Landesbank Baden-Württemberg Wind Energy in Vietnam Export Finance in Asia with LBBW.
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Landesbank Baden-Württemberg Wind Energy in Vietnam Export Finance in Asia with LBBW.
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Transcript of Landesbank Baden-Württemberg Wind Energy in Vietnam Export Finance in Asia with LBBW.
Landesbank Baden-Württemberg
Wind Energy in Vietnam
Export Finance in Asia with LBBW.
Page 2© Landesbank Baden-Württemberg
LBBW at a glance.
• One of the Top 5 German Banks with total assets of EUR 266bn (USD 287bn) as of December 31, 2014.
• Universal bank with over 200 offices world-wide
• 17,000 retail branches (savings banks) in Germany
• Coverage of large and medium-sized enterprises in Germany, Austria and Switzerland
• Approx. 12,000 employees worldwide
• Singapore Branch as regional hub for ASEAN
• Asian Branches and Representative of-fices in Seoul, Mumbai, Jakarta, Hanoi, Shanghai, Beijing and Tokyo
Some of our key business partners
Page 3© Landesbank Baden-Württemberg
German CentreLBBW locations abroad
EUROPE:Prague, Vienna, Zurich
Beijing
HanoiSingapore
Mumbai
London
Mexiko City
New York
Sao Paulo
Tokyo
Moscow
DubaiSeoul
Jakarta
ShanghaiDelhi/ Gurgaon
GERMANY
Rhineland-Palatinate
Saxony
Baden-Württemberg
LBBW at a glance.
Global network of LBBW
Page 4© Landesbank Baden-Württemberg
Our Expertise in Export Financing.
To support their exporters, many countries have mandated privately managed Export Credit Agencies to provide sovereign cover to finance worldwide supplies to importers.
LBBW supports Asian importers by providing tailor-made long term financing solutions.
We offer • experienced global teams with extensive knowledge • close cooperation and personal contacts with the ECAs• supplemental product range such as down payment financing, financing of local costs, bridge
financing etc.
With our strong team of specialists, we have an excellent track-record in this field.
We work closely with the export credit agencies of Germany, Austria, Switzerland, and others.
Page 5© Landesbank Baden-Württemberg
Export Financing with LBBW.
General Description of an ECA Buyer’s Credit
• Loan for long term financing of capital goods and services based on ECA cover (for example Euler Hermes)
• Direct disbursement to Exporter or Reimbursement to Importer who pays under an LC
• Minimum amounts: EUR/USD 2m
Page 6© Landesbank Baden-Württemberg
Loandisbursemen
t
Loan
ag
reem
en
t
ExporterImporter
(Borrower)
Export Credit Agency
Repayment of loan
Commercial
contract
Insurance on the
credit risk
Optional: Insurance
on the completion
risk
ECA covered Export Credit financing.
Structure of a Buyer’s Credit- Direct disbursement variation
Page 7© Landesbank Baden-Württemberg
ECA covered Export Credit financing.
Key numbers
≤85%of the supply contract amount
(plus ECA related costs)
≥15% down- or interim payment is required
Page 8© Landesbank Baden-Württemberg
ECA covered Export Credit financing.
Tenors (up to…)
(2) + (10)
The maximum tenor of the buyer credit is determined by the ECA based on the nature of goods supplied and the amount of the commercial contract. Euler Hermes (German ECA) requires that the entire repayment tenor shall not exceed 10 years from the starting point. Longer tenors are available for project financings and certain industries.
A delivery/construction/disbursement phase of up to two years is possible.
Depending on the loan amount, up to 10 years tenor for the repayment period are available (in some cases up to 20 years).
( 1) + (5)For loan amounts below EUR 10m, the usual disbursement phase is 1 year.
For loan amounts below EUR 10m, the maximum repayment tenor is 5 years.
Page 9© Landesbank Baden-Württemberg
ECA covered Export Credit financing.
Key numbers
95% political and commercial risk insurance cover issued by the ECA of the Exporter’s country on the loan
amount, in favor of the bank. (100% for some ECAs).
Coverage is available in major currencies for fixed or floating rate loans.
The ECA premium for cover is determined by the buyer’s rating, the country risk and the tenor of the loan.
50% usual requirement for delivery content from the originating country.
Page 10© Landesbank Baden-Württemberg
Our experience with ECA covered financing in the wind energy sector
• LBBW has financed projects in Vietnam, Turkey, and other
countries
• Were part of one of the largest wind park projects in Vietnam
• Our focus is on financing the underlying assets of such
projects based on corporate risk
• Difficult process of negotiating the PPAs
• Possible conflict between the ambition to have high local
content and requirements for goods origin from ECA’s point
of view
• Difficult to receive transparency regarding feed-in tariff
• We only use bank-to-bank structure instead of bank
guarantees
Lessons Learned
Page 11© Landesbank Baden-Württemberg
Export Financing with LBBW.
LBBW is able to offer low-cost long term financing for your machinery and equipment imports.
Summary benefits of LBBW’s ECA-covered financing to you:
• Low floating or fixed interest rates • ECA cover as collateral• Long term financing – up to 15 years• Independent from domestic bank lines• Independent from local economic environment• Used as a Sales-Tool to make projects viable• Cash transaction to the Exporter
Page 12© Landesbank Baden-Württemberg
Your contact:
Dominik ZimmerHead of ECA Desk AsiaTel: +65 6562 9279 (Direct)[email protected]
LBBW Singapore Branch25 International Business ParkGerman Centre #01-72Singapore 609916
Michael Sunjic-PeierECA Desk AsiaTel: +65 6562 9244 (Direct)[email protected]
