International Corporates and Institutions – Project and Trade Finance

1. DnB NOR – Latin American set up International Corporates and Institutions – Project and Trade Finance Latin America, Africa and Middle East desk

2. Agenda: • Who are we? • How can we contribute? • Latin American competence • Solutions & Experience DnB NOR Bank – International Corporates and Institutions

3. Who are we? Area Products/responsibility • Relationship managers for international financial institutions and insurance companies within OECD • Serving clients of other banks Intl. Financial Institutions • Multi-sourcing, (structured financing solutions involving external financing, TF instruments and country-risk expertise.) • Trade Finance • Relationship manager for banks outside the OECD area • Responsibility for countries in emerging markets Project & Trade Finance • Analysis of banks and country for credit purposes Risk Analyses Group DnB NOR Bank – International Corporates and Institutions

4. DnB NOR – International Presence DnB NOR offers reliability, long-term commitment DnB NOR Bank – International Corporates and Institutions

5. Agenda: • Who are we? • How can we contribute? • Latin American competence • Solutions & Experience DnB NOR Bank – International Corporates and Institutions

6. How can we contribute? • Geographical specialisation,dedicated specialists covering emerging markets • Asia, Central and Eastern Europe • Latin America, Africa and Middle East • Extensive network in local markets • Banks • Lawyers • Consultants • Governmental institutions • Local business environment DnB NOR Bank – International Corporates and Institutions

7. How can we contribute? • Trade Finance and guarantees • Multi-sourcing: structured financial solutions using external hedging and funding sources • Multilaterals and regional development banks • ECAs • Credit insurance • Local banks • Advisory services to customers and account officers • Providing advice on political risk and financial services to clients who trade with or operate in these areas • Issuing regional market updates on regular basis • Cash management DnB NOR Bank – International Corporates and Institutions

8. Agenda: • Who are we? • How can we contribute? • Latin American competence • Solutions & Experience DnB NOR Bank – International Corporates and Institutions

9. Latin American competence • Latin American team • Several skilled associates in Norway covering the regions • A representative office in Rio de Janeiro, Brazil covering Brazil. • Since 1970 • In September 08 DnB NOR opened a branch in Santiago, Chile • Market advising • Experience and an extensive network • Language and cultural knowledge • Watch the markets closely, distribute bi-monthly market reports and frequently arrange seminars • Products • Administrative handling, financing, risk management, currency services and cash management. DnB NOR Bank – International Corporates and Institutions

10. Agenda: • Who are we? • How can we contribute? • Latin American competence • Solutions & Experience DnB NOR Bank – International Corporates and Institutions

11. Good financial incentives in Brazil- Merchant Marine Fund • Created in 1958. • Purpose: to finance the yard & shipping industry. • Funding source: tax on freight charged on imports (lately also directly from Ministry of finance) • FMM is part of the Ministry of Transportation • Three agents for the fund: • BNDES, • Banco do Brasil • Banco do Nordoeste DnB NOR Bank – International Corporates and Institutions

12. Good financial incentives in BrazilFMM - regulations Currency: USD (linked) Interest rate: 2,5%-5% p.a. dependent on rating/guarantee structure (Depends on local content) Disbursement/Grace: Up to 48 months Tenor: Up to 20 years Participation: Up to 90% of project funding Disbursement: Monthly, according to financial and construction schedule Security: Mortgage Bank SBLC/corporate guarantees Charter contracts DnB NOR Bank – International Corporates and Institutions

13. Good financial incentives in Brazil • Typical structure of transactions with DnB NOR • 90 % financing • Tenor 14 – 17 years • Interest rate 3 % fixed + DnB NOR margin • Security – Stand By Letter of Credit(SBLC) from DnB NOR with 4-5 years tenor • SBLC covering approx 110% of the loan(loan + 6 months interest + penalties etc) • Timing – 6 months from application until disbursement with FMM/BNDES, but dependent on board meeting in FMM DnB NOR Bank – International Corporates and Institutions

14. Good financial incentives in BrazilDnB NOR experience • Long term financing of 11 vessels together with BNDES/Banco do Brasil • Total exposure with BNDES approx USD 500 mill • DnB NOR largest international partner bank with BNDES DnB NOR Bank – International Corporates and Institutions

15. Trade Finance • All Trade Finance instruments • Bid bonds • Performance bonds • Letters of Credit • Cash against documents • Discounting of drafts DnB NOR Bank – International Corporates and Institutions

16. Relationship with Petrobras • Approved issuer of guarantees/SBLCs • Relationship between Rep. Office & Petrobras • Petrobras renewing focus on ECA financing • Good potential from Norway • Approved by ANP DnB NOR Bank – International Corporates and Institutions

17. EXPORT CREDITS Export Credit Agencies (ECAs) • Based on an OECD agreement • The countries offer their respective export industries similar financing terms • Fixed interest rates determined by the OECD – the so-called CIRR • In general all countries have the same main principles with regards to; • Loan amount (up to 85% for capital goods and 80% for ships) • Tenor: minimum 2 years • Repayment in semi-annual, equal installments • In Norway, the systems is based upon two institutions • GIEK, state owned and offering guarantees, and Eksportfinans, owned by banks (85%) and state (15%), offering CIRR funding • Normally 50% of the contract value should be Norwegian content DnB NOR Bank – International Corporates and Institutions

18. 100% Contract value 15% / 20% prepayment Capital goods: 85 % Ships: 80% CIRR loan from Eksportfinans Up to 95% (of loan) guaranteed by GIEK EXPORT CREDITS The structure 5% guaranteed by DnB NOR Contract content Maximum financing is 85%/80% of the contract value, while GIEK can cover up to 95% of the commercial and political risk of the loan. The additional part (5% or more), can be covered by an other financial institution such as DnB NOR. DnB NOR Bank – International Corporates and Institutions

19. What else have we done in Latin America- some examples • Chile – Financing of hydro electric power plant together with IFC • Peru – Financing and syndication of loan together with GIEK for Norwegian owned fishing company • Nicaragua – Securing delivery of wind mills in cooperation with Cabei – regional development bank • Uruguay – In cooperation with Finnvera and IFC, financing of pulp & paper plant • Brazil – Financing of Norwegian equipment to shipyards together with GIEK • Panama – Financing of terminal together with IFC and local banks DnB NOR Bank – International Corporates and Institutions

20. Latin America, Africa and Middle East • Arne-Christian Haukeland E-mail: arne.haukeland@dnbnor.no Tel: + 47 55 21 19 53 • Karen Kosberg E-mail: karen.kosberg@dnbnor.no Tel: + 47 22944659 • Kjetil Høydal E-mail: kjetil.hoydal@dnbnor.no Tel: + 47 22481534 • Lars Kvamme E-mail: lars.kvamme@dnbnor.no Tel: + 47 55 21 18 11 • Tom Ringseth (Brazil) E-mail: tom.ringseth@dnbnor.com.br Tel: + 55 21 22 85 17 95 DnB NOR Bank – International Corporates and Institutions