“EXIM BANK’S PERSPECTIVE IN GREEN PROJECTS EVALUATION”

20th May 2013

Md Harris Md Taib

Chief Business Officer

1. Profile

2. Business Networking

3. Products and Services Highlights

4. Facility Outreach

5. Green Projects

Table of Content

Export Import Bank of Malaysia Berhad (EXIM) - Profile

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Export Import Bank of Malaysia Berhad (“EXIM”) is Malaysia’s sole development financial institution dedicated to the

promotion of external trade (cross-border)

Introduction

Shareholder Minister of Finance Inc., Malaysia (100%)

Authorized Capital RM3.0 billion (USD980.94 million)*

Paid-up Capital RM2.7 billion (USD882.84 million)*

International Rating Fitch: A- Moody’s: A3

Current Staff Strength 275

Offices Head Office in Kuala Lumpur and two (2)

representative offices in Penang and Johor

Baru

Business Coverage Banking, Trade Credit Insurance and

Advisory

Global Coverage Business transactions and facilities for

customers in 77 countries across 5

continents

Note * : USD 1 = RM 3.0583 as at 31st Dec 2012

EXIM Bank - Business Networking

Government Agency EXIM interaction

� Regularly participates in trade missions organized by MITI

� Participates in the annual SMIDEX exhibition organized by SME Corp., a unit of MITI

� Submit Statement of Corporate Intent and Annual Funding Requirements for their

comments

� Regularly participates in trade missions organized by MATRADE

� Regularly participates and jointly organize exhibitions/seminars led by MATRADE

� Participation in National Investment Seminar

� Promotion of reverse investment initiatives

� Participation in ongoing economic development in regional economic corridor

� Sharing market information

� Organize EXIM Overseas Guarantee Facilities (EOGF) road shows in Malaysia

� Participation in “Going Global” seminar nationwide

� CIDB briefing to all EXIM Bank staff on global construction outlook

� Recently participated in an investment visit to Myanmar

The Bank interacts closely with other agencies of the Malaysian government, in their programs for promoting exports.

Among them:

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Interaction with other Agencies of the Government

Government Agency EXIM interaction

� Regurlarly participates in SME Corp Malaysia‘s seminars and events in order to assist

Small and Medium Enterprise companies in Malaysia to penetrate the global market.

� Among the Financial Institution who finance companies with the 1-Innocert Certification.

� Provide assistance to companies referred to by SME Corp Malaysia.

� Actively participate in their seminars especially for the TERAS companies to help

Bumiputera companies achieve success in their business.

� Participates in seminars or forums organised by Biotech Corp.

� Provide assistance to BIO-NEXUS certified companies in sourcing for fund in financing their

project overseas.

� Supports the Green Technology Financing Scheme (GTFS)

� Actively involve in the Business Review Presentation organised by Malaysian Greentech

Corporation Sdn Bhd.

The Bank interacts closely with other agencies of the Malaysian government, in their programs for promoting exports.

Among them:

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Interaction with other Agencies of the Government (Cont’)

Organization Description EXIM interaction

� Founded in 1934 as an international, non-profit

organization

� Dedicated to facilitating world-wide cross-

border trade and investments by fostering

international acceptance of sound principles in

export credits and investments insurance, and

by providing a forum for professional

exchanges among its members

� Member of Berne Union since 1983

� Promote best practices through exchange of

information on our activities, policies and procedures

and through the development of relevant

agreements and standards

� Co-operating and partnering with commercial,

bilateral and multilateral and other organizations

involved in export trade and investment business

� Training and workshop conducted by subject matter

experts across 38 countries

Asian EXIM Banks Forum (“AEBF”)

� AEBF was established in 1996, through the

initiative of the Export-Import Bank of India

� Serves as a forum for discussing a wide range

of issues, and fostering common understanding

and sharing information among EXIM Banks in

Asia

� Members include, among others, Japan

International Co-operational Agency (“JICA”)

and Asia Development Bank (“ADB”)

