S.C.I.C. Societ di Cartolarizzazione Italiana Crediti a r.l. - - PowerPoint PPT Presentation
S.C.I.C. Societ di Cartolarizzazione Italiana Crediti a r.l. PERSONAL LOANS PORTFOLIO Securitisation of Performing Collateralised Securitisation of Performing Collateralised Personal Loans to Italian Public Sector Employees Personal Loans to
INVESTOR PRESENTATION INVESTOR PRESENTATION November 2003
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The securities discussed herein have not been and will not be registered with the U.S. Securities and Exchange Commission. Such securities may not be offered or sold, and this document may The securities discussed herein have not been and will not be registered with the U.S. Securities and Exchange Commission. Such securities may not be offered or sold, and this document may not be disseminated, in the United States or to any U.S. person, except in connection with (1) a transaction outside the United States to persons that are not US persons in accordance with Rule 903 not be disseminated, in the United States or to any U.S. person, except in connection with (1) a transaction outside the United States to persons that are not US persons in accordance with Rule 903
with applicable law. The issuer of the securities has not been registered under the US Investment Company Act of 1940, as amended. with applicable law. The issuer of the securities has not been registered under the US Investment Company Act of 1940, as amended. Under no circumstances shall the information presented herein constitute and should not be considered an offer to sell or the solicitation of an offer to buy nor shall there by any sale of any Under no circumstances shall the information presented herein constitute and should not be considered an offer to sell or the solicitation of an offer to buy nor shall there by any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification any security or other financial instrument under the securities laws of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification any security or other financial instrument under the securities laws of such jurisdiction. No representation or warranty express or implied is made and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions such jurisdiction. No representation or warranty express or implied is made and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. contained herein. References herein to “ References herein to “Citigroup Citigroup” are to ” are to Citigroup Citigroup Global Markets Limited and any of its affiliated or associated companies and their directors, representatives or employees and/or any persons Global Markets Limited and any of its affiliated or associated companies and their directors, representatives or employees and/or any persons connected with them. References herein to “CSFB” are to Credit Suisse First Boston Europe Limited and any of its affiliated or associated companies and their directors, representatives or connected with them. References herein to “CSFB” are to Credit Suisse First Boston Europe Limited and any of its affiliated or associated companies and their directors, representatives or employees and/or any persons connected with them. References herein to “UBM” are to employees and/or any persons connected with them. References herein to “UBM” are to UniCredit Banca Mobiliare SpA UniCredit Banca Mobiliare SpA and any of its affiliated or associated companies and their directors, and any of its affiliated or associated companies and their directors, representatives or employees and/or any persons connected with them. References herein to “Issuer” are to S.C.I.C. representatives or employees and/or any persons connected with them. References herein to “Issuer” are to S.C.I.C. Srl
. and references herein to “Originator” are to I.N.P.D.A.P. This document is being directed at you solely in your capacity as a relevant person (as defined below) for your information and may not be reproduced, redistributed or passed on to any other person or published, being directed at you solely in your capacity as a relevant person (as defined below) for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior written consent of Citigroup, CSFB or UBM (jointly, “the Firms”) and the Issuer. in whole or in part, for any purpose, without the prior written consent of Citigroup, CSFB or UBM (jointly, “the Firms”) and the Issuer. The information herein is preliminary, limited in nature and subject to completion and amendment, and will be superseded by the final offering circular. All opinions and estimates included in this The information herein is preliminary, limited in nature and subject to completion and amendment, and will be superseded by the final offering circular. All opinions and estimates included in this document speak as of the date of this document and are subject to change without notice. This document addresses only certain aspects of the applicable securities characteristics and thus does document speak as of the date of this document and are subject to change without notice. This document addresses only certain aspects of the applicable securities characteristics and thus does not provide a complete assessment: as such it may not reflect the impact of all structural characteristics of the securities. not provide a complete assessment: as such it may not reflect the impact of all structural characteristics of the securities. This document is not intended to be an offering document and any investment decision with respect to the securities should be made by you solely upon all of the information contained in the final This document is not intended to be an offering document and any investment decision with respect to the securities should be made by you solely upon all of the information contained in the final
