ČSOBSupports

International Trade

2st ČSOB Czech – Asian Business Forum Prague, 3th March 2007

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• foreign and domestic payments (correspondent bank network)

• documentary business L/C, L/G

• FX spot and hedging

• local financing

• export credits and structured finance (acquisition, project and commodity finance)

• advisory services

Role of banks in the International Trade

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General Company profile

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Corporate profile - KBC

KBC is a financial services group active in the fields of banking, insuranceand wealth management. One of the top bancassurers and asset managers in Belgium, the KBC Group also has a key position in Central and Eastern Europe and has the disposal of a European private bankingnetwork.

The KBC Group was created in 2005 through the merger of KBC Bank & Insurance Holding Company and its parent company Almanij. It servessome 11 million customers and employs around 50 000 people.

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Severní Amerika

USA

Asie & Pacifik

Austrálie

Čína

Hong Kong

Indie

Japonsko

Malajsie

Filipíny

Singapur

Taiwan

Turkey

Střední východ

Dubaj

KBC in the world

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KBC in Europe

Top-3 bank/insurance player in CEE-5Czech RepublicHungarySlovakiaPolandSlovenia

Top-3-player in BelgiumRetail bancassurancePrivate bankingCorporate banking

European private banking network :>100 locations across 7 other countriesFrance and MonacoGermanyLuxembourgNetherlandsSwitzerlandUK

Selective corporate banking network :selective presence in 6 countries outside Belgium and CEEFranceGermanyIrelandNetherlandsSpainUK

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A1+F1+Short-term rating

Standard & Poor’s

-F1+Short-term ratingAA-AALong-term rating

KBC Insurance

AA-AA-Long-term ratingKBC Bank

A-1P1F1+Short-term ratingA+Aa3AA-Long-term rating

KBC GroupRatingRatingRating

Moody’sFitchRatings

P1Aa2

--

Credit Ratings

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ČSOB 2

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Operates as :

universal bank strong group offering a full range of

banking and other financial services bank with well diversified business:

retail, SME, corporates, institutional clients, financial markets

bank with significant international involvement

100% owned by KBC

Operates as :

universal bank strong group offering a full range of

banking and other financial services bank with well diversified business:

retail, SME, corporates, institutional clients, financial markets

bank with significant international involvement

100% owned by KBC

No. 1 the Czech Republic

No. 4 in the Slovak Republic

2nd largest bank in Central Europe

Traditional market leader in international banking

ČSOB belongs to major players in Central Europe

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2007 Financials

Equity

Total Assets

Net Profit

CAR (Capital adequacy ratio)

EUR 2,200 million

EUR 35,593 million

EUR 418 million

11.28 per cent

Ratings Long-term

Short-term

Other

Moody´s A1 Prime-1Financial strength

C-

Fitch A+ F1 Individual B/C Support 1

Capital Intelligence BBB+ A2Financial strength

BBB+

Support 2

ČSOB ratings by Moody´s, and CI are at the same level as the country ceiling, i.e. the highest possible. Long-term rating from Fitch is one notch below the sovereign level.

Credit Ratings and financials

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ČSOB Group confirms its character as a universal financial institution, strong in all clients´ segments.

The largest contributor to the Group operating income (CZK 27.3 bn) is Retail with 50 %.

SME and Corporate segments account for 17 % and 15 %, respectively.

Segments’ contributions to operating income

Subsidiaries Retail

21 %

Retail, excl. PSB

14 %

SME

16 %

Other (excl. SI)

14 %

Bank SR

9 %

Corporate

11%

Subsidiaries Corporate2 %

PSB

14 %

SMECorp.

