CIRCLE OF COMPETENCE - EXPORT FINANCING

Gergely Jákli

Director

INTEGRATED SYSTEM TO SUPPORT

FOREIGN TRADE AND ECONOMY

STATE OWNERSHIP RIGHTS EXERCISED BY THE MINISTER OF FOREIGN AFFAIRS AND TRADE

RELATIONSHIP WITH THE STATE

100% STATE OWNERSHIP - RIGHTS EXERCISED BY THE MINISTER OF FOREIGN AFFAIRS AND TRADE

• Under the Eximbank Act, the Hungarian state is liable, as absolute direct surety, for the fulfillment of Eximbank's obligations

• HUF 1,200bn upper limit under the 2015 Budget Act

• Utilization: 59.1% or HUF 708.9bn (EUR 2.2bn)

• Upper limit of HUF 350bn under the 2015 Budget Act

• Utilization: 3.9% or HUF 13.5bn (EUR) 41,9 million)

• MEHIB covered by 100% state guarantee under the Budget Act

• Interest rate compensation system in accordance with the OECD rules

STATUTORY GUARANTEE – FUNDING

STATUTORY GUARANTEE – ASSET SIDE

• Rating equal to the state: BBB- (Fitch Ratings) • Capital adequacy ratio: 8,9%*

* On 31 December, 2015

KEY FIGURES

4

LOAN PORTFOLIO LOAN DISBURSEMENT

GUARANTEES INSURANCE PORTFOLIO

+48.7% +65.5%

+29.3%

+26.0%

0

500

1 000

1 500

2 000

2 500

3 000

2012 2013 2014 2015 2016

661,7

984,1

1 628,7

2 106,4

2 655

M EUR

0

20

40

60

80

100

2012 2013 2014 2015 2016

90,6

54,9

47,6

73,3

94

M EUR

0

200

400

600

800

1 000

1 200

1 400

1 600

2012 2013 2014 2015 2016

405,1

600,6

1 051,4

1 279,21 421

M EUR

PRODUCT RANGE

FINANCING GUARANTEES RISK SHARING

CORE ACTIVITIES

ARMS OF ACTIVITIES

DIRECTLY THROUGH

CREDIT INSTITUTIONS

OUR PARTNERS

FINANCING PRODUCTS

PROCUREMENT INCOME

REALIZATION

INVESTMENT CREDIT – FOR FOREIGN INVESTMENTS

DIFFERENT CAPITAL-

TYPE LOANS

DIRECT EXPORT PRE-FINANCING

REFINANCING FOR PRE-FINANCING

BUYER’S CREDIT FACILITIES

FORFAITING, SHORT-TERM PURCHASE OF

RECEIVABLES

RE-FINANCING FOR POST FINANCING

EXPORT PRE-FINANCING INVESTMENT FINANCING

EXPORT POST-FINANCING

SUPPLY CHAIN FINANCING

REFINANCING FOR LEASING AND INVESTMENT

DIR

ECTL

Y T

O

CO

MPA

NIE

S

FOR

CO

MPA

NIE

S TH

RO

UG

H C

RED

IT

INST

ITU

TIO

NS

TIED AID

PRODUCTION DELIVERY INVESTMENT

CREDIT GUARANTEE

SUPPLIER’S CREDIT INSURANCE (S)

EXPORT RECEIVABLES INSURANCE (C)

MANUFACTURING RISK INSURANCE (G)

RISK SHARING PRODUCTS (GUARANTEES AND EXPORT CREDIT INSURANCE)

termelés kiszállítás befektetés, beruházás árbevétel realizálás

NON-SHAREHOLDER’S CREDIT INSURANCE (BH)

BUYER’S CREDIT INSURANCE (V)

SUPPLIER’S CREDIT DISCOUNTING

INSURANCE (KV)

FACTORING INSURANCE (CF)

EXPORT L/C CONFIRMATION INSURANCE (AI)

COMMERCIAL GUARANTESS

PROCUREMENT PRODUCTION DELIVERY INVESTMENT INCOME REALIZATION

EXPORT PRE-FINANCING INVESTMENT FINANCING

EXPORT POST-FINANCING

Dir

ect

ly f

or

com

pan

ies

For

com

pan

ies

thro

ugh

cre

dit

in

stit

uti

on

s

HUNGARIAN CONTENT

Min. 50% Min. 25% Min. 50%

PRODUCT CONSTRUCTION SERVICE

With the certificate of origin

issued by the regional

Hungarian Chamber of

Commerce and Trade

evidencing that at least

50% of goods exported

under the financed

transaction originates from

Hungary.

At least one quarter of the

value of the general contract

less the costs of financing

should be of Hungarian

origin, certified by a

certificate of origin issued by

the regional Hungarian

Chamber of Commerce and

Trade.

