Presentation for xxxxxxxxx Date

1. STRUCTURED FINANCE – EXPORT FINANCE Presentation for xxxxxxxxx Date

2. Agenda Page • Facts & Figures about BayernLB 3 • Export Finance at BayernLB 6 • Export Finance Transactions 14 • Typical Types of Financing 21 • 5. References and Awards 29 STRUCTURED FINANCE - EXPORT FINANCE Page 2

3. Facts & Figures about BayernLB STRUCTURED FINANCE - EXPORT FINANCE Page 3

4. Association of Bavarian Savings Banks Free State of Bavaria AAA/Aaa¹ 100% state guarantee 5.97% 94.03% BayernLB Holding AG 100% Bayerische LandesbankLegal corporation incorporated under public law 89.9% 100% 100% 100% 100% ¹ Standard & Poor‘s, Moody‘s ¹ Group Corporate Structure of BayernLB STRUCTURED FINANCE - EXPORT FINANCE Page 4

5. 1 • Solid earnings before taxes of EUR 885m in 2010 2 • All earnings before taxes came from core activities 3 • Investors benefit from good operating earnings • Deleveraging: Substantial reduction of risks, costs and total assets 4 • Well capitalized – even under the new Basel III regime 5 • Well balanced funding potential and moderate needs 6 • BayernLB is one of the leading corporate financiers with good loan quality 7 Highlights 2010 – key messages • BayernLB is on track with its customer oriented business model STRUCTURED FINANCE - EXPORT FINANCE Page 5

6. Export Finance at BayernLB STRUCTURED FINANCE - EXPORT FINANCE Page 6

7. Part of Structured Finance Board: Jan-Christian Dreesen Structured Finance Alexander von Dobschütz Project Finance Export Finance Leasing, Factoring, Rolling Stock Infrastructure Michel Rousseau Beate Mayer Dr. Paul Kunkel CIS / CEE / SEE / Baltics Elke Wurth-Weis Energy Andy Brown EMEA, Americas, Asia Ralf Engelberg New York Branch James King STRUCTURED FINANCE - EXPORT FINANCE Page 7

8. Export Finance Department Beate Mayer (Head of Department) Tel.: +49 (89) 2171-23772 E-Mail: Beate.Mayer@bayernlb.de Volker Kuntz (Senior Specialist) Tel.: +49 (89) 2171-23965 E-Mail: Volker.Kuntz@bayernlb.de STRUCTURED FINANCE - EXPORT FINANCE Page 8

9. Export Finance Section„CIS / CEE / SEE / Baltics“ The Team The Team The Team Hans Grutza Tel.: +49 (89) 2171-23514 E-Mail: Hans.Grutza@bayernlb.de Elke Wurth-Weis Tel.: +49 (89) 2171-23774 E-Mail: Elke.Wurth-Weis@bayernlb.de Herta Albert Tel.: +49 (89) 2171-23802 E-Mail: Herta.Albert@bayernlb.de Evan Sirowinski Tel.: +49 (89) 2171-23998 E-Mail: Evan.Sirowinski@bayernlb.de Andreas Lettow Tel.: +49 (89) 2171-23647 E-Mail: Andreas.Lettow@bayernlb.de Doris Wimmer Tel.: +49 (89) 2171-23977 E-Mail: Doris.Wimmer@bayernlb.de Richard Lawrynowicz Tel.: +49 89 2171-23513 E-Mail: Richard.Lawrynowicz@bayernlb.de Harm Clasen Tel.: +49 89 2171-26388 E-Mail: Harm.Clasen@bayernlb.de STRUCTURED FINANCE - EXPORT FINANCE Page 9

10. What are our Strengths? Long-term relationship • Export & Trade Finance experience for more than 30 years • Supporting growth of our customers in their markets in the long run • Structuring capabilities • Large underwriting capabilities • Placing / syndication power • Tailor-made solutions and services Competence People • Know how in specific regions (Europe, CIS, Asia, N&M East, Americas) • Expertise in specific sectors (Utilities, Metals, Oil/Gas, Telecom, M&E, Aviation) • Dedicated staff in key markets STRUCTURED FINANCE - EXPORT FINANCE Page 10

