2. CONFIDENTIALCONFIDENTIAL
1-Personal Information
2-Areas of expertise
3-A key Note on Saudi Economy
4-Target Market
5-Benefits to Financial Institutions
a) Why deal in Receivable backed financing
b) Why you might like to employ me
c) Profitability Scenarios
d) Sample from my duties
6- Solution Offerings
7-Accounting Treatments
8-Nature of Financing
9-Structure Offerings
10-Solution Offerings
3. CONFIDENTIAL
Khalid Baajajah Personal
Information
Khalid Abdullah Omer Ba-Ajajah
Senior Credit Analyst/
Asset Securitization Analyst
PERSONAL
INFO
Birth Date & Place: 27th Nov, 1969 – Jeddah – Saudi Arabia
Gender: Male
Marital Status: Married + 4 Children
Nationality: Saudi
Resident of: Saudi Arabia – Jeddah
Language Known: Arabic and English (Fluently)
EDUCATION California Technical University LA. USA
Degree : B.Sc. Computer Science
Bachelor degree in Computer Systems and Applications Development from CTU – LA,
USA, May 2000, with “Excellent” grade and GPA 3.45 out of 4.0.
MCSE (Microsoft Certified System Engineer)
System Engineer Certified from Microsoft
4. CONFIDENTIAL
Areas of expertise
Presently I am working at Saudi British Bank
(SABB) as Senior Credit Analyst/Asset
Securitization Analyst in Corporate Finance
Group Since July 2013 to Present
Prior to this I was working as Securitization
Analyst/Transactor at Samba Financial Group
(SAMBA) - Structured Finance.
From Sep 2003 to July 2013
5. CONFIDENTIAL
Areas of expertise
Over 11 years’ experience in Corporate Finance &
Investment Banking activities mainly
Asset Securitization (both conventional and
Islamic)
Credit Structuring
Evaluation, Business Feasibility
Financial Modeling
Business Research
Relationship management.
6. CONFIDENTIAL
Areas of expertise
I have 20 years experience in Banking, Technology and
Customer Services and I have an advanced education in
Computer Science which has provided me with superior
creative problem solving skills and analytic and conceptual
abilities.
My constant interactions with our clients and an internship
in E-commerce solutions and Finance solutions give me an
added edge.
7. CONFIDENTIAL
Areas of expertise
I am actively involved in marketing of credit structuring products to
existing and potential customers. Currently acting as a “Product
Manager” of receivable based asset securitization products (auto
receivables and real estate) in KSA with an exposure of about SR
7.0bn ( USD 1.86bn) for which I am responsible for a clientele base
which allows me to perform the following:
credit facilities management,
receivable securitizations analysis,
drafting legal documents,
seeking internal approvals from credit committee both for credit
facilities and receivable (retail & fleet) purchase and operational
aspects
relationship management,
8. CONFIDENTIAL
Areas of expertise
Formal reporting to credit committee and higher management in
form of monthly watch list of all structured deals as the
following:
annual/ interim credit reviews,
receivables purchase & securitization due diligence,
receivable detailed analysis,
receivables ongoing analysis,
Stress Testing,
Risk Ratings of receivables,
credit classifications,
managing securitization team (securitization analysts and
auditor),
remedial actions are primary responsibilities at current
position.
9. CONFIDENTIAL
Areas of expertise
I have strong knowledge of the market and its players
which can help me to provide an optimal solutions to the
financial institutions to allocate their funds in a structured
way.
On other side, I can approach Originators of the receivables
and advice them for optimum utilization of their
receivables, acting as an agent, negotiating better terms,
cash flow modeling for better pricing and arranging
funding sources.
10. CONFIDENTIAL
Areas of expertise
I am looking for some reputable Financial Institution. for
the potential business of the receivables based financing
structured solutions to the Saudi Market. I bring vast
experience of the local market where I was successfully
managing similar portfolios in some big sized banks of the
kingdom.
Given the huge potential in the market and capitalize my
experience, I would like to have working for some financial
institutions firm through which I can enter into them for
this billion-riyals market. This would help financial
institutions to generate structured credit business.
11. CONFIDENTIAL
Areas of expertise
Though my work as Securitization Analyst/Transactor
has certainly been challenging, I am now interested in a
similar challenging work with more impact. I would like to
bring my communication skills, creative problem solving
ability and my credit experience to Large Consulting
Company to provide measurable positive impact for Large
Consulting Company's client With my background in
Finance solutions, I am certainly comfortable and
knowledgeable about Credit.
This experience in Credit may make me an ideal candidate
for a position in the business consulting at Large Consulting
Company.
12. CONFIDENTIAL
A KEY NOTE ON SAUDI ECONOMY
Saudi Arabia is the largest importer of cars and automotive parts
in the Middle East. High business confidence and increased
disposable incomes provide a favourable background for the
automotive sector. Last year’s figures show that there were
773,254 vehicles imported in the kingdom. Based on market
forecasts, next five year growth is to be 20% where 1 million
high-mark would be achieved by 2018.
Mortgage financing is yet another segment that has remained
highly under penetrated in the kingdom as a lack of appropriate
framework has prevented banks from aggressively focussing on
this segment. With demand for housing expected to remain
buoyant, I believe this segment holds tremendous potential for
driving loan growth.
13. CONFIDENTIAL
TARGET MARKET
The receivable based financing structures have been
prevailing in the Saudi market for two decades.
The market has grown in terms of its participants and
volume over the period.
Due to lack of required expertise, many financial
institutions are recognizing them like conventional
corporate lending in terms of asset recognition, due
diligence, monitoring, risk management and remedial
plans. There are some old participants in the market which
have market knowledge and prerequisites however due to
growing market size; they are unable to meet market needs
thus the market is looking for new financers and new
products.