A final offering circular may be obtained by contacting your usual representative at Citigroup, CSFB or UBM. A final offering circular may be obtained by contacting your usual representative at Citigroup, CSFB or UBM. The Firms may provide investment banking services (including without limitation corporate finance services) for the companies mentioned in this document and may from time to time participate The Firms may provide investment banking services (including without limitation corporate finance services) for the companies mentioned in this document and may from time to time participate
not reflected in this document. Citigroup, CSFB or UBM may make a market in the securities described in this document. Accordingly, the Firms may actively trade these securities for its own not reflected in this document. Citigroup, CSFB or UBM may make a market in the securities described in this document. Accordingly, the Firms may actively trade these securities for its own account and those of its customers and, at any time, may have a long or short position in these securities or derivatives related hereto. The Firms are not tax advisors. The tax implications of an account and those of its customers and, at any time, may have a long or short position in these securities or derivatives related hereto. The Firms are not tax advisors. The tax implications of an investment in the securities must be verified by independent tax counsel before proceeding with any such investment. investment in the securities must be verified by independent tax counsel before proceeding with any such investment. For UK investors: This document is being distributed only to, and is directed only at persons who have professional experience in matters relating to investments falling within Article 19(1) of the For UK investors: This document is being distributed only to, and is directed only at persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) and other persons to whom it may otherwise lawfully be communicated (all such persons “relevant Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) and other persons to whom it may otherwise lawfully be communicated (all such persons “relevant persons”). It must not be acted on or relied on by, nor are the securities herein available to, persons who are not relevant persons. persons”). It must not be acted on or relied on by, nor are the securities herein available to, persons who are not relevant persons. For Italian investors: This memorandum is being distributed only to, and is directed only at professional investors (the “ For Italian investors: This memorandum is being distributed only to, and is directed only at professional investors (the “operatori qualificati
”), as defined in article 31, second paragraph, of CONSOB Regulation No. 11522 of 1 CONSOB Regulation No. 11522 of 1st
st July, 1998, as successively amended. It must not be acted on or relied on by, nor are the securities herein available to, persons who are not
July, 1998, as successively amended. It must not be acted on or relied on by, nor are the securities herein available to, persons who are not operatori
qualificati qualificati. . This document is based on information provided by the Originator. The Firms make no representation or warranty, express or implied, as to the accuracy or completeness of such information. The This document is based on information provided by the Originator. The Firms make no representation or warranty, express or implied, as to the accuracy or completeness of such information. The information contained herein is qualified in its entirety by the information in the final offering circular for this transaction. information contained herein is qualified in its entirety by the information in the final offering circular for this transaction. This document contains certain tables and other statistical analyses (the “Statistical Information”) which have been prepared in reliance upon information furnished by Originator. Numerous This document contains certain tables and other statistical analyses (the “Statistical Information”) which have been prepared in reliance upon information furnished by Originator. Numerous assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. As such, no assurance can be given as to the Statistical Information’s accuracy, assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. As such, no assurance can be given as to the Statistical Information’s accuracy, appropriateness or completeness in any particular context; nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or appropriateness or completeness in any particular context; nor as to whether the Statistical Information and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. Any weighted average lives, future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. Any weighted average lives, yields and principal payment periods shown in the Statistical Information are based on prepayment assumptions, and changes in such prepayment assumptions may dramatically affect such yields and principal payment periods shown in the Statistical Information are based on prepayment assumptions, and changes in such prepayment assumptions may dramatically affect such weighted average lives, yields and principal payment periods. In addition, it is possible that prepayments on the underlying assets will occur at rates slower or faster than the rates shown in the weighted average lives, yields and principal payment periods. In addition, it is possible that prepayments on the underlying assets will occur at rates slower or faster than the rates shown in the attached Statistical Information. The Firms make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities. attached Statistical Information. The Firms make no representation or warranty as to the actual rate or timing of payments on any of the underlying assets or the payments or yield on the securities.
