DEG: We finance opportunities.

DEG: We finance opportunities.
Financing opportunities through KfW Group in the Health Care Sector
Ernesto García - Senior Investment Manager
Mexico, D.F.
November 2015
Agenda
1) DEG and the KFW Group
2) Products we offer
3) DEG in the Health Care sector
4) Team and Contact
2
DEG at a glance
Facts and Figures 2014
DEG
›
›
›
›
›
Established
1962
Employees
503
Company seat
Cologne
Shareholder
KfW Frankfurt
Equity
EUR 2.1 billion
› Balance sheet
EUR 5.3 billion
› New business
› Portfolio
EUR 1.5 billion
EUR 7.8 billion
KfW
›
›
›
›
Ownership
Federal Republic of Germany (80%) and the federal states (20%)
Rating
AAA/Aaa, 3rd largest bank in Germany
Balance sheet
EUR 465 billion
World's Safest Bank 2014 according to “Global Finance” Magazine’s Ranking of the World’s 50 Safest Banks
3
DEG´s mandate and working method
German development
finance institution for
the private sector
In-depth sector competence in Agribusiness, Financial Institutions, Infrastructure, Manufacturing Industry, Health
Services
Long-term investment
capital for private
enterprises; marketoriented conditions
Observation of
international
environmental & social
standards
Financing of investments with a positive
developmental impact: Contributions to
sustainable economic growth and poverty
reduction
Special Programmes
(develoPPP, Technical
Assistance) to enable/
accompany financing
DEG has 50 years of experience in promoting entrepreneurial initiative through long-term
funding and special programmes.
4
International activities of KFW in Mexico
Objectives
Providing finance, advice and support for
development and climate protection programs
and projects, in cooperation with governments
and state institutions in developing and
emerging countries
Providing tailor-made long term finance to
support the development of the Private Sector
in Emerging Markets
Providing commercial long-term finance to
Mexican borrowers in the interest of German
and European companies to promote their
exports, and foreign direct investments to
Mexico, as well as strategic imports from
Mexico to Germany
Economic
Sectors
Energy, Water, Urban mobilization, Biodiversity
and climate
Manufacturing & Services, Infrastructure,
Agribusiness, Financial Services
Manufacturing Industries, Basic Industries,
Maritime Industries, (Offshore Oil &Gas), Energy
Products
•
•
•
Promotional loans
Development loans
Grants and accompanying measures
•
•
•
Commercial long term loans
Structured Finance
Equity
•
•
•
Export Finance (with/without ECA)
Corporate lending
Project Finance
•
•
USD 464 million
6 projects
•
•
USD 414 million
33 projects
•
•
USD 303 million
9 portfolio clients
Example
clients
Portfolio
More than USD 1.1 billion total KfW commitments in Mexico
5
DEG´s financial products
Tailor-made finance with long-term orientation
Long-term loans
Mezzanine finance
Equity Capital
› USD 10–50m (or MXN equivalent)
› USD 10–30m (or MXN equivalent)
› USD 10–30m (or MXN equivalent)
› Higher amounts through club deals or
› Flexible structures combining
› Only minority stakes; often take voting
syndication desk in Germany
elements of equity participation and
senior loan
rights and seat on board of directors
› IRR according to market standards,
years
no fixed return threshold
› IRR according to market standards,
› Tenors 4 – 20 years
› Fixed or variable interest rates, in
Mexico exempt from withholding tax
› Security in project assets; completion
› A priori looking for exit after 4-10
no fixed return threshold
guarantees in green-field projects
DEG provides reliable, tailor-made funding options
6
Why work with DEG?
Tailor-made Solutions
› Equity/debt structures crafted according
to project needs
› Currency flexibility (EUR, USD, MXN)
Global Reach, Local Presence
Long-term Approach
› Maturities matching your business
› Investment experience in +85 countries
› 10 years office presence, over 40 years
experience in Mexico
horizon (up to 20 years)
› Financial stability from a AAA-rated
institution
“Seal of Quality”
› DEG represents the Federal Republic of
Germany
› Our involvement will enhance your
company profile
Partnership
› Developmental approach, beyond profit
maximization
› Technical Assistance programs
7
DEG in Mexico
• DEG in Mexico: >40 years of experience, >10 years with a Representative Office.
