1. 1. CONFIDENTIALCONFIDENTIAL
2. 2. CONFIDENTIALCONFIDENTIAL 1-Personal Information 2-Areas of expertise 3-A key Note on Saudi Economy 4-Target Market 5-Benefits to Financial Institutions a) Why deal in Receivable backed financing b) Why you might like to employ me c) Profitability Scenarios d) Sample from my duties 6- Solution Offerings 7-Accounting Treatments 8-Nature of Financing 9-Structure Offerings 10-Solution Offerings
3. 3. CONFIDENTIAL Khalid Baajajah Personal Information Khalid Abdullah Omer Ba-Ajajah Senior Credit Analyst/ Asset Securitization Analyst PERSONAL INFO Birth Date & Place: 27th Nov, 1969 Jeddah Saudi Arabia Gender: Male Marital Status: Married + 4 Children Nationality: Saudi Resident of: Saudi Arabia Jeddah Language Known: Arabic and English (Fluently) EDUCATION California Technical University LA. USA Degree : B.Sc. Computer Science Bachelor degree in Computer Systems and Applications Development from CTU LA, USA, May 2000, with Excellent grade and GPA 3.45 out of 4.0. MCSE (Microsoft Certified System Engineer) System Engineer Certified from Microsoft
4. 4. CONFIDENTIAL Areas of expertise Presently I am working at Saudi British Bank (SABB) as Senior Credit Analyst/Asset Securitization Analyst in Corporate Finance Group Since July 2013 to Present Prior to this I was working as Securitization Analyst/Transactor at Samba Financial Group (SAMBA) - Structured Finance. From Sep 2003 to July 2013
5. 5. CONFIDENTIAL Areas of expertise Over 11 years experience in Corporate Finance & Investment Banking activities mainly Asset Securitization (both conventional and Islamic) Credit Structuring Evaluation, Business Feasibility Financial Modeling Business Research Relationship management.
6. 6. CONFIDENTIAL Areas of expertise I have 20 years experience in Banking, Technology and Customer Services and I have an advanced education in Computer Science which has provided me with superior creative problem solving skills and analytic and conceptual abilities. My constant interactions with our clients and an internship in E-commerce solutions and Finance solutions give me an added edge.
7. 7. CONFIDENTIAL Areas of expertise I am actively involved in marketing of credit structuring products to existing and potential customers. Currently acting as a Product Manager of receivable based asset securitization products (auto receivables and real estate) in KSA with an exposure of about SR 7.0bn ( USD 1.86bn) for which I am responsible for a clientele base which allows me to perform the following: credit facilities management, receivable securitizations analysis, drafting legal documents, seeking internal approvals from credit committee both for credit facilities and receivable (retail & fleet) purchase and operational aspects relationship management,
8. 8. CONFIDENTIAL Areas of expertise Formal reporting to credit committee and higher management in form of monthly watch list of all structured deals as the following: annual/ interim credit reviews, receivables purchase & securitization due diligence, receivable detailed analysis, receivables ongoing analysis, Stress Testing, Risk Ratings of receivables, credit classifications, managing securitization team (securitization analysts and auditor), remedial actions are primary responsibilities at current position.
9. 9. CONFIDENTIAL Areas of expertise I have strong knowledge of the market and its players which can help me to provide an optimal solutions to the financial institutions to allocate their funds in a structured way. On other side, I can approach Originators of the receivables and advice them for optimum utilization of their receivables, acting as an agent, negotiating better terms, cash flow modeling for better pricing and arranging funding sources.
10. 10. CONFIDENTIAL Areas of expertise I am looking for some reputable Financial Institution. for the potential business of the receivables based financing structured solutions to the Saudi Market. I bring vast experience of the local market where I was successfully managing similar portfolios in some big sized banks of the kingdom. Given the huge potential in the market and capitalize my experience, I would like to have working for some financial institutions firm through which I can enter into them for this billion-riyals market. This would help financial institutions to generate structured credit business.
11. 11. CONFIDENTIAL Areas of expertise Though my work as Securitization Analyst/Transactor has certainly been challenging, I am now interested in a similar challenging work with more impact. I would like to bring my communication skills, creative problem solving ability and my credit experience to Large Consulting Company to provide measurable positive impact for Large Consulting Company's client With my background in Finance solutions, I am certainly comfortable and knowledgeable about Credit. This experience in Credit may make me an ideal candidate for a position in the business consulting at Large Consulting Company.