Retail

Other

2 %

1%2 %

4 %

Diversified Financial Services

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Award for excellence 2008

The Best Trade Finance Bank in the Czech Republic

Award for excellence2002 and 2003 The best bank

in the Czech Republic

The Best Corporate Bankof the year 2005

Bank of the year 2006 and 2007

in the Czech RepublicAward for excellence 2003,

2004, 2005 and 2006 the Best FX Bank in the Czech Republic

CSOB – International Awards

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KBC Group Trade Finance

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Group Trade Finance within KBC Group

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MLT Export Finance within KBC Group

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MLT GroupKarel Vandebeek+ 32 2 429 03 40

karel.vandebeek@kbc.be

MLT Czech Rep.Michal Bakajsa

+ 420 224 114 374mbakajsa@csob.cz

(EGAP)

MLT Slovak Rep.Lukac Cervenak

+ 421 259 668 306lcervenak@csob.sk(EXIMBANKA SR)

MLT PolandKrzysztof Michalski

+48 22 634 54 24krzysztof.michalski

@kredytbank.pl(KUKE)

MLT ChinaLambert Zheng

+86 21 5879 1416µlianglambert.zheng@kbc.be

(Sinosure)

MLT Belgium *Ilse Vercammen +32 2 429 86 92

Ilse.Vercammen@kbc.be(ONDD/Atradius/ODL/

Coface…)

MLT GermanyDirk Stamer

+ 49 421 368 4422dirk.stamer@kbc.be

(Euler Hermes, Oekb)

MLT HungaryOrsolya Szabo

+ 36 1 328 92 47orsolya.szabo@khb.hu

(MEHIB)

Export out of Western Europe

Export out ofCentral Europe

Export out ofChina

MLT Group Trade Finance Global approach, local teams

* Covering also exports out of W. European countries other than Belgium

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Mission statement

As an important European player in export finance, KBC offers integrated solutions for exports of capital goods out of any European country.

For exports out of our home markets in Belgium and Central Europe, KBC is a market leader.

We strongly believe in a client driven and creative approach through operational excellence and through partnership both with exporters, ECA’s as well as with local banks in target markets.

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CSOB Export and Structured Finance

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Acqu isition and Leveraged F inance

Synd icated Loans

Pro ject F inance

Real Estate F inanc e

Export and Structu red Trade F inance

EU Centru m

Cap ital M arket Products

Corporate Specialised Finance(C S F )

Bank Relations

Non-banking Financial Institu tions Branch

Pub lic Sector Institu tions

Custody/Trustee

Institutional Banking G roup Strategic Projects

Specialised and Institutional BankingM arek Ditz

Organizational structure

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Why CSOB?

• 2008 The best TF Bank in the Czech Republic • sustained market presence• experienced team of export finance specialists• hands-on experience with complex structured models of

export financing• access to state support through co-operation with Export

Credit Agencies◦ EGAP, Czech Republic◦ EXIMBANKA SR, Slovak Republic

• access to KBC Group network including relevant ECAs• Significant market share – 32% of newly signed EGAP

covered transactions in 2007

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Advisory to the structure of contract and its structure

Consultations to the territorial specificity Preparation of Indicative offer for tender

purposes Proposals of optimal structure of the financing

in accordance to the individual needs and territorial conventions

Tailor-made conditions and documentation Negotiation with EGAP/Eximbank SR

Full package solution

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• Medium and Long Term export credit

• Short Term export credit• Pre-shipment financing• Purchase of receivables both domestic and foreign• Project finance, PPP • Loan for investment abroad

Product range

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• extended to the importer or the importer's bank

• up to 85% of the contract value• financing according to the OECD

Guidelines

• political risk insurance• commercial risk insurance

• extended to the importer or the importer's bank

• financing down-payment portion of the contract

• typically 1 to 4 years depending on the length of the construction period

Comprehensive credit risk cover provided by ECA

Commercial credit

Export buyer´s credit

Export Credit – Key Features

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Czech

ExporterImporter

Importer´s Bank(Borrower)

Supply Contract

Onlending / Loan AgreementLoan

Agreement (individual)

Insurance Policy

Agreement between Exporter and ČSOB

Export Credit Structure

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• extended to the exporter in the export contract

• export receivables sold to ČSOB

• ECA insurance cover (up to 90%)• financing up to 90% of the export

contract value• deferred payment terms as defined

in the export contract• maximum tenor according to the

contract and ECA cover

• Promissory Notes or Bills of Exchange

• invoices accompanied by acknowledgement of the debt by the importer

Purchase of receivables

Payment instruments

Export supplier´s credit

Purchase of receivables – Key Features

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• extended to the Czech investors• export receivables sold to ČSOB