At least one half of the persons

employed by the financed client

must be persons who are in a

contractual relationship with the

client that creates a social security

insurance obligation for the client

pursuant to the provisions of the Act

on Eligibility for social security

insurance benefits, private pension

and on the coverage of these

services, as well as the Act on the

itemised tax- payment obligation of

small tax-payer enterprises and on

the small business tax.

„OPENING TO THE EAST” AND ”OPENING TO THE SOUTH”

NEW COUNTRY LIMITS HAVE BEEN ESTABLISHED

68 countries

65 countries

Macedonia Forfaiting: transportation

Iraq Buyer’s credit: factory, delivery of transformers

Saudi Arabia Buyer’s credit: currugator paper line

Slovenia Buyer’s credit: technology

Bosnia Herzegovina Tied aid: water treatment

Montenegro Tied aid: education

Sri Lanka Tied aid: water treatment

Vietnam Tied aid: water treatment,

population registration

Laos Tied aid: agricultural development Food chain safety system

Indonesia buyer's credit: financing of gas turbines, e-Government infrastructure, health Tied aid: water treatment

EXIM’S ACTIVITIES - EXAMPLES

Russia Forfaiting: retail, chemical industry, agribusiness Discounting of receivables: building industry Interbank buyer's credit: delivery of gas turbines, building industry, Buyer's credit: wood processing factory, delivery of gas turbines , health care, building industry, equipment delivery, construction of power plant

Azerbaijan Buyer’s credit: food industry, Forfaiting: agribusiness

Kazakhstan Forfaiting: waste processing

Uzbekistan Interbank buyer’s credit: wine

equipment

Tajikistan Buyer’s credit: beer equipment

Mongolia Interbank buyers’s credit: mechanical engineering, new urbanization project

Republic of Belarus Interbank buyer’s credit: goods and services Buyer’s credit: Construction

EXIM’S ACTIVITIES - EXAMPLES

EXIM’S ACTIVITIES - EXAMPLES

Ghana - Discounting facilities : chemical industry - Interbank Buyer Credit: mechanical engineering, water industry - Buyer Credit / Interbank Buyer Credit: printing industry

Egypt - Discounting facilities: food industry - Buyer Credit / Interbank Buyer Credit: mechanical engineering

Nigeria - Buyer Credit/ Interbank Buyer Credit: mechanical engineering, bioenergy, energy, water management

Ethiopia - Buyer Credit / Interbank Buyer Credit : mechanical engineering

Kenya - Buyer Credit / Interbank Buyer Credit: mechanical engineering

South Africa - Discounting facilities, chemical industry

SMALL TRANSACTION – EGYPT

Project name Export of nutritional supplements for various sports

Exporter Hungarian exporter from food industry

Buyer Egyptian company

Total sum EUR 300.000

Insurance types This specific insurance facility covers the payment risks of the term of the credit after shipment has occurred, but it may be extended to also cover the manufacturing period, against payment of an additional premium.

MEDIUM TRANSACTION – CONFIRMATION L/C - IRAQ/UAE

Project name Delivery of transformers

Exporter Hungarian company

Buyer Company from Iraq

Advising bank (examination of documents) Commercial bank

Debtor Abu Dhabi Islamic Bank

Total sum 7.085.000 EUR

Credit types and conditions 1 year „silent” based credit (L/C) certificate

Nature of the project EXIM bares the default risk of ADIB. Despite the delivery to Iraq the UAE bank takes the risk od delivery. ADIB does not acknowledge the certificate due to it’s „silent” type. The examination of the documents is done by the exporter’s bank.

BIG TRANSACTION – INDONESIA

Project name Gas turbine purchase to Indonesia

Total sum More than 430 mln EUR (50% financed by EXIM – 50% finnaced by Export Developmetn Canada)

Credit types and conditions Classic Buyer’s credit , based on USD, tenor: 12 years, with MEHIB insurance

Nature of the project The project was financed by an international banking consortium (Hungarian EXIM and Export Development Canada, tha agent bank was Standard Chartered).

EQUITY FINANCING THROUGH INVESTMENT FUNDS

• EXIM Export Incentive and Promotion Fund (2016)

• EXIM Economic Incentive Fund (2016)

• Portfolion Regional Private Equity Fund (2014)

• China Central and Eastern Europe Investment Cooperation Fund (2014)

• IFC Partnership Trust Fund (2014), 20 M USD, PSLO

• IFC Financial Institution Growth Fund (2015)

• Kazakh-Hungarian Agriculture Cooperation Fund (2015)

• EU-Africa Infrastructure Trust Fund (2016)

DOMESTIC FUNDS INTERNATIONAL FUNDS

Address: Hungary, H-1065 Budapest, Nagymező street 46-48. Phone: +36 (1) 374 9100 / Phone: +36 (1) 374 9200

Fax: +36 (1) 269 4476 Web: www.exim.hu

Thank you for your attention!