12. 12. CONFIDENTIAL A KEY NOTE ON SAUDI ECONOMY Saudi Arabia is the largest importer of cars and automotive parts in the Middle East. High business confidence and increased disposable incomes provide a favourable background for the automotive sector. Last years figures show that there were 773,254 vehicles imported in the kingdom. Based on market forecasts, next five year growth is to be 20% where 1 million high-mark would be achieved by 2018. Mortgage financing is yet another segment that has remained highly under penetrated in the kingdom as a lack of appropriate framework has prevented banks from aggressively focussing on this segment. With demand for housing expected to remain buoyant, I believe this segment holds tremendous potential for driving loan growth.
13. 13. CONFIDENTIAL TARGET MARKET The receivable based financing structures have been prevailing in the Saudi market for two decades. The market has grown in terms of its participants and volume over the period. Due to lack of required expertise, many financial institutions are recognizing them like conventional corporate lending in terms of asset recognition, due diligence, monitoring, risk management and remedial plans. There are some old participants in the market which have market knowledge and prerequisites however due to growing market size; they are unable to meet market needs thus the market is looking for new financers and new products.
14. 14. CONFIDENTIAL TARGET MARKET The auto sector has grown tremendously in last several years and it is expected to grow further due to favourable economic conditions. There is a huge demand of funds from the auto financing companies to support their growth. Some are even looking to get into the public market through IPOs and Sukuk. The kingdoms real estate financing sector is yet to pick up any growth momentum. Due to high transaction volume and untapped market, there is a dire need of new product development which may provide a continuous source of funding to mortgage companies.
15. 15. CONFIDENTIAL Benefits to Financial Institutions Why deal in Receivable Backed Financing? Structured way of lending if customer concentration does not allow the bank to extend any further loan; Huge market potential due to growing economy and shift towards financing options such as lease/ Ijarah for different sectors such as: Vehicles (mature market) Heavy equipment (mature market) Real estate (Untapped market) Inventor financing (Untapped market)
16. 16. CONFIDENTIAL Benefits to Financial Institutions Why deal in Receivable Backed Financing? Low risk due to: Vigilant Customer acquisition due diligence, Evaluation of Originator/ Servicer credit origination and collection policies, Establishment of credit selection mechanism, Detailed analysis of each purchases on demographic factors Risk quantification of each purchase, Continuous monitoring of servicers overall business performance and all pools monthly and other periodic monitoring, Follow up and remedial actions.
17. 17. CONFIDENTIAL Benefits to Financial Institutions Why should you hire me? Easy to do financing solution (no need to develop internal credit program, monitoring policies etc.). Cost effective method (no need for setting up a separate business unit, no need of getting costly software and specialized people). Bank owns the asset (in case of off balance sheet financing) and thus may be able to repossess it and use the proceeds from the sale against defaulted payments i.e., secured form of lending.
18. 18. CONFIDENTIAL Benefits to Financial Institutions Why should you hire me? A comprehensive solution for the structured financing which begins from the following: due diligence of the originator, legal agreements drafting, credit eligibility criteria selection, receivable purchase analysis, matched cash flow solutions, risk ratings, periodic reporting (monthly, quarterly and annually), remedial actions and credit management.
