A member of MUFG, a global financial group
Financing for Infrastructure Appropriate Risk Sharing between Public and Private
Structured Finance Division 5 March 2015
The Bank of Tokyo-Mitsubishi UFJ
1
MUFG at a Glance
Date of Establishment Aug.1919
Number of Employees Approx.120,000 MUFG Financials as of 30 September 2014(consolidated)
Total Asset JPY 264 trillion
Loan Asset JPY 103 trillion
Equity JPY 15 trillion
Network as of 30 September 2014
Domestic Branches Over 1,100
Overseas Branches Over 1,100
Total Over 2,200
Latest Rating (BTMU)
Moody’s A1
S&P A+
Fitch A
Mitsubishi UFJ Securities Holdings Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ
Auckland Sydney
Melbourne
Surabaya Jakarta Bandung
Singapore Labuan Ho Chi Minh
Manila
Kuala Lumpur
Chennai Yangon
Dhaka Mumbai Hanoi
New Delhi Karachi
Tehran
Bahrain Abu Dhabi
Cairo
Johannesburg
Moscow
Istanbul Seoul
Shanghai Wuxi Chengdu
Beijing Tianjin
Shenyang
Taipei Shenzhen Guangzhou
Hong Kong
Lisbon Madrid
Barcelona
Warsaw Prague
Vienna Milan
Birmingham London
Paris
Kowloon
New York Washington
Montreal Toronto Minnesota
Chicago Kentucky
Atlanta Dallas Houston
Vancouver Seattle
San Francisco Los Angeles
Mexico City Cayman
Caracas Bogota
Buenos Aires
Rio de Janeiro
Sao Paulo Santiago
Dalian Tianjin Binhai
Dubai Doha
Amsterdam
Frankfurt
Neemrana
Saint-Petersburg
Almaty Vladivostok Boston
Lima
Ulaanbaatar
Bangalore Penang
Perth
MUFG Global Network
Key Data
! BTMU acquired the Bank of Ayudhya Public Company Limited (BAY) in Thailand.
! BTMU Bangkok Branch was integrated into BAY in January 2015.
2
BTMU in India
BTMU in India
Chennai
Mumbai
New Delhi
Hyderabad
Bangalore
Kolkata Ahmedabad
Pune
Neemrana
Established in 1953, GM BranchBusiness Area: ( ) Ahmedabad ( ) etc.
Branch
Established in 2014Business Area:
( ) ( ) etc.
Branch
! More than Half of century in India " Since 1953 after Mumbai
branch (Former Bombay blanch) was established, BTMU committed to offer high quality service and operation to our valued clients for over 60 years.
! Wide Network India with 5 branches/offices
" On April 2, 2014, The Bangalore branch (With the full-banking license) commenced its operation as the fifth office of BTMU in India.
Established in 2012 Business Area:
Bawal Area ( )
Neemrana Branch
Established in 1963�Business Area �Delhi
Gurgaon Area (�������) Noida (Uttar Pradesh) � �����(����������) etc.
New Delhi Branch
Established in 1966 Business Area:
( )
( / ) etc.
Branch
3
Financing to Urban Infrastructure Development
Financing to Urban Infrastructure Development
ODA
ECA Finance (JBIC/NEXI etc.)
Corporate Finance
Project Finance
Capital Market
Budget Allocation
Infrastructure Funds
Finance MenuCivil Works
Master Plan, Civil Works, Real Estate Development.
Basic Infrastructure
Transportation, Power, Waste Management, Water etc.
Life & Smart Infrastructure
Life & Culture Related Facilities, Renewable Energy.
���
4
Major Risk Allocation between Public and Private Sectors
Key Considerations for Financiers in Infrastructure and PPP Projects Involving Public Sector
Key Project Risks Potential Mitigations for lenders Preferred Allocation
Preparation
! Land Acquisition ! Permit and license
! Complete land acquisition process and required regulatory process (i.e. License, Permit, Approval of authority etc.)