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Istituto Nazionale di Previdenza dei Dipendenti dell’Amministrazione Pubblica (“INPDAP”) is presenting its first Euro [4,230] (“INPDAP”) is presenting its first Euro [4,230] million securitisation of performing million securitisation of performing collateralised personal loans granted to Italian public sector employees collateralised personal loans granted to Italian public sector employees
The transaction is sponsored by the Italian Ministry of Economy and Finance (“MEF”) in the context of its strategy to privatise public assets and related management in the context of its strategy to privatise public assets and related management activities through securitisation. The ultimate goal of the activities through securitisation. The ultimate goal of the MEF’s MEF’s strategy is to improve strategy is to improve public sector efficiency and the competitiveness of the Italian economy public sector efficiency and the competitiveness of the Italian economy The specific objectives of this transaction are to: The specific objectives of this transaction are to:
Reduce the size of public sector funded assets while preserving or increasing the while preserving or increasing the availability of low cost financing to public sector employees availability of low cost financing to public sector employees
Improve transparency and efficiency by: by:
updating INPDAP’s INPDAP’s IT and administrative procedures to the business best IT and administrative procedures to the business best practice while facilitating future repeat transactions practice while facilitating future repeat transactions
introducing an objective cost / benefit measure of INPDAP’s INPDAP’s personal loans personal loans activity through capital markets funding activity through capital markets funding
upgrading data management and administrative framework to enable INPDAP going forward to intermediate bank financing to public sector employees, in going forward to intermediate bank financing to public sector employees, in return for a servicing fee return for a servicing fee
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This transaction inaugurates S.C.I.C. as the Treasury’s third Securitisation Programme, which will be used to which will be used to securitise securitise public sector receivables while concurrently redesigning public sector receivables while concurrently redesigning their management process their management process
The S.C.I.C. Securitisation Programme S.C.I.C. Securitisation Programme, along with the already established INPS- , along with the already established INPS- SCCI and SCIP Programmes, represents the completion of the set of instruments SCCI and SCIP Programmes, represents the completion of the set of instruments designed by the MEF to implement its strategy of designed by the MEF to implement its strategy of securitising securitising public assets on a public assets on a regular basis using a standardised repeat issuance format to facilitate investors’ regular basis using a standardised repeat issuance format to facilitate investors’ analysis, broaden the investor base and further develop secondary market liquidity analysis, broaden the investor base and further develop secondary market liquidity
Each of S.C.I.C.’s securitised securitised portfolios will be segregated from all other assets of the portfolios will be segregated from all other assets of the company company
Substantial benefits are expected to derive from each securitisation as a result of improved discipline from streamlining market scrutiny, and upgraded management of improved discipline from streamlining market scrutiny, and upgraded management of securitised securitised assets assets
Incentive schemes, high reporting standards and competitive tendering for third party services are the tools used by the MEF to achieve its goals services are the tools used by the MEF to achieve its goals
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Portfolio Notional Amount: approximately Portfolio Notional Amount: approximately € € [ [4,550 4,550] ] million million
Classes Expected Ratings* Amount WAL (yr.) Legal Maturity
AAA/ AAA/Aaa Aaa/AAA /AAA € € [4,230] [4,230] million million A1 PL A1 PL € € [1,170] [1,170] mn mn December December 2006 2006 A2 PL A2 PL € € [1,500] [1,500] mn mn December December 2008 2008 A3 PL A3 PL € € [860] [860] mn mn December December 2010 2010 AAA/ AAA/Aaa Aaa/AAA /AAA € € [700] [700] mn mn December December 2015 2015 Total Total AAA/ AAA/Aaa Aaa/AAA /AAA AAA/ AAA/Aaa Aaa/AAA /AAA
Expected Maturity
December December 2004 2004 December December 20 2006 06 December December 2008 2008 A4 PL A4 PL Soft Bullet Soft Bullet Soft Bullet Soft Bullet Soft Bullet Soft Bullet Amortising Amortising -
Pass through
* * All classes of Notes are expected to be rated triple A by Fitch Ratings, Moody’s Investor Services and Standard and Poor’s, All classes of Notes are expected to be rated triple A by Fitch Ratings, Moody’s Investor Services and Standard and Poor’s, ** ** Fixed up to the occurrence of an Interest Rate Conversion Event and thereafter 3m Euribor + Fixed up to the occurrence of an Interest Rate Conversion Event and thereafter 3m Euribor + [ [? ?] ] *** Classes A1, A2 and A4 Notes will pay quarterly coupons. Class A3 will pay fixed rate annual coupons until an *** Classes A1, A2 and A4 Notes will pay quarterly coupons. Class A3 will pay fixed rate annual coupons until an Interest Rate Conversion Interest Rate Conversion Event and quarterly floating rate coupon thereafter Event and quarterly floating rate coupon thereafter
Coupons ***
3m Euribor + 3m Euribor + [ [? ?] ] Fixed** Fixed** 3m Euribor + 3m Euribor + [ [? ?] ] 3m Euribor + 3m Euribor + [ [? ?] ] Joint Lead Managers: Citigroup Global Markets LTD, CSFB, UBM - Joint Lead Managers: Citigroup Global Markets LTD, CSFB, UBM - UniCredit Banca Mobiliare UniCredit Banca Mobiliare
Amortisation
[December [December 2009] 2009] 1.1 1.1 3.1 3.1 5.1 5.1 [5.8] [5.8]
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Coupons
Class A1 PL, A