LOAN SYNDICATIONS

Asian Exim Banks Forum

John CorrinGlobal Head of Loan Syndications

June 2014

Loan House of Year 2012

Syndicated Loan House Australia &

NZ 2013

Asia Pacific Loan House

2012

Syndicated Acquisition Finance Loan House 2012

Syndicated Corporate Loan

House 2012

Best Loan House 2012

Australia & NZ Loan House

2013

Best Loan House-2012

Please visit ANZ Loan Syndications page on Bloomberg Terminal: “ANZ” + “Go” Button + Option 20

2

Executive Summary – Project Finance Leads Record Issuances In The Syndicated Loan Market

Strong liquidity, improved political / macro-economic situation and increasing risk appetite has led to record loan activity in 2013, including record volumes for Project Finance*

• 2013 syndicated loan volumes in Asia Pacific (ex-Japan) closed at record USD462B, an increase of 50% over 2012

• 2013 syndicated project finance volume was at USD112.4B, across Asia Pacific (ex-Japan), an increase of 40% over 2012.

• Specialised Financing saw record volumes in 2013 on back on successful closing of mega transactions

Overview /Background

Current Themes

Outlook for 2014

Project Finance defined to include Project Finance, Asset Finance, Leasing, ECA

Infrastructure financing across Asia will continue to drive demand especially across emerging Asian economies of China, India, Indonesia, Philippines and Vietnam

• Demand across infrastructure projects has replaced the slowdown in the commodities sector

• Aircraft and shipping deals continue to populate the forward pipeline as demand returns in these cyclical sectors

• Larger transactions in the Oil & Gas and Energy sectors will continue to dominate deal volumes

• With most banks completing their assessment of capital raising requirements in accordance with Basel III, there is increasing demand for quality assets although the slide in pricing has stemmed

Competition from bond and equity markets, coupled with lack of quality transactions driving up demand and pushing down pricing

• Drop in 1Q2014 volumes a result of increased migration to the bond / equity markets, resulting in intense competition for new transactions leading to attractive terms for Borrowers (longer tenor, lower pricing)

• Pressure on price compression seems to be abating with early signs of cost of funds pressure on Chinese / Taiwanese banks, and regulatory requirements in relation to long term funding (HKMA)

• Nonetheless, increasing appetite from Japanese banks and return of European players to the Asian loan market will continue to drive liquidity for quality transaction and assist with lifting tepid transaction volumes for 1Q2014.

Overview - Syndicated Loans

How Does It Work?

Borrower

As Arranger

As LenderLender 2 Lender 3

• Bookrunner

• Documentation agent

• Borrower will negotiate terms & conditions of the facility with one or more arranging banks (in the above example, Borrower faces ANZ only)

• Lead Bank prepares marketing materials i.e. Information Memorandum and Management Presentation

• Documentation agreed with Lead Bank and Lead Bank negotiates with incoming lenders

• More often then not, Lead Bank would be a cornerstone lender

Coordinates with Lenders, helps with their credit process

Pre-Financial Close Post-Financial Close

• Facility will be administered by an Agent Bank (typically one of the arrangers)

• In the above example, ANZ as the agent, is acting on behalf of the syndicate of lenders to simplify dealings with the borrower

Borrower

As Facility Agent

As LenderLender 2 Lender 3

Debt Service

Loan

4

Benefits of a Syndicated Loan

Flexibility in structure and pricing. Borrowers can choose to shape their syndicated loan, including multicurrency options, revolver tranche and prepayment rights

Access a larger pool of funds

Potentially raise funds more cheaply in the syndicated loan market than alternate markets such as bond markets

Provides greater visibility of the debt market to the client helping them establish dialogue with a large number of market participants

Bring businesses the best price in aggregate and spare borrower the time and effort of negotiating individually with each bank

11

22

44

55

Transferable – secondary sell down possible, helpful where some of the banks in the bank group face financial distress

66

Diversify banking relationships; reduce reliance on few banks

77

33

Underwrite possible for right clients and structures 88

Advantages of Syndicated Loans

5

Syndicated Loans – Options

ALTERNATIVE 1 - UNDERWRITTEN ALTERNATIVE 2 – BEST EFFORTS ALTERNATIVE 3 – CLUB BASIS

Merits

• Certainty of volume and execution

• Dealings limited to lead bank group

• Diversify banking relationships

• Dealings limited to lead bank group

• Certain and reasonable financing costs

• Diversify banking relationships

• Has “possibility” of lower financing costs

• Speed – existing relationship, IM not required

Challenges

• Slightly Higher financing cost –though these days pricing tends to be similar to club deals

• Requirement for flex terms

• Underwriting appetite smaller -though appetite is returning amongst banks

• Uncertainty on volume

• Multiple bank dealings – no lead bank group

• Borrower accepts full volume and execution risk

Mandated Lead Arrangers

• Small group of banks (usually 1-3 banks)

• ANZ and other relationship banks identified by the Company

• Not Applicable

Lenders• The Mandated Lead Arrangers and

banks to be invited by the Mandated Lead Arrangers

• The Mandated Lead Arrangers and banks to be invited by the Mandated Lead Arrangers

• Banks to be invited by the Company

6

Market Update –Overall Syndicated Loan Market

Data source: Bloomberg, Dealogic, Thomson Reuters LPC LoanConnector

Loan Volume In Asia-Pacific Market Recorded Historical Highs, Driven By Growth In Northeast Asia

