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4 th VIENNA ECONOMIC FORUM 5. -6. November 2007. Financing Solutions for Infrastructure Financing Johannes Kinsky, Member of the board, Erste Group. Presentation topics. Introduction Market/Potential. Introduction – Is Erste Group a pure retail bank?.
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4th VIENNA ECONOMIC FORUM5. -6. November 2007 Financing Solutions for Infrastructure Financing Johannes Kinsky, Member of the board, Erste Group
Presentation topics • Introduction • Market/Potential Group Corporates & Investment Banking EB Group Financing Solutions
Introduction –Is Erste Group a pure retail bank? • From a first perspective most would agree, however • Currently the large corporate and international business accounts for about 19% of the group’s risk weighted assets • Nevertheless large corporate and international business is already highly efficient and profitable • Group Corporates & Investment Banking (GCIB) already makes a significant contribution to the group’s success • Result of successful expansion efforts shows that we can do it (e.g. real estate, ECM & DCM in Austria, M&A in Czech Republic, structured finance) Group Corporates & Investment Banking EB Group Financing Solutions
Presentation topics • Introduction • Market/Potential Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance • European Action of Growth identified 30 priority ten t projects amounting to an estimated EUR 225 billion of total investment cost • European Council agreed for the period 2007 – 2013 on Cohesion for growth and employment EURO 347 Billion Cohesion Policy Annual EU funding (2007 – 2013) in Billion EURO Source: EU Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance European Council agreed funds with an volume of EURO 347 Billionfor the period 2007 – 2013 on Cohesion for growth and employment Annual EU Cohesion policy funding in selected markets (2007 – 2013) in Billion EURO Source: EU Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance Railway km per 100.000 inhabitants in relation to GDP per capita Potential for upgrading the network and new HSL lines CZ HU AT SK RO CR UA RS The size of the bubbles are determined by each country‘s GDP Source: ERSTE Research and National railway companies Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance Km roads per 100.000 inhabitants in relation to GDP per capita Potential for upgrading and extension of the network AT HU SK RO CZ UA CR RS Source: ERSTE Research and Transportation ministries Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance Public hospital beds in relation to GDP per capita Potential to improve medical care (acute centers,new hospitals, retirement facilities) UA CZ HU AT RO SK CR RS* *There is no data available on health expenditure in Serbia. Source: EU Research and World health organization Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance • Funding requirements needs additional funding sources • JASPER • JEREMIE • European Investment Bank (EIB) • European Bank for Reconstruction and Development (EBRD) • European Investment Fund (EIF) • IFC • Innovative financing mechanisms • Grant Programmes • Special-purpose funds • Commercial funding agencies • Public – Private - Partnership • Penion funds and other large institutions • Diversify and expand traditional revenue-raising sources Group Corporates & Investment Banking EB Group Financing Solutions
Market/PotentialFocus on Infrastructure Finance • Liaison with multinational financing agencies (EIB, EBRD, IFC) and EU-entities i.E. • European Comission • DG Engergy and Transport (DG TREN) • DG Market (Tenders) • DG Regio • European Agency for Reconstruction to increase infrastructure finance activities • Support for applications of EU funds (European Regional Development Fund, Cohesion Fund…….) • Assistance in preparation of bankable project • PPP advisory Group Corporates & Investment Banking EB Group Financing Solutions
Thank you very much for your attention Group Corporates & Investment Banking EB Group Financing Solutions