Friedrich Plassmann ‌ SETF Moscow ‌‌‌ Commerzbank Eurasija Recent developments HERMES-covered Financing in Russia

1 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th Commerzbank in Russia 2.HERMES – Basic Scheme 3.Special Issues in Russia Table of Content

2 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 Commerzbank AG at a glance Commerzbank AG was founded in 1870 and is today based in Frankfurt am Main. With equity amounting to EUR 26.7 billion (as of 09/2013), Commerzbank is the second largest German private sector bank and has total assets of billion (as of 09/2013). Commerzbank in Germany has a network of 1,200 branches. Internationally, the Group’s core activities are concentrated primarily in Europe, with a particular focus on Central and Eastern Europe. Some 54,000 employees, including 11,000 abroad, serve more than eleven million corporate, institutional and retail customers in more than fifty countries. The bank has positioned itself as a creative partner for providing financial services to a number of different customer groups in corporate and institutional business. Commerzbank has especially dedicated to serve Germany’s medium sized companies domestically and abroad.

3 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 Commerzbank AG in Russia Subsidiary Commerzbank Eurasija SAO, 100% ShareholderCommerzbank AG for corporate clients HQ in Moscow, Branch in St. Petersburg Representative office since 1976 for correspondent banking Subsidiary bank since 1993/ 1999 (DreBa/ CoBa) Core Business – Corporate Clients Employees: 150 2nd place among German banks in Russia* 10th place among international banks in Russia* _________________ * In terms of capital, banki.ru, dec HQ in Moscow Branch in St. Petersburg

4 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th Commerzbank in Russia 2.HERMES – Basic Scheme 3.Special Issues in Russia Table of Content

5 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 HERMES-covered Buyer Credits Major features flagship-product of HERMES long-term credit to finance specific export transactions generally HERMES provides coverage for 95% of all commercial and political risks, majority of the credit risk is therefore mitigated at the same time payment security (for the supplier) and long-term financing (for the Buyer) Pricing is below and tenors are beyond market terms Major structures are corporate credits (Borrower = Importer = Corporate) and bank-to-bank credits (Borrower = Importers bank)

6 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 HERMES-covered Corporate Credits Contractual structure Exporter Importer/ Borrower Commerzbank ECA Export cover Export credit cover Deliveries and related services Export Contract Loan Agreement Repayment / Interest Payments Disbursement of loan to fund supplies (in line with Russian FX-Control via Passport Accounts)

7 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 HERMES-covered Bank-to-Bank Credits Contractual structure Disbursement of loan amounts pro rata deliveries made / services rendered Exporter Commerzbank Buyer Buyer‘s local bank Repayment / Interest Payments Loan Agreement (Buyer Credit) Repayment / Interest Payments ECA Deliveries and related services Export Contract Export cover Export credit cover Local Loan Agreement

8 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 HERMES-covered Corporate Credits Benefits for Borrowers/Importers and Exporters Borrower Tenors beyond market terms (up to years door-to-door), repayment structure closer to the amortisation of the asset financed Repayment starts only upon finalisation of the respective export transaction, i.e. once commercial benefits of Borrowers investment can be realised Pricing competitive as insurance premia from HERMES are below market prices HERMES-covered financing does not walk away in financial crisis HERMES offers additional risk taking capacity Exporter Financing tied to his supplies, therefore an advantage over competitors Payment security comparable, though not equal, to a confirmed Letter of Credit HERMES provides further risk mitigation in conjunction with a Buyer Credit (prefabrication risk, coverage for bonds)

9 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th Commerzbank in Russia 2.HERMES – Basic Scheme 3.Special Issues in Russia Table of Content

10 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 Special Issues in Russia Currency Risks Many companies buy abroad, but sell their final products locally Long-term foreign currency loans are a long-term currency risk HERMES is, in principle, ready to provide coverage in RuR Commerzbank is able to provide long-term financing in RuR

11 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 Special Issues in Russia „Local“ Exporters Many companies sell German products, but via local subsidiaries or distributors Role of local intermediaries is to undertake customs, currency control related adminstration etc., final clients should not do that Further it is easier to organise after-sales services with local companies In principle HERMES does accept such structures, although it take sometimes a lot to explain it

12 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 Special Issues in Russia Country policy HERMES Country policy is unchanged

13 Friedrich Plassmann ‌ SETF Moscow ‌‌‌ St. Petersburg, April 28 th 2014 Disclaimer Structured Export & Trade Finance This presentation has been prepared and issued by Commerzbank AG. This publication is intended for professional and institutional customers. Any information in this presentation is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Commerzbank Group with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgement at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation. Commerzbank AG and/or its subsidiaries and/or affiliates (herein described as Commerzbank Group) may use the information in this presentation prior to its publication to its customers. Commerzbank Group or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. Commerzbank Group may also provide banking or other advisory services to interested parties. Commerzbank Group accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation.

Friedrich Plassmann ‌ SETF Moscow ‌‌‌ Commerzbank Eurasija Friedrich Plassmann Head of Structured Export & Trade Finance, Commerzbank Eurasija SAO Phone / Fax / Mobile /