THERE HAS BEEN A CLEAR TREND OF INCREASE IN TENOR, ESPECIALLY FOR NAMES WITH HIGH CREDIT QUALITY

M&A FINANCING VOLUME AS A PERCENTAGE OF TOTAL LOAN VOLUME REACHED A RECORD HIGH IN 2013

SYNDICATED LENDING IN ASIA PACIFIC (EX-JAPAN) DECLINED IN 1Q2014 AFTER 4 QUARTERS OF ROBUST ACTIVITIES, PRIMARILY DRIVEN BY A MORE QUIET QUARTER IN CHINA ONSHORE AND SINGAPORE

51%

39%

48%50% 45%

9%

10%

6%

9%9%

48%

43%

46%

41%

46%

0

100

200

300

400

500

2009 2010 2011 2012 2013

Vo

lum

e (

US

D B

's)

Refinancing M&A Others

0

20

40

60

80

100

120

140

160

1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14

Volu

me (

USD

B)

0

50

100

150

200

250

300

350

400

Num

ber

of

deals

Volume (USD B) Number of Deals

2008

2009

2010

2011

2012

2013

45 47 49 51 53 55 57 59 61 63 65

Average Tenor in Months

8

HONG KONG DRIVES ASIA PACIFIC EX-JAPAN LOAN VOLUME IN 1QTD 2014, ACCOUNTING FOR 23% OF THE VOLUME

0%

5%

10%

15%

20%

25%

30%

0%

10%

20%

30%

40%

50%

60%

Hong K

ong

New

Zeala

nd

Taiw

an

Aust

ralia

India

Chin

a

Sin

gapore

South

Kore

a

Phili

ppin

es

Pakis

tan

Mala

ysi

a

Indonesi

a

Vie

tnam

Vo

lum

e (

USD

B)

by Volume by # of Deals

Strong Liquidity Chasing Deals in Singapore Has Resulted in Sharp Drop in Pricing

SINGAPORE 2013 LOAN VOLUMES PICKED UP DESPITE THE SLOW START TO THE YEAR

STRONG SGD LIQUIDITY EVIDENCED BY THE RELATIVELY LOW LOAN TO DEPOSIT RATIO

SINGAPORE IS A KEY PLAYER IN THE SYNDICATED LOAN MARKET SINGAPORE LOAN MARKET IS GENERALLY SGD

DENOMINATED

Source: MAS

Source: Loanconnector

Source: Loanconnector

Source: Loanconnector

•Singapore (9%) US$33.5B

9

Growth in Chinese Loans Driven by M&A and Offshore Financing

GROWTH OF OFFSHORE FINANCING BY CHINESE BORROWERS

PIPELINE IS BUOYED BY EXPECTED FINANCINGS FROM CHINESE BORROWERS

RECENT CHINESE DEALS IN THE MARKET

ANZ led deal

0

10

20

30

40

50

60

70

80

90

100

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2009 2010 2011 2012 2013

No

. o

f D

ea

ls

Vo

lum

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US

D B

)

SOEs Red Chips Private Enterprises No. of Deals

DATE BORROWER/GUARNTOR AMOUNT TENOR ALL-IN PRICING PURPOSE

May 2014 China Hongqiao Group Ltd USD700M 3 410bps Refinancing

April 2014 ICBCIL Finance Co Ltd USD300M 3 225bps General Corporate

March 2014 China Resources Power Holdings Co Ltd HKD7,800M 5 175bps Refinancing

March 2014 Citic Resources Holdings Ltd USD360M 3 290bps Refinancing

March 2014 CNOOC Ltd. USD2,000M 1 80bps Takeout Financing

Jan 2014 China Gas Holdings Ltd. USD300M 5 235bps Refinancing

Dec 2013 Lenovo Group Ltd. USD1,200M 5 165bps General Corporate

Dec 2013 Sinopec Group USD3,500M 5 141bps Working Capital

Nov 2013 Haier Electronics Group Co. Ltd. USD150M 3 140bps General Corporate

Nov 2013 Beijing Enterprise Holdings Ltd. HKD6,000M 5 205bps Acquisition

Aug 2013 China Resources Land HKD7,750M 5 207bps General Corporate

Jul 2013 Alibaba Group USD8,000M 3/5 314bps Refinancing

LOWERED PRICING SEEN OVER 2013

0

100

200

300

400

500

600

2009 2010 2011 2012 2013

Avg.

All

-in

(bp

s)

Private enterprises Red-chip SOE

10

0

20

40

60

80

100

120

140

May-1

1

Jul-11

Sep-1

1

Nov-1

1

Jan-1

2

Mar-

12

May-1

2

Jul-12

Sep-1

2

Nov-1

2

Jan-1

3

Mar-

13

May-1

3

Jul-13

Sep-1

3

Nov-1

3

Jan-1

4

Mar-

14

Vo

lum

e (

USD

B)

Record Loan Volumes in Indonesia Driven by Demand from the Mining and Natural Resources Sector

DRIVEN BY THE NATURAL RESOURCES / MINING INDUSTRIES

NEW MONEY CONTINUES TO BE AVAILABLE FOR INDONESIAN CREDITS

Source: Thomson Reuters Loan Connector.

