SACE and the shipping finance: new financing solutions. Naples, 3 rd October 2013

Transcription

1 SACE and the shipping finance: new financing solutions Naples, 3 rd October 2013

2 Introduction SACE and shipping industry SACE s support to shipowners SACE s support to shipyards Appendix 2

3 Introduction Overview MARKET BANKS From September 2008 Cargo demand shortage Oversupply Freight rate slump Decrease value and price of newbuilding Scrapping increase Fall in the volume of shipbuilding orders Scarcity of bank financing Less risk appetite Increasing cost of funding Reduction LTV ( 70%) Overcollateralization New structures in financing (joint venture, bond, leasing) New players (private equity funds, ECAs) Freight rate paid by shipper Peak cargo owner s risk TODAY? Peak shipowner s risk Time 3

4 Introduction Company profile and history Export credit, credit insurance, investment protection, sureties, reinsurance, financial guarantees, project & structured finance SpA 100% 100% Short-term credit insurance, sureties and construction risks Factoring and discounting of credit with the public sector Data acquisition and credit recovery History Establishment of SACE as public entity under the surveillance of the Italian Ministry of Economy & Finance (MEF) SACE is transformed into a joint stock company, whose capital is wholly owned by MEF SACE enters the short-term credit insurance market through the establishment of SACE BT SACE enters the surety market through the acquisition of ASSEDILE SACE BT creates SACE Servizi, specialised in business info and recovery solutions SACE BT enters the factoring market through SACE Fct SACE enters CDP Group 4

5 Introduction We support companies competitiveness We offer solutions for the integrated management of commercial and political risks Export credit and project finance Protection of foreign investments Financial guarantees Credit insurance Surety and construction risks Factoring EXPERIENCE Over 30 years of providing risk management solutions FINANCIAL SOUNDNESS 6.2 billion Shareholders equity and A- credit rating (Fitch) FLEXIBILITY With SMEs and large corporations in 189 countries 5

6 Introduction Our products Exporting at favourable payment terms? Looking to invest in high-risk countries? Difficulty getting access to domestic credit? Need to grant extended payment terms? Bidding for contracts in Italy and abroad? Need to unfreeze credits? Export credit and project finance Protection of foreign investment Financial guarantees Credit insurance Sureties and construction risks Factoring 6

7 SACE and shipping industry Shipping risk backed by SACE As of 30 th Jun 2013, SACE s exposure to shipping industry, amounted to, approximately, 2,8 Bn. 8,8% 17,7% 70,4% 2,0% 0,8% 0,4% RORO SPECIAL VESSEL PRODUCT TANKER LNG BULK CONTAINER CROCIERISTICO 7

8 SACE and shipping industry Buy a ship SACE supports entire ship life cycle with customized solutions 8

9 SACE and shipping industry Our products to support shipping industry SACE PRODUCTS TO SUPPORT ITALIAN S FINANCIAL GUARANTEE Guarantees on loans granted by banks in order to finance vessel price POLITICAL RISK INSURANCE To safeguard shipowner from the financial implications of political turmoil in developing countries, protecting vessel overseas. Ship life cycle ORDERING BUILDING USING SACE S.p.A. Corporate Presentation SACE PRODUCTS TO SUPPORT ITALIAN S SURETY Guarantees covering contractual and legal obligations (bid bonds, performance bonds, advance payment bonds, retention money bonds), for transactions in Italy and abroad SUPPLIER CREDIT POLICY To hedge the risk of unfair bond calling and the production risk - i.e. orders revocation BUYER CREDIT Guarantees on loans granted by banks to foreign borrowers in ordered to finance Italian ship orders 9

10 SACE s support to shipowners Financial guarantees How to make access to credit easier SACE covers loans (pre and post delivery) for purchase of vessels to use abroad or to cover requirements for working capital in connection with international contracts Guarantee Bank or Export Credit Agency loan ITALIAN price vessel 10

11 Financial guarantees Financial guarantees Main features SACE guarantee is at first demand, irrevocable, unconditioned in favour of the financing bank SACE s support is fully backed by the Italian Republic guarantee Risk sharing with the financing bank which is covered up to 80% of the loan, with respect to non-payment risk of principal and interest *. Payment of SACE Premium: retrocession (on a running basis) - from the financing bank to SACE or possibility to have upfront payment. *Interests coverage capped at bank funding costs 11

