DoneDeals. Cordea Savills Fast facilities required to bridge capital commitments from investors in three new funds from Cordea Savills.

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1 Issue 6 Spring 2008 DoneDeals Offshore The Royal Bank of Scotland International Delivering specialist solutions offshore P07 Cordea Savills Fast facilities required to bridge capital commitments from investors in three new funds from Cordea Savills Senior debt package supports MBO for ASL P05 Prominent Guernsey building acquired with flexible funding from RBS International P10 Successful acquisition bolsters Online Regional Travel Group s strategic growth plans P14

2 Offshore DoneDeals Spring 2008.Vol.06 Service Culture 02 Jersey 04 Sandringham Medical Centre ASL Financial & Commercial Services Ltd CBRE Spuk III Holdings Ltd Cordea Savills Guernsey 08 Augentius Fund Administration Abbey Care Nominees Ltd Fuller Group Ltd Prorendita Isle of Man 12 Client of Mann Made Group Tokio Marine Bluebell Re Limited Online Regionall Travel Group Ltd Manx Electricity Authority Gibraltar 16 Peninsula Petroleum Adrian Gill Regional Managing Director, Corporate Banking Stephen Reilly Managing Director, Treasury & Investor Solutions Mike Gray Deputy Regional Managing Director, Corporate Banking Jersey Graeme Smith Regional Director, Corporate Banking Stephen Reilly Managing Director, Treasury & Investor Solutions Guernsey Ken Bradley Regional Director, Corporate Banking Neil De Garis Regional Director, Treasury & Investor Solutions Isle of Man Victoria McEneaney Regional Director, Corporate Banking Neil De Garis Regional Director, Treasury and Investor Solutions Gibraltar Marvin Cartwright Regional Head, Corporate Banking Nick Gordon Regional Head, Treasury & Investor Solutions

3 Building and strengthening relationships Welcome to Done Deals......our roundup of transactions completed throughout our offshore jurisdictions. In spite of the testing market conditions that last year will be remembered for, 2007 was a record year for RBS International in terms of deal flow. For our teams across our jurisdictions this has meant working hard to structure solutions capable of helping offshore companies seize market opportunities and develop their businesses. In addition to our focus on completing deals, providing a first-class service to our customers is at the heart of all that we do. In this edition of Done Deals, we explain some of our methods for ensuring we understand your aims and needs and are in the best position to respond. RBS International s relationship with colleagues from across The Royal Bank of Scotland Group has always been a major strength, enabling us to draw on a vast pool of knowledge and expertise on behalf of our customers. The coming together of the Group with ABN Amro will further strengthen this and we are excited by the extra capabilities that the transaction promises to deliver. Treasury solutions are vital for the offshore sector and we continue to innovate on behalf of our customers and their underlying clients. We recently brought a group of senior economists from RBS group over to talk to and share expertise with customers. You'll also see some examples of our treasury solutions throughout this edition of Done Deals. There is no hiding from the current turbulent economic climate but we remain very much open for business and are eager to talk to both existing and new customers about how we can help you respond to challenges and implement risk management solutions. We thank you for your business. ADRIAN GILL REGIONAL MANAGING DIRECTOR, CORPORATE BANKING RBS INTERNATIONAL t e...adrian.gill@rbsint.com STEPHEN REILLY MANAGING DIRECTOR, TREASURY & INVESTOR SOLUTIONS RBS INTERNATIONAL t e...stephen.reilly@rbsint.com

4 Focus 02 Service Culture RBS International s success at helping customers make the most of their businesses is anchored in a strong tradition of striving to provide a first-class service at every level. Adrian Gill, Regional Managing Director for Corporate Banking illustrates the Bank s focus and explains why he believes it makes a difference. service culture As part of one of the world s largest financial services organisations, RBS International has a vast pool of skills and resources at its finger tips. However, what differentiates us from the competition is the commitment we have to channelling these assets to ensure they make a valuable contribution to the success of our customers wherever they are. Our strong local presence in the communities we serve is key to this. We also believe that by working to build strong relationships and understanding clients needs, we can build up the depth of insight and understanding needed to help businesses overcome challenges and grasp the opportunities that lead to success. At RBS International, we have knowledgeable people with both sector and offshore market expertise, based locally in each of our jurisdictions. We continue to invest heavily in building and strengthening our teams to ensure they are capable of providing the first-class service that we pride ourselves on. Central to leveraging our expertise on behalf of customers are our Relationship Directors who develop long-term relationships with customers and ensure the Bank s resources are deployed and tailored to match the specific demands of each business. Of course it is common for banks to emphasise relationship building these days, selling themselves on strong ties with customers. But at RBS International, we mean what we say. Our relationship teams are the lynchpin of the service we deliver and we make sure they have both the skills and time to understand each of the businesses they look after and work with customers every step of the way. Our Relationship Directors are there at the other end of the phone, they will know who you are and have the expertise and appetite to help. We operate this way because we know it is the road to success for our customers and it is from your success that we build ours.