Source: Reuters Loan Pricing Corporation

SELECT INDONESIAN SYNDICATED LOAN TRANSACTIONS Borrower Date Size (USDM) Tenor (yrs) All-in Pricing (bps pa)PGN Pre-Mandate 1,500 5 (avg .life 3.5 yrs) High 100s (Rumoured)Indonesia Exim In Market 600 1/3 125/165Pelindo II In Market 1,000 5 Mid 200s (Rumoured)CT Corp Mar 2014 1,275 3/5 Low 400sPT Pertamina Feb 2014 1,137 5 (avg. life 3.5) 170

Delta Dunia Textile Dec 2013 150 3/5 (avg. life 3/2.739) 641.67/647.73

PT Adira Dinamika Multi Finance Nov 2013 100 3 (avg. life 1.86yrs ) 198.72PT MNC Sky Vision Tbk Nov 2013 200 3 490PT Charoen Pokphand Indonesia Oct 2013 400 3/5 206.7(USD)/226.7(IDR)PT Royal Industries Indonesia Sep 2013 300 3/5 483/508PT Solusi Tunas Pratama Jun 2013 300 5 400PT BFI Finance Indonesia Tbk Jun 2013 80 3 311.35PT Adaro Indonesia May 2013 380 7 (avg. life c.5 yrs) 245PT Federal International Finance May 2013 400 3 250PT Pamapersada Nusantara May 2013 400 5 193/213Indonesia Eximbank Mar 2013 500 3 150PT Trans Retail Feb 2013 750 3 (avg. life 2.4 yrs) 563 bps pa

11

HEALTHY LOAN VOLUMES IN 1Q14 WITH LOAN VOLUME OVER USD3.5B

India: Rupee Volatility and Relaxed Regulation Drove Volumes in 2H2013 and 2014

• Pricing has tightened in the recent months due toimproved liquidity in the bank market globally and globaloutlook

• Country limits are less of an issue for certain regionalbanks due to asset run-off and abated concerns over apotential sovereign credit rating downgrade.

• 5 year tenor transactions are returning to the market asrisk appetite for Indian transaction improves.

• Loan market is currently skewed towards blue chipborrowers and market capacity for such credits isexpected to be in the region of USD1,750M.

• Offshore loan activity in India likely to remain robustgoing into 2014, on account of:

− Infrastructure spending and financing needs

− M&A and cross border transactions

INDIA (ECB) LOAN MARKET UPDATE: SELECT SYNDICATED LOAN TRANSACTIONS IN INDIA

INDIA OFFSHORE LOAN VOLUME

Date Obligor Size Tenor (yrs) All-in Pricing Remarks

In Market US$500M 3 155 Syndicated

In Market US$1,775M 5 180 Syndicated

In Market US$240M 5 324 Syndicated

Mar-14 US$600M 4/6 242.5/330 Syndicated

Dec-13 US$1,500M 1 90 Club

Nov-13 US$1,000M 1 94 Club

Dec-13 US$500M 6 210 Syndicated

Nov-13 US$250M 5 190 Syndicated

Nov-13 US$1,200M 5 303.57 Syndicated

Nov-13 US$500M 3 140 Syndicated

Nov-13 US$1,750M 5/6 170/186 Syndicated

Data source: Thomson Reuters LPC

LENDER SHARE IN RECENT INDIAN OFFSHORE TRANSACTIONS

12

0

100

200

300

400

500

600

Nov‐11 Mar‐12 Jul‐12 Nov‐12 Mar‐13 Jul‐13 Nov‐13 Mar‐14

All ‐in (bps)

6 to 12 months 13 to 42 months 60 months72 to 84 months 120 months

Strong Liquidity And Attractive Pricing Continues To Drive Record Syndicated Loan Volumes In The Philippines

1Q 2014 LOAN VOLUME REMAINS RESILIENT AFTER A RECORD DEAL FLOW THROUGH OFFSHORE BORROWING IN 2013

…RESULTING IN A MARGIN COMPRESSION SINCE THE BEGINNING OF 2013, PARTICULARLY FOR 60-MONTH FACILITIES

1.52.8 1.9 2.2

5.8

0.51.5

1.8

3.7 2.0

2.2

5.9

1.0

2.9

02468101214161820

0.01.02.03.04.05.06.07.08.0

Loan Volume in PHP Total Loan Volume No of deals

Volume (USD B) No. of DealsVolume (USD B) No. of Deals

PHILIPPINES

13

Date Borrower/Guarantor Facility Size Tenor (years) Market All-in Pricing (p.a.)

