KfW IPEX-Bank. Philippine Mining Conference June 28, 2007 Frankfurt am Main / Germany. Holger Apel Senior Vice President

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1 KfW IPEX-Bank Philippine Mining Conference June 28, 2007 Frankfurt am Main / Germany Holger Apel Senior Vice President

2 PARTNER IN COMMODITY FINANCING 2

3 Coming from the West Apex Silver Mines BOLIVIA Antamina, Minera Cerro Verde PERU Escondida, Cerro Colorado, El Abra, El Tesoro CHILE CVRD, Alunorte, Caraiba BRAZIL Barrick, Aluar ARGENTINA 3

4 with an outlook to the East ERU-Projekt China Sepon Laos Nuiphaovica Vietnam Batu Hijau Indonesia Fortescue Australia 4

5 478,2 298,2 280,3 180,1 174, ,1 86,1 85,2 65,0 37,1 36,2 30,8 15,2 13,8 Coal Iron Ore Scrap Metals Zinc Titanium Oil / Gas Services Gold Diamonds Trader Natural Resources Resources Total loans outstanding EUR 1.9bn as of December 2006 by raw material (in mn EUR) Oil Alumina Copper Nickel Gas

6 New Commitments ,9 139,8 EUR 710.0mn year 2006 by raw material (in mn EUR) 101,5 99,6 74,0 67,5 37,4 15,3 8,8 8,7 5,4 Alumina Trader Coal Oil Gas Scrap Metals Copper Gold Iron ore Diamonds Oil / Gas Services 6

7 New Commitments ,9 6% 23,8 3% 95,4 13% by region (in mn EUR) 139,8 20% Africa CIS Europe Latin Amerika North America 410,0 58% 7

8 Eligible Projects (Project Finance) - Robust Cash Flow - Financially strong and experienced Sponsors - Established and stable Legal System of the Project Country - Offshore Account and Completion Guarantee - Positive Environmental Impact Assessment - Large Sized Projects - Long Term Reserves - Proven Technology - Political Risk Cover if necessary 8

9 Approval Procedure (Project Finance) 1. Due Diligence based upon a bankable Feasibility Study and Environmental and Social Impact Assessment 2. Start of Term Sheet Discussion 3. Management Board Decision 4. Application for PRI / ECA Cover - if necessary 5. Supervisory Board Approval (if > 50 m) 6. Approval for PRI / ECA Cover 7. Closing 9

10 Buyer s Credit (classical Export Loan Structure) Export Cover Potentially ECA-Cover, e.g. ERMES Supplier Supply Contract Upfront Payment (15%) Potentially Declaration by Supplier Repayment Disbursement Loan Agreement (85%) Buyer = Borrower Security Covered Loan (85%) KfW IPEX-Bank Payment Guarantee Potential Foreign Guarantor 10

11 Typical Project Financing Potentially Foreign Guarantor Securitiy KfW IPEX- Bank Loan- Cover Potential ECA-Cover, e.g. ERMES Gas-Offtaker Security Gas- Deliveries Tariff- Payments Loan Debt Service Projekt Company Operator Agreement Turnkey Contract Export- Cover Premiumpayment Supplierconsortium Operator 11

12 Recent Structured Financings (Mining) Mining Deal of the Year Russia 2005 Bolivia 2005 Mining Deal of the Year Argentina 2004 Mining Deal of the Year Mozambique 2004 APEX SILVER MINES LTD. Kupol Gold Project San Cristóbal Veladero Gold Project Moma Titanium Minerals Project Finance USD 425,000,000 USD 18,000,000 Project Finance USD 225,000,000 USD 20,000,000 Project Finance USD 250,000,000 USD 35,000,000 Project Finance USD 200,000,000 USD 50,000,000 Lead Arranger Participation Mandated Lead Arranger Mandated Lead Arranger Trade Finance Brazil Deal of the Year 2005 Mining Deal Peru of the Year 2005 Brazil 2006 Argentina 2006 Caraíba Metais SA Paranapanema Group Caraíba Inc. Pre-Export Finance USD 150,000,000 USD 19,000,000 Primary Sulfide Project Project Finance USD 450,000,000 USD 22,500,000 Refinancing Expansion II Project Finance USD 310,000,000 USD 77,500,000 Aluminium Smelter Structured Finance USD 570,000,000 USD 60,000,000 Participation Lead Arranger and Hermes Agent Mandated Lead Arranger & Bookrunner Lead Arranger 12

13 Basic Industries Contacts Holger Apel (2548) Senior Vice President Basic Industries Team Assistent: Christina Komini (4778) X 1 a1 Wolfgang Behler (3314) First Vice President Natural Resources, Oil & Gas X 1 a2 Matthias Wietbrock (3522) First Vice President Petrochemical X 1 a3 Ulrich Goretzki (2884) First Vice President Pulp and Paper, building material, Steel Stephan Pueschel (4649) Dirk Sindermann (2257) Hartmut Troschel (2243) Claudia Lakov (3810 Peter Eysel (4379) Senior Engineer: Dr. Michael Koch (2742) Patrick Kreutzer (4246) Andreas Pörtner (4982) Joseph Mbuyi (9415) Friedrich Plassmann (4618 ) Michael Cordel (2176) Christoph Berghaus (4689) Donata Kozinska (3642) Anne Wessendorf (9435) Marruan Toma (9353) Nadja Marschhausen (4221) 13

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