HAPPY NEW YEAR 2012!
Dear Friends,
Financial Access is pleased to wish all of you a happy, healthy, and successful 2012. We wanted to take this opportunity, as the fireworks are still fresh in our memories, to take note of some of the more interesting highlights, initiatives and developments of 2011 involving FA, our clients and partners. We expect more big bangs in 2012 and hope to co-operate happily with all of you in the New Year.
This is the first Newsletter of the year, but we’ll keep you up to date regularly going forward – also on our website, as well as the LinkedIn, Facebook and Twitter feeds. Do follow us!
With our best wishes,
Financial Access
In this Newsletter:
v FA launches NIFSEEP – a Public-Private Netherlands-Indonesia banking expertise exchange program
v African initiatives – deals in East and West Africa, and a strategic partnership with African Century
v Strategic partnership with NIBE – the Dutch banking and insurance training and certification group
v Banking advisory deals in Africa, the Middle East, CEE and Asia
v Sustainable Finance mandates pick up momentum
v People updates
NIFSEEP -- The Netherlands-Indonesia Financial Sector Expertise Exchange Program
is a private sector initiative, designed and initiated by Financial Access and supported by the Dutch Government and program participants. NIFSEEP is aimed at the transfer of specialist knowledge and skills from the Netherlands to the financial sector in Indonesia.
At the time when the global financial landscape is rapidly changing, with on the one hand more regulation and supervision, and on the other hand promising opportunities arising in areas such as sustainable finance, renewable energy financing and SME Banking, NIFSEEP was created to share experiences and to develop expertise in these domains for Indonesian financial institutions.
The interactive knowledge transfer methods used, and the focus on applicability and implementation, position NIFSEEP as an innovative approach. By sharing specialised knowledge with banks, regulators and banking executives, NIFSEEP provides a platform to establish long-term business, client and partnership arrangements between the financial sectors of Indonesia and the Netherlands, with a focus on tailored training, advisory, financial, investment and other services.
NIFSEEP consists of a number of seminars, roundtable discussions and workshops in the Netherlands and Indonesia. Full roll-out of individual training programs, advisory services and delivery of other banking services by the NIFSEEP participants to Indonesian banks will then commence at terms that will ensure the Program’s long-term commercial viability.
In late November and early December, an Executive Banking Forum was held in Amsterdam for 20 Indonesian financial executives in Amsterdam. Participants from the Netherlands included senior representatives from the Dutch Central Bank, FMO, ING Bank, ABN-AMRO, Unilever, Nyenrode University and NIBE-SVV, the Netherlands Bank Training Academy. During the Forum, an MOU was signed between Perbanas, BARA, IBI, Nyenrode University, NIBE-SVV and Financial Access for the development of training and knowledge transfer programs for the financial sector in Indonesia.
As part of the NIFSEEP Program, Financial Access and the Dutch NIFSEEP corporate partners together with the National Banks Association (Perbanas), the Ikatan Bankir Indonesia (IBI), the Indonesian Risk Management Association for Banks (BARA), the Indonesian Institute for Banking Training (LPPI) and the International Finance Corporation (IFC), will host a Banking Seminar and a number of workshops in Jakarta in February 2012, to introduce new concepts and innovative solutions in a number of key banking areas in Indonesia.
African Initiatives in 2011
Financial Access, in co-operation with African Century (see below), was awarded an internationally-tendered IFC contract to provide advisory services under IFC’s Africa Micro, Small and Medium Scale Enterprise (MSME) Finance Program to Bank of Africa Group (BoA) affiliates in Tanzania, Burundi, Kenya and Uganda. We will assist the BoA local operations to increase their lending and other non-lending services in the target segments.
We signed the contracts last August and in October and November we conducted initial market studies, diagnostic reviews of the banks involved and presented an Implementation Plan. We also will embed a Resident Adviser (RA) in each Bank over the implementation period, supported by short-term technical experts. We have agreed on a set of activities to be carried out in areas including (but not limited to) management information systems, credit risk management, product development, human resources development, and the review and upgrading of SME Banking policies, processes and procedures.
BoA Group is a pan-African financial services group established in 1982 supporting the expansion of financial services in the African region. The Bank is is represented in 12 countries across Africa, specifically Kenya, Uganda, Tanzania, Burundi, Benin, Burkina Faso, Democratic Republic of Congo, Mali, Niger, Senegal, Ivory Coast and Madagascar (as well as offices in Europe). The Bank is keen to revamp their commercial activities to significantly increase its market share in the SME segment.
Financial Access will introduce a new monitoring methodology for the product development and rollout plan which will be used by all parties to track and evaluate progress on the project including profitability, volume of business and number of SME clients. We also will also provide assistance with the feasibility, development, piloting, and rollout of several new SME banking products, e.g. supply chain finance, mortgages, sector specific loans, and structured SME products which utilise alternative collateral and trade finance and treasury products.
The BoA advisory assignment is linked to a several loan facilities IFC is providing the BoA Banks.
FA is also providing ongoing Trade Finance training to IFC-invested banks in many countries around the world.
The latest mandate in this program is for training sessions in the Comoros, Niger and Guinea.
In 2011 we also concluded a strategic partnership for African advisory and investment-related business with the Washington-based African Century Capital Group.
