1. STRUCTURED FINANCE – EXPORT FINANCE
Presentation
for
xxxxxxxxx
Date

2. Agenda Page Facts & Figures about BayernLB 3
Export Finance at BayernLB 6
Export Finance Transactions 14
Typical Types of Financing 21
5. References and Awards 29
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3. Facts & Figures about BayernLB
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4. Group Corporate Structure of BayernLB
Association of Bavarian Savings Banks
Bayerische Landesbank Legal corporation incorporated under public law
Free State of Bavaria
AAA/Aaa¹
BayernLB Holding AG
5.97%
94.03%
100%
89.9%
100% state guarantee
¹ Standard & Poor‘s, Moody‘s
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5. Highlights 2010 – key messages3 4 5 6 7
Investors benefit from good operating earnings
Deleveraging: Substantial reduction of risks, costs and total assets
Well capitalized – even under the new Basel III regime
Well balanced funding potential and moderate needs 2
All earnings before taxes came from core activities 1
Solid earnings before taxes of EUR 885m in 2010
BayernLB is one of the leading corporate financiers with good loan quality
BayernLB is on track with its customer oriented business model
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6. Export Finance at BayernLB
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7. Board: Jan-Christian Dreesen
Part of Structured Finance
Board: Jan-Christian Dreesen
Structured Finance
Alexander von Dobschütz
Project Finance
Export Finance
Leasing, Factoring,
Rolling Stock
Infrastructure
Michel Rousseau
Beate Mayer
Dr. Paul Kunkel
CIS / CEE / SEE / Baltics
Elke Wurth-Weis
Energy
Andy Brown
EMEA, Americas, Asia
Ralf Engelberg
New York Branch
James King
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8. Export Finance Department
Beate Mayer (Head of Department)
Tel.: +49 (89)
Volker Kuntz (Senior Specialist)
Tel.: +49 (89)
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9. Export Finance The Team The Team The Team
Section „CIS / CEE / SEE / Baltics“
The Team
The Team
The Team
Elke Wurth-Weis
Tel.: +49 (89)
Hans Grutza
Tel.: +49 (89)
Herta Albert
Tel.: +49 (89)
Evan Sirowinski
Tel.: +49 (89)
Andreas Lettow
Tel.: +49 (89)
Doris Wimmer
Tel.: +49 (89)
Harm Clasen
Tel.:
Richard Lawrynowicz
Tel.:
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10. What are our Strengths? Long-term relationship Competence People
Export & Trade Finance experience for more than 30 years
Supporting growth of our customers in their markets in the long run
Competence
Structuring capabilities
Large underwriting capabilities
Placing / syndication power
Tailor-made solutions and services
People
Know how in specific regions (Europe, CIS, Asia, N&M East, Americas)
Expertise in specific sectors (Utilities, Metals, Oil/Gas, Telecom, M&E, Aviation)
Dedicated staff in key markets
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11. What are our Products? Structured Export Finance Trade Finance
Multi-source financing of up to 100% of project value
long tenors (often > 10 years)
Lending on basis of corporate risk
Credit enhancement by ECA and/or PRI and/or off-take structures
Trade Finance
Documentary business
Short term trade finance (e.g. advances, post-shipment finance)
Forfaiting
Cross-selling
products
Hedging instruments for FX, interest and commodities
Emission Certificates (Joint Implementation Certificates, Clean Development Mechanism)
Emission trading
Consulting and advisory services
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12. Who are our Partners? Structured Export Finance Trade Finance
Exporters
Importers
Export Credit Agencies (ECAs)
Private Risk Insurance Companies
Commercial Banks
Multinational Finance Institutions (MFIs)
Trade Finance
Exporters
Trading Companies
Commercial Banks
Off-takers
Private Insurance Companies
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13. Our Main Partner Banks in Russia
Existing Basic Agreements for ECA covered Buyer‘s Credits
Advantages:
Efficient Work Flow
Close Cooperation
International Documentation Standards
Track Record
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14. Export Finance Transactions
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15. Risks and Time Flow Acquisition Purchase / Production Delivery/ies
Commercial Risk:  insolvency
 non-payment („protracted
default“)
Political Risk:  war / riot / confiscation
 ban on imports / embargo
 risk of conversion and transfer of currency
 interdiction of payment / moratorium
Acquisition
Purchase /
Production
Delivery/ies
Term of Payment t0 tn t1 t2
Supplier‘s Credit
Buyer‘s Credit
Disbursement Period Repayment Period
Forfaiting
Assembly / Acceptance
Warranty
Conclusion of Contract
Average Delivery Date
Readiness for Operation
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16. Good operating business – BayernLB „back on track“
Payment Conditions in Export Contracts
currency (EUR / USD / CHF)
handling of payments / payment instrument (e.g. L/C)
payment conditions according to OECD consensus
place of payment
type of payment collateral (e.g. guarantees)
allocation of costs for handling of payments
allocation of costs for payment collateral
allocation of costs for financing
payment of the ECA premium
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17. Governmental Support for Exports: OECD Consensus
„Gentlemen‘s Agreement“ of the OECD countries about rules of governmental support of exports
Target: avoid distortion of competition
Valid for all state-aided export finance transactions with a credit period of more than 2 years
(National) Export Credit Insurance (ECA)
Direct credits or refinancing schemes
Subsidies for interest payments
Insurance against unlawful claim of guarantee
Instruments
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18. OECD Consensus (cont’d)
min. 15 % of the contract value Down / Interim payments
85% of the contract value covered by ECA
10 years maximum tenor (for category II countries)
Repayment in equal, semi-annual instalments, the first
to be due 6 months after „Starting Point“
e.g. last essential delivery, mean weighted delivery,
readiness for operation
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19. Euler Hermes Kreditversicherungs AG, Hamburg
German „Export Credit Agency“ (ECA)
manages the official export credit guarantee scheme on behalf and for account of the Federal Government, such scheme granting coverage of political and commercial risks resulting from receivables and loans agreed in foreign contracts.
