Supranationals - Europe

228 EuroWeek Financing supranationals and agencies

EurofimaRating Aaa, AAA, NR

André Bovet Chief executive officer

Martin Fleischer Chief financial officer

Michele Montefiori Head of capital markets operations

Urs Thomann Head of treasury operations

Key oFFiciAls

The European Company for the Financing of Railroad Rolling Stock (Eurofima) is a supranational organisation located in Basel, Switzerland. It was established in 1956 by a State Treaty signed by 25 European member states.

Eurofima fulfils a non-profit maximizing mission to support the development of rail transportation in Europe. It supports its shareholder railways as well as other railway bodies in renewing and modernising their equipment.

overview

risk weighting (Basel ii): 20% (standardised) / 14% (IRB)

Guarantee: Extensive coverage of loan assets by collateral and sovereign guarantees. Joint shareholders’ guarantee against any loan default not covered by this and exceeding Eurofima’s fund for general risks and reserves.

risK weiGhTinG / GUArAnTee

Source: Markit

bp

3-Au

g-200

9

3-Se

p-200

9

3-Oct-

2009

3-Nov

-200

9

3-Dec

-200

9

3-Jan

-201

0

3-Fe

b-201

0

3-Mar-

2010

3-Ap

r-201

0

3-May

-201

0

3-Ju

n-201

0

3-Ju

l-201

0

3-Au

g-201

0

3-Se

p-201

0

3-Oct-

2010

3-Nov

-201

0

3-Dec

-201

0

3-Jan

-201

1

3-Fe

b-201

1

3-Mar-

2011

-10

0

10

20

30

40

50

AsseT swAp spreAd6.125% GBp ocT 2014

*Estimated & unaudited. **Forecast. Source: Eurofima

Sfr bn

0

1

2

3

4

5

6

2005

2006

2007

2008

2009

2010

*

2011

**

Gross Bond issUAnce

Data estimated & unaudited. Source: Eurofima

%

Listed issues 90

Unlisted issues 10

issUAnce By Type (2010)

Data estimated & unaudited. Source: Eurofima

%

2012 8

2013 31

2014 9

2018 1

2019 3

2020 13

2021 12

2022 17

2023 2

2025 3

issUAnce By MATUriTy (2010)

standard & poor’s

AAA, stable outlook

strengths•Highassetqualityandextensivecoverageof

loan assets by collateral and top-rated sovereign guarantees

•Shareholders’guaranteeagainstanyloandefaultnot covered by collateral, the defaulting railway’s member state and exceeding Eurofima’s guarantee reserve

weaknesses•Eurofima’scapitalisationandliquidityratiosare

below its AAA rated peers and had been declining until 2008. Since then steps have been taken to bolster those ratios

The stable outlook balances S&P’s view of Eurofima’s very strong asset quality with its still high leverage compared with peers. S&P expects that management will pursue its strategy to further strengthen its capital, asset quality, and liquidity. Failure to implement these policies could lead to downward pressure on the rating.

A privatisation of one of the major shareholders’ railways and/or its departure from Eurofima membership could also put pressure on the ratings, as would an unexpected deterioration of Eurofima’s asset quality. However, S&P considers the likelihood of such events to be very low over the coming years.

Key recenT rATinG AGency coMMenTAry

Supranationals - Europe

Financing supranationals and agencies EuroWeek 229

*Estimated & unaudited. Source: Eurofima

Sfr bn

0 5

10 15 20 25 30 35 40 45

2005

2006

2007

2008

2009

2010

*

ToTAl AsseTs

*Estimated & unaudited. Source: Eurofima

Sfr bn

1.20

1.25

1.30

1.35

1.40

1.45

1.50

2007

2008

2009

2010

*

ToTAl cApiTAl

Data at December 2010, estimated & unaudited. Source: Eurofima

%

0

2

4

6

8

10

12

14

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

MATUriTy proFile

Data estimated & unaudited. Source: Eurofima

%

AUD 17

EUR 45

HKD 1%

JPY 3%

SEK 4

USD 30

issUAnce By cUrrency (2010)

Data at December 2010, estimated & unaudited. Source: Eurofima

%

AUD21

CAD 4

CHF 28EUR 15

GBP 3HKD 1JPY 2NZD 1

SEK 1

USD 25

oUTsTAndinG issUAnce By cUrrency

Data at December 2010, estimated & unaudited. Source: Eurofima

%

0

2

4

6

8

10

12

14

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

loAn MATUriTy proFile

rank lead Manager Amount $m no of issues

% share

1 Credit Suisse 1,042 6 33.66

2 Goldman Sachs 471 2 15.21

3 JPMorgan 385 4 12.43

4 Barclays Capital 333 1 10.77

5 Deutsche Bank 211 2 6.81

6Bank of America Merrill Lynch

174 1 5.62

7 TD Securities Inc 156 2 5.04

8 HSBC 144 2 4.66

9SG Corporate & Investment Banking

85 1 2.75

10 ANZ 49 1 1.57

subtotal 3,050 14 98.52

Total 3,096 15 100

Source: Dealogic (March 16, 2010 to March 15, 2011)

Top BooKrUnners

pricing date January 31, 2011

value Eu125m

Maturity date December 23, 2015

coupon 3m Euribor +18bp

Bookrunners Credit Suisse, SG

pricing date November 2, 2010

value Eu375m

Maturity date November 15, 2022

coupon 3.125%

spread to swaps 27bp

Bookrunners Bank of America Merrill Lynch, Credit Suisse, JPMorgan

pricing date May 18, 2010

value $1bn

Maturity date May 28, 2013

coupon 1.875%

spread to benchmark 57.3bp over USTs

Bookrunners Barclays Capital, Credit Suisse, Goldman Sachs

Source: Dealogic

recenT deAls