11. What are our Products? Structured Export Finance • Multi-source financing of up to 100% of project value • long tenors (often > 10 years) • Lending on basis of corporate risk • Credit enhancement by ECA and/or PRI and/or off-take structures Trade Finance • Documentary business • Short term trade finance (e.g. advances, post-shipment finance) • Forfaiting Cross-selling products • Hedging instruments for FX, interest and commodities • Emission Certificates (Joint Implementation Certificates,Clean Development Mechanism) • Emission trading • Consulting and advisory services STRUCTURED FINANCE - EXPORT FINANCE Page 11

12. Who are our Partners? Structured Export Finance • Exporters • Importers • Export Credit Agencies (ECAs) • Private Risk Insurance Companies • Commercial Banks • Multinational Finance Institutions (MFIs) Trade Finance • Exporters • Trading Companies • Commercial Banks • Off-takers • Private Insurance Companies STRUCTURED FINANCE - EXPORT FINANCE Page 12

13. Our Main Partner Banks in Russia Existing Basic Agreements for ECA covered Buyer‘s Credits • Advantages: • Efficient Work Flow • Close Cooperation • International Documentation Standards • Track Record STRUCTURED FINANCE - EXPORT FINANCE Page 13

14. Export Finance Transactions STRUCTURED FINANCE - EXPORT FINANCE Page 14

15. Purchase / Production Acquisition Assembly / Acceptance Delivery/ies Warranty Term of Payment Average Delivery Date tn t0 t1 t2 Forfaiting Supplier‘s Credit Conclusion of Contract Readiness for Operation Buyer‘s Credit Disbursement PeriodRepayment Period Risks and Time Flow CommercialRisk:  insolvency  non-payment („protracted default“) Political Risk:  war / riot / confiscation  ban on imports / embargo  risk of conversion and transfer of currency  interdiction of payment / moratorium STRUCTURED FINANCE - EXPORT FINANCE Page 15

16. Good operating business – BayernLB „back on track“ Payment Conditions in Export Contracts • currency (EUR / USD / CHF) • handling of payments / payment instrument (e.g. L/C) • payment conditions according to OECD consensus • place of payment • type of payment collateral (e.g. guarantees) • allocation of costs for handling of payments • allocation of costs for payment collateral • allocation of costs for financing • payment of the ECA premium STRUCTURED FINANCE - EXPORT FINANCE Page 16

17. Governmental Support for Exports:OECD Consensus • „Gentlemen‘s Agreement“ of the OECD countries about rules of governmental support of exports • Target: avoid distortion of competition • Valid for all state-aided export finance transactions with a credit period of more than 2 years • (National) Export Credit Insurance (ECA) • Direct credits or refinancing schemes • Subsidies for interest payments • Insurance against unlawful claim of guarantee Instruments STRUCTURED FINANCE - EXPORT FINANCE Page 17

18. OECD Consensus (cont’d) min. 15 % of the contract value Down / Interim payments 85% of the contract value covered by ECA 10 years maximum tenor (for category II countries) Repayment in equal, semi-annual instalments, the first to be due 6 months after „Starting Point“ e.g.last essential delivery, mean weighted delivery, readiness for operation STRUCTURED FINANCE - EXPORT FINANCE Page 18

19. Euler Hermes Kreditversicherungs AG, Hamburg German „Export Credit Agency“ (ECA) manages the official export credit guarantee scheme on behalf and for account of the Federal Government, such scheme granting coverage of political and commercial risks resulting from receivables and loans agreed in foreign contracts. • Vital preconditions for granting cover: • Eligibility of goods (deliveries / services must substantially be of German origin (foreign content max. 30 - 49 %)) • Fungibility of risks / no public budget constraints • Application for cover needs to be filed before conclusion of contract • OECD conform payment conditions STRUCTURED FINANCE - EXPORT FINANCE Page 19

20. Bayern LB is Partner for Public Export Credit Agencies (ECAs) Multi Source / ECA Desk STRUCTURED FINANCE - EXPORT FINANCE Page 20