Vital preconditions for granting cover:
Eligibility of goods (deliveries / services must substantially be of German origin (foreign content max %))
Fungibility of risks / no public budget constraints
Application for cover needs to be filed before conclusion of contract
OECD conform payment conditions
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20. Bayern LB is Partner for Public Export Credit Agencies (ECAs)
Multi Source /
ECA Desk
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21. Typical Types of Financing
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22. ECA-covered Buyer’s Credit
Definition: the principal bank of a foreign contractual partner of the exporter („buyer“) or the buyer is granted a loan whereas the borrowed funds are disbursed directly to the exporter for payment of the purchase price
Loan Amount: 85% of the contract value plus 100% of the ECA premium plus part of local costs if eligible for ECA cover
Additional uncovered financing possibilies:  possible financing of the down/interim payments  qualified financing of remaining local costs
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23. ECA-covered Buyer’s Credit (cont’d)
Additional Collateral required by the ECA:
Exporter‘s undertaking
Financial statements according to IRFS in case the buyer is acting as borrower
Guarantees (as the case may be)
Pledge of assets (as the case may be)
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24. Scheme: Buyer‘s Credit (bank)
Exporter
 Export Contract
Importer (Buyer)
 15% Cash Down and / or Interim Payment *
 Loan Agreement
 Disbursement of 85% through L/C pro rata deliveries / services
 Repayment
L/C advising 
Bayern LB
Domestic Bank
(“Borrower”)
ECA
(Export Credit Agency)
 ECA Cover **
 Buyers Credit
 Opening of L/C
* potential uncovered financing of down payment / interim payments
** potential ECA premium financing
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25. Scheme: Buyer‘s Credit (corporate)
Exporter
Export Contract
Importer (Buyer)
“Borrower”
 15% Cash Down and / or Interim Payment *
 Repayment
 Disbursement of 85% through L/C pro rata deliveries / services
 Loan Agreement / Buyer's Credit (“tied export credit”)
L/C advising
Bayern LB
ECA
(Export Credit Agency)
 ECA Cover **
Domestic Bank
 Guarantee support (optional)
 Opening of L/C
* potential uncovered financing of down payment / interim payments
** potential ECA premium financing
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26. Supplier’s Credit  Forfaiting
Supplier‘s Credit: The supplier is granting a loan to the foreign buyer by by way of concession of a grace period for payment. This period may be refinanced via forfaiting.
Forfaiting: Purchase without recourse of abstractly documented receivables, e.g.
receivables from bills of exchange
deferred payment letters of credit
book claims
 The bank takes over the commercial and political payment risk
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27. Forfaiting (cont’d) Requirements for Forfaitability:
Additional collateral as might be required by the ECA or the bank
Export contract has to allow assignment of claims
Export contract has to foresee yearly presentation of financial statements according to IFRS
Purchased claims have to be free of objections and/or counterclaims under the export contract
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28. BayernLB Buyer / Payment Obligor German Exporter Scheme: Forfaiting
1a. Export Contract
German Exporter
2. Term of Payment
Buyer / Payment Obligor
5. Interest and Repayment
3a. 4. 6.
Forfaiting Agreement
Remittance of Interest and Repayment Amounts
À-forfait Purchase and Disbursement
1b. ECA cover
3b.
