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									DnB NOR – Latin American set up




International Corporates and Institutions – Project and Trade Finance

Latin America, Africa and Middle East desk
Agenda:


     I.   Who are we?


     II. How can we contribute?


     III. Latin American competence


     IV. Solutions & Experience




 2   DnB NOR Bank – International Corporates and Institutions
Who are we?

         Area                     Products/responsibility

                                   • Relationship managers for international financial
           Intl. Financial           institutions and insurance companies within OECD
             Institutions          • Serving clients of other banks



                                   • Multi-sourcing, (structured financing solutions
                                     involving external financing, TF instruments and
         Project & Trade             country-risk expertise.)
             Finance
                                   • Trade Finance
                                   • Relationship manager for banks outside the OECD area
                                   • Responsibility for countries in emerging markets




        Risk Analyses Group        • Analysis of banks and country for credit purposes




 3   DnB NOR Bank – International Corporates and Institutions
DnB NOR – International Presence




              DnB NOR offers reliability, long-term commitment


 4   DnB NOR Bank – International Corporates and Institutions
Agenda:


     I.   Who are we?


     II. How can we contribute?


     III. Latin American competence


     IV. Solutions & Experience




 5   DnB NOR Bank – International Corporates and Institutions
How can we contribute?

 • Geographical specialisation,
   dedicated specialists covering emerging markets


       – Asia, Central and Eastern Europe
       – Latin America, Africa and Middle East


 • Extensive network in local markets
       – Banks
       – Lawyers
       – Consultants
       – Governmental institutions
       – Local business environment



 6   DnB NOR Bank – International Corporates and Institutions
How can we contribute?

 • Trade Finance and guarantees


 • Multi-sourcing: structured financial solutions using external hedging
   and funding sources
       – Multilaterals and regional development banks
       – ECAs
       – Credit insurance
       – Local banks


 • Advisory services to customers and account officers
       – Providing advice on political risk and financial services to clients who
         trade with or operate in these areas
       – Issuing regional market updates on regular basis
       – Cash management



 7   DnB NOR Bank – International Corporates and Institutions
Agenda:


     I.   Who are we?


     II. How can we contribute?


     III. Latin American competence


     IV. Solutions & Experience




 8   DnB NOR Bank – International Corporates and Institutions
Latin American competence
• Latin American team
     • Several skilled associates in Norway covering the regions
     • A representative office in Rio de Janeiro, Brazil covering Brazil.
        •   Since 1970

     • In September 08 DnB NOR opened a branch in Santiago, Chile

• Market advising
     • Experience and an extensive network
     • Language and cultural knowledge
     • Watch the markets closely, distribute bi-monthly market reports and
       frequently arrange seminars

• Products
     • Administrative handling, financing, risk management, currency services
       and cash management.



 9   DnB NOR Bank – International Corporates and Institutions
Agenda:


     I.   Who are we?


     II. How can we contribute?


     III. Latin American competence


     IV. Solutions & Experience




10   DnB NOR Bank – International Corporates and Institutions
 Good financial incentives in Brazil -
 Merchant Marine Fund

• Created in 1958.

• Purpose: to finance the yard & shipping industry.

• Funding source: tax on freight charged on imports
     (lately also directly from Ministry of finance)

• FMM is part of the Ministry of Transportation

• Three agents for the fund:
     •   BNDES,
     •   Banco do Brasil
     •   Banco do Nordoeste



11   DnB NOR Bank – International Corporates and Institutions
Good financial incentives in Brazil
FMM - regulations
Currency:                      USD (linked)

Interest rate:                 2,5%-5% p.a. dependent on rating/guarantee
                                     structure (Depends on local content)

Disbursement/Grace:            Up to 48 months

Tenor:                         Up to 20 years

Participation:                 Up to 90% of project funding

Disbursement:                  Monthly, according to financial and
                               construction schedule
Security:                      Mortgage
                               Bank SBLC/corporate guarantees
                               Charter contracts



12   DnB NOR Bank – International Corporates and Institutions
Good financial incentives in Brazil
 • Typical structure of transactions with DnB NOR


