internal advisor with regard to ECA/PRI/Private Insurer covered transactions (e.g. contacts, premia, maximizing inclusion of third country deliveries under ECA cover, etc.) Frequent ECA-Agent mandates in multi-sourcing transactions Cooperation agreements with a number of export financing institutions (ECGD, FIDE, SIMEST, JBIC, SEK, Vnesheconombank) complementing existing ECA reinsurance schemes -> „one stop shop“ financial packages (partially OECD minimum rates, i.e. CIRR)

6 Advantages and Features offered by your international partner
Main Features Loans are extended directly to buyers, investors, project companies or banks Long-term loans in EUR, USD or other foreign currencies at attractive fixed or variable interest rates like CIRR Experience with many different financing structures: from export credits with state or bank guarantees to tailor-made project and lease finance Expertise in the utilisation of diverse security instruments ● Insurance through ECAs like Hermes, ECGD, EDC et. al. ● Multilateral agencies (MIGA, EIB) ● Private risk insurance ● Specific German schemes like UfK / GKA

7 * figures as of Dec. 31st, 2003 (liable equity: KfW only)
KfW Group - Overview Established by law in 1948 Shareholders 80% Federal Republic 20% Federal States Headquarter Frankfurt am Main Branch Offices Berlin, Bonn, Cologne (DEG) Liable Equity EUR 10.4 billion* Balance-Sheet Total EUR 315 billion* Rating AAA / Aaa Employees 3,600 * figures as of Dec. 31st, 2003 (liable equity: KfW only)

8 KfW Group - New Brand Structure
Supporting the Federal Government in the privatisation of state-owned enterprises Other services Promotion of small and medium-sized enterprises, business founders, start-ups Promotion of housing finance, environmental and climate protection, education, infra-structure and the social sector Securitization Export and Project Finance Industry, transport infrastructure, tele-communication, natural resources, energy, environment Promotion of developing and transition countries Investment Finance Germany and Europe Export and Project Finance Financial Cooperation Advisory and Other Services

9 KfW Group - New Law on KfW
Implementation of EU Understanding of March 2002 Specification of KfW‘s mandate concerning promotional activities Clear and concise separation of promotional and commercial business Spin-off of commercial export and project finance business by December 31, 2007, into a legally independent subsidiary without federal guarantee and government privileges  KfW IPEX-Bank

10 KfW Group - New Commitments 2003 Total New Commitments: € 72.2 billion
KfW IPEX-Bank € 11.4 bn KfW Promotional Bank € 27.7 bn Securitisations € 21.9 bn DEG € 0.5 bn KfW SME Bank € 9.1 bn KfW Development Bank € 1.6 bn

11 KfW IPEX-Bank

12 Portfolio Total Volume as of Dec. 31, 2003: € 66.4 billion*
Rail & Road 15% Aviation 20% Shipping 15% Air- and Seaports, Construction Industries 3% Telecom- munications/ New Media 6% Power, Renewables and Water 19% Basic Industries & Manufacturing Industries, Commerce, Health 22% * incl. domestic project/structured finance

13 New Commitments 2003 Total Volume as of Dec. 31, 2003: € 11.4 billion*
Rail & Road 1.7 bn Aviation 1.7 bn Shipping 1.7 bn Air- and Seaports, Construction Industries 0.7 bn Telecom- munications/ New Media bn Power, Renewables and Water 1.9 bn Basic Industries & Manufacturing Industries, Commerce, Health 3.1 bn * incl. domestic project/structured finance


15 KfW IPEX-Bank KfW IPEX-Bank extends long-term loans to finance
exports of capital goods and related services direct investments projects to secure supply of natural resources which are of interest to the German economy and the European integration.

16 Country Commitment Outstanding
KfW‘s total West African Exposure Commitment and Outstanding Amounts (Mio. EUR) Country Commitment Outstanding Ghana Kamerun Ivory Coast Benin Angola Nigeria Guinea Namibia Kongo Gabun Guinea-Bissau Total

17 KfW‘s major involvement in Africa through the KfW Development Bank & KfW IPEX Bank
KfW Development Bank Sectors Infrastructure Finance Agriculture Public Health KfW IPEX Bank Sectors Natural Resources Telecommunication Aviation Industry Ship Financing KfW Banking Group Commitment in Western and Northern Africa in 2003 Tunesia 119 Mio. Kamerun 12 Mio. Ghana 29 Mio. Senegal 5 Mio. Angola 20 Mio. Benin 5 Mio.

18 KfW IPEX - Selective Approach Commitments (Mio. EUR)
Natural Resources 69 Mio Mio. Telecommunications 23 Mio Mio. Aviation 5 Mio. 8 Mio. 5 Mio. Ship Financing 7 Mio Mio. Total 104 Mio. 8 Mio Mio.

19 KfW IPEX-Bank Natural Resources
Financing criteria Stable cash flow Financially strong, experienced sponsors Established, stable legal system in the project country Offshore account and completion guarantee Compliance with high environmental standards Minimum project size Rich resource deposits Tried and tested technology Protection against political risk (if necessary)

20 KfW IPEX-Bank Approval Procedure Project Finance
1. Credit appraisal on the basis of a bankable feasibility study 2. Start of loan negotiations (Term Sheet) 3. Management board decision 4. If applicable, application for federal guarantee / ECA cover 5. Supervisory board approval (> EUR 50 million) 6. Decision on ECA cover 7. Conclusion of contract

21 Natural Resources, Oil & Gas Pulp and Paper, Building Material, Steel
Contacts Holger Apel (2548) Senior Vice President Basic Industries Team Assistant: Christina Komini (4778) X 1 a1 X 1 a2 X 1 a3 Dr. Jan Klasen (2481) First Vice President Lars Oermann (3948) Martin Schubert (4486) Patrick Kreutzer (4246) N.N. N.N. Matthias Wietbrock (3522) First Vice President Ulrich Goretzki (2884) First Vice President Natural Resources, Oil & Gas Pulp and Paper, Building Material, Steel Petrochemicals Jochen Eichmann (1849) Dr. Stefan Glock (4733) Donata Kozinska (3642) Waltraud Wolff (2220) N.N. Dirk Sindermann (2257) Margrit Nzuki (2474) Hartmut Troschel (2243) Dr. Victoria Hottenrott (3810) Stephan Pueschel (4649)


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