Non-bank financial institutions strategy and products

Strategic priorities

• Broaden range of investments across countries and directly related companies - e.g. insurance brokers and asset management companies

• Continue to transfer knowledge by working with key western investors and support local shareholders and entrepreneurs

• Promote enhanced legislation and regulation and in particular the introduction of pension reforms

• Support the enhancement of local capital markets infrastructure required to service an ever increasing local institutional investor base

• Further support the development of these key sectors:

Leasing

Asset management: a professional asset management discipline needed to manage the growing local institutional investor base (pension funds and insurance companies) as well as retail investors through mutual funds

Specialist mortgage institutions: focus on securitisation, in turn broadening the available securities for investors

Consumer finance: focus on experienced companies to develop activities in the region and promote development of legislation and consumer protection.

Products

• Insurance: life, non-life and re-insurance, equity participation between 10 and 35%, 7 – 10 years exit horizon

• Pension Fund Management Companies: equity participation between 10 and 35%, 7 – 10 years exit horizon, investments in defined contribution pension scheme – both mandatory and voluntary

• Specialist mortgage institutions: term funding for primary mortgage origination, support of secondary market development (e.g. underwriting of mortgage bonds, local and foreign currencies), equity participation

• Consumer finance: equity participation and loans to fund retail consumer finance products. These include: low risk secured loans (e.g. charge and credit cards), secured loans to purchase specific goods by instalment credit or hire purchase and store credit

• Asset management: equity in local asset management companies, both institutional and mutual funds, and seed capital for new established funds

• Leasing: mainly to finance equipment. Four areas of operation:
  

1. Debt: financing facilities to leasing companies in foreign or local currencies, fixed or floating rate, large debt syndication

2. Equity finance

3. SME: Credit lines through leasing companies for sub-loans up to €125,000. The TAM and BAS Programmes offer complementary schemes.

4. Vendor finance: lease type schemes with western vendors of equipment.