ABS, CDS, CLN, CLO Do we really need that

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• ABS, CDS, CLN, CLODo we really need that?

Views of an Originator
Belgrade, June 24, 2008
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Items to discuss
The different instruments in brief What purpose
do they serve andhow do we use
them? Implications of the current market
turmoil Outlook for structured finance in CEE
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Financial Innovations
A term which has become criticized a lot in the
past

• Credit Derivatives
• Credit default swaps (CDS)
• Credit linked notes (CLN)
• Securitization
• True Sale ABS, MBS
• Synthetic CDO, CLO, CBO
• Secured Funding
• Covered Bonds (e.g. Pfandbriefe structured
  covered bonds, etc.)
• Future flow securitization (DPR)

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It is always about the same
Three major topics are in the focus of these
instruments
Risk
Funding
Capital
Credit Derivatives
Securitization
Secured Funding
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Our Experiences in 2008
Securitization has not become easier today, but
it is still feasible

• The CEE/CIS 2008-dealflow is modest but existing.
• In 2008, Raiffeisen has already closed ROOF
  Poland (PLN 1 bln) and ROOF Bulgaria (EUR 200
  mln)
• There are a number of other transactions many
  of them not made public so far.
• The strategy for successful deals has been
  changed
• Smaller volumes shorter maturities
• More conservative structures
• e.g. structured covered bonds for mortgage loans
• Placed directly to end-investors on a pre-placed
  basis
• Investors are mostly emerging markets specialists
  including supranational institutions

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The ROOF Poland Parameters
The first CEE/CIS leasing securitization is now
the largest!

• Originator Raiffeisen Leasing Polska S.A. (RLPL)
• Type of transaction True sale securitization
• Closing January 2006 and increased in
  January 2008
• Volume PLN 1 bln (approx. EUR 280 mln)
• Ref. Obligations PLN denominated vehicle
  leasing agreements to Polish SME and
  micro companies
• Replenishment 3 years from initial closing
• Average tenor 5 years from initial closing

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The ROOF Poland Structure
Tailor-made structure involving key regional
players
POLAND
OFFSHORE
EIB-Senior Tranche 29.4
EIF Guarantee
RLPL
Purchase PricePLN 1 bln
ROOFPolandsp.z.o.o. (Polish SPV)
Privatelyplaced toABCPConduit
Leasing Payments
Mezzanine Tr. 4.1
Senior Tr. 64.3
Leasing Portfolio (20,000 LeasesPLN 1 bln)
Non-recourse saleof portfolio
Junior Tranche 1.3
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Outlook for the region
The financial crisis has also impacted CEE/CIS

• Investors generally require higher spread levels
• Liquidity and credit risk has become more
  expensive
• Investors are seeking un-correlated risk
• That is very good for CEE/CIS
• Investors are extremely risk-sensitive
• Originators must apply prudent risk policies
• Investors require simple and straight forward
  structures
• Investors require transparent information

CEE/CIS is generally well positioned and liked by
investorsStill, lessons from US Subprime must be
understood
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Contact
Georg FeldscherHead of Strategic Portfolio
ManagementRaiffeisen International Bank-Holding
AG
Tel. [phone] Fax [phone]
1026e-mail georg.feldscher_at_ri.co.at
Contact