Apr 14 SM Prime USD 300M 5 200bps

Jan 14 NGCP USD 515M 5 196bps

Nov 13 SMC Global USD 700M 5 220bps

Aug 13 SM Investment Corp USD 300M 5 200bps

Jun 13 SMC USD 1,500M 5 266bps

May 13 SM Prime USD 200M 5 195bps

Mar 13 SM Prime USD 300M 5 208bps

Jan 13 PLDT USD 300M 5 185bps

Nov 12 JG Summit USD 250M 5 240bps

Oct 12 Petron USD 485M 5 306bps

RECENT TRANSACTION COMPARABLES IN THE PHILIPPINES MARKET

Source: Thomson Reuters LoanConnector ANZ-led deals

Vietnam – Slowly Recovering from Vinashin Episode

Date Borrower Size Tenor All-in Pricing Remarks

Apr-14 Thang Long Cement USD99.99M 5/6 yr - Syndicated

Mar-14 Vietnam National Coal Minerals Industries

USD 300M 14 yr - Syndicated

Nov-13 PetroVietnam Gas Corp USD 200M 7 yr 390 Syndicated

Jul-13 POSCO Vietnam USD 196M 5 yr 120 (Margin) Club

Jun-13 Nghi Son Refinery & Petrochemical

USD 4,940M 16 yr 210 (Margin) Club

May-13 POSCO SS Vina Co Ltd USD 104.4M 10 yr - Club

VIETNAM LOAN VOLUMES DRIVEN BY PROJECT FINANCE TRANSACTIONS

Data source: Bloomberg, Thomson Reuters LPC

Corporate Loans in Vietnam slow• Downgrade of Vietnam’s local currency long term sovereign credit rating from BB

to BB- by S&P in December 2010 and government’s loan growth cap have contributed to the decline in corporate loan volume in Vietnam in 2012.

• The Vinashin situation in late 2010 caused loan investors to be more cautious on lending to Vietnamese corporates in general.

• Pricing and Tenor: Pricing requirement for Vietnamese corporates, which used to be in the 300bps prior to Vinashin spiked in 2011 but have came down since. Banks look to Vietnam CDS levels as a benchmark (c.210 bps pa as of 28 May 2014) which has tighten significantly from its high of 478 bps in September 2011. Majority of corporate deals are structured as 3/5 years (door to door) with amortisation.

Vietnam Sovereign Historical CDS Spreads Tighten

• Over US$4.9B of project finance loans were completed in 2013, making up 68% of Vietnam’s total loan volume at US$7.2B.

• Vietnam offshore loan volumes are mainly driven by project finance loans. Nghi Son Refinery & Petrochemical project finance deal is the main driven in 2013.

• PF deals in Vietnam, which are usually covered (by export credit agencies) and structured with more security may continue to get done even as corporate loans remain stagnate.

• Loan volume in 2014YTD remain subdued.

Recent Select Loan Transactions

(Post Vinashin and post Global Economic Uncertainty)

14

Market Update –Project Finance

16

Project Finance – Resurgence in Loan Volumes Driven by Increasing Liquidity and Improving Macro Economic Environment

• Project Finance teams demonstrating renewed risk appetite in 2013 / 1H2014

— Appetite for Large Scale transactions has returned, witnessed on Ichtys, Nghi Son, Roy Hill, BG/CNOOC

— Improving investor appetite driven by robust Asian macro-economic conditions and increasing liquidity at Asian, Japanese and European banks

— Limited supply of transactions impacting pricing and tenor

• Tenor beginning to extend –tenors of up to 15 years now available to most borrowers for the right assets, with longer tenor available to select client

— LNG Vessel financing able to find strong interest despite door-to-door tenor of 19 years

— Wind Projects with tenors of up to 15 years attracting strong liquidity (e.g. Philippines)

• Infrastructure, Energy sectors and PPP projects are most active, extensive pipeline of deals in ASEAN countries

— Japanese players lead market share with European players catching up as they return to Asia

— Local banks continue to take large positions for their key domestic relationships

• Margin compression – typical high quality projects have seem margin compression from high 200s (~275bs), to low 200s (~225bps), expect some degree of price compression as liquidity chases limited supply of quality deals

— LNG Vessels receiving bids between 200-225bps for 15 year tenor

— Wind Projects being quoted at 200bps

— Tier 1 airlines margin is between 125-175bps for 12 year tenor

• What is achievable in the market?

— Take-and-hold ticket sizes of ~USD200m are common and USD500M could be targeted from top tier banks for very high quality projects /sovereign backed PPPs

— 12 years is the sweet spot for tenor, however 15 years increasing common and 15+ years achievable for quality Borrowers

• Outlook for 2014

> Improved risk appetite will drive investor demand across ASEAN countries (Indonesia, Philippines, Greater Mekong)

> Improving liquidity to drive further price compression

> Quality names from Investment Grade nations (Japanese, Korean, European Sponsors) will continue to be well received

16

• The Asia Pacific syndicated loan market has been an integral source of financing of large project financing requirements, with 2013 volumes seeing record volumes at USD112B (Asia Pacific ex-Japan), representing a 40% growth over 2012 loan volumes.

• In addition to increasing supply from India, China and Indonesia, appetite returned for Vietnam projects (post the default period in 2012) and frontier markets in Mongolia / Myanmar (deal still in progress). As banks shore up their balance sheets for new capital requirement, we see surging demand for higher quality projects backed by experienced Sponsors.

Record Loan Volumes Across All Categories In The Syndicated Loan Market In 2013

ANZ Deal Volume 2013 by Purpose

Project Finance Loan Volume

(Asia-Pac Ex Japan)

5968 72

86 80

112

0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2013

Vo

lum

e (

US

D B

)

Project Finance Volume (USD B)

• The energy sector continues to take a large share of project finance volumes in Asia, with an increasing number of transactions backing oil and gas development and transportation projects.

• The success of larger transactions in Ichthys, Nghi Son and APLNG, in addition to strong demand witnessed on other oil and gas transactions (such as PNG LNG and PAU), has provided Borrowers and Bank investors with clear benchmarks for liquidity available in Asian markets and continues to drive confidence in ability to close larger financings.

