Founding Shareholders Stock Purchase Agreement by jvs28562

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									    Financing of Leases



                                      21 February, 2006, Kyiv

                          International Conference «Banking Sector and Leasing Market
1                                                       Business and State Regulation»
                                             Basic Facts about VABank

            Full name                                               Open Joint stock Company
                                                                     “Vseukrainsky Aktsionerny Bank”
            Short name                                              JSC VABank
            Founding date                                           July 2, 1992
            License                                                 №35 of 03.12.2001
            Auditor                                                 Deloitte&Touche
            Rating among Ukrainian banks*                           18 largest (by assets)
                                                                     14 largest (by capital)
                                                                     15 largest (credit portfolio)
           Moody’s Rating                                           Е+ (financial strength rating)
                                                                     B2/NP (foreign currency deposits)
                                                                     Stable outlooks




               Shareholders                      December 23, 2005 the Bank registered with the NBU its 18th issue of stock, as a result
                                                 of which its equity grew to 110.6 mln. UAH.
                                                 Company TBIF Financial Services BV purchased 9.55% stake in VABank


*According to Ukrainian Banking Association as of 31/12/2005


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                                        Dynamics of Financial Performance Indicators

 Assets and capital of VABank were growing in 2005 much faster than the banking system overall



 Growth of Capital, mln. UAH.                                          Growth of Assets, mln. UAH

                                                                                                                               2 351
                                                         346




                                                                                                           1 294

                                                                                               962
                                           119
                                                     +191%                                                               +82%
                              109                                          611
             90




                                                                        31.12.2002          31.12.2003   31.12.2004          31.12.2005
          31.12.2002       31.12.2003   31.12.2004    31.12.2005




mln. UAH.                                                      2003                  2004                             2005

Assets                                                         961,7             1 293,7                           3 000,9
Loans                                                          584,2             617,6                             1 226,3
Customers’ accounts                                            519,3             857,3                             1 306,3
Capital                                                        52,5                  52,5                          110,2
Profit                                                         4,636             8,016                                15,1


                       3
                                 Regional Network of VABank


                                                               HQ in Kyiv


                                                               65 offices and branches
                                                               1180 staff
                                                               Representation office in
                                                              Budapest (Hungary)
                                                               129 ATMs




                                                              Plan for 2006
                                                                 150 offices and branches
                                                               subsidiaries in all oblast
                                                              capitals of Ukraine
                                                               210 ATMs




Operating offices and branches
Planned for opening in 2006



           4
    LEASING


5
                Financing of Leases




 JSC VABank has vast experience of financing leasing programs.



 Within the framework of cooperation with one of the largest
  leasing companies, in 2005, VABank financed purchase for
  subsequent leasing of over 100 cars worth of 11,572,700 UAH.




       6
                     Decision Making Process



Decision made                                    Analysis of borrower-lessor’s
                                   creditworthiness


Main components:
I. Assessment of borrower’s (leasing company’s) financial standing.
II. Appraisal of the management team.
III. Leasing company’s market position vis-à-vis competition.
IV. Security (collateral).
V. Sources of loan repayment.




      7
                     Interaction Pattern


                       Interaction of JSC VABank with leasing company-borrower:


1
    After opening of a credit line, the leasing company approaches lessees in
    order to find most suitable clients for the implementation of the project.



    Selection of clients :


2
        - financial analysis of operations;
        - due diligence of legal documents and authorities of management team;
        - client’s reputation appraisal with help of internal security service.


3
    Funds on credit line are disbursed in the form of tranches after lessor presents to the bank
    leasing agreements with lessees and leased assets purchase contracts.




4   Credit line is repaid according to the repayment schedule at the cost of leasing payments
    receipt under financial leasing agreements.



      8
                              Lease Enforcement Flow Chart




                      1
                                                     Lessee
    Leasing company
                          6

                                  3
    2          4
                      5
                                             JSC VABANK
        Supplier




9
                                               Lease Enforcement Outline



STEP 1: Closing of lease agreement


STEP 2: Signing of leased asset supply contract


STEP 3: Filing with the Bank of a loan application; disbursal of funds by the Bank to the
        lessor’s account



STEP 4: Payment for leased asset, shipment and registration, accepting to the balance
        sheet; execution of insurance policy for the leased asset

STEP 5: Provision of collateral


STEP 6: Transfer of the leased asset to the lessee




      10
                                                     Structure of Financing through Leasing


                     Assets                                         Prepayment        Loan Maturity

                 1   Automobiles                                       15-30%        Maximum 5 years
                 2   Highly depreciable special equipment              20-30%            3-4 years
                 3   Locomotives                                        20%               5 years
                 4   Farming equipment                                 20-30%             5 years



 Decisions on financing assets referred to in lines 2-4 are made on a case-by-case basis due to
     their special purpose nature and limited liquidity.

 Financing of cars by JSC VABank:


                                                     Pricing category of car          Prepayment

                                                     < 25 000 USD                         15%
                                                     > 25 000 USD                         20%


A separate category is made up for cars manufactured in CIS countries, with preferable amount of
prepayment equal to 25-30% of the asset value (due to rapid loss of liquidity).


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                                                       Insurance



In addition to finacing, leasing companies are provided with the full range of insurance
                                     services from
                              Insurance company Leader.




    12
                             Thank you!

CONTACTS
JSC VABank
First Kyiv Branch,
Kyiv, 36, Degtyarevska street.
Aleksandr Nezola, Credit and Factoring Department.
Tel./fax: (044) 490-06-94
www.vabank.ua


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