     • 90 % financing

     • Tenor 14 – 17 years

     • Interest rate 3 % fixed + DnB NOR margin

     • Security – Stand By Letter of Credit(SBLC) from DnB NOR with 4-5 years
       tenor

     • SBLC covering approx 110% of the loan(loan + 6 months interest +
       penalties etc)

     • Timing – 6 months from application until disbursement with FMM/BNDES,
       but dependent on board meeting in FMM




13   DnB NOR Bank – International Corporates and Institutions
Good financial incentives in Brazil
DnB NOR experience

 • Long term financing of 11 vessels together with BNDES/Banco
   do Brasil

 • Total exposure with BNDES approx USD 500 mill

 • DnB NOR largest international partner bank with BNDES




14   DnB NOR Bank – International Corporates and Institutions
Trade Finance
• All Trade Finance instruments
  •   Bid bonds
  •   Performance bonds
  •   Letters of Credit
  •   Cash against documents
  •   Discounting of drafts




 15   DnB NOR Bank – International Corporates and Institutions
Relationship with Petrobras
• Approved issuer of guarantees/SBLCs

• Relationship between Rep. Office & Petrobras

• Petrobras renewing focus on ECA financing
  • Good potential from Norway




• Approved by ANP




 16   DnB NOR Bank – International Corporates and Institutions
 EXPORT CREDITS

Export Credit Agencies (ECAs)
 • Based on an OECD agreement
     •   The countries offer their respective export industries similar financing terms
     •   Fixed interest rates determined by the OECD – the so-called CIRR


 • In general all countries have the same main principles with regards
   to;
     •   Loan amount (up to 85% for capital goods and 80% for ships)
     •   Tenor: minimum 2 years
     •   Repayment in semi-annual, equal installments


 • In Norway, the systems is based upon two institutions
     •   GIEK, state owned and offering guarantees, and Eksportfinans, owned by banks
         (85%) and state (15%), offering CIRR funding
     •   Normally 50% of the contract value should be Norwegian content




17   DnB NOR Bank – International Corporates and Institutions
 EXPORT CREDITS
 The structure
                100%                  15% / 20%
                                      prepayment
                Contract value
                                      Capital goods:             5% guaranteed by
                                      85 %                          DnB NOR
                                                               Up to 95%
                                      Ships: 80%               (of loan)
                                                               guaranteed by
                                      CIRR loan from           GIEK
                                      Eksportfinans




     Contract content
 Maximum financing is 85%/80% of the contract value, while GIEK can cover up to 95% of the commercial
 and political risk of the loan. The additional part (5% or more), can be covered by an other financial
 institution such as DnB NOR.




18    DnB NOR Bank – International Corporates and Institutions
What else have we done in Latin America-
some examples
• Chile – Financing of hydro electric power plant together with IFC

• Peru – Financing and syndication of loan together with GIEK for
  Norwegian owned fishing company

• Nicaragua – Securing delivery of wind mills in cooperation with Cabei
  – regional development bank

• Uruguay – In cooperation with Finnvera and IFC, financing of pulp &
  paper plant

• Brazil – Financing of Norwegian equipment to shipyards together with
  GIEK

• Panama – Financing of terminal together with IFC and local banks




 19   DnB NOR Bank – International Corporates and Institutions
Latin America, Africa and Middle East
 • Arne-Christian Haukeland
     E-mail: arne.haukeland@dnbnor.no
     Tel: + 47 55 21 19 53

 • Karen Kosberg
     E-mail: karen.kosberg@dnbnor.no
     Tel: + 47 22944659

 • Kjetil Høydal
     E-mail: kjetil.hoydal@dnbnor.no
     Tel: + 47 22481534

 • Lars Kvamme
     E-mail: lars.kvamme@dnbnor.no
     Tel: + 47 55 21 18 11

 • Tom Ringseth (Brazil)
     E-mail: tom.ringseth@dnbnor.com.br
     Tel: + 55 21 22 85 17 95



20   DnB NOR Bank – International Corporates and Institutions

								
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