17

Local Currency Transactions Dominate Loan Volumes; With Activity In North Asia Picking Up, and Infrastructure Replacing Mining As Top Sector

• Loans, in international and domestic currencies, backing project finance in Asia Pacific (excluding Japan) reached USD 112B in 2013, up 40% from USD 80B in 2012. The rise was mainly driven by the robust growth in China

• While China-based project loan volume in 2012 totalled USD26B (33% of overall project finance volume in Asia Pacific ex-Japan), this grew significantly to USD 72B in 2013 (nearly two-thirds of total project finance volume). Key deals include Suzhou International Logistics Expressway (December 2013 for 15 year term loan of RMB 22.9B or USD 3.77B equivalent) and Suzhou Rail Transit (July 2013 for 20 year term loan of 22.9B or USD 3.74B equivalent)

• At the same time, India has seen a significant volume decrease, primarily as a result of the slowdown in the Indian economy. India’s project finance loan decreased from USD 18B in 2012, and further decreasing to USD 14B in 2013.

• Infrastructure projects, which includes bridge/tunnel construction, mass transit and toll road projects, dominated loan volumes in 2013, more than adequately replacing softness in the mining sector. Key deals in 2013 include Suzhou Express (toll road project), Suzhou Rail Transit (mass transit) and Guangdong Chao-Hui Expressway (March 2013 for RMB loan of USD 3.66B equivalent)

Source: Thomson Reuters LoanConnector

0

20,000

40,000

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80,000

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120,000

2011 2012 2013

US

D M

illio

ns

Year

Project Finance Loan Volume in Asia Pacific (excluding Japan) by Country

Australia China IndiaIndonesia Korea (South) MacauMalaysia New Zealand SingaporeTaiwan Thailand Vietnam

Note: Loan volumes include all project finance related loans in Asia pacific (ex-Japan) for Syndicated and Club deals

-

20,000

40,000

60,000

80,000

100,000

120,000

2011 2012 2013 2014YTD

Others Shipping Real Estate Energy/Mining Infrastructure Aircraft & Airport

Project Finance Loan Volume in Asia Pacific (excluding Japan) by Project Type

18

Note: Other project type mainly include telecommunications, healthcare and manufacturing/industrial plants

0

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013

USD

Mill

ions

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Project Finance Loan Volume in Asia Pacific (excluding Japan) by Currency Type

Main Currencies Other Currencies

11%

89%

Onshore vs. Offshore Currency Borrowing - 2013

Offshore Onshore

Local Currency Transactions Will Continue To Dominate Loan Volumes As Domestic Banks deploy extensive capital to use

Given the foregoing, its not surprising to see project financing being dominated by local currency transactions

Among offshore currencies, USD remains the most popular choice but RMB has became prominent for project

financings to support equipment purchases from China.

Source: Thomson Reuters LoanConnector

Project Finance Loan Volume in Asia Pacific (excluding Japan) by Currency

4%

63%1%

13%

7%

2%

9%

1%

AUD RMB HKD INR KRW THB USD Others

Asia loan market is dominated by local currency financings driven by RMB and INR

Note: Main currencies include USD, GBP, Euros, Yen, AUD, SGD, HKD and NZD

19

Project Finance – Funding Outlook

Summary of Options

> The primary sources of debt market liquidity for long term project / specialised funding include:

Export credit agencies

Multilateral agencies

International commercial banks

Local Banks

Debt capital markets and Islamic finance would also be considered selectively.

Criteria ECAs MLAs Inter’l Banks

Local Banks

Volume High Medium High Low

Price Low Medium Medium High

Efficiency Low Low Medium High

Debt Tenor Long Medium Short -Medium

Short

Diligence Needs

High High High Low

Drawdown Flexibility

Low Medium High High

Relationship Driven

Low Low -Medium

Medium -High

High

Funding Sources21

Summary of Funding Sources

Advantages Considerations

Project Finance

• Limited or non recourse on the existing

• Flexible repayment schedule• Additional liquidity – allows for

high levels of leverage• Long tenor

• Competitive market cash flows• Negotiated terms• Contract structure apportion risks

amongst the parties

• Length of execution• Environment constraints• Additional costs (legal, technical)• Security package

Export Finance

• Long tenors

• Availability of fixed rate option

• Low all in Costs

• High loan amounts

• Ability to source from different countries

• Credit enhancement

• Execution comparable to other hard currency financing options

• Environmental compliance

• Length of execution

• Eligibility criteria of ECA

• Standard framework

Bilateral Commercial Facility

• Price certainty / competitiveness

• Confidentiality

• Speed of execution

• Wide acceptance of product

• No post-signing transfers by banks

• Prepayment flexibility• Low legal costs• Negotiated terms

• Limited country limits for some international and regional banks

• Lack of investor diversification• Limited market depth for large transactions• Security may be required• Maintenance based covenant package

Syndicated Loan

• Price certainty / competitiveness• Speed of execution• Market depth - multi-bn dollar

transactions• Moderate legal costs• Negotiated terms• Free call option

• Market standard documentation based on existing precedents

• Loan can be used as a vehicle to enhance existing and new relationships

• Limited post-signing transfers by banks

• Prepayment flexibility

• Potential capacity constraints for banks• Limited country limits for some international and

regional banks• Limited confidentiality• Security may be required• Maintenance based covenant package