African Century has a powerful network of relationships across the region and we look forward to accelerating this collaboration in 2012, building on our co-operation in the BoA assignment.
Strategic Co-operation signed with NIBE- SVV
In August, Financial Access and NIBE-SVV, the Dutch banking and insurance training institution, signed a strategic co-operation agreement. The co-operation aims to combine the international banking advisory experience and skills of Financial Access with the financial training expertise of NIBE-SVV to develop performance enhancement and knowledge sharing initiatives for financial institutions in developing countries and emerging markets.
Banking Advisory deals – selected highlights
v E-Banking Advisory, Vietnam
In September, 2011 Financial Access advised Techcombank, one of the largest private commercial banks in Vietnam on the effective development of E-banking channels to improve client service and product distribution in the increasingly competitive Vietnam banking market.
v Structured Finance and Investment Banking Development, Kuwait
Financial Access is currently advising and developing the structured finance and investment banking activities of one of the largest banks in Kuwait. Due to our involvement the bank has raised its profile in these areas and has recently won a number of leading project finance and fixed income mandates in Kuwait.
v Valuation and strategic options for a Ukrainian Bank
FA advised the owners of a niche bank in Ukraine who required an operational assessment as well as valuation ranges for the bank in various scenarios.
v Ongoing work for Bank South Pacific in Papua New Guinea
We continue to advise BSP, the largest bank in PNG, on a range of issues associated with retail banking, risk management and operations.
v Advice to African Capital Alliance, FMO and other investment partners on a major Nigerian banking acquisition
For more than a year FA has been working with a consortium of private equity investors led by ACA and including FMO on the acquisition of one of Nigeria’s largest banks. Advice has covered elements of due diligence, transformation planning, NPL management, as well as the disposition of various subsidiaries.
v Sathapana Bank, Cambodia – IT procurement advice
FA advised Sathapana Bank, a private sector (micro-) lender in Cambodia, on the acquisition of a new IT system and its applications to the bank’s operations.
v National Bank of Fujairah, UAE – advice on non-performing loan (NPL) management
Training was provided to this major financial institution in the UAE on issues associated with their NPL portfolio, the approach to management issues in the Risk Management Department, and organisational implications.
v Caixa Económica de Cabo Verde
With the support of an international shareholder, FA provided the first phase of advice to Caixa, one of Cape Verde’s most important local lenders, on credit risk management enhancements.
Following the initial diagnostic phase, work will continue in 2012 on designing improved procedures and policies, as well as continued training to bank staff.
Sustainable Banking & Finance
v AEGON Asset Management, Netherlands
During the summer of 2011, Financial Access advised AEGON Asset Management, one of the Netherlands’ largest life and pensions businesses, on the development of its global responsible investment policy. FA was able to support our client in creating an approach that addressed its unique business mix, organisational structure and geographical footprint.
Our advisory work included the creation of a set of credible standards, conforming to UN Global Compact environmental and social benchmarks as well as international best practice in the area of governance, clearly to demonstrate the company’s ambitions to investment staff and stakeholders. The global responsible investment policy was launched publicly in November 2011.
v Rabobank Group/De Lage Landen, Netherlands
Financial Access advised the asset leasing arm of Rabobank on sustainability trends within its client portfolio. This involved an assessment of best practices within sectors, and the activities of individual companies within each sector. Through understanding the business and sustainability strategies across the business portfolio, the bank has been able to identify potential areas for business development with a group of priority clients.
v FMO/Diversified banking operation, West Africa
Financial Access undertook due diligence of a West African bank of environmental & social management, and labour practices for a prospective investment by FMO. Looking into the sustainability trends in the country, the organisation of the bank and its core business activities, Financial Access was able to develop an action plan for establishing an environmental & social management system (“ESMS”) that meets the requirements of potential development finance investors and addresses the underlying sustainability issues in the country concerned. Through its assessment of the labour situation, and in discussion with senior management and labour unions, Financial Access was able to clarify labour issues within the bank and advise FMO accordingly.
v Diamond Bank, Nigeria - ESMS
FA was mandated in December to assist Diamond Bank with the enhancement and implementation of its Environmental and Social (Risk) Management System.
Diamond Bank is one of Nigeria’s best regarded listed banks, with highly respected international shareholders such as the UK’s Actis and the Netherlands development bank FMO. In common with other leading Nigerian banks and with strong Central Bank support, Diamond is seeking to be amongst the first African banks fully to implement international best practices in ESMS.
People Updates
v Alexander Issaev has joined us as Analyst and will be working on all areas of the firm’s business. Alexander has investment banking experience with several major firms and has degrees from Bulgaria as well as the University of Amsterdam.
v Rosa Sarkeyeva, who worked with us nearly from FA’s launch, has moved to a new challenge with Triodos Investment Management as investment officer for Central Asia. We wish her all the best in this role.
v David Yong, our Representative in Vietnam, has taken on an exciting new role as CEO of Andara Bank, Indonesia, a microfinance lender. We look forward to working with David in his new capacity.
v Watch this space: New partnerships are being developed to extend our presence and reach in Vietnam, Indonesia, Ukraine, the Gulf, and East Africa. We’ll keep you up to date in future Newsletters.
BEST WISHES TO ALL FOR 2012!
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