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					           EBRD
Securitisation and Structured
           Finance

            2006
EBRD
   International financial institution established in 1991, owned by
    60 national and 2 supranational shareholders
   Shareholders include CEE, CIS, all European countries, USA,
    Canada, Japan, EU, and EIB
   Promotes market-based economies in 27 countries from central
    Europe to central Asia; provides debt and equity financing to
    both state and private sector projects
   Representative offices in all countries of operation
   Capital base of €20.0 billion

             15 successful years of operation
     EBRD’s 15 year record - disbursements
       Cumulative Gross Disbursements:                                Debt               Equity
               All sectors (€bn)                                   €16.9 billion       €4.4 billion
25
           EBRD        FI


20
                                                                     €21.3 billion committed to
                                                                        over 1,100 projects
15



10
                                                                         Financial Institutions
 5
                                                                      €7.2 billion invested in 428
                                                                                 projects
                                                                          Debt            Equity
 0
     1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005       €4.6 billion     €2.6 billion

          FI is a key element of the EBRD’s portfolio
EBRD’s role in the financial sector
   Promote market-based financial institutions and focus on
    institution building

   Support private and entrepreneurial initiatives, working with
    both local and foreign investors/partners.

   Engage in policy dialogue with operators and authorities to
    strengthen regulatory/legislative frameworks and enhance
    overall corporate governance and institutions

   Support the development of local capital markets, new
    securities and the access to secondary market refinancing
          EBRD provides value added support
 EBRD product groups

  Non-Bank FI &      Equity and debt financing to insurance, pension, leasing,
Structured Finance   asset management, consumer finance, non-bank mortgage
                     institutions and other non-bank financial institutions.
                     Investor in structured finance products and provider of
                     capital markets solutions including covered bonds and
                     securitisations.
   Bank Equity       Equity financing to local banks and foreign subsidiaries

                     Full range of financial products available to banks, including trade
Bank Relationships   finance, SMEs, mortgage loans, subordinated debt. Over 200
                     relationships with banks in the region.


                     Investor in private equity and mezzanine, via private equity funds
  Equity Funds       including buy-out, venture capital, expansion financing and
                     mezzanine funds.
  Non-Bank FI and Structured Finance
 Non-Bank Financial Institutions       Key activities:
        Portfolio (€mn)
900

800
                                      Investor in the first covered bonds and
                                       securitisations in the region
700

600                                   Over 80 equity and debt projects in 22
500
                                       countries
400                                   Largest financial investor in the insurance
300
                                       and pensions sector
200                                   Major lender to leasing companies, mortgage
100                                    and consumer finance institutions.
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               Operating Assets
Significant Experience in Financing Eligible Assets –
working with Financial intermediaries to create asset
classes eligible for securitisation
Leasing -    Financial intermediaries working / creating asset classes
             eligible for securitisation.
             Portfolio of loans to finance leasing companies
             throughout the region in excess of Euros 500 million.


Mortgage -   Portfolio of loans to both commercial banks and
             specialist mortgage institutions throughout the region
             also in excess of Euros 500 million.
             Introduction of EBRD’s Minimum Standards and Best
             Practices for mortgage lending, with the objective of
             standardising mortgages to facilitate capital markets
             transactions.
Significant Experience in Financing
Eligible Assets
Consumer Finance -   Portfolio of loans to consumer
                     finance institutions in the region.
                     Key criteria for selecting best
                     market operators in terms of
                     lending practices and transparency.
Other Assets -       Through Bank relationships/Large
                     Portfolios.
                     SME’s
                     Subordinated Debt to Banks in the
                     region
                     Trade Finance Receivables
 Selected NBFI transactions –
 Leasing & Consumer Finance

          Poland                                                            Baltics                        Kazak hstan
                                       Regional CEE
        €35 million                                                       €13 million                       $5 million
      leasing finance                   €37 million                     leasing finance                  leasing finance
                                  Lease finance for SMEs
       January 2001                                                     December 2000                    November 2001
                                       January 2003
   Arranger of €55 million                                        Joint arranger of €40 million    Provision of term debt to the
syndicated loan for Poland’s   Provision of debt to 5 leasing    syndicated leasing finance for      leasing subsidiary of this
  leading leasing company      companies under EU EBRD                   Baltic countries          leading Kazak hstan Bank to
                                   SME Finance Facility                                                    support SMEs




                                           Russia                                                            Russia
      Slovak Republic                                                       Hungary
                                         €8 million                                                        $10 million
      €15 million loan
                                   vendor leasing finance                 €10 million                    leasing finance
      December 2002
                                                                       Consumer finance
    €10 million loan                     April 2002                                                      February 2002
      December 2004
                                                                         December 2001
  Loan to finance SME’s        Provision of vendor finance for      Arranger of €25 million         Provision of term debt to
 under the EU/EBRD SME          the purchase of mining and       syndicated loan to expand car    Russia’s leading SME leasing
     Financing Facility          construction equipment by            financing operations                   company
  in the Slovak Republic            Russian companies
 Selected NBFI transactions – Mortgage
 Institutions