22

Summary of Financing Sources – cont’d

Advantages Considerations

International Bond

• Global acceptance of product with strong investor diversification

• Establish a liquid benchmark from which subsequent issues can be priced

• Standardised and flexible documentation

• Incurrence based covenant package

• Positive publicity through roadshows and strong market performance

• Market depth – multi-bn dollar transactions

• Ability to execute longer tenors than the loan market

• Ability to lock in at fixed rate on long term issuance

• Less price certainty - pricing subject to market conditions and dynamics

• Heavy pre-marketing disclosure requirements• Poor secondary market performance will affect pricing and

future investor demand for issues• Bond issue needs to be of minimum size to provide

liquidity for secondary trading• Credit ratings are strongly recommended for international

issuance• Issuer will not have knowledge of investor base once a

bond is free to trade

Domestic Bond

• Establish a liquid benchmark from which subsequent issues can be priced

• Standardized and flexible documentation

• Positive publicity through roadshow and strong market performance

• Local currency available• Limited pre-marketing• Callability• Credit rating may not be

required• Incurrence based covenant

package

• Limited investor diversification• Less price certainty - pricing subject to market conditions• Poor secondary market performance will affect pricing and

future investor demand for issues• Issuer will not have knowledge of investor base once a

bond is free to trade • Potential capacity constraints for large issues

Sukuk

• Shariah-compliant• Medium to large sizes

achievable• Diversify investor base

• Can be structured alongside conventional finance to increase debt capacity

• Incurrence based covenant package

• Rating recommended• Roadshow strongly recommended• Still requires Middle East bank participation• Bonds are traded less frequently• Additional documentation requirement• Need for underlying asset for structuring purposes

23

Typical Investor Universe Based Off Recent Large Projects in the LNG Space24

Distribution Of Bank Debt Investors By Geography Distribution Of Total Financing Across Financing

Sources

Europe, 17%

Americas, 5%

Asia,7%

Japan, 47%

Australia, 23%

Ichthys LNG

Europe, 46%

Asia, 1%

Japan, 48%

Australia, 5%

Cameron LNG

Europe, 54%

Asia, 13%

Japan, 15%

Australia, 18%

PNG LNG

Europe, 22%

Americas, 10%

Asia, 5%Japan, 23%

Australia, 40%

AP LNG

Europe, 58%Japan,

30%

Australia, 12%

Tangguh LNG

• As identified from the analysis (LHS), ECAs drive the majority of the volume (up to 75%), including providing cover to commercial bank funding as well as direct participation in the facilities

• Participation in LNG projects is driven largely by location of project and domicile of key sponsors. Typically, strong interest has been witnessed across Japanese and European lenders, with the 4 major Australian lenders driving demand for Asia Pacific transactions

25

Asia-Pacific Project Finance Landscape

Transaction Origination + Structuring Capabilities/ PF Appetite

Selective but looking for assetsInactive/Extremely Selective

Aggressively Looking for Opportunities/Active Participants

Capability/Experience

Activity

Notes: Bank of China and ICBC more focused on Chinese transactions but have selectively looked at Australian/Asian transactions

Positioning of Peer Group

25

PROJECT FINANCE CASE STUDIES

Largest project financing ever arranged in the international finance markets

The Ichthys project is the largest project financing in the world with a project value of USD48B (USD20B of debt)

ANZ understood the challenge of financing a project of such magnitude given the economic constraints that existed inthe European economy, significantly reducing the pool of traditional supporters of such projects. As a consequence,ANZ identified and proactively offered significant support for the project to the sponsors several years in advance ofcommitments being required.

Complex Structure & Landmark Size

Six ECAS involved; ANZ’s ability to accommodate a broad spectrum of ECAs provided the sponsors with valuableflexibility in the allocation of ECA covered debt to the bank group

The proactive approach by ANZ in indicating support for the project enabled the sponsors to leverage liquidity in theregion from other banks, providing further funding certainty for the transaction.

Robust Investor Coverage & Capabilities lends support to top level commitment of USD1B (400M uncovered) per bankwith some stepping up to USD1.2B (500M uncovered)

Ichthys LNG Pty Ltd – USD20,000 Million Project Financing Facilities

USD 20,000M LNG Financing Facilities

Mandated Lead Arranger and Bookrunner, Sub-Facility Agent, Upstream Account Bank, FX Arranger Bank

December 2012

27

ANZ also underwrote a uniquely structured separate Total supported tranche to further enhance liquidity andprovide attractive financing options within the capital structure

The transaction benefited from credit support from TOTAL S.A., for which banks pay a credit support fee to TOTAL

A separate Senior Facility which is based on the project finance documentation (and so benefited from security over theproject assets), while the Subordinated Facility documentation contains terms more akin to a shareholder loan

USD 1,500M Refinancing Facilities

TOTAL Sponsor Covered Credit Facilities

Sole underwriter, Mandated Arranger, Bookrunner,

AgentDecember 2012

OYU TOLGOI – USD2.8 Billion Senior Debt Project Financing Credit Facility

Deal Summary

> The USD2.8B consists of USD835M B-Loan tranche from IFC and USD935M B-Loan tranche from EBRD, USD1.03B MIGA insured tranche. Total of 15 banks participated.

