- 1 - The Role of IFIs in CEE Securitisations The EBRD Perspective Tõnu Pekk Senior Banker,...

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The Role of IFIs in CEE SecuritisationsThe Role of IFIs in CEE SecuritisationsThe EBRD PerspectiveThe EBRD Perspective

Tõnu PekkTõnu PekkSenior Banker, Non-Bank Financial Institutions & Senior Banker, Non-Bank Financial Institutions &

Structured FinanceStructured Finance

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Introduction to EBRD

EBRD experience in ABS

Role of IFIs in Securitisations to Date

AgendaAgenda

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Introduction to EBRDIntroduction to EBRD

International financial institution established in 1991, owned by 60 national and 2 supranational shareholders

Shareholders include CEE, CIS and EU member states, USA, Canada, Japan, Australia, New Zealand, EU and EIB

Promotes market-based economies in 29 countries from Central Europe to Central Asia; provides debt and equity financing to both state and private sector projects

Representative offices in all countries of operation Capital base of € 20 billion

15 successful years of operation

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EBRD’s Role in the Financial SectorEBRD’s Role in the Financial Sector

Promote market-based financial institutions and contribute to institution building

Support private and entrepreneurial initiatives, acting as a door opener for local and western investors

Engage in policy dialogue with operators and authorities to strengthen regulatory/legislative frameworks and enhance overall corporate governance and institutions

Support the development of local capital markets, new securities and the access to secondary market refinancing

EBRD provides value-added support

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EBRD experience in ABS - concept EBRD experience in ABS - concept

Supports the development of

pension managersand life insurance

Lends to the Financial Intermediaries

Capital MarketsEBRD supports the

development of the capital markets by helping to bring together the creators of long-term funding and users

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EBRD experience in ABS – pre-financingEBRD experience in ABS – pre-financing

Leasing – Portfolio of loans to finance leasing companies throughout the region in

excess of € 500 million

Mortgage– Portfolio of loans to both commercial banks and specialist mortgage

institutions throughout the region in excess of € 500 million.

– Introduction of EBRD’s Minimum Standards and Best Practices for mortgage lending

Consumer Finance – Portfolio of over € 200 million loans to consumer finance institutions in the

region

– Key criteria for selecting best market operators in terms of lending practices and transparency

Other assets– SME loans, Trade Finance receivables

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Russia

€250,000,000Securitisation of Russian

consumer loans

November 2005

€8,500,000Mezzanine notes

Russia


consumer loans

November 2005


Russia

€300,000,000 Securitisation of Russian

consumer loans

April 2006

€30,000,000Hybrid notes


Russia

€300,000,000 Securitisation of Russian

consumer loans

April 2006

€30,000,000Hybrid notes


Russia


auto loans

November 2006

€20,000,000Junior notes

Russia


auto loans

November 2006

€20,000,000Junior notes

Russia

$403,000,000

Securitisation of Russian auto loans

October 2006

$15,000,000Junior notes

$20,000,000Commingling risk facility

Russia

$206,300,000

Securitisation of Russian mortgages

April 2007

$1,500,000Mezzanine notes

$8,500,000Junior notes

Russia

RUB 3,294,794,000Securitisation of Russian

mortgages

May 2007

RUB 264,000,000 Class B bonds

Russia

RUB 3,294,794,000Securitisation of Russian

mortgages

May 2007

RUB 264,000,000 Class B bonds

EBRD experience in ABS – transactionsEBRD experience in ABS – transactions

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Role of IFIs in SecuritisationsRole of IFIs in Securitisations

Helping to overcome obstacles to securitisation:

Short asset performance history, although improving

Standards

Legal issues and untested court systems

Status

Limited local currency ABS investor base

Funding

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Role of IFIs in Russian ABS to DateRole of IFIs in Russian ABS to Date

06 VTB RMBS IFC GOLF, mez investment

06 City Mortgage RMBS OPIC mez

05 RSB (Private) Consumer Loans

EBRD mez

06 RSB Consumer Loans

EBRD & IFC mez, EBRD A2 Comingling notes

06 RSB Auto Loans EBRD & IFC mez

06 MDM Auto Loans EBRD mez underwriting; EBRD Comingling Loss facility

07 AHML RMBS EBRD mez

07 RZB Auto loans IFC junior and mez

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Role of EBRD in SecuritisationsRole of EBRD in Securitisations

What can EBRD Provide?

Credit enhancement for public ABS:

– Investor in Junior Tranches – Mezzanine, potentially also Equity (in foreign and local currency)

– Liquidity Facilities – Including commingling, transfer & convertibility risk coverage

– Unfunded Risk Participation – synthetic credit enhancement

Warehousing Structures

Foreign Exchange & Interest Rate Hedging Solutions

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Contact DetailsContact Details

[email protected]:

+44 20 7338 6105Fax:DIRECTOR

+44 20 7338 6638Tel:Jonathan Woollett

Structured Finance & Securitisation

[email protected]:

+44 20 7338 6199Fax:SENIOR BANKER

+44 20 7338 7516Tel:Tõnu Pekk

[email protected]:

+44 20 7338 6105Fax:PRINCIPAL BANKER

+44 20 7338 6718Tel:Andreea Moraru

[email protected] Email:

+44 20 7338 7163Fax:ASSOCIATE BANKER

+44 20 7338 7647Tel:Yerbolat Rakhmetov

- 1 - The Role of IFIs in CEE Securitisations The EBRD Perspective Tõnu Pekk Senior Banker,...

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