� Member of AEBF since 1996

� In 2002, the 8th AEBF was held in Kuala Lumpur,

Malaysia

� In 2010, EXIM Bank Malaysia hosted the 13th

Training Program on Risk Management

� Participated in various training programs organized

by other members, with the objective of improving

knowledge of all ECA officers in all areas related to

export credits

� In 2011, EXIM Bank Malaysia hosted the 17th AEBF

Annual Meeting

The Bank has forged strategic alliances with various international organizations, as a means to promote Malaysian

exports

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International Strategic Alliances

EXIM Bank- Facility Outreach

EXIM BANK’S EXPOSURE ALL AROUND THE WORLD

EXIM provides support to Malaysian exporters that Malaysian commercial banks are less able to lend to, on account of the

banks’ lack of coverage in international operations or lack of appetite for such cross border risk

EXIM’s Total Cross Border Exposure Breakdown by Country*

… By Providing Support in Overseas operations

ASIA

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Asia (excluding Middle East)

72%

Europe10%

Middle East8%

Oceania4%

Africa3%

America 3%

Note * : as at December 2012

Exposure driven by industries where Malaysian exporters are competitive, including construction and manufacturing

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Industry Exposure

Loan Breakdown by Industry*

Manufacturing, 21.5%

Construction, 18.3%

Government Loans, 17.2%

Electricity, Gas & Water Supply,

12.6%

Wholesale and Retail Trade, and Restaurant and Hotels, 11.3%

Mining & Quarrying, 8.4%

Agriculture, 7.4%

Transport, Storage & Communication,

2.3%

Finance, Insurance & Real Estate Activities,

1.0%Others, 0.1%

Note * : as at December 2012

• Export of Goods

• Export of Services

• Overseas Investments

EXPORT

• Raw materials, intermediary goods for value adding intended for export

• Capital goods for export oriented productive capacity

• Strategic Imports

IMPORT

• Advisory services via research on external political and economic risk of the investee companies

ADVISORY

AREA OF BUSINESS

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EXIM Bank- Products and Services Highlights

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Funded

• Short Term Financing

• Medium & Long Term Financing

Non-Funded

• Government Initiative Scheme

• Guarantee Facility

Banking Products (Funded)

Short Term Financing

Supplier Credit Facility (SCF) OR OR OR OR

SCF-i

Buyer Credit Trade Facility (BCTF) OROROROR

BCTF-i

Medium & Long Term Financing

Overseas Contract Facility (OCF) OR OR OR OR OCF-i

Export of Services (ESF) OR OR OR OR ESF-i

Buyer Credit Facility (BCF) OR OR OR OR BCF-i

Overseas Project Financing Facility (OPF) OROROROR

OPF-i

Banking Products (Non-Funded)

GovernmentInitiative Scheme

Export Credit Refinancing (ECR) OR OR OR OR

ECR-i

Malaysia Kitchen Financing Facility (MKFF) OR OR OR OR MKFF-i

Exim Overseas Guarantee Facility (EOGF) OR OR OR OR EOGF-i

Guarantee Facility

Bank Guarantee Facility (BGF) OR OR OR OR BG-i

Forward Foreign Exchange (FFE) OR OR OR OR FFE-i

ADB-EXIM Trade Finance Programme OR OR OR OR IDB

Co-Financing

Letter of Credit Facility (LC) OR OR OR OR LC-i

Insurance against losses/ non payment arising from

commercial and/or political risks while undertaking

project or contract in overseas countries and export

activities.