• ECA insurance cover (up to 95%)• Investor´s funds of 20-30% is a

must• Recourse to the investor• Minimum tenor of 3 years

• From the project earnings

Comprehensive credit risk cover provided by ECA

Repayment

Investment loan

Loan for investment abroad

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By countries:

Asia35%

Europe35%

Russia and CIS18%

South America12%

ČSOB Export Finance Exposure

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Purpose: financing of Czech exports to Indonesia

Vehicle: ECA-covered buyer´s credit in line with OECD Agreement on Officially Supported Export Credits

Currency: EUR or USD

Limit volume: EUR 40 mln.

Max. tenor: 5Y repayment period; semi-annual instalments

Interest: floating, LIBOR/EURIBOR based

Interest Period: 6M

Financing: up to 85% of contract volume

General Loan Facility Agreement CSOB – Bank Mandiri

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Export Finance – Selected Credentials

Kazakhstan

Astana Finance Leasing

EUR 7.2 Million

Delivery of combines and seeder-cultivators

- Case New Holland -

Kazakhstan

Astana Finance Leasing

EUR 7.2 Million

Delivery of combines and seeder-cultivators

- Case New Holland -

Saudi Arabia

Abdullah A.M. Al-Khodari

Sons Co.

USD 10.54 Million

Delivery of hydraulic excavators & wheel loaders

- Caterpillar / Zahid Tractors -

Saudi Arabia

Abdullah A.M. Al-Khodari

Sons Co.

USD 10.54 Million

Delivery of hydraulic excavators & wheel loaders

- Caterpillar / Zahid Tractors -

Turkey

ETI Aluminium

Cengiz Group

EUR 16.3 million

5Y revolving credit

Financing deliveries of cars

and components

Turkey

ETI Aluminium

Cengiz Group

EUR 16.3 million

5Y revolving credit

Financing deliveries of cars

and components

Philippines

Metro Rail Transit

Corporation

USD 88,4 mil.

10Y export credit

Trains, Components and

services to Manila Light

Rail Transport System

Philippines

Metro Rail Transit

Corporation

USD 88,4 mil.

10Y export credit

Trains, Components and

services to Manila Light

Rail Transport System

Kazakhstan

Kazkommertsbank JSC

EUR 6,8 mil.

Short Term

RevolvingFacility

Delivery of Skoda Cars

and components

Kazakhstan

Kazkommertsbank JSC

EUR 6,8 mil.

Short Term

RevolvingFacility

Delivery of Skoda Cars

and components

Indonésie

PT. Bank Mandiri

(Persero)Tbk.

EUR/USD 40 mil.

Up to 5Y export credits

Framework Agreement

Indonésie

PT. Bank Mandiri

(Persero)Tbk.

EUR/USD 40 mil.

Up to 5Y export credits

Framework Agreement

Tanzania

Eastern and Southern African Trade and

Development Bank (PTA Bank)

USD 7.2 Million

7Y export credit

Delivery of steam turbine generator set

Tanzania

Eastern and Southern African Trade and

Development Bank (PTA Bank)

USD 7.2 Million

7Y export credit

Delivery of steam turbine generator set

Ghana

Ministry of Finance &

Economic Planning, Ghana

EUR 20.2 Million

Koforidua Treatment Plant and Water Supply Project

-Denys NV -

Ghana

Ministry of Finance &

Economic Planning, Ghana

EUR 20.2 Million

Koforidua Treatment Plant and Water Supply Project

-Denys NV -

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Radlická 333/150 • 150 57 Prague 5 • Czech Republic

Corporate and Institutional BankingMarek DitzExecutive DirectorPhone: +420 224 114 350E-mail: mditz@csob.cz

Export and Structured Trade FinanceMichal Bakajsa Director Phone: +420 224 114 374 E-mail: mbakajsa@csob.cz

www.csob.cz

Contacts: Československá obchodní banka, a. s. (ČSOB)

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Your export, our challenge!