> Oyu Tolgoi is Largest copper/gold development project in the world. It’s 34% owned by the Government

of Mongolia and the rest owned by Turquoise Hill Resource (in turn 51% controlled by Rio Tinto).

> Upon full production in 2021, Oyu Tolgoi is estimated to generate up to 1/3 of Mongolia’s GDP

The deal was put on hold due to dispute between the Mongolia Government and Rio Tinto which owns 51% of Turquoise

Hill which has 66% stake in Oyu Tolgoi. As of May 2014, the dispute is expected to be resolved by Sep 2014

Liquidity from the market was difficult to read

commitment size of USD300M required by the client Vs. general market appetite of USD150M approved by credit

Complicated risk assessment, particularly political risk

BB- S&P; First tenor loan in Mongolia ;Evolving legal environment ;MIGA/B Loan not common

Technical mining Challenges Development of underground block-cave is technically challenging; Large upfront costs and extended construction phase; Only 4-5 miners able to build/operate a block-cave Relatively safe, highly productive and cost-effective once operational

Wide range of functions/department are involved due to the nature of the transaction

28

Overview of ANZ Loan Syndications

29

Loan Syndications – Market Leaders With Increasing Market Share And Penetration In Asia Pacific

2013 LOAN SYNDICATIONS – HIGHLIGHTS

Stellar performance in 2013 reinforcing our position as the #1 syndicated loan house in Asia-Pacific

• Largest number of transactions by a Mandated Lead Arranger ever in the history of the Asia-Pacific syndicated loan market with a total of 292 deals

• #1 Arranger of syndicated loans in Asia Pacific (ex-Japan) by number of transactions for the last 5 years• #1 Arranger & Bookrunner in Australia in 2013• 2013 marked the 10th consecutive year as a top 3 MLA - in contrast the next best bank has featured in

the top three in only 5 of the preceding 10 years and derives its credits principally from one country • Numerous industry awards including: No.1 Loan house in the Peter Lee Survey (Australia); IFR Australia/

NZ Loan House of the Year 2013; Asia Money Loan House of the Year Australia; KangaNews Australian Syndication Loan House of the Year 2013; CFO Corporate Finance (Debt) House of the Year 2013

Key achievements within the Asia business in 2013• Largest number of transactions in Asia in ANZ history - 101 transactions as MLA in Asia• Highest ever volumes in Asia - USD7B as MLA and USD4.96B as Bookrunner

We’ve closed over 98 deals in 1Q FY2014, with a strong pipeline established for the rest of FY2014

ANZ tops 1Q14 M&A mandated arranger league table

“ANZ signed over one deal every working day in 2013”

“ANZ was an MLA in at least one in every five deals which were awarded league table credits”

30

USD1,400M

Studio City Company Ltd.

Revolving Credit & Term Loan Facility

Mandated Lead Arranger, Underwriter & BookrunnerJANUARY 2013

Key Recently Completed Underwritten Deals - Demonstrates Our Ability To Lead Diverse Transactions Across Various Jurisdictions In Asia

USD6,000M

CNOOC Limited

Acquisition Bridge Loan Facility

Mandated Lead Arranger

FEBRUARY 2013

Lenovo Group Ltd Beijing Enterprises Holdings

Alibaba Group Holdings Ltd.

San Miguel Corporation CNOOC Limited Studio City Company Ltd.

Mandated Lead Arranger & Bookrunner

Mandated Lead Arranger, Underwriter & Bookrunner

Joint Mandated Lead Arranger, Underwriter & Bookrunner

Joint Coordinating Arranger, Mandated Lead Arranger, Underwriter & Bookrunner

Mandated Lead Arranger & Underwriter

Mandated Lead Arranger, Underwriter & Bookrunner

• The USD1.2B facility is one of Lenovo’s largest facility in the offshore syndicated loan market to date; the group’s first syndicated loan transaction was completed in 2005

• Significant support from relationship banks to close this transaction without the need for general syndication

• Launched at USD1B, however due to oversubscription, the deal was upsized to USD1.2B

• Fully underwritten, providing Beijing Enterprises with funding certainty

• Significant investor demand meant the deal was heavily oversubscribed by 1.8x

• Attracted 23 active international and regional investors

• A host of smaller ticket holders joined the transaction to gain exposure to the prominent name

• One of 9 underwriters to support Alibaba Group Holdings Ltd.’s refinancing of its 2012 syndicated term loan facility and other corporate purposes

• One of two underwriters to support San Miguel Corporation’s refinancing of existing indebtedness

• Facility is the largest corporate facility in the Philippines and was successfully distributed over a two phase distribution strategy

• One of the largest syndicated loan facilities completed in Asia Pacific

• Proceeds support CNOOC’s acquisition of Nexen in Canada

• Hugely oversubscribed with over 3.3x commitments received

• Third successful syndication for Melco Crown Gaming, with over USD3B raised

• Deal oversubscribed more than 1.2x despite a limited syndication

• Delivered a complete financing package -ANZ played a lead role on USD825M in Senior Notes issued by Studio City (in addition to syndicated loan