Public
Construction
! Cost overrun, late delivery of the project ! Fixed price and date certain contract structure with adequate performance guarantees, liquidated damages and warranties
Private
Demand ! Risk that overall demand for service is lower than initially forecasted
! Need for government to take demand risk, or provide support or allow unitary payment structure
Public
Offtaker ! Risk that offtaker is unable to meet payments under the contract due to poor creditworthiness
! Lack of Government support
! Need for government to support offtaker’s obligations ! Clear budget allocation and support process
Public
Operation and Maintenance
! Failure to meet quality standard or continuity of service provision
! Incentives / penalties mechanism to be applied to encourage the service provider to improve service delivery or remedy the failure promptly
! Sufficient market depth for replacement of non-performing contractor
Private
Construction
Operation
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Key Take-Away
Key Take-Away
Strong Government Support for Project Risk
! Prioritize the infrastructure development in each sector
! Provide strong government (financial and political) support by taking major project risk in order for international investors to understand the country and the sector
! Establish good track record in each sector
Facilitate Long-term Local Currency Funding Market
! Infrastructure assets require long term local currency funding due to revenue being denominated in local currency
! Development of local currency funding market helps private sector access stable funding sources
Clear Policy and Procedure ! Need for clarity and consistency in policies, legislations, procedures, decision making, government support/responsibility relating to infrastructure investments
! Transparency in bidding process with comprehensive development plans
! Need to develop and facilitate legal and regulatory framework
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Global Structured Finance
Organization Chart
Appendix. Introduction of MUFG Contact List
Tokyo Global Head
New York Investment Banking Division for the Americas
Tokyo Structured Finance Division
Structured Finance, Project & Real Estate Dept Project Finance Dept
Commodities & Structured Trade Finance Dept ECA, Commodities &Trade Finance Dept
BTMU Leasing & Finance Inc
M&A Finance Office
Australian Structured Finance Office
Real Estate Finance Office
Solution Finance Dept
Special Finance Dept
Fund Investment Office
Social & Environmental Risk Assessment Office
London European Investment Banking Division
European Structured Finance Office
Commodity & Structured Trade Finance Dept
Global Finance, Project, LBO, Special Finance Dept
Energy, Commodities & Trade Finance Dept
Singapore, Hong Kong Asia Investment Banking Division
Acquisition Finance, Securitization Dept
Asian Origination Team
Growth Strategy and Infrastructure Origination Team
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Asian Origination Team
Our Mission and Activities
Appendix. Introduction of MUFG Contact List
Our Mission ! Asian Origination Team (AOT) follows the important infrastructure opportunities in Asia from the very early stage.
! AOT provides long term support with the client working together with BTMU’s dedicated product offices such as project finance, ECA and trade finance.
Target Sectors ! Railway, Road, Airport, Port, Water, Power etc.
Activities and Services
! AOT supports clients by providing finance-related information and, if necessary, initial financial proposal from the early stage.
! For projects that require further support and financial advises at the execution stage, AOT introduces our specialists from the product offices such as ECA, Commodities & Trade Finance Dept and Project Finance Dept.
! Under the framework of Global Infrastructure Advisory Board, we encourage cross-regional marketing (joint pitch, international conference etc) by leveraging BTMU’s global expertise and network in infrastructure sector.
! Project stage and the involvement of BTMU
Feasibility Study FA Stage MLA Stage Early Discussion Financial Close
Product Offices (Project Finance, ECA etc)
Asian Origination Team
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BTMU ECA Finance Team
Global Coverage
BTMU has worked with more than 30 ECAs and Multilateral Agencies.
Appendix. Introduction of MUFG Contact List
European ECAs
IBDA (New York)
BTMU Brazil (Sao Paulo)
AIBD (Singapore, HK, Shanghai)
SFD (Tokyo)
EIBD (London)
! US-EXIM (USA) ! EDC (Canada) ! MIGA ! IFC ! IDB
North American ECA and Multilateral Agencies
! JBIC (Japan) ! NEXI (Japan) ! KEXIM (Korea) ! K-Sure (Korea) ! China-EXIM (China) ! Sinosure (China) ! EFIC (Australia) ! ADB (Philippine)