5 Focus 03 Service Culture It's the combination of the Bank's experience, its local presence and its genuine commitment to supporting us that make RBS International the right bank for us. Pam Matthews, Company Director, Dixcart IOM Limited Committed to service Efficient banking is vital to Dixcart IOM Ltd, a licensed CSP/fund administrator managing trusts and companies in the Isle of Man, as well as providing a managed office business that is an incubator for new companies coming to the island. We demand a wide range of banking facilities on behalf of our clients and they expect us to provide an exceptional service so it is vital we have a good relationship with any bank we use, explains Dixcart IOM Company Director Pam Matthews. The RBS International relationship team has clearly invested time and energy in getting to know our business and our needs. The team are also accessible, which is vital to us as we often require a response on issues virtually immediately. For example, I have my Relationship Director's direct line and have the comfort of an entire relationship team who understand our business and can help straight away. And if there are ever any issues, they always go out of their way to help, continues Pam. Dixcart relies heavily on RBS International s Internet banking platform eq, which enables the company to manage its banking efficiently. However, online technology can only ever complement the value that a local presence brings to relationships. Pam explains: eq is fantastic, giving us control over our banking but having the RBS International team on the ground in the Isle of Man is also essential. They came to our offices to train us on eq and we always have the comfort that if we need to, we can run down to the branch and see someone in person. Summing up, Pam says, It s the combination of the Bank s experience, its local presence and its genuine commitment to supporting us that make RBS International the right bank for us.

6 Jersey 04 Sandringham Medical Centre Funding sought to create Sandringham Medical Centre, a new surgery for 20 percent of Jersey s GPs RBS International structures comprehensive and competitively priced facilities Bank support enables three doctors practices to move into modern, well-equipped premises Jersey Understanding the demands and nuances of a particular sector plays a fundamental part in structuring successful solutions. At RBS International, we are committed to building up teams with the specialist expertise and depth of knowledge to provide valuable support to all our clients. merging practices Graeme Smith Regional Director, Corporate Banking When ambitious plans were drawn up to merge three doctors' practices in order to create Sandringham Medical Centre, a bank was sought with the expertise to fund the development. Sandringham Medical Centre is a new, well-equipped surgery with an onsite pharmacy and room to accommodate 20 percent of Jersey's GPs. Up against strong competition from the practices' existing banker but eager to demonstrate that it had the expertise for the job, RBS International in Jersey moved to swiftly structure a comprehensive and competitively priced package of facilities for the development. Drawing on its experience of providing funding for property developments, the Jersey team opted to structure the funding for Sandringham Medical Centre to meet the long term needs of the enlarged practice by providing a flexible finance package. This consisted of 5.3 million for the acquisition and fit-out of the property together with products and services to support day-to-day banking, including streamline to handle card processing and Internet banking platform eq. Support from RBS International has enabled the three doctors' practices to move into modern, well-equipped premises and provide a much-improved service to Jersey residents. The proposal to merge the practices has been discussed for 3 years with various sites considered and a considerable amount of work involved. RBS International worked with us over this period, establishing a great working relationship and providing an attractive package with related services to suit all our banking needs. Dr R M Parris, Sandringham Medical Centre

