Financial integration between Italy and the Gulf countries Roma, 27 ottobre 2008 Alessandro Castellano EMPOWER YOUR BUSINESS 1
GCC countries: still a solid region High liquidity for GCC (GCC cumulative net capital outflows, $ trillion, 2007 2020, 2006 prices) Positive Fundamentals (% GDP) Financial Markets hold (Stock market Indices) Impressive reserves for oil exporters (billion US $) EMPOWER YOUR BUSINESS 2
... But where is the oil price going? Oil counts (% of oil revenues on totale revenues) 100,0 80,0 90,0 76,3 73,9 73,9 82,4 79,2 60,0 % 40,0 20,0 0,0 Saudi Arabia UAE Kuwait Qatar Oman Bahrain Source: IIF, 2008 oil revenues/total revenues EMPOWER YOUR BUSINESS 3
GCC: more than oil GCC states diversification into international service markets (increasing acquisitions in Telecoms, Logistics, Construction and Contracting) Massive investments by GCC governments in financial infrastructure to strenghten financial system Non oil sectors shows dinamism (Average Growth rate) EMPOWER YOUR BUSINESS 4
SACE in GCC: open for business SACE total exposure in GCC 3,3 billion Outstanding guarantees account for 11.83% of SACE s portfolio Mln 1800 1600 1400 1200 1000 800 828,8 1647,6 Other sectors 41% Oil & Gas 16% Chemical & Petrochemica l 15% 600 400 200 0 69,6 47 59,5 322,7 Barhain Dubai Kuwait Oman Qatar Saudia Arabia Power 6% Banking 10% Metals Industry 12% Committed Outstanding Of Which Issued Sector % on SACE s total exposure EMPOWER YOUR BUSINESS 5
SACE s support: key benefits tothe Banks Capacity provider Preservation of bank credit lines to the Borrowers Competitiveness Longer term financings and attractive all-in cost of funding Risk partner Acting as a risk taker and credit risk enhancer, SACE decreases syndication risks Capacity and Liquidity provider Preservation of bank credit lines and liquidity provider Zero risk weight SACE guaranteed assets are zero weighted under Basle I and under Basle II (full guarantee by the Government of Italy) Stability Improvement of balance sheet composition (diversification of funding sources) EMPOWER YOUR BUSINESS 6
SACE: a safe haven in stormy weather SACE MPR: more risk, less volatility During turmoil times SACE pricing remains below CDS level 350 300 250 200 150 100 50 0 23-Oct-06 4-Dec-06 16-Jan-07 27-feb-07 10-apr-07 22-May-07 3-Jul-07 14-Aug-07 25-Sep-07 06-nov-07 18-Dec-07 30-Jan-08 12-mar-08 24-apr-08 5-Jun-08 17-Jul-08 28-Aug-08 9-Oct-08 bppa CDS Spread Bahrein CDS Spread Qatar CDS Spread Abu Dhabi SACE MPR EMPOWER YOUR BUSINESS 7
Some operations in GCC Commitment: $ 735 mln Guaranteed: ABN Amro Debtor: Yansab Country: Saudi Arabia Structure: Project Finance Guarantee RAS GIRTAS POWER Commitment: 379 mln Guaranteed: DEPFA Bank Debtor: RAS Girtas Power Country:Qatar Structure: Project Finance Guarantee Commitment: 343 mln Guaranteed: HSBC Debtor: Saudi Ethylene and Polyethylene Co. Country: Saudi Arabia Structure: Project Finance Guarantee Commitment : 13.5 mln Insured: Permasteelisa S.p.a. Buyer: Government of the State of Qatar Country: Qatar Structure: Civil Works Policy Commitment: 83 mln Supplier: Danieli & Officine Meccaniche S.p.a. Buyer: Qatar Steel Company LTD (Qasco) Mesaieed Country: Qatar Structure: Supplier Credit Policy EMPOWER YOUR BUSINESS 8
How to contact SACE HEADQUARTERS Rome Piazza Poli, 37/42 00187 Rome Tel. +39 06 67361 Fax +39 06 6736225 Livio Mignano Financial Institutions Dept Phone: 0039 06 67 36533 Email: l.mignano@sace.it Luis Cuttica Commercial Dept Email: l.cuttica@sace.it REGIONAL OFFICES Milan Via A.de Togni, 2-20123 Milano Tel. +39 02 434499701, Fax +39 02 434499749 Modena Via Elsa Morante, 71-41100 Modena Tel. +39 059 331201, Fax +39 059 820832 Turin c/o ICE - Via Bogino, 13-10100 Torino Tel. +39 011 836128 - Fax +39 011 836425 Venice Viale Ancona, 26-30172 Venezia - Mestre Tel. +39 041 2905111, Fax +39 041 2905103 INTERNATIONAL NETWORK Moscow Krasnopresnenskaja Naberejnaja, 12 123610 Moscow - Office n.1202 Tel. +7 49 52582155, Fax +7 49 52582156 Hong Kong 40/f Suite 4001 - Central Plaza 18, Harbour Road Wanchai, Hong Kong Tel. +852 36202323, Fax +852 36210227 Johannesburg Chester Road, 42 2193 Parkwood Johannesburg Tel. +27 11 8800020, Fax +27 11 8801019 São Paulo c/o Italian Trade Commission Av. Paulista, 1971-3 andar 01311-300, São Paulo (SP) SACE BT: Piazza Poli, 42 00187 Rome Tel. +39 06 6976971 Fax +39 06 697697725 SACE SURETY: Via A.de Togni, 2-20123 Milano Tel. +39 02 480411 Fax +39 02 8041292 www.sace.it EMPOWER YOUR BUSINESS 9