Asian/Oceanian ECA and International Multilateral Agencies
! ECGD (UK) ! COFACE (France) ! Hermes (Germany) ! SACE (Italy) ! CESCE (Spain) ! EKF (Denmark) ! Finnvera (Finland) ! GIEK (Norway) ! EKN (Sweden) ! ODL (Luxemburg) ! SERV (Switzerland) ! EGAP (Czech Rep.) ! KUKE (Poland) ! Atradius (Netherlands) ! ONDD (Belgium) ! OeKB (Austria)
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BTMU’s Presence in the Global ECA Market
Global ECA League Table (in USD million)
Appendix. Introduction of MUFG Contact List
2011 2012 2013
MLA Amount Share Deal MLA Amount Share Deal MLA Amount Share Deal
1 HSBC 4,702 7.5% 48 BTMU 7,919 8.4% 47 BTMU 5,220 9.1% 41
2 BTMU 3,769 6.0% 36 HSBC 5,855 6.2% 62 HSBC 4,731 8.2% 48
3 SMBC 3,557 5.7% 38 Mizuho 4,862 5.2% 44 Mizuho 4,202 7.3% 26
4 BNP Paribas 3,388 5.4% 47 SMBC 4,223 4.5% 41 JPMorgan 3,569 6.2% 11
5 JBIC 2,954 4.7% 10 Citi 3,543 3.8% 24 SMBC 3,433 6.0% 30
6 SG CIB 2,800 4.5% 33 Deutsche Bank 3,148 3.3% 28 Citi 2,539 4.4% 18
7 Ex-Im Bank 2,700 4.3% 2 Santander 3,047 3.2% 21 SG CIB 2,099 3.7% 25
8 Citi 2,529 4.1% 21 BNP Paribas 2,685 2.9% 33 BNP Paribas 1,911 3.3% 30
9 Mizuho 2,491 4.0% 24 ING 2,635 2.8% 18 ING 1,708 3.0% 19
10 Bank of China 2,225 3.6% 9 SG CIB 2,153, 2.3% 18 Santander 1,466 2.6% 22
Total 62,459 94,409 57,443
(Source) Dealogic
11
16,227
13,451
9,8489,003
8,054 7,555 7,277 6,884 6,3945,647
139
112
80 73 80 77
53 4867
25
0
30
60
90
120
150
180
0
3,000
6,000
9,000
12,000
15,000
18,000
MitsubishiUFJ
SMBC MizuhoFinancial
BNP Paribas CreditAgricole
ING CBA HSBC SocieteGenerale
SBI Capital
Amount in USD (m) No of deals
BTMU’s Global Presence in Project Finance
Consistently Positioned as a Top PF Bank
Appendix. Introduction of MUFG Contact List
Mandated Lead Arranger Ranking Full Year 2014
Rank Arranger Amount in USD million Share No. of Deals
1 MUFG 16,227 6.1% 139 2 SMBC 13,451 5.1% 112�
3 Mizuho 9,848 3.7% 80
4 BNP Paribas 9,003 3.4% 73
5 Credit Agricole 8,054 3.1% 80
6 ING 7,555 2.9% 77
7 CBA 7,277 2.8% 53
8 HSBC 6,884 2.6% 48
9 Societe Generale 6,394 2.4% 67
10 SBI Capital 5,647 2.1% 25
! BTMU is a major Project Finance houses on a global basis.
! BTMU was Awarded Global Bank of the Year 2013 and 2011 by PFI.
! BTMU was ranked 1st globally and in Americas in 2013 full year league table by PFI.
! BTMU is consistently positioned as a top global project finance bank: " Sole bank consistently
ranked within top 10 over the last 12 years globally.
" Sole Japanese bank ranked within top 10 over the last 12 years globally.
(Source) Project Finance International (2014)
(USD (m))
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Contact ListAppendix. Introduction of MUFG Contact List
Masayuki Fujiki Head of Asian Origination Team 81-3-6259-2519 [email protected]
Tomonori Miyagawa Senior Manager 81-3-6259-2366 [email protected]
Hideto Shimonishi Manager 81-3-6259-2396 [email protected]
Tomohiro Komuro Manager 81-3-6259-2391 [email protected]
Chika Fukuyama Manager 81-3-6259-2380 [email protected]
Mizuho Nishi Associate 81-3-6259-2317 [email protected]
Takahiro Inoue Associate 81-3-6259-2392 [email protected]
Asian Origination Team
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Disclaimer
The information herein is provided for information purposes only, and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. Neither this nor any other communication prepared by The Bank of Tokyo-Mitsubishi UFJ, Ltd. (collectively with its various offices and affiliates, “BTMU”) is or should be construed as investment advice, a recommendation to enter into a particular transaction or pursue a particular strategy, or any statement as to the likelihood that a particular transaction or strategy will be effective in light of your business objectives or operations. Before entering into any particular transaction, you are advised to obtain such independent financial, legal, accounting and other advice as may be appropriate under the circumstances. In any event, any decision to enter into a transaction will be yours alone, not based on information prepared or provided by BTMU. BTMU hereby disclaims any responsibility to you concerning the characterization or identification of terms, conditions, and legal or accounting or other issues or risks that may arise in connection with any particular transaction or business strategy. Note that BTMU may have issued, and may in the future issue, other reports that are inconsistent with or that reach conclusions different from the information set forth herein. Such other reports, if any, reflect the different assumptions, views and/or analytical methods of the analysts who prepared them, and BTMU is under no obligation to ensure that such other reports are brought to your attention.
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