7 Jersey 05 ASL Financial & Commercial Services Ltd Deciding to buy out our existing shareholders was a big decision for the management team at ASL. An equally big decision was choosing which Bank we could work closely with, who would understand us and really listen to our needs. RBS International really stepped up to the plate by listening carefully to our requirements and providing solutions that exactly met these, making the decision an easy one. We are grateful for their support and expertise. Christiaan de Bruyn, ASL Financial & Commercial Services Ltd MBO support Management buyout (MBO) funding sought by ASL RBS International structures senior debt to support the transaction Successful transaction paves the way for future growth When the opportunity arose for the Directors of ASL Financial & Commercial Services Ltd to buy out the company s existing shareholders, RBS International was determined to demonstrate that it had the expertise to make the transaction a success. ASL is a Jersey-based independent trust company that provides bespoke offshore Trust and Company Administration services to international clients. The Bank has had a relationship with ASL for some time, providing banking services to its underlying clients, but was eager to build on this and play a larger part in supporting the growing business. To succeed against tough competition from rival financial institutions, RBS International invested time in building up a solid understanding of the transaction and its objectives and, working closely with all parties, responded with a comprehensive funding solution that matched the customer s needs and met the tight deal timetable. This comprised a senior debt package to fund the MBO together with an interest rate hedging structure that was put together by RBS International s Treasury team in Jersey and would help mitigate the impact of fluctuating interest rates on loan repayments. Impressed by the Bank s commitment to supporting the MBO and ASL s longerterm business objectives, the directors chose RBS International to fund the transaction. With the buyout now complete, ASL is forging ahead with growing its successful business and has changed its name to ANDIUM Trust Company Limited with effect from March 2008.

8 Jersey 06 CBRE SPUK III Holdings Ltd RBS International s experience of structuring solutions for funds together with its understanding of our business and objectives made it the obvious choice to provide a debt package for CBRE SPUK III. We look forward to continuing this relationship. Simon Farnsworth, Senior Director, CBRE Investors fund launch Interim funding sought to help commercial real estate fund CBRE SPUK III acquire initial properties RBS International structures senior debt facility together with interest rate management Facility gives CBRE SPUK III certainty of funding over the early stages of it s Investment Period and sees the fund off to a good start The CBRE SPUK III fund makes investments in a wide range of UK-based commercial properties. It is the third fund launched by global real estate management business CBRE Investors and has raised equity commitments in excess of 400 million from institutional investors. When the business was seeking interim funding to enable it to acquire the initial properties needed to build up the fund, it turned to RBS International in Jersey for support. The Bank has provided facilities for previous funds created by CBRE Investors and, as a result, has built up a solid relationship with management and an in-depth understanding of its objectives. Adding to this, RBS International in Jersey has extensive experience of structuring facilities for funds. To support CBRE SPUK III, the Bank team put together a 300 million senior debt facility together with an interest rate hedging structure that was created by the RBS group s Global Banking Markets experts to help manage the impact of fluctuating interest rates. Building on the success of these initial facilities, the Bank then hopes to play a pivotal part in supporting the full requirements of the fund once these have been determined. RBS International has given CBRE Investors certainty of funding during the early days of SPUK III and helped the fund off to an impressive start.

9 Jersey 07 Cordea Savills bridging commitments Cordea Savills is a leading international real estate fund management business, which is part owned by Savills plc and offers investment products and services to institutional clients and qualified professional investors. With the launch of three new funds, the business was seeking a bank to provide structured finance to support the funds in the early fundraising stages and turned once again to RBS International. The Bank s team in Jersey was the obvious choice because it has expertise in developing funding solutions for the private equity real estate fund sector and a track record in putting together facilities for Cordea Savills. This has led to the two developing a strong relationship and has enabled RBS International to build up an in-depth understanding of the business, its needs and objectives. These latest facilities for Cordea Savills were designed to bridge capital commitments from investors in the three funds and enable it to succeed in securing realestate assets for the funds. This meant time was of the essence, which saw the Bank deploying all its expertise to ensure the documentation process was complete and funds available to draw down in time to meet the tight timeframe. To support Cordea Savills, the Bank put in place a separate bespoke facility for each fund. For the company s UK Property Ventures Fund, a multi-option facility was created that also gave the fund the ability to provide bank-backed guarantees when necessary. A facility with similar features was set up for Cordea Savills Italian Opportunities No2 fund, which also incorporated a foreign currency hedge option. In addition, a revolving credit facility provided the working capital needed by the Cordea Savills Accommodation Investment Fund for Charities. RBS International also introduced its electronic banking platform eq, to create a simple and efficient way to make, receive and monitor payments and cash flow, helping to enhance the running of the funds. With the three facilities from RBS International, Cordea Savills is positioned well to take advantage of real estate opportunities and enhance returns for investors. Fast facilities required to bridge capital commitments from investors in three new funds from Cordea Savills RBS International responds by structuring bespoke solution for each Facilities give Cordea Savills the ability to move quickly to secure real-estate assets for the funds Cordea Savills seeks to maximise investor returns and provide liquidity to acquire property assets during the launch stage and fundraising process of its institutional funds through the innovative use of bridge equity finance. Once again, RBS International has proven that it provides the most competitive, flexible and dedicated solution in this specialist sector of structured finance, as evidenced by the establishment of three new facilities for three recently launched funds. RBS International demonstrated its ability to act both quickly and with commercial insight to meet out tight deadlines. It is these qualities that we believe have contributed to RBS International holding the market leading position in this specialist area. David Cunnington, Chief Financial Officer, Cordea Savills Fund Operations

