Transcript Slide 1
4/26/2020
Export Development Bank Of Iran
ميحرلا نمحرلا الله مسب In the name of GOD
Fifth Meeting of the COMCEC Trade Working Group (March 6 Th 2015 Ankara – Turkey) 1
EDBI Overview
• • • • • Export Development Bank of Iran (EDBI) is state-owned entity and rendering a range of customer products.
The Bank was established in 1991 in order to promote non-oil exports and develop business exchanges with Iran’s international trading partners. Acting as agent bank for CBI’s credit line allocated to target market.
The Bank also acts as agent for the Islamic Development Bank, providing loans to Iranian entities under IDB’s credit lines. EDBI aims to finance 30% of Iran’s non-oil exports and to build on its current 70% credit facilities for Iranian exports.
Bank data
• • • • • • Start activities: Sep. 1992 Bank Type: Specialized/Exim Bank (mainly Promoting Exports) Employees: 1100 Regulator: Central Bank of Iran Foreign subsidiaries: 2 Domestic Branches: 40 • • • • • • Ratings 2013 (Capital Intelligence) Foreign currency: Long term: B Short-term: B Financial Strength: BB Support: 4 Outlooks: Stable
20/3/ 2014 (IRR Billion)
Total Revenue: 5,834 ($ 228.8 million) Pre-tax Profit: 594($23.3 million) Net Profit: 549 ($ 21.5 million) Total Assets: 133,585($5,237 million) Total Liabilities:90,582($3,552 million) Total Equity: 43,003 ($1,686 million) • • • Financial ratio: ROA: 0.41% ROE: 1.28% Core Capital Adequacy Ratio: (Basel II): 23.29%
• • • • • •
Financial Services
The Bank’s business model is to provide financial services to exporters such as: Project Finance Investment Finance Trade Finance - Pre-shipment finance: Suppliers’ Credit (working Capital).
- Post-shipment finance: Buyers’ Credit (MLT) and Discounting deferred LCs (Short Term).
Bonds, Guaranrees, LCs, Documentary Collection.
Uderwriting of securities.
Financial Services
• • EDBI is financing imports items (raw materials, intermediary and capital goods) by its own sources or foreign banks credit lines.
Offering financing by means of issuing foreign currency Certificate Deposits and establishing insurance coverage through getting ownerships rights such as mines and road tolls.
Vision and Mission
Promote the growth/expansion of the export sector.
Optimizing finance and minimizing risks.
Develop businees plan (Budgetary implications).
Synergy with commercial and private banks for supporting of exporters.
Appying suitable credit rationing for exporters (extensive and intensive margin of exports).
EDBI aims to finance 30% of Iran’s non-oil exports and to build on its current 70% credit facilities for Iranian exports.
Export Development Bank Of Iran
Main markets –Buyers’ Credit:
- Neighboring countries
(Azerbaijan, Iraq, Pakistan ... )
- CIS
(Armenia, Tadzhikistan, Turkmenistan… )
- Africa
(Sudan, Djibouti, Senegal, Ivory coast, Ghana, Zimbabwe ….)
- Latin America
(Cuba , Bolivia, Venezuela )
- Other Asian countries (Oman, Sri Lanka … ) 7 4/26/2020
Export Development Bank Of Iran
Main fields of financing:
- Water and sewage - Dam, power plants and power transmission lines - Road construction - Housing - Industry and mine - Exportation of machineries and equipments - Exportation of consumables and foodstuffs 8 4/26/2020
Export Credit Extended U$D Billion ٍ 3,1 2,7 2,4 3.5
3,5 3,0 2,5 2,0 1,5
1,9 1,2 1,3
1,0
0,6
0,5 0,0 1385 لاس 1386 لاس 1387 لاس 1388 لاس 1389 لاس 1390 لاس 1391 لاس لاس ينيب شيپ رب 1392 فادها ساسا كناب يمك 9
Milestones
• • • • About $2 Billion Credit facilities each year.
Other banking services about $1 billion. About 5 per cent of credit risks covered by EGFI About 60% of the loans extended in form of working capital (short term).
Business Volumes
• • EDBI’s business volume and percentage of national export for fiscal year 2013 are 2.2 billion dollars and 6.49 percent respectively. EGFI’s business volumes and percentage of national insurance coverage for fiscal year 2013 are 1.09 billion dollars and 1.73 percent respectively.
Export Development Bank Of Iran
Our interests :
• EDBI may undertake Co-financing with foreign partners in project finance. • EDBI may undertake the financing while foreign partners will provide EDBI with the necessary guarantees. •
Possible Areas of Cooperation:
• Bonds,Guarantees,Trade Finance and project finance.
4/26/2020 12
• • • • •
Main challenges
Exporters: Sunk cost (lack of liquidity) EXIM Bank/ ECA: (Budgetary implications).
Credit Rationing: Exporters with lack of liquidity refer to banks to obtain loans, banks execute a credit rationing on exporters’ demands. Extensive margin of export (possibility of exporting). Intensive margin of export (the effect of credit rationing on foreign sales).
Proposals
• • Syndication loans (Co-Finance) and insurance coverage for project finance in member or non member countries.
Project Finance (with or without recourse), in two columns (loan under supplier and buyer credit and investment under issance of securites in target market).