12 Financial guarantees Financial guarantees Why SACE: Main advantages For the financing bank Loan non-reimbursement risk sharing Zero-weighting of the quota guaranteed by SACE (considered as fully backed by the Italian Republic) under Basel II-III calculation of regulatory capital ratios With SACE guarantee, the bank is more likely to grant you a medium/long-term financing for huger amounts For the financed company Possibility to finance: Foreign investments carried out by Italian companies The working capital needs related to foreign purchasers orders Investments realised in Italy aimed at enhancing companies competitiveness and their internationalisation process. Saving, for the portion of loan guaranteed by SACE, of the company s credit line with banking and insurance system Possibility to have access to longer-term loans Possibility to replace pool loans with bilateral loans, reducing structural costs for the company 12

13 SACE s support to shipowners Political Risk Insurance PRI SACE covers the risk of so called "ship loss" due to political events. In detail SACE can cover losses due to: (i) expropriation acts (expropriation, confiscation, requisition, nationalization of the asset), (ii) war and civil unrest. Political risks coverage Vessel abroad The PRI may be included in security package of shipping financing transactions by insurance rights assignment to lenders 13

14 SACE s support to shipyards Surety SACE covers contractual obligations (bid bonds, performance bonds, advance payment bonds, etc.) and performance of legal obligations (tax bonds, custom bonds, etc.), in connection to contracts undertaken in Italy and abroad Request for bond issue ITALIAN ITALIAN OR FOREIGN BANK Request for bond issue ITALIAN Vessel Payment Cover risk of undue calling of bond Bond issue Vessel Payment Bond issue Cover risk of undue calling of bond FOREIGN FOREIGN Direct issue Bank guarantee 14

15 SACE s support to shipyards Supplier Credit Policy Supplier Credit Policy provides coverage to unfair calling of bonds and risk of order s revocation of exported goods. FOREIGN FOREIGN Risk of order s revocation vesel Risk of undue calling of bonds Issue bond ITALIAN ITALIAN 15

16 SACE s support to shipyards Buyer Credit SACE guarantees loans to foreign shipowners for the purchase of made in Italy ships Guarantee ITALIAN OR FOREIGN BANK Loan FOREIGN price vessel ITALIAN 16

17 Appendix Cooperations SACE cooperates with major trade associations and global financial players, with Simest, ABI e CDP: EXPORT BANCA 17

18 Appendix Our sales network Brescia Monza Verona Turin Milan Venice Modena Lucca Pesaro Florence Bucharest Moscow Istanbul Hong Kong Rome Bari Mexico City Mumbai Sao Paulo Johannesburg Italian network 4 branches and 8 offices 51 agents* 121 brokers* Overseas network 8 representative offices serving the emerging economies * Credit insurance, surety and construction risk businesses only We support enterprises looking to go far 18

19 Head office Rome Piazza Poli 37/ Rome Tel Fax Customer care Domestic branches Bari Via Amendola, 172/ Bari Tel Fax Brescia Via Cefalonia, Brescia Tel Florence Via Lucchese, 84/c Sesto Fiorentino (FI) Tel Fax Lucca Via Dante Alighieri, Lucca Tel Fax Milan Via A. De Togni, Milano Tel Fax Modena Via Elsa Morante, Modena Tel Fax Monza Via Damiano Chiesa, Monza Tel Fax Pesaro Via Cattaneo, Pesaro Tel Rome Piazza Poli, 37/ Rome Tel Fax Turin Via Bogino, Turin Tel Fax Venice Via Torino, Venice Tel Fax Verona Piazza della Cittadella, Verona Tel Fax Representative offices Bucharest Str. Icoanei nr. 15, 3rd floor, sector Bucharest Tel Fax Istanbul Süzer Plaza Askerocağı Cad. 9 K.21 Apt.02 ElmadağŞişli Istanbul Tel /1 - Fax Hong Kong 40/f Suite Central Plaza 18 Harbour Road - Wanchai, Hong Kong Tel Fax Johannesburg Building 3, No 4 Karen Street, Bryanston, Johannesburg Tel Fax Moscow Krasnopresnenskaja Naberejnaja, Moscow - Office n.1202 Tel Fax Appendix Mumbai 84, Maker Chamber VI Backbay Reclamation, Nariman Point , Mumbai Tel Fax Sao Paulo Al. Ministro Rocha Azevedo, cjto. 101 Edificio Jau Cerqueira César São Paulo Tel Fax

20 Appendix Disclaimer This presentation has been prepared solely for information purposes and should not be used or considered as an offer to sell or a solicitation of an offer to buy any insurance/financial instrument mentioned in it. The information contained herein has been obtained from sources believed to be reliable or has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, SACE does not represent or warrant that the information is accurate and complete. 20