14. CONFIDENTIAL
TARGET MARKET
The auto sector has grown tremendously in last several
years and it is expected to grow further due to favourable
economic conditions.
There is a huge demand of funds from the auto financing
companies to support their growth. Some are even looking
to get into the public market through IPOs and Sukuk.
The kingdom’s real estate financing sector is yet to pick up
any growth momentum. Due to high transaction volume
and untapped market, there is a dire need of new product
development which may provide a continuous source of
funding to mortgage companies.
15. CONFIDENTIAL
Benefits to Financial Institutions
Why deal in Receivable Backed Financing?
Structured way of lending if customer concentration does
not allow the bank to extend any further loan;
Huge market potential due to growing economy and shift
towards financing options such as lease/ Ijarah for
different sectors such as:
Vehicles (mature market)
Heavy equipment (mature market)
Real estate (Untapped market)
Inventor financing (Untapped market)
16. CONFIDENTIAL
Benefits to Financial Institutions
Why deal in Receivable Backed Financing?
Low risk due to:
Vigilant Customer acquisition due diligence,
Evaluation of Originator/ Servicer credit origination and
collection policies,
Establishment of credit selection mechanism,
Detailed analysis of each purchases on demographic factors
Risk quantification of each purchase,
Continuous monitoring of servicers’ overall business
performance and all pools’ monthly and other periodic
monitoring,
Follow up and remedial actions.
17. CONFIDENTIAL
Benefits to Financial Institutions
Why should you hire me?
Easy to do financing solution (no need to develop
internal credit program, monitoring policies etc.).
Cost effective method (no need for setting up a separate
business unit, no need of getting costly software and
specialized people).
Bank owns the asset (in case of off balance sheet
financing) and thus may be able to repossess it and use
the proceeds from the sale against defaulted payments
i.e., secured form of lending.
18. CONFIDENTIAL
Benefits to Financial Institutions
Why should you hire me?
A comprehensive solution for the structured financing
which begins from the following:
due diligence of the originator,
legal agreements drafting,
credit eligibility criteria selection,
receivable purchase analysis,
matched cash flow solutions,
risk ratings,
periodic reporting (monthly, quarterly and annually),
remedial actions and credit management.
19. CONFIDENTIAL
Benefits to Financial Institutions
Why should you hire me?
Financial Institutions can enter into this structured
exposure vigilantly by putting SR 300MM every year
Portfolio exposure may reach to SR 800+MM (net of run-
off) over 5-year period
Average ROA of 2.60% p.a. with steady growth
My cost can easily be covered by facility fee charged to
the Seller
20. CONFIDENTIAL
Benefits to Financial Institutions
Why should you hire me?
As Product specialists I have market experience of over 11
years with proven track record of business growth and new
market development
Direct access to all major players of auto and real estate sector
which can provide guaranteed business
High rate of return due to very low fixed cost.
Continuous stream of income which would go up every year
with growing number of deals
30. CONFIDENTIAL
Sample from my duties
Monitoring
Each month data is received from the dealer/servicer
and analyzed for ageing
Comparative study done to compare different pools and
the trends
An Initial audit of each pool is conducted post purchase
to ensure that documentary evidence matches the data
presented to The Bank .
Twice a year a physical review audit is conducted on
dealer site to ascertain accuracy of the monthly data
provided to The Bank
Pools are classified based on monthly monitoring and
provisions are taken if warranted.
34. CONFIDENTIAL
Sample from my duties
Reporting
Assets Securitization Monthly Watchlist
I will prepare a list of the coverage ratios for all
outstanding Assets Securitization pools itemizing
those pools, which a) are not classified and b) have
90-day late & 90-day inactive ratios of less than 2:1.
This report will be sent to: RHC Head, Credit Policy
Head, relevant Region Heads and relevant Division
Heads.
36. CONFIDENTIAL
Sample from my duties
Fleet Finance Monthly Ageing
Reports
Monthly, I will prepare ageing reports for each Fleet
Finance client/pool and forward to the Credit
Committee, relevant RMs and credit heads.
38. CONFIDENTIAL
Solution Offerings
1-Long Term Assets
Real estate (Land, Apartments, Villas, Residential
Buildings, Commercial Properties)- Untapped market
with huge potential
Vehicles and other movable assets- Over 1 million
vehicles unit sales target by 2018
Equipment- Generous Govt. spending and private sector
investments will be key factor
39. CONFIDENTIAL
Solution Offerings
2-Short Term Assets
Inventory financing- Untapped market with rising
demand from FMCGs
Short term receivable financing- Untapped market
with huge potential from FMCGs
41. CONFIDENTIAL
Accounting Treatments
On Balance Sheet Financing
Structured Term Loans, Operating Lease
Financing
Off Balance Sheet Financing
Securitization with Limited or non-recourse
arrangements
42. CONFIDENTIAL
Nature of financing
Conventional Receivable Financing
On and off-balance Sheet solutions available
Islamic Receivable Financing
On and off-balance Sheet solutions available
43. CONFIDENTIAL
Structure Offerings
With Recourse- On Balance Sheet financing
The Originator/Seller has full responsibility of the
financed receivables collection and defaults.
44. CONFIDENTIAL
Structure Offerings
With Limited Recourse- Off Balance Sheet financing
The Originator/Seller has limited (up to a certain limit
such as 10% of the receivable amount) responsibility of
the financed receivables collection and defaults.
45. CONFIDENTIAL
Structure Offerings
Without Recourse- Off Balance Sheet financing
The Originator/Seller has no recourse or no
responsibility of the financed receivables collection and
defaults. It will exert its best effort only.