10 Guernsey 08 Augentius Fund Administration Guernsey Support of bank with private equity sector expertise is vital in underpinning dramatic growth of Augentius RBS International team in Guernsey demonstrates skills by providing banking and treasury services to the underlying clients Bank supports sees Augentius business grow by more than 200 percent in 18 months since MBO A relentless focus on service at every level characterises the values that we at RBS International have built our business on. We understand that our success grows from yours and that it is by providing a firstclass service and listening and responding to you that we can help your organisation reach its business goals and continue striving for further excellence. dramatic growth Ken Bradley Regional Director, Corporate Banking Augentius Fund Administration is a specialist private equity and property fund administrator that works with clients across Europe, North America, the Middle East and Asia. Formed in 2003, the business completed a management buyout in July 2006 and, during the 18 months since, has grown by more than 200 percent and accumulated assets under administration in excess of $50 billion and over 100 professional staff. With specialist expertise in providing banking solutions for the private equity arena, RBS International in Guernsey has had a long relationship with Augentius, including supporting it through its MBO. During recent months, it has worked alongside the business, putting in place various banking and treasury services for clients. This includes creating a 30 million credit line for one underlying fund and also introducing its Internet banking platform eq, which has been developed specifically for the offshore sector and creates a simple way to manage transactions. RBS International s support has been instrumental in enabling Augentius to achieve its transformational growth and, with ambitions to continue on this path, including further geographical expansion, the Bank will work closely with Augentius, drawing on its expertise to provide further services to their mutual clients. RBS International has proven its specialist expertise and depth of services and client satisfaction in this complex arena, and we are delighted to have progressed rapidly with a successful partnership approach. Barry Carroll, Augentius Fund Administration

11 Guernsey 09 Abbey Care Nominees Ltd The flexibility offered by RBS International has enabled us to maintain a high degree of leverage while not locking us into what we consider unattractive long-term interest rates, given our belief that interest rates will move back in our favour. We are grateful to RBS International for the commitment it demonstrated in achieving the deal we were seeking. Paul Baudet, Director, Abbey Care Nominees Ltd interest rate solution Abbey Care Nominees needed a solution to prevent lock-in to longterm facility while interest rates were unfavourable RBS International steps forward with short-term, flexible funding Bank solution enables business to achieve high degree of leverage without entering into long-term facility Abbey Care Nominees Ltd is a Jerseyregistered company that focuses on developing and operating hotels. A longterm customer of RBS International, the Bank had recently supported Abbey Care with funding facilities to enable it to acquire a site in Swindon and develop it into an 81-bed Travelodge hotel. The company had intended to refinance these facilities with another lender on completion to achieve a higher degree of leverage but, with interest rates moving upwards against its expectations during the construction phase, was reluctant to go ahead and commit to a long-term facility at that particular point. RBS International prides itself on the genuine support it provides to customers and the appetite it has for creating solutions to meet the specific needs of each transaction. In a demonstration of its commitment to Abbey Care, the Bank stepped in with an innovative solution that saw it structuring a short-term facility at a high degree of leverage. This succeeded in preventing Abbey Care from entering into an unfavourable long-term facility as well as eliminating the need to inject further capital into the business to reduce the debt and, in doing so, compromise the liquidity of the business. With RBS International s short-term funding solution in place, Abbey Care Nominees has the flexibility to move ahead and focus on new developments while interest rates remain unfavourable.