Assignment
of Claims from - the Export Contract - the Exporter‘s ECA cover - L/C or Payment Guarantee
BayernLB
ECA
(Export Credit Agency)
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29. References and Awards
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30. Deal Highlights
EUR 1,878,700,000
6 submarines Type 214 Hermes covered Export Finance Facility
Undersecretariat of Treasury
Mandated Lead Arranger
2010
Mandated Lead Arranger
(Turkey)
EUR 149,351,984
Euler Hermes covered Export Finance Facility
2010
Mandated Lead Arranger
(Russia)
EUR 1,500,000,000
Syndicated Pre Export Finance
2010
€ 3,900,000,000
Gas Pipeline
Baltic Sea Region
Mandated Lead Arranger
2010
Lead Arranger
EUR 26,205,806
Wind Energy Converters Turkey Export Credit Facility
Euler-Hermes Cover
2010
EUR 115,500,000
Export Finance Facility
OAO Kabbalkgips
Mandated Lead Arranger
(Russia)
2010
Mandated Lead Arranger
(Russia)
EUR 325,000,000
for SIF
Revolving Collateralised Loan Facility
2010
Participating Lender
(Hungary)
USD 475,000,000
Issuance of Import LOCs
2010
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31. Deal Highlights (cont’d)
EUR 69,892,500
Wind turbine generators
EulerHermes covered Export Finance Facility
Lead Arranger (Turkey)
2009
EUR 524,000,000
Multi-Source Master Export Finance Facility
Mandated Lead Arranger
(Russia)
2009
Vyksa Steel Works
EUR 346,920,200
Euler Hermes covered Export Finance Facility
Mandated Lead Arranger
(Russia)
2009
EUR 262,350,000 Fantanele Windfarm
347.5 MW
Euler Hermes covered Export Finance Facility
Tomis Team / M.W. Team Invest
Agent & MLA
2009
Jamshedpur Expansion Project
EUR 264,000,000
Export Credit Facility
Euler-Hermes Cover
Mandated Lead Arranger
(India)
2009
USD 80,500,000
Road Infrastructure Export Finance Facility
Co-Arranger
(Azerbaijan)
Azeryolservis OJSC
2008
EUR 255,000,000
EBRD A/B-Loan Facility
First project under new Sustainable Energy Action Plan
Mandated Lead Arranger
(Kazakhstan)
2008
Indramayu Power Project
USD 592,224,258
Export Credit Facility
Sinosure Cover
Senior Lead Arranger
(Indonesia)
2008
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32. Deal Highlights (cont’d)
Arranger
(Russia)
EUR 600,000,000
EBRD A/B-Loan Facility
Energy Efficiency Loan
2008
EUR 60,000,000
Euler Hermes Covered Export Finance Facilities
Sole Lender
(Russia)
2008
CHF 45,000,000
Refinancing of the Leasing Portfolio
Participating Lender
(Russia)
2008
Mandated Lead Arranger
(Russia)
EUR 278,800,000
Euler Hermes covered Export Finance Facility
2008
USD 47,500,000
Euler Hermes Covered Export Finance Facility
Sole Lender
(Kazakhstan)
LLP KaR-Tel
2008
                                                                                   
EUR  218,000,000
Export Credit Facility
Finnvera-covered
Mandated Lead Arranger
(Russia)
2007
Mandated Lead Arranger
(Russia)
USD 300,000,000
EBRD A/B-Loan Facility
Environmental Loan
2007
Participating Lender
(Russia)
USD 50,000,000
Refinancing of the Leasing Portfolio
2007
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33. Deal Highlights (cont’d)
EUR 300,000,000
Power Project Export Finance Facility
„AzerEnerji“ JSC
Mandated Lead Arranger
(Azerbaijan)
2005
USD 307,237,810 Commercial Loan + USD 174,606,198
Export Finance
Euler-Hermes Cover
Participant (Turkey)
2007
EUR 613,000,000
Ermenek Dam and HEPP OeKB covered Export Finance Facility plus Commercial Loans
Lead Arranger
Undersecretariat of Treasury
2002
EUR 185,000,000 HERMES-covered EUR 74,500,000 SACE-covered USD 238,000,000
Finnvera-covered
(Russia)
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34. International Awards (since 2009)
            
International Awards (since 2009)
Trade & Forfaiting Review - Deal of the Year Awards 2009
Russia - NLMK – ECA-backed financing
Trade Finance Deal of the Year Awards 2009
Russia - NLMK - ECA-backed financing
Russia - Vyksa - ECA-backed financing
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35. Awards Project Finance since 2009
Category: Deal of the Year
GTR
Best Deals of 2009
GSM-Rail –
Europe Telecoms Deal of the Year
Castor –
Europe Oil & Gas Deal of the Year
Barka III & Sohar II –
Middle East Power Deal of the Year
R1 –
Europe Infrastructure Deal of the Year
M25 –
Europe PPP Deal of the Year
Dolphin –
Middle East Oil & Gas Deal of the Year
Shuweihat –
Gulf Power Deal of the Year
Nord Stream –
Gas Deal of the Year
Centrica/TCW Windfarm Portfolio –
Portfolio Deal of the Year
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