CommercialRisks

Political / Country

Risks

Credit Insurance Coverage

Short Term Insurance

Comprehensive Policies

Bank Letter of Credit Policy

Multi Currency Trade Financing Scheme

Indirect Exporter’s Financing Scheme

Comprehensive Takaful Shipment

Medium & Long Term Insurance

Specific Policies

Specific Takaful

Buyer Credit Guarantee

Credit Insurance Products

Political Risk Insurance (PRI)

Overseas Investment Insurance

Bond Risk Insurance

Bond Indemnity Support

Credit Insurance Products

PRI covers losses from the following risks:-

•Currency Inconvertibility

•Transfer Restriction

•Expropriation

•War and Civil Disturbances•Political Violence

•Breach of Contract

EXIM Bank -Green Projects

PARTICIPATION WITH AGENCIES

MALAYSIA GREENTECH CORPORATION SDN BHD

� One of the Development Financial Institution who support the Green Technology

Financing Scheme (GTFS).

� Actively involved in the Business Review Presentation by companies with GTFS

Certificate organized by Malaysian Greentech Corporation.

� Participated in the International Greentech & Eco Products Exhibition & Conference

Malaysia (IGEM) 2013.

PARTICIPATION WITH AGENCIES

GREEN LANE POLICY

� Aimed to fast track and facilitate certified innovative SMEs in obtaining:-

a) Soft Loans

b) Tax Benefits

c) Priority in Government procurement

d) MOF Inc. companies incentives

� Currently financing 7 companies in various sectors such as Oil & Gas,Manufacturing of Machine Vision System, Metal Related Products, Beverages,

Power Generation, Animal Feed Additives and Solar Panels.

PARTICIPATION WITH AGENCIES

MALAYSIAN BIOTECHNOLOGY CORPORATION

� Attended the seminars and give talks to all the Bio Nexus certified companies in

ways to finance the companies abroad.

� One of the mandate given to Biotech Corp is to actively promote foreign direct

investment and EXIM Bank is there to support this initiative.

EVALUATION OF AN APPLICATION

� All application is processed equally. Things that we look at are:-

� A Malaysian incorporated company and have at least 3 years experience

in doing the business;

� At least 2 years Audited Account

� A good and viable business plan;

� Experienced Management Team of the Company;

� Application is within our mandated role;

� Value add to Malaysia’s economy;

� At least 30% Malaysian content

CASE STUDY 1

Country Thailand

Project To Design, Build, Procure and Operate a Waste to Biogas

Power and Fertilizer Plant (the WTE plants) a 30-year

Concession in Thailand.

Loan Amount USD21.0 million

Shareholders Malaysian - 72%

Private Investors - 18%

Municipal - 10%

� The end products from the project are electricity and fertilizer. Electricity

will be sold via a Power Purchase Agreement, while fertilizer will be sold to

the customer’s existing buyers.

� The project will generate income from the following sources:

– Revenue from sale of power (16% of total projected revenue)

– Sale of fertilizer to existing buyers (60%)

– Tipping fees from collection of Municipal Solid Waste (5%)

– Sale of recyclables (19%)

CASE STUDY 1(con’t)

CASE STUDY 1(con’t)

CASE STUDY 2

Borrower PT Senangan Energi

Country Sungai Kreung Isap, Acheh, Indonesia

Project Construction of 2 units of 5MW River Run Hydro Power

Plant

Loan Amount USD24.4 million

Shareholders Malaysian – 95%

Indonesian – 5%

CASE STUDY 2 (con’t)

� The hydropower plant technology used for this development is of Run-of-

River type.

� Run-of-River type encompasses small scale hydroelectric that requires no

dam, reservoir or flooding to generate electricity.

� The natural flow and elevation of a river is used to generate power.

Berita Harian (10/5/2013)

CASE STUDY 2 (con’t)

CASE STUDY 2 (con’t)

Contact us1. 1. Encik Md Harris Md Taib – Chief Business Officer

2. 2. Encik Chairil Mohd Tamil – Head, Banking Dept

Export-Import Bank of Malaysia Berhad

Level 1, EXIM Bank

Jalan Sultan Ismail

50250 Kuala Lumpur

MALAYSIA

Tel : 03 – 2601 2229

Fax : 03 – 2601 2453

Log on to : www.exim.com.my

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Thank You