Investor Presentation

Transcription

1 Investor Presentation Page 1

2 Overview Summary (pg. 3) Development Banks in Germany (pg. 4) The guarantor Free State of Bavaria: Strong and successful (pg. 5-8) Portrait: LfA Förderbank Bayern at a glance (pg. 9-14) Financial Market activities of the LfA Förderbank Bayern (pg ) Page 2

3 Summary The LfA Förderbank Bayern is a special-purpose bank owned by the Free State of Bavaria The LfA is commissioned by the government to promote regional economic development with instruments of a bank The Free State of Bavaria has full and unlimited liability for the LfA's commitments Moody's Aaa long-term Rating since 1991 Titles are zero percent risk-weighted under the credit risk standardised approach LCR status: level 1 asset No Bail-In-Risk Page 3

4 Development Banks in Germany Page 4

5 The guarantor Free State of Bavaria: Strong and successful Page 5

6 Bavaria: Strong and successful Bavaria is among the most dynamic sites worldwide Source: Invest in Bavaria (business promotion agency of the Bavarian Ministry of Economic Affairs) Page 6

7 Bavaria: Strong and successful Source: Invest in Bavaria (business promotion agency of the Bavarian Ministry of Economic Affairs) Page 7

8 Bavaria: Strong and successful Financially strongest contributor state (German Federal State) Source: BMF (provisional data 2015) Page 8

9 Portrait: LfA Förderbank Bayern at a glance Page 9

10 LfA Förderbank Bayern at a glance The LfA Förderbank Bayern is a special-purpose bank owned by the Free State of Bavaria, tasked with promoting regional economic development. The LfA was founded in 1951 as a public-law credit institution with its headquarter in Munich. The LfA works on the house bank principle (bank to bank business). It takes a neutral stance towards the commercial banks and does not enter into competition with them. It has total assets of about 22 billion. It currently has a staff of some 300 employees. The LfA s executive bodies are its Management Board and its Administrative Board. Page 10

11 LfA Förderbank Bayern at a glance Development of total assets in billion EUR Page 11

12 LfA Förderbank Bayern Guarantor liability and banking supervision The Free State of Bavaria (Rating Aaa / AAA) carries full and unlimited guarantor s liability for the LfA s commitments. Coupled with the bank s robust business situation, this merits a top credit rating (Aaa) which gives the LfA access to the best possible conditions on the capital market. The LfA is a credit institution pursuant to the German Banking Act (KWG). It is therefore subject tot the regulations of the Banking Act, e.g. those pertaining to equity capitalisation and risk controlling. The LfA is also subject to banking supervision by the Federal Financial Supervisory Authority (BAFin) and Germany s central bank, the Deutsche Bundesbank. The LfA s supervisory authority for legal matters is the Bavarian Ministry of Finance. The Bavarian Ministry of Economic Affairs bears principle responsibility for overseeing the bank s mandate. Page 12

13 LfA Förderbank Bayern at a glance Working for business, industry and trade Financial support for ventures by commercial enterprises as well as other measures for the improvement and support of Bavaria s economic, traffic and environmental structure Requirements: LfA products must demonstrate a Bavarian effect, i.e. be of direct or indirect benefit to the Bavarian economy. The LfA only exercises a complementary market role, i.e. when existing products on the market are inadequate to promote promising new ventures. LfA products conform to EU regulations state aid rules. Page 13

14 LfA Förderbank Bayern at a glance Business activities Promotional instruments Page 14

15 Financial Market activities of the LfA Förderbank Bayern Page 15

16 Financial Market activities of the LfA Förderbank Bayern Funding / Refinancing The LfA s main issue market is the Euro capital market Placing of own issues (bearer debt instruments) Sale of own debenture loans Benefits of LfA securities are: Outstanding financial reputation through continued Aaa rating from Moody s Guaranteed by the Free State of Bavaria (clause 1 section 2 LfA Act) Titles are zero percent risk-weighted under the credit risk standardised approach (Basel III / CRR / CRD IV) Eligible for open market transactions /ECB facilities, gilt-edged, eligible for premium reserve stock LCR status: level 1 asset No Bail-In-Risk Attractive spreads to Bund and KfW-Bonds Page 16

17 Financial Market activities of the LfA Förderbank Bayern Funding / Refinancing Borrowing on the capital market / KfW Page 17

18 Financial Market activities of the LfA Förderbank Bayern Funding / Refinancing Outlook for 2016: Refinancing volume of about 2.6 billion As a rule, medium- to long-term refinancing for 3 to 10 years, from 5 million Page 18

19 Financial Market activities of the LfA Förderbank Bayern Investment business Investment of own capital increases scope for development activities in fixed-income bonds and debentures from domestic and selected European banks (covered and senior unsecured bonds) Corporate bonds selected public sector issuers Investments are made within limits depending on the quality of the product Page 19

20 Financial Market activities of the LfA Förderbank Bayern Investment business The LfA s investment strategy is: Safety oriented positive track record Commercially profitable long-term attractive return on investment Oriented to the long-term buy and hold Page 20

21 Financial Market activities of the LfA Förderbank Bayern Derivatives Derivatives are used only for managing interest and currency risks The LfA uses derivates, e.g. swaps, exclusively for hedging interest rate and currency risks. Page 21

22 Financial Market activities of the LfA Förderbank Bayern Money Market Short-term financial transactions ensure unrestricted ability to meet financial obligations Call and term deposits and borrowing in the money market Open market transactions / ECB facilities Page 22

23 Contact and contact persons Contact: LfA Förderbank Bayern LfA Förderbank Bayern Financial Markets Dept. Abteilung Finanzmärkte Königinstasse 17 Königinstraße Munich, Germany München Tel.: * Fax: Internet: Head of Department / Financial Markets: Gudrun Rieke Tel.: gudrun.rieke@lfa.de Deputy Head of Department / Financial Markets: Albert Brandl Tel.: * albert.brandl@lfa.de Money Market: Norbert Fritz Tel.: * norbert.fritz@lfa.de Capital Market: Petra Becke Tel.: * petra.becke@lfa.de Birgit Brunnbauer Tel.: * birgit.brunnbauer@lfa.de Thomas Hoffmann Tel.: * thomas.hoffmann@lfa.de Robert Kolb Tel.: * robert.kolb@lfa.de * Telephone calls are recorded Page 23

24 Disclaimer The information contained in this presentation has been thoroughly researched. Nevertheless, it does not claim to be complete and the information contained therein may be subject to changes. We shall not be liable for any information provided herein. The information constitutes neither an offer nor an invitation to buy securities. It must not be viewed as personal or general advice on the basis of which investment decisions can be made. Page 24