21. Typical Types of Financing STRUCTURED FINANCE - EXPORT FINANCE Page 21

22. ECA-covered Buyer’s Credit • Definition: the principal bank of a foreign contractual partner of the exporter („buyer“) or the buyer is granted a loan whereas the borrowed funds are disbursed directly to the exporter for payment of the purchase price • Loan Amount: 85% of the contract value plus 100% of the ECA premium plus part of local costs if eligible for ECA cover • Additional uncovered financing possibilies: possible financing of the down/interim payments  qualified financing of remaining local costs STRUCTURED FINANCE - EXPORT FINANCE Page 22

23. ECA-covered Buyer’s Credit (cont’d) • Additional Collateral required by the ECA: • Exporter‘s undertaking • Financial statements according to IRFS in case the buyer is acting as borrower • Guarantees (as the case may be) • Pledge of assets (as the case may be) STRUCTURED FINANCE - EXPORT FINANCE Page 23

24. Scheme:Buyer‘s Credit (bank) Importer (Buyer) Exporter  Export Contract  15% Cash Down and / or Interim Payment *  Loan Agreement  Disbursement of 85% through L/C pro rata deliveries / services  Repayment L/C advising  Domestic Bank (“Borrower”) Bayern LB ECA Cover ** ECA (Export Credit Agency)  Buyers Credit  Opening of L/C * potential uncovered financing of down payment / interim payments ** potential ECA premium financing STRUCTURED FINANCE - EXPORT FINANCE Page 24

25. Scheme:Buyer‘s Credit (corporate) Export Contract Importer (Buyer) “Borrower” Exporter  15% Cash Down and / or Interim Payment *  Repayment  Disbursement of 85% through L/C pro rata deliveries / services Loan Agreement / Buyer's Credit (“tied export credit”) L/C advising Bayern LB Domestic Bank ECA Cover ** ECA (Export Credit Agency)  Guarantee support (optional)  Opening of L/C * potential uncovered financing of down payment / interim payments ** potential ECA premium financing STRUCTURED FINANCE - EXPORT FINANCE Page 25

26. Supplier’s Credit  Forfaiting • Supplier‘s Credit:The supplier is granting a loan to the foreign buyer by by way of concession of a grace period for payment. This period may be refinanced via forfaiting. • Forfaiting:Purchase without recourse of abstractly documented receivables, e.g. • receivables from bills of exchange • deferred payment letters of credit • book claims  The bank takes over the commercial and political payment risk STRUCTURED FINANCE - EXPORT FINANCE Page 26

27. Forfaiting (cont’d) • Requirements for Forfaitability: • Additional collateral as might be required by the ECA or the bank • Export contract has to allow assignment of claims • Export contract has to foresee yearly presentation of financial statements according to IFRS • Purchased claims have to be free of objections and/or counterclaims under the export contract STRUCTURED FINANCE - EXPORT FINANCE Page 27

28. Scheme:Forfaiting 1a. Export Contract German Exporter Buyer / Payment Obligor 2. Term of Payment 5. Interest and Repayment 3a. 4. 6. Remittance of Interest and Repayment Amounts Forfaiting Agreement À-forfait Purchase and Disbursement 1b. ECA cover 3b. Assignment of Claims from- the Export Contract- the Exporter‘s ECA cover- L/C or Payment Guarantee ECA (Export Credit Agency) BayernLB STRUCTURED FINANCE - EXPORT FINANCE Page 28

29. References and Awards STRUCTURED FINANCE - EXPORT FINANCE Page 29

30. 2010 2010 2010 2010 2010 EUR 26,205,806 Wind Energy Converters Turkey Export Credit Facility Euler-Hermes Cover € 3,900,000,000 Gas Pipeline Baltic Sea Region Mandated Lead Arranger EUR 1,500,000,000 Syndicated Pre Export Finance EUR 149,351,984 Euler Hermes covered Export Finance Facility Mandated Lead Arranger (Russia) Mandated Lead Arranger (Turkey) Lead Arranger 2010 2010 2010 EUR 1,878,700,000 6 submarines Type 214 Hermes coveredExport Finance Facility Undersecretariat of Treasury OAO Kabbalkgips USD 475,000,000 Issuance of Import LOCs EUR 115,500,000 Export Finance Facility EUR 325,000,000 for SIF Revolving Collateralised Loan Facility Mandated Lead Arranger (Russia) Mandated Lead Arranger (Russia) Participating Lender (Hungary) Mandated Lead Arranger Deal Highlights STRUCTURED FINANCE - EXPORT FINANCE Page 30