12 Guernsey 10 Fuller Group Ltd The support of RBS International was instrumental to the success of our acquisition of a landmark St Peter Port building. Combining property sector expertise with its experience of our business, the Bank developed a facility that enabled us to buy the property without injecting any of our own cash or tying up all our assets as security Alex Fuller, Managing Director, Fuller Group Ltd landmark acquisition Funding sought by Fuller Group to support acquisition of prominent Guernsey building Revolving loan from RBS International provides the flexibility and 100 percent finance sought by Fuller Group Facilities enable Fuller Group to add landmark building to growing portfolio When the opportunity arose to acquire a landmark building in St Peter Port, Guernsey, Fuller Group was eager to secure a funding facility that would enable it to succeed in adding the building to its growing portfolio of property assets. Family-run Fuller Group is a long-established group of property investment companies and has assets in the UK and the Channel Islands as well as internationally. With significant property assets and very little debt, the business was seeking to borrow 100 percent of the asking price for the St Peter Port property but was also keen that all of its assets didn t end up charged to a bank as security. RBS International in Guernsey has a longstanding relationship with Fuller Group having supported the business with many previous property acquisitions. Drawing on the knowledge it has built up of the business, together with its expertise in structuring facilities for the property sector, the Bank was able to develop a solution to help Fuller Group achieve its aims. This involved the Bank setting up a revolving credit facility that covered the full asking price and enabled the company to make lump-sum payments or redraws in line with cash flow liquidity. The Bank leveraged Fuller Group properties in order to establish the facility but by ring fencing certain properties, it ensured Fuller Group only used a portion of its assets as security for the loan. The revolving loan from RBS International has enabled Fuller Group to acquire an important new property for its portfolio and move forward with its growth ambitions.

13 Guernsey 11 Prorendita winning relationship Geared lending needed to support Prorendita Four UK TEP fund Robust solution together with TEP fund expertise convinces Prorendita Four that RBS International is the right choice With geared lending facility in place, fund is able to purchase additional TEPS to continue its grow RBS International in Guernsey has a long history of supporting issuing house IDEENKAPITAL s Prorendita UK TEP (Traded Endowment Policies) funds, having provided funding for Prorendita Two and Three. The Bank operates a dedicated TEPs team in Guernsey that focuses solely on structuring funding for TEPs and has a depth of expertise that it is able to draw on to create compelling solutions for customers. In spite of its very successful relationship with RBS International, for the launch of Prorendita Four the business had decided that it was unwise to put all its eggs in one basket and was actively pursuing a strategy that would see it become multi-banked. As a result, IDEENKAPITAL agreed facilities with a competitor bank. This should have been the end of the story but when service levels at the competitor bank didn t match up to those that IDEENKAPITAL was used to and Surrenda-link, the adviser to Prorendita Four, recommended RBS International as its bank of choice, the business was keen to return to the Guernsey team. Demonstrating that this was the right choice, RBS International swiftly put in place a geared lending facility to enable Prorendita Four to purchase additional TEPs from the secondary market and continue the successful growth of the fund. A combination of expertise and first-class service convinced us that RBS International was the right choice to create funding for Prorendita Four and the right bank to support our overall ambitions to provide UK TEP fund investment opportunities for the German market. Gareth Groome, Director, Prorendita

14 Isle of Man 12 Client of Mann Made Group Funding sought by a client of Mann Made Group to acquire and develop London property RBS International draws on wealth of property expertise to structure package to match needs Funding saw Mann Made s client succeed in acquiring the property and move ahead with its development Isle of Man RBS International is passionate about developing ways to enhance your efficiency and we are proactive in studying the big picture of your business and identifying ways to contribute to its overall success. To achieve this, we increase the breadth and depth of our own expertise by introducing partners such as Lombard from across The Royal Bank of Scotland Group, enabling us to piece together robust solutions from a vast pool of expertise. Victoria McEneaney Regional Director, Corporate Banking fully funded When Mann Made Group s property client was seeking funding to enable it to acquire and refurbish a residential property in London, the business turned to RBS International in the Isle of Man for support. The company has a history of being multi-banked but, with the directors based in the island, they were keen to work with a single local bank to simplify their funding arrangements. This opened the door for RBS International to demonstrate what it could do. The Bank has a specialised property team in the Isle of Man that is highly experienced and has an in-depth knowledge of the property market and the capability to structure comprehensive facilities. Up against a number of other banks to win the business, RBS International took the time to listen to the client s needs and respond with a funding solution to match. Applying its sector knowledge to the transaction, it put together a straightforward debt package to enable the client to acquire and develop one property on a fully funded basis, together with an agreement to fund a further two which the client was in advanced negotiations to purchase. With support from RBS International, Mann Made Group and their client succeeded in its bid to acquire the London property and add another significant development to its growing portfolio. The market in which we operate is extremely competitive and a key ingredient in our success is the ability to agree a purchase quickly. So while other banks were willing to increase the leverage to secure this deal, RBS International listened to our needs and responded quickly with a straightforward funding package. Alan Hollingsworth, Director, Mann Made Group

