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An Introduction to Sace

An Introduction to Sace. Michael Creighton – Sace Sub Saharan Africa Luanda Angola , September 2009. Who are we. The SACE Group is one of Italy’s leading actors in credit management. Covering risks in more than 150 countries, totaling approximately €46 billion.

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An Introduction to Sace

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  1. An Introduction to Sace Michael Creighton – Sace Sub Saharan Africa Luanda Angola, September 2009

  2. Who are we • The SACE Group is one of Italy’s leading actors in credit management. • Covering risks in more than 150 countries, totaling approximately €46 billion. • SACE SpA, a joint stock company, fully owned by the Italian Ministry of Economy and Finance. • Strong financial position with € 5.9 billion of equity. • SACE SpA has obtained an Aa2 rating from Moody’s.

  3. The SACE Group Medium / long term credit insurance, political risk, reinsurance, investment protection and advanced financial solutions. Short-term insurance services both in domestic and foreign markets. Leader in the surety business, specifically in the construction industry.

  4. What we do • Our core business is described as that of an Export Credit Agency. • We are not a direct lender • We have a range of products that can facilitate the raising of finance and…. • …. that can facilitate trade on an open account credit basis.

  5. Our Target Market • Italian Exporters and their foreign subsidiaries. • Italian contractors - bid, performance or advance payment bonds. • African counterparties importing Italian products or working with Italian companies. • Financiers of trade or projects involving Italian companies. • Local government’s purchasing Italian Equipment or utilsing the services of Italian companies. • Project Finance structures involving Italian companies or equipment purchased from Italy.

  6. SACE’s Products: • Export credit (Supplier or Buyer)- Insurance of export credit, with the opportunity to ‘cash in’ Supplier’s Credit earlier by transferring insured credits to financial institutions. • LC Confirmation – Confirmation of LC’s issued by African banks to European banks, for the payment of goods imported from Italy. • Political Risk Insurance–Protects Italian investments against political risk – such as nationalisation, embargo or civil disorders – which may cause loss of the invested capital. • Equity Loan Cover- Guarantees on loans granted by banks for Italian investments abroad. • Bid/performance/advanced payment bonds - Issuance of Surety Bonds either directly or through banks / insurance companies counter-guaranteed by SACE.

  7. Product Example: Supplier Credit Insurance policy Export of goods and services African subsidiary Italian Company African Buyer Payment of exported goods

  8. Product Example: Buyer Credit Insurance policy or Financial Guarantee Repayment Export of goods and services African Buyer African subsidiary Italian Company Bank Payment of exported goods Financing

  9. Product Example: Support of LC Confirmation Confirmation and Financing of Documentary Credit Insurance policy Bank (Italian or foreign operation in Italy) African Bank (Operating for the African Buyer) Payment for the export of goods & services LC Request Issuance of LC Italian Company African Buyer Export of goods and services

  10. Key Benefits to the Borrowers • Risk partner:acting as a risk taker and credit enhancer, SACE decreases the risk • Flexibility:the new national interest programme widely extends the range of SACE eligible operations • High visibility:SACE’s support is fully backed by the Italian Government • Competitiveness:longer tenors and attractive all-in cost of funding • Capacity provider:safeguarding of company’s investments and bank credit lines

  11. SACE’s strategy in Sub-Saharan Africa Strategic countries (limits in €): • South Africa • Nigeria (100 Mn) • Angola (100 Mn) • Kenya (50 Mn, Max 5 yrs) • Tanzania (50 Mn, Max 5 yrs) • Mozambique (50 Mn, Max 5 yrs) • Ethiopia (10 Mn, Max 5 yrs) • Lesotho (10 Mn) • Cape Verde (IMF limits) • Madagascar (10 Mn) Additional markets (limits in €): • Botswana • Zambia (50 Mn, Max 5 yrs) • Ghana (50 Mn, Max 5 yrs) • Eritrea (10 Mn, Max 5 yrs) • Johannesburg office, designed to meet a growing demand for support of exports and investments within the Sub-Saharan Africa region. • SACE supports transactions within the limitations on sovereign risk imposed by the International Monetary Fund and in the framework of responsible lending agreed by the G-7.

  12. MAURITANIA MALI CAPE VERDE NIGER SENEGAL ERITREA CHAD GAMBIA, THE S U D A N GUINEA-BISSAU BURKINA FASO GUINEA DJIBOUTI BENIN NIGERIA SIERRA LEONE SOMALIA COTE D’IVOIRE TOGO ETHIOPIA GHANA CENTRAL AFRICAN REPUBLIC LIBERIA CAMEROON UGANDA EQUATORIAL GUINEA KENYA CONGO, REPUBLIC SAO TOMÉ AND PRINCIPE GABON RWANDA SEYCHELLES CONGO, DEMOCRATIC REPUBLIC BURUNDI TANZANIA COMOROS ANGOLA MALAWI MAURITIUS Z A M B I A MOZAMBIQUE, REPUBLIC ZIMBABWE M A D A G A S C A R NAMIBIA BOTSWANA SWAZILAND LESOTHO SOUTH AFRICA SACE Terms of Cover Implementing the Africa Programme: New Terms of Cover 2009 Open without restrictions Open with conditions, restrictions may apply according to: • counterparts (i.e. sovereign) • amounts (i.e. cap for country or single transaction) • tenors (i.e. short, medium-long term) Cover on case-by-case basis for: • co-financing with Multilaterals, local development banks and other ECAs • investments • non-credit risks 2005

  13. SACE’s activities in Sub-Saharan Africa New Guarantees in Sub-Saharan Africa In 2008, SACE issued 21 new guarantees in Sub-Saharan Africa, The Region accounts for 2.6% of SACE’s new guarantees. In 2009, SACE concluded new projects amounting to € 175 Mn. Other transactions for a total value of € 596 Mn are under negotiation. SACE’s main operations: South Africa (64%), Nigeria (15%), and Angola (14%)

  14. SACE in Sub Saharan Africa: highlights 2008

  15. How to contact SACE SACE SUB-SAHARAN OFFICE please contact: Michael Creighton Email: m.creighton@sace.it Chester Road, 42 2193 Parkwood Johannesburg Tel. +27 11 8800020, Fax +27 11 8801019 Email: johannesburg@sace.it OTHER REPRESENTATIVES OVERSEAS 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 Sao Paulo Av. Pauista 1971 – 3° andar 01311-300 Sao Paulo Tel. +55 11 31712138, Fax +55 11 32664051 HEADQUARTERS Rome Piazza Poli, 37/42 - 00187 • Rome Tel. +39 06 67361, Fax +39 06 6736225 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

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