Presentation of M. Creighton, Head of SACE Sub-saharan AfricaPresentation Transcript
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.
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.
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. The SACE Group
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 .
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.
Our Target Market
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.
Product Example: Supplier Credit Italian Company African Buyer Export of goods and services Payment of exported goods African subsidiary Insurance policy
Product Example: Buyer Credit Italian Company African Buyer Export of goods and services Payment of exported goods African subsidiary Bank Insurance policy or Financial Guarantee Repayment Financing
Product Example: Support of LC Confirmation Italian Company African Buyer Export of goods and services Confirmation and Financing of Documentary Credit Bank (Italian or foreign operation in Italy) Insurance policy Issuance of LC Payment for the export of goods & services African Bank (Operating for the African Buyer) LC Request
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
SACE’s strategy in Sub-Saharan Africa
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.
Strategic countries (limits in €):
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 €):
Zambia (50 Mn, Max 5 yrs)
Ghana (50 Mn, Max 5 yrs)
Eritrea (10 Mn, Max 5 yrs)
SACE Terms of Cover
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)
2005 2009 Implementing the Africa Programme: New Terms of Cover
Cover on case-by-case basis for:
co-financing with Multilaterals, local development banks and other ECAs
Open without restrictions GHANA NIGERIA NIGER CHAD CENTRAL AFRICAN REPUBLIC S U D A N CAMEROON SAO TOMÉ AND PRINCIPE GABON CONGO, REPUBLIC CONGO, DEMOCRATIC REPUBLIC BURKINA FASO BENIN TOGO COTE D’IVOIRE LIBERIA SIERRA LEONE GUINEA GUINEA-BISSAU MAURITANIA SENEGAL GAMBIA, THE MALI ETHIOPIA KENYA UGANDA MALAWI MOZAMBIQUE, REPUBLIC M A D A G A S C A R ZIMBABWE BOTSWANA SWAZILAND LESOTHO SOUTH AFRICA NAMIBIA ANGOLA Z A M B I A EQUATORIAL GUINEA RWANDA TANZANIA DJIBOUTI BURUNDI ERITREA SEYCHELLES COMOROS SOMALIA MAURITIUS CAPE VERDE
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%)
SACE in Sub Saharan Africa: highlights 2008
How to contact SACE 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 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 HEADQUARTERS Rome Piazza Poli, 37/42 - 00187 • Rome Tel. +39 06 67361, Fax +39 06 6736225 SACE SUB-SAHARAN OFFICE please contact: Michael Creighton Email: firstname.lastname@example.org Chester Road, 42 2193 Parkwood Johannesburg Tel. +27 11 8800020, Fax +27 11 8801019 Email: email@example.com