Opportunities offered by OeKB maybe together with OFID

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Opportunities offered by OeKB - maybe together
with OFID

• Vienna / March 2008
• Ferdinand Schipfer

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Austria an appealing partner

• EU-member with down-to-earth, non-ideologically
  driven society
• central location in Europe ? hub for East and
  West
• open economy, high foreign trade orientation
• first-class Research Development - environment
• most Austrian corporates are flexible SMEs,
  particularly suitable for tailor-made
  co-operations
• strong infrastructure project suppliers (energy,
  health, transport, education, environm.
  technologies)

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Foreign Trade and Export Promotion

• exports are key to economic development, growth,
  jobs, prosperity
• ? export and foreign direct investments (FDI)
  promotion schemes typically are part of Gvts
  general business support services
• Exports Credit Agencies (ECAs)
• sound banking principles but not yield driven
• regions of operation and types of projects often
  similar to those of Multilateral Development
  Banks (MDBs)

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OeKB Austrias Export Credit Agency and
well-established PPP with Austrian MoF

• private bank founded in 1946
• owned by Austrian commercial banks
• mandated by the Rep. of Austria to assist foreign
  trade community, banks and the Gvt.
• providing such services for more than 6 decades
• staff 370
• share capital EUR 130 million
• total balance sheet EUR 28 billion (12/06)

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OeKB services

• i n s u r a n c e of export credits and foreign
  direct investments (on Governments account)
• guarantees outstanding EUR 32 bn (12/06)
• f i n a n c i n g of exports, FDIs and working
  capital (on Banks account)
• financing volume EUR 25,6 bn (12/06)
• wide range of programs and activities
• multi-sourcing, technical assistance,
• private insurance arm,
• Austrian Development Bank ..

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OeKB risk analysis

• supplier, exporter, sponsor
• country of buyer/investment (based on OECD
  classification system)
• published country policy www.oekb.at
• buyer, guarantor, project
• payment conditions, co-financiers, MDBs
• Austrian value added
• environment

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Cover Policy ( March 2008)(regularly updated at
http//www.oekb.at)
RISK
Albania Angola Bangladesh Ghana Iran Libya Nigeria
Yemen Pakistan Senegal Uzbekistan Venezuela
Bolivia Bosnia H Cuba Ecuador Iraq Moldova Syria
(Cambodia) (Sudan)
Indonesia Jordan Philippines Sri Lanka Ukraine
Croatia Egypt Peru Turkey Vietnam
Botswana China Kuwait Qatar Saudi Arabia UA
Emirates
Algeria India Morocco Russia Thailand

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OECD Categories
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Business focus Non-OECD-countries

• some 1.100 new deals done in 2006
• top countries in 2006 Russian Federation, China,
  Ukraine, Serbia, Poland, Romania,
  Bosnia-Herzegovina
• export credits and FDI-support equally important
• market-based and concessional facilities
  (soft-loans)
• all products / services eligible except defense
  and nuclear power

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export credits - examples
(amounts in EUR)

• India / rehabilitation of hydro power plant 5
  mn loan tenor 5 years / private buyer, bank
  guarantee
• Iran / railway turnouts
  5 mn loan tenor 5 years / gvt.
  guarantee
• Uganda / woven plastic sack production line
  1,5 mn loan tenor 2 years / private buyer,
  corporate risk
• Venezuela / mobile harbor crane
  2,6 mn loan tenor 2 years / private
  buyer, corporate risk

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Export Credit Insurance portfolio by industrial
sectors (12/06)
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FDI support - examples
(amounts in EUR)

• Bosnia and Herzegovina / cement plant 51 mn
• Kazakhstan / financial sector
  50 mn
• Moldova / manufacturing of textiles 1,2
  mn
• Saudi Arabia / fittings production plant 2,8
  mn
• UA Emirates / valve production plant 5
  mn

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short term export credits - examples
(amounts in EUR)

• Algeria / water treatment plants 10,4 mn
  public buyers / partially letters of credit
• Bangladesh / spare parts for power plant
  0,14 mn letter of credit - payable at sight
• Cuba / Steel plant equipment 2,2 mn
  public buyer / letter of credit - payable at
  sight
• Sudan / irrigation pumps 16 mn private
  buyer / letter of credit
• Syria / machines for track renewal 1,5 mn
  public buyer / letter of credit - payable
  largely at sight

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short term (export) credits - ctd.