31. 2009 2008 2009 Jamshedpur Expansion Project EUR 264,000,000 Export Credit Facility Euler-Hermes Cover Azeryolservis OJSC EUR 524,000,000 Multi-Source Master Export Finance Facility USD 80,500,000 Road InfrastructureExport Finance Facility Mandated Lead Arranger (Russia) Co-Arranger (Azerbaijan) Mandated Lead Arranger (India) 2008 2008 2009 2009 2009 EUR 255,000,000 EBRD A/B-Loan Facility First project under new Sustainable Energy Action Plan Indramayu Power Project USD 592,224,258 Export Credit Facility Sinosure Cover Tomis Team / M.W. Team Invest Vyksa Steel Works EUR 346,920,200 Euler Hermes covered Export Finance Facility EUR 262,350,000Fantanele Windfarm 347.5 MW Euler Hermes coveredExport Finance Facility EUR 69,892,500 Wind turbine generators EulerHermes coveredExport Finance Facility Lead Arranger(Turkey) Mandated Lead Arranger (Russia) Senior Lead Arranger (Indonesia) Mandated Lead Arranger (Kazakhstan) Agent & MLA Deal Highlights (cont’d) STRUCTURED FINANCE - EXPORT FINANCE Page 31

32. 2007 2008 2008 2007 EUR  218,000,000 Export Credit Facility Finnvera-covered EUR 600,000,000 EBRD A/B-Loan Facility Energy Efficiency Loan USD 300,000,000 EBRD A/B-Loan Facility Environmental Loan EUR 278,800,000 Euler Hermes covered Export Finance Facility Mandated Lead Arranger (Russia) Mandated Lead Arranger (Russia) Arranger (Russia) Mandated Lead Arranger (Russia) 2008 2008 2007 2008 LLP KaR-Tel CHF 45,000,000 Refinancing of the Leasing Portfolio USD 47,500,000 Euler Hermes Covered Export FinanceFacility EUR 60,000,000 Euler Hermes Covered Export FinanceFacilities USD 50,000,000 Refinancing of the Leasing Portfolio Participating Lender (Russia) Sole Lender (Kazakhstan) Sole Lender (Russia) Participating Lender (Russia) Deal Highlights (cont’d) STRUCTURED FINANCE - EXPORT FINANCE Page 32

33. 2005 2005 „AzerEnerji“ JSC EUR 185,000,000 HERMES-coveredEUR 74,500,000 SACE-coveredUSD 238,000,000 Finnvera-covered EUR 300,000,000 Power ProjectExport Finance Facility Mandated Lead Arranger (Azerbaijan) Mandated Lead Arranger (Russia) 2007 USD 307,237,810Commercial Loan +USD 174,606,198 Export Finance Euler-Hermes Cover 2002 EUR 613,000,000 Ermenek Dam and HEPP OeKB coveredExport Finance Facility plus Commercial Loans Lead Arranger Undersecretariat of Treasury Participant (Turkey) Deal Highlights (cont’d) STRUCTURED FINANCE - EXPORT FINANCE Page 33

34. Trade & Forfaiting Review - Deal of the Year Awards 2009 Russia - NLMK – ECA-backed financing Trade Finance Deal of the Year Awards 2009 Russia - NLMK - ECA-backed financing Russia - Vyksa - ECA-backed financing International Awards (since 2009) STRUCTURED FINANCE - EXPORT FINANCE Page 34

35. Awards Project Finance since 2009 Category: Deal of the Year GTR Best Deals of 2009 GSM-Rail – Europe Telecoms Deal of the Year Castor – Europe Oil & Gas Deal of the Year Barka III & Sohar II – Middle East Power Deal of the Year R1 – Europe Infrastructure Deal of the Year M25 – Europe PPP Deal of the Year Dolphin – Middle East Oil & Gas Deal of the Year Shuweihat – Gulf Power Deal of the Year Nord Stream – Gas Deal of the Year Centrica/TCW Windfarm Portfolio – Portfolio Deal of the Year STRUCTURED FINANCE - EXPORT FINANCE Page 35