• Portfolio 31 Mar 2015: USD 381 million (Top 5 in DEG); 36 projects
Current portfolio structure as of March 2015:
USD 54m
USD
23m
Financial Sector
33%
Manufacturing and
Services
USD 114m
USD 190m
Equity & Mezzanine
Agriculture
67%
Infrastructure
Debt
DEG in Mexico: Long track record, diversified portfolio, increasing role of Equity/Mezzanine
8
Selected projects (Mexico)
2014
2014
2014
2014
Duraplay de Parral
S.A. de C.V.
Negocio Agrícola San
Enrique S.A. de C.V.
KUA Mex Foods,
S.A.P.I. de C.V
MDF Wood
Co-Generation
Food & Beverage
Waldo´s Dólar Mart
de México, S. de R.
L. de C.V.
Retail
Equity
USD 15.5 million
Equity
USD 25.2 million
Mezzanine
Senior Loan
USD 20 million
2012
2013
2011
TPP Bulk Terminal Port
In Lazaro Cardenas
Sowimex
Lead Arranger
4 Wind Parks
Senior Loan
USD 34 million
Equity
USD 12.5 million
2012
2006
2004
2001
Beta San
Miguel
Co-generation etc.
Senior Loans
USD 54 million
2011
EMX Capital
Partners LP
2014
Asofarma de México,
S.A. de C.V.
Farmacéutica
Senior Loan
USD 15 million
2008
2007
Vesta Desarrollo
Inmobiliario Industrial
Private Equity Fund
Ind. Real Estate
Equity
USD 13 million
Equity
EUR 23.5 million
9
DEG’s investment focus
What we are looking for
› Long term investment projects with a developmental impact, e.g. expansion/capex, job creation,
social/environmental standards (refinancing and/or working capital can be part of overall project).
› Companies with a track record in their industry (i.e. no start ups) or a strong strategic partner.
› Companies with a minimum level of corporate governance (e.g. audited financials) and willingness to
institutionalize further.
› Clients in a broad range of sectors.
› German relation (sponsor, equipment etc.) welcome, but not necessary.
› DEG financing usually starting at 10m USD.
10
DEG in the Health Care sector
Within the Health Care sector, DEG has appetite for financing related to:
1) medical devices, pharmaceutical raw materials
and pharmaceuticals
2) the construction and operation of
healthcare facilities
Currently, DEG is accompanying projects with a commitment of EUR 254 m as of October 2015.
There are 8 additional projects being analyzed with value of EUR 135 m.
11
DEG in the Health Care sector
1) Promotion of producers of medical devices, pharmaceuticals
raw material and pharmaceuticals
• Rationale
 Access of broad population to drugs and creation of
qualified jobs
• Regional focus:
 Latin America and Southeast Asia, China and India.
• DEG‘s current portfolio comprises 15 producers of raw
materials and pharmaceuticals and one pharmaceutical
distributor.
12
DEG in the Health Care sector
2) Promotion of health care facilities
• Rationale
 Improved access to health care services on a supraregional level
 Great impacts, but also great challenges: Doctors,
management and medical staff, Technology/ regulatory
risks and certifications
• Regional focus
 Asia, Latin America and Africa
• DEG Current portfolio comprises 6 private hospital projects,
2 PPP project in Middle East, 1 fund for hospital financing,
2 general funds for private health care.
13
The Business Team
Dr. Stefan Blum
Director Representative Office Mexico
[email protected]
Tel.: 52 55 9172-9401
Isabel Thywissen
Vice President and Sector Expert
[email protected]
Ernesto García
Loans Corporates
[email protected]
Tel.: 52 55 9138-0909
Sergio Viso
Equity & Mezzanine Corporates
[email protected]
Tel.: 52 55 2282-2948
Johannes Goderbauer
Equity & Mezzanine Corporates
[email protected]
Tel.: 52 55 9172-9403
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH
Oficina de Representación México
Arquímedes #19 Piso 4, Bosque de Chapultepec,
11580, México D.F.
Phone +52 55 9172 9400 / Fax +52 55 9172 9404
www.deginvest.de
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH
Kämmergasse 22,
50676 Köln, Germany
Phone +49 221 4986 0000 / Fax +49 221 4986 1290
www.deginvest.de
14