ANZ HAS SUCCESSFULLY UNDERWRITTEN MULTIPLE DEALS FOR OUR CLIENTS ACROSS ASIA IN 2013

USD1,500M

San Miguel Corporation

Term Loan Facility

Coordinating Arranger, Mandated Lead Arranger, Underwriter & BookrunnerMAY2013

USD8,000M

Alibaba Group Holdings Ltd.Term Loan Facility

Mandated Lead Arranger, Underwriter & Bookrunner

JULY 2013

31

IN MARKET

HKD6,000M

Beijing Enterprises HoldingsTerm Loan Facility

Mandated Lead Arranger & Underwriter Bookrunner

NOVEMBER 2013

USD1,200M

Lenovo Group Ltd

Term Loan & Revolving Credit FacilityMandated Lead Arranger & Bookrunner

DECEMBER 2013

Source: Thomson Reuters LPC LoanConnector, Dealogic

ANZ’S CONSISTENCY AS A TOP MLA IS UNRIVALLED– WE HAVE BEEN A TOP 3 MLA FOR THE LAST TEN YEARS IN APAC (EX JAPAN)

Consistently Ranked As Top 3 Arranger And Bookrunner Across Syndicated Loan League Tables

Top 3 since 2004

#2 BOOKRUNNER IN ASIA PACIFIC (EX-JAPAN) YTD2014*#1 MANDATED LEAD ARRANGER IN ASIA PACIFIC (EX-JAPAN) YTD20141

YTD2014 is as of 8th May

32

Rank Mandated Arranger Amount (USD M) Deals Market Share1 ANZ 7,444 77 7.46%2 National Australia Bank 4,861 34 4.87%3 Bank of China 4,344 46 4.35%4 HSBC 4,343 54 4.35%5 Westpac Banking Corp 4,099 44 4.11%6 Bank of Tokyo-Mitsubishi UFJ 3,604 39 3.61%7 Sumitomo Mitsui Banking Corp 3,576 41 3.58%8 Standard Chartered Bank 3,512 45 3.52%9 State Bank of India 3,158 11 3.16%10 DBS Bank 3,039 37 3.04%

#1

Rank Bookrunner Amount (USD M)Deals Market Share1 State Bank of India 3,259 9 5.93%2 ANZ 3,033 17 5.52%3 HSBC 2,901 21 5.28%4 Bank of China 2,881 21 5.24%5 National Australia Bank 2,639 7 4.80%6 Standard Chartered Bank 2,566 21 4.67%7 Mizuho Bank 2,297 20 4.18%8 Westpac Banking Corp 2,218 12 4.03%9 China Development Bank 1,894 2 3.44%10 Sumitomo Mitsui Banking Corp 1,650 12 3.00%

#2

Team Based Primarily In Australia, Hong Kong And Singapore , With Local Market Experts For Larger Markets

> ANZ has one of the largest syndications teams in Asia-Pacific

> Comprises 43 syndicated loan market professionals engaged in primary loan distribution

> ANZ is the only bank in Asia-Pacific that has significant teams based in Australia, New Zealand, and Asia (Hong Kong, Singapore, Beijing,Taipei, Tokyo and Jakarta)

> Blend of local market experts and professionals with international market experience

> ANZ recognizes the convergence of the loan and bond markets; actively engages with non-bank investors

> Deepening existing investor relationships; engaged with ~200 banks and institutional investors

33

Sydney (7) Melbourne (4)Auckland (4)

AustralasiaSingapore (6)Indonesia (1)

India (1)

South/South East Asia

Hong Kong (12)Beijing (1)Taipei (1)Tokyo (1)

North Asia

London (2)

Europe

New York (3)

Americas

AUSTRALIA/NZ LOAN HOUSE OF

THE YEAR

We Received Major Industry Awards in 2013 & 2012

>2013 / 2012

IFR Asia: Australia 2013 Loan House of the Year

“In a crowded and competitive field, ANZ’s leadership, innovation and unparalleled distribution network stood out as it executed a number of key and diverse transactions.”

Source: IFR Asia Review of the Year 2013

APLMA: Syndicated Loan House of the Year

“Australia & New Zealand Banking Group Ltd. (ANZ) was voted the best bank for syndicated loans in the Asia- Pacific region by the area’s market association.

The Melbourne-based lender got 28 percent of the votes at the Asia-Pacific Loan Market Association’s 2011 Syndicated Loan Awards”

Source: Bloomberg 1 Feb 2012

IFR Asia

2013

IFR Asia

2012

Loan of the Year

Alibaba Group

PFI

2012

PPP Deal of the Year

Ichthys LNG

CFO

2013

Project Finance Deal of the Year

Ichthys LNG Project

CFO

2013

Syndicated Bank Loan of the Year

Fortescue Metals Group

APLMA

2013

Syndicated Deal of the Year

Alibaba

IFR Asia

2012

Asia Pacific Loan House of the Year

APLMA

2012

Syndicated Loan House of the Year

Asia-Pacific / Autralia

APLMA

2013

PFI

Oil and Gas Deal of the Year

APLNG

2012

PFI

2012

Infrastructure Deal of the Year

Sydney Desalination

2012

BEST DEBT HOUSE

AUSTRALIA

AsiaMoney

2013

CFO

CORPORATE FINANCE HOUSE OF

THE YEAR - DEBT

2013

2013 2013

APLMA

2013

Loan House of the Year

KangaNews

2013

Australian Syndicated Loan Deal of the Year

Origin Energy

2013

SYNDICATED LOAN HOUSE OF THE

YEAR AUSTRALIA & NEW ZEALAND

34

35DISCLAIMER

IMPORTANT NOTICE

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