15 Isle of Man 13 Tokio Marine Bluebell Re Limited On the recommendation of LCL Services, we asked RBS International to demonstrate what it could do to help support our captive life reinsurance business. The Bank's Isle of Man team followed this up by working to our demanding timeframe and introducing a range of services that are helping us manage our cash efficiently. Shigeaki Asai, CEO, Tokio Marine Bluebell Re Limited experience with captives Newly established reinsurer seeks experienced Isle of Man bank to support banking needs RBS International demonstrates capabilities by creating range of solutions to meet demanding time line Bank facilities see funds from Tokio Marine Bluebell Re managed in the most efficient manner Established by Japan's Millea Holdings, Inc. in association with JP Morgan, Tokio Marine Bluebell Re Limited is a reinsurance vehicle. They write sophisticated reinsurance coverages to manage the life assurance risks of a Millea direct life insurance company in Japan. Set up in spring 2007, it is the largest captive reinsurance company to be created in the Isle of Man. When Tokio Marine Bluebell Re was seeking a banking and treasury solution for its operations, its Insurance Manager on the island, LCL Services (IOM) Limited, recommended RBS International. The Bank's Isle of Man team has a wealth of expertise in arranging banking facilities and treasury solutions for captives and already had a strong working relationship with LCL. To convince Tokio Marine Bluebell Re that it should take up RBS International's services, the Bank team worked quickly to understand the company's complex structure and specific needs. The initial share capital and premiums were to flow through RBS International's bank accounts prior to investing in derivative instruments issued by the JP Morgan group, so a range of services were required. The Bank drew on its experience to clear 'Know your Customer' procedures rapidly and ensure the company's accounts were up and running in 48 hours. With some funds from the shareholders needing to be paid on as quickly as possible, it introduced its electronic banking solution eq to manage the reinsurer s cash in the most efficient manner and ensured all surplus funds worked hard for the business by achieving competitive deposit rates. In addition, with funds arriving from the shareholders in yen and some being paid on in sterling, the Bank undertook spot foreign exchange transactions for the business. With support from RBS International, Tokio Marine Bluebell Re succeeded in achieving its demanding timelines to establish the business and is managing its funds in the most efficient manner.

16 Isle of Man 14 Online Regional Travel Group Ltd RBS International s understanding of our business made it the right choice to support our acquisition. We were impressed by both the quality and speed of its response, which helped ensure the acquisition was a success. This has strengthened our online presence significantly and we will shortly be in the unique position to service the large number corporate employees travelling between the offshore islands. Brian Kelly, Managing Director, Online Regional Travel Group travel plans Support needed to see Online Regional Travel Group succeed with acquisition Facilities from RBS International enable Group to release equity from property to fund the lion s share of the deal Success of acquisition bolsters strategic growth plans for the Group Up and running for 25 years, the Online Regional Travel Group is the Isle of Man's longest-established independent travel agent and a prominent business in the island. In the midst of plans to expand the business, with a particular focus on developing the Internet side, Online Regional Travel was recently seeking to acquire a business and, to succeed, needed to secure a funding solution. This would focus on refinancing a property investment facility to release equity, with the balance of the funds for the transaction coming from an acquisition facility. It was a business introducer on the island that recommended that Online Regional Travel turn to RBS International for support. If the acquisition was to succeed, the funding needed to be in place extremely quickly and the introducer was confident that RBS International had the skills to make it happen. As well as an impressive track record of structuring funding facilities for wide ranging transactions, the Bank also has a dedicated property team on the island, giving it the expertise to handle the funding structure. With just two weeks to get the funding on the table, RBS International worked flat out to build up an understanding of the business both in terms of the trading side and its property assets. From this foundation, it then put in place facilities that enabled Online Regional Travel to release equity from property in order to maintain a comfortable leverage position within the trading group. The success of the acquisition has seen Online Regional Travel making significant headway with its strategic growth plans.