                                      Kazak hstan                       Russia
        Romania                                                                                 Russia
                                      $5 million                    $20 million
 €5 million and $1 million                                                                     $40 million
                                   mortgage finance               mortgage finance
    mortgage finance                                                                        Syndication Loan
     December 2003                                                   May 2002
                                       May 2003
                                                                                            December 2005
                               Provision of term debt to       Provision of term debt to
Provision of term debt and
                             Kazak hstan’s first specialised   Russia’s first specialised
 equity to Romania’s first
                                     mortgage co.                  mortgage bank
specialised mortgage co.
Current status of Securitisation in the
Region
                                               Origination Volume by Country

                                                     4%
                                   13%



                                                                                     Russian Federation
                                                                                     Czech Republic
                                                                                     Kazakhstan
                 19%                                                                 Other
                                                                               64%




                                               Origination Volume by Asset Class
                                                     Total: USD 4.8 billion*
                                                    7%
                                          5%

                             10%                                            32%         Future flows
                                                                                        DPR
                                                                                        Consumer Loans
                                                                                        CDO
                                                                                        Leasing
                       11%
                                                                                        RMBS
                                                                                        Other
                                         15%                        20%

* Includes Gazprom DPR of USD 1.25Bn
Capital Market Objectives

• Long term financing
• Local currency capacity
• Access to Secondary Market Refinancing - development
    of new securities in the region.
• Introduction of New Investors in the Region – in particular
    long term investors.
•   Basel II – development of appropriate Risk Mitigation
    Solutions in advance of 2007.
Country, Sector Knowledge and Track
Records
Legal / Regulatory / Risks
           Active policy dialogue with Authorities
           Understanding of security issues for asset backed transactions
           Successful track record of taking risks in the financial sector.
Significant Relationships
           Over 200 financial institutions in the region.
           Risk sharing capacity and appetite
Local Institutional Environment
           Direct experience as an investor in the fast growing local institutional
            investor base (Pension funds, mutual funds, asset managers, life
            insurance companies)
Treasury Expertise
           Understanding of the local and international Capital Markets
           Potential Currency and Interest Rate Hedging Solutions
What Can EBRD Provide?
   Investor in Junior Tranches – Mezzanine, potentially also
    Equity
   Liquidity Facilities
   Underwriting of Covered Bonds
   Potential mitigation of certain seller/services risks
   Unfunded Risk Participation
   Application of EBRD’s A/B loan structure for Commercial
    Co-Financing
   Warehousing Structures
   Foreign Exchange & Interest Rate Hedging Solutions
Structured Financing & Securitisation
Transactions done to date

         €70,000,000
  Unfunded Risk Participation              Russia                         Poland
 Facility of 35 percent of €200
  million pool of loans granted                                  €25 million and $25 million
   b y IKB Deutsche industrie
                                   Securitisation of Russian
                                       Consumer Loans            mortgage bond framework
    Bank AG to companies
 developing in Eastern Europe            €250,000,000
                                        November 2005                    April 2002
          April 2001                                           Framework for the purchase of
                                   Russian Standard Bank
         Provided b y               Originator and Servicer      (USD and Euro) mortgage
                                          €8,5000,000           bonds from Poland’s largest
                                  Mezzanine Note Investment          mortgage bank
    Early involvement of the EBRD in the
    Structuring of Transactions

                                  True Sale
                                  Tax Structure
   Detailed Legal Analysis        Security Structure

   Early Dialogue with Rating Agencies
   Potential Mitigation of certain sellers/service Risks –
    particularly for existing EBRD client institutions
   Client institutions share local know-how with
    Arranger/Investors
  EBRD Structured Finance &
  Securitisation Contacts

Kurt Geiger      Tel:     +44 20 7338 7143    Grant Metcalfe-Smith    Tel:     +44 20 7338 7853
Business Group   Fax:     +44 20 7338 7380    Head, Client Services   Fax:     +44 20 7338 7880
Director                                      Treasury
Financial        Email:   Geigerk@ebrd.com                            Email:   metcalfg@ebrd.com
Institutions

Jonathan         Tel:     +44 20 7338 6638
Woollett         Fax:     +44 20 7338 6105
Director, NBFI
Financial        Email    woolletj@ebrd.com
Institutions

Dobrin Staikov   Tel: +44 20 7338 6187
Senior Banker    Fax: + 44 20 7338 6105
Financial
Institutions     Email: staikovd@ebrd.com

				
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