19. 19. CONFIDENTIAL Benefits to Financial Institutions Why should you hire me? Financial Institutions can enter into this structured exposure vigilantly by putting SR 300MM every year Portfolio exposure may reach to SR 800+MM (net of run- off) over 5-year period Average ROA of 2.60% p.a. with steady growth My cost can easily be covered by facility fee charged to the Seller
20. 20. CONFIDENTIAL Benefits to Financial Institutions Why should you hire me? As Product specialists I have market experience of over 11 years with proven track record of business growth and new market development Direct access to all major players of auto and real estate sector which can provide guaranteed business High rate of return due to very low fixed cost. Continuous stream of income which would go up every year with growing number of deals
21. 21. CONFIDENTIAL Benefits to Financial Institutions Profitability Scenarios for Financial Institutions
22. 22. CONFIDENTIAL Benefits to Financial Institutions Profitability Scenarios for Financial Institutions
23. 23. CONFIDENTIAL Sample from my duties Company Delinquency Rate
24. 24. CONFIDENTIAL Sample from my duties Pool Analysis
25. 25. CONFIDENTIAL Sample from my duties Pool Analysis
26. 26. CONFIDENTIAL Sample from my duties Outstanding Servicer Concentrations
27. 27. CONFIDENTIAL Sample from my duties Cash Flow
28. 28. CONFIDENTIAL Sample from my duties BANK PROFITABILITY
29. 29. CONFIDENTIAL Sample from my duties Repayment Schedule
30. 30. CONFIDENTIAL Sample from my duties Monitoring Each month data is received from the dealer/servicer and analyzed for ageing Comparative study done to compare different pools and the trends An Initial audit of each pool is conducted post purchase to ensure that documentary evidence matches the data presented to The Bank . Twice a year a physical review audit is conducted on dealer site to ascertain accuracy of the monthly data provided to The Bank Pools are classified based on monthly monitoring and provisions are taken if warranted.
31. 31. CONFIDENTIAL Sample from my duties Bank Portfolio
32. 32. CONFIDENTIAL Sample from my duties Collection Performance Chart - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2011-Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 2012-Jan-1 Feb-1 Mar-1 Apr-1 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 2013-Jan-1 Feb-1 Mar-1 Apr-1 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 2014-Jan-1 Feb-1 Mar-1 Apr-1 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 2015-Jan-1 Feb-1 Mar-1 Apr-1 May-1 Collection Performance Outstanding Aggregatate Purchase Price Outstanding At Servicer Cumulative Overdues Reserve Account
33. 33. CONFIDENTIAL Sample from my duties Coverage Ratios Chart
34. 34. CONFIDENTIAL Sample from my duties Reporting Assets Securitization Monthly Watchlist I will prepare a list of the coverage ratios for all outstanding Assets Securitization pools itemizing those pools, which a) are not classified and b) have 90-day late & 90-day inactive ratios of less than 2:1. This report will be sent to: RHC Head, Credit Policy Head, relevant Region Heads and relevant Division Heads.
35. 35. CONFIDENTIAL Sample from my duties Reporting - Monthly Watchlist
36. 36. CONFIDENTIAL Sample from my duties Fleet Finance Monthly Ageing Reports Monthly, I will prepare ageing reports for each Fleet Finance client/pool and forward to the Credit Committee, relevant RMs and credit heads.
37. 37. CONFIDENTIAL Sample from my duties Fleet Finance Monthly Ageing Reports
38. 38. CONFIDENTIAL Solution Offerings 1-Long Term Assets Real estate (Land, Apartments, Villas, Residential Buildings, Commercial Properties)- Untapped market with huge potential Vehicles and other movable assets- Over 1 million vehicles unit sales target by 2018 Equipment- Generous Govt. spending and private sector investments will be key factor
39. 39. CONFIDENTIAL Solution Offerings 2-Short Term Assets Inventory financing- Untapped market with rising demand from FMCGs Short term receivable financing- Untapped market with huge potential from FMCGs
40. 40. CONFIDENTIAL Solution Offerings 3-Future receivables Financing Utility bills, commercial property rents i.e.: shopping malls, business centers etc. Future potential
41. 41. CONFIDENTIAL Accounting Treatments On Balance Sheet Financing Structured Term Loans, Operating Lease Financing Off Balance Sheet Financing Securitization with Limited or non-recourse arrangements
42. 42. CONFIDENTIAL Nature of financing Conventional Receivable Financing On and off-balance Sheet solutions available Islamic Receivable Financing On and off-balance Sheet solutions available
43. 43. CONFIDENTIAL Structure Offerings With Recourse- On Balance Sheet financing The Originator/Seller has full responsibility of the financed receivables collection and defaults.
44. 44. CONFIDENTIAL Structure Offerings With Limited Recourse- Off Balance Sheet financing The Originator/Seller has limited (up to a certain limit such as 10% of the receivable amount) responsibility of the financed receivables collection and defaults.
45. 45. CONFIDENTIAL Structure Offerings Without Recourse- Off Balance Sheet financing The Originator/Seller has no recourse or no responsibility of the financed receivables collection and defaults. It will exert its best effort only.