17 Isle of Man 15 Manx Electricity Authority playing for power Purchase of gas turbine components from the US sees Manx Electricity Authority seeking a forward exchange transaction While structuring facility, RBS International identifies that Manx Electricity Authority would benefit from a purchase facility and introduces Lombard Facilities support purchase of gas turbine assembly components, which are to be brought into service during a major overhaul of one of the gas turbines When Manx Electricity needed US dollars to buy spare components comprising a compressor, hot end, and power turbine cartridge from the US, it turned to RBS International to create a forward exchange mechanism to hedge the risk that fluctuating exchange rates could pose. During this transaction, the Bank learned that Manx Electricity was exploring various options to finance gas turbine parts and, eager to support its customer further, was pro-active in suggesting a financing solution. Believing it was in the interests of its customer to preserve cash resources and instead fund most of the cost of the turbine via a banking facility, the Bank brought in its colleagues from Lombard in the Isle of Man. Specialists in creating asset finance solutions for businesses, Lombard demonstrated the advantages the facility would deliver. Convinced by the banking facility, Manx Electricity made the decision to go ahead but, as a Government body, needed to put the business out to tender. Pitched into battle with other financial institutions, RBS International and Lombard then had an eager wait before being informed that their expertise, pricing and working relationship with Manx Electricity had combined to see them triumph. With the investment facility and forward exchange mechanism in place, Manx Electricity has taken delivery of the gas turbine components at its Combined Cycle Gas Turbine power station in Douglas. They expect to install them into the plant in 2008 during a major overhaul of one of the gas turbine generators. RBS International has a long history of supporting us and, on this occasion, together with Lombard demonstrated clearly why we would benefit from a banking facility when buying spare component parts for our Combined Cycle Gas Turbine power station. Their experience and commitment then ensured that they won the tender. Martin Poole, Director of Finance, Manx Electricity Authority

18 Gibraltar 16 Peninsula Petroleum Peninsula Petroleum requires facilities to support business expansion RBS International in Gibraltar collaborates with colleagues from across RBS Group to structure wide ranging facilities Bank support underpins growth ambitions Gibraltar Comprehensive solutions tailored to individual needs are the key to success. At RBS International we focus on building the long-term relationships that enable us to understand and respond to your individual needs. And, with expertise in treasury and investor solutions for the offshore market together with the wide resources of The Royal Bank of Scotland Group available to us, we have the capability to build comprehensive solutions that are right for you. Marvin Cartwright Regional Head, Corporate Banking shipping lines Peninsula Petroleum is a major physical bunker and lubricant supplier, operating in the ports of Gibraltar, Ceuta, the Canary Islands and Panama. Peninsula also acts as a world-wide trader and broker of bunker fuels with representative offices in Gibraltar, London, Piraeus, Singapore and Dubai. With the company s principals based in Gibraltar, the local RBS International team was eager to demonstrate how the Bank could support the growing business and was proactive in making contact and building up an understanding of its operations. From this start, the Bank identified that Peninsula Petroleum required facilities to help support its expansion plans and put in place a term loan for the business together with interest rate hedging. Drawing on the wide resources and expertise of The Royal Bank of Scotland Group, RBS International then followed this up by introducing the business to its colleagues in the Shipping Business Centre in London. Their specialist skills enabled them to structure two shipping loans to help an associated company refurbish one of its bunkering ships and purchase a new one. As parts of Peninsula Petroleum s business are exposed to the impact of fluctuating commodity prices, RBS International also created a commodity trading line to hedge the risk of adverse fuel prices. Combining the experience and commitment of the local Gibraltar team with the breadth and depth of expertise from across the RBS group, RBS International has been able to structure robust facilities that are underpinning Peninsula Petroleum s growth aspirations. RBS International followed through on its proactive approach to Peninsula Petroleum by structuring a series of facilities to meet the wide ranging needs of our growing business. We are grateful for the expertise the Bank brought to the table and the clear commitment of the Gibraltar team to helping us succeed. John A Bassadone, Managing Director, Peninsula Petroleum