• open account business is growing
• short term credit insurance is now mostly
  provided by private insurers and commercial banks
  without governmental backing
• liquidity by export pre-financing, assignment of
  proceeds under a suppliers policy, sale of
  receivables ..
• information on supplier, buyer, past performance
  is key
• OeKB Versicherung AG, PRISMA AG, Coface, Atradius
  

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OeKBs EUR market-based lending rates (valid
as of 1.3.2008)
floating rate 5.75 p. a.
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OeKBs concessionary lending program

• totalling more than EUR 2 bn as of 12/06
• Asia as clear focus Indonesia, China,
  Philippines, Algeria, Vietnam, Sri Lanka, Ghana,
  Bhutan, Pakistan, Malawi, Uganda, Egypt,
  Thailand, Gambia a.o.
• main sectors transport infrastructure, health,
  education, water treatment, energy, environment
• most typically by long-term loans carrying
  subsidized rates or interest-free, sometimes
  combined with grants
• OeKB has done 350 aid quality assessments

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soft loans - examples
(amounts in EUR)

• Bosnia-Herzegovina water supply system 2,3 mn
  interest free loan/ tenor 12 years, 5 of which
  grace
• Montenegro hospital equipment 2,6 mn tenor 14
  years of which 6 years grace / gvt. guarantee
• Sri Lanka / railway bridges
  17 mn
  loan tenor 15 years - 5 of which grace / gvt.
  guarantee
• Vietnam / regional hospital 9 mn loan
  tenor 17 years, 5 of which grace / gvt. guarantee

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The world is getting more secure but
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The world is getting more secure but

• corporate risks, municipal risks, PPP
  increasing
• sub-prime consequences
• volatility of commodity prices
• resource nationalism
• regional conflicts
• Bhutto, Kosovo, Georgia, Iraq

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Many new opportunities

• triplication of South-South trade during last
  decade
• debt cancellation programs
• good governance
• many new players
• (trade finance) infrastructure improving
• technical assistance by Berne Union and Prague
  Club

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OeKBs co-operation with MDBs

• booming ECA-multi-sourcing business, but
• only few real co-financings with MDBs
• a lot of loose, consecutive co-operation
  (OeKB pre-shipment MDB loan, grant)
• also a lot of loose, parallel co-financing
  (OeKB equity- or loan cover MDB equity, loan,
  grant)
• huge MDB - experience by Austrian banks and
  companies

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Cofinancing model case OeKB EBRD Export Credit
Loan Arrangement Technique

• Bulgaria / railway rehab
• international competitive bidding with
  co-financing as a tender condition
• EBRD loan for 40
• OeKB parallel loan for 60 same tenor
• standardized loan documentation

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Open for more co-operation with MDBs

• enormous global needs ?
• dialogue, flexibility, mutual information
• OeKB would go far beyond standard cover policy
• general co-operation, institution building,
  project related co-operation
• OeKB-micro-financing in Senegal and Burkina Faso
• developing window emerging OeEB

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Austrian Development Bank /Oesterreichische
Entwicklungsbank - OeEB

• set up in February 2008 and mandated by the Gvt.
• not tied to Austrian investments and/or supplies
  and services
• projects are to meet development policy criteria
  and
• aim at sustainable economic growth and more
  private sector jobs in developing countries
• equity, mezzanine, loans, grants

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Contacts

• Oesterreichische Kontrollbank AG (OeKB)
• Ferdinand Schipfer 43 (1) 531 27 26 10
• ferdinand.schipfer_at_oekb.at
• Head of Project Underwriting Department
• Dieter Nell 43 (1) 531 27 25 20
• dieter.nell_at_oekb.at
• Head of Credit Department
• Oesterreichische Entwicklungsbank (OeEB)
• Andrea Hagmann 43 (1) 533 1200 26 15
• andrea.hagmann_at_oe-eb.at
• Michael Wancata 43 (1) 533 1200 25 10
  michael.wancata_at_oe-eb.at