19 Adrian Gill Closing Words With a long-established offshore presence, RBS International has the expertise to deliver the wide-ranging specialist solutions that our customers seek. We understand the challenges facing businesses and combine our offshore capabilities with a strong commitment to providing a first-class service to all that we work with.. Our emphasis is on building long-term relationships with our customers and working alongside you as your business develops and grows. To complement our own expertise we also draw on the knowledge and services of our colleagues from across The Royal Bank of Scotland Group to ensure you receive the comprehensive solutions that will give you the competitive edge in today s dynamic marketplace. We would welcome the opportunity to demonstrate how we can help your organisation. ADRIAN GILL REGIONAL MANAGING DIRECTOR, CORPORATE BANKING RBS INTERNATIONAL t e...adrian.gill@rbsint.com THIS IS AN ADVERTISEMENT FEATURE The Royal Bank of Scotland International Limited (RBS International). Registered Office: P.O. Box 64, Royal Bank House, 71 Bath Street, St. Helier, Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission for carrying on deposit-taking business under the Banking Business (Jersey) Law 1991 and for carrying on investment and insurance business under the Financial Services (Jersey) Law Guernsey business address: P.O. Box 62, Royal Bank Place, 1 Glategny Esplanade, St. Peter Port, Guernsey, GY1 4BQ. Regulated by the Guernsey Financial Services Commission and licensed under the Banking Supervision (Bailiwick of Guernsey) Law, 1994, as amended, the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, and the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. Isle of Man business address: Royal Bank House, 2 Victoria Street, Douglas, Isle of Man IM99 1NJ. Licensed by the Isle of Man Financial Supervision Commission for banking and investment business and registered with the Insurance and Pensions Authority in respect of general business. The Royal Bank of Scotland International (RBS International) is the registered business name of The Royal Bank of Scotland (Gibraltar) Limited (RBS Gibraltar) under the Business Names Registration Act. Registered office: PO Box 766, 1 Corral Road, Gibraltar. Registration No Licensed under the Gibraltar Financial Services (Banking) Act 1992, as amended and the Gibraltar Financial Services (Investment and Fiduciary) Act 1989, as amended (Licence No. FSC 00159B). NatWest. The Royal Bank of Scotland International Limited (RBS International) trading as NatWest. Registered Office: P.O. Box 64, Royal Bank House, 71 Bath Street, St. Helier, Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission for carrying on deposit-taking business under the Banking Business (Jersey) Law 1991 and for carrying on investment and insurance business under the Financial Services (Jersey) Law Business address: PO Box 11, 16 Library Place, St Helier, Jersey, JE4 8NH. Guernsey business address: PO Box 62, Royal Bank Place, 1 Glategny Esplanade, St. Peter Port, Guernsey, GY1 4BQ. Regulated by the Guernsey Financial Services Commission and licensed under the Banking Supervision (Bailiwick of Guernsey) Law, 1994, as amended, the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, and the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. Isle of Man business address: PO Box 7, 1 Prospect Hill, Douglas, Isle of Man, IM99 1AQ. Licensed by the Isle of Man Financial Supervision Commission for banking and investment business and registered with the Insurance and Pensions Authority in respect of general business. Gibraltar business address: National Westminster House, PO Box 707, 57 Line Wall Road, Gibraltar. Licensed under the Gibraltar Financial Services (Banking) Act 1992, as amended and the Gibraltar Financial Services (Investment and Fiduciary) Act 1989, as amended (Licence number FSC0066OB). NatWest is the registered business name of The Royal Bank of Scotland International Limited under the Business Names Registration Act. Isle of Man Bank Limited (IOMB). Registered Company Number: 1 Isle of Man. Registered Office: 2 Athol Street, Douglas, Isle of Man, IM99 1AN. Licensed by the Isle of Man Financial Supervision Commission for banking and investment business and registered with the Insurance and Pensions Authority in respect of general business. Our services are not offered to any person in any jurisdiction where their advertisement, offer or sale is restricted or prohibited by law or regulation or where we are not appropriately licensed. The Royal Bank of Scotland Plc. Registered in Scotland. No, Registered office: St Andrews Square, Edinburgh EH2 2YB. Authorised and regulated by the Financial Services Authority. RBS International eq is a trade mark of The Royal Bank of Scotland International Limited, used under licence by RBS International, NatWest, the Isle of Man Bank and The Royal Bank of Scotland (Gibraltar) Limited. Calls may be recorded. Internet s are not necessarily secure as information might be intercepted, lost or destroyed. Please do not any account or other confidential information. Lombard Finance (CI) Limited, Registered in Jersey: No Registered Office: 1 St Andrews Place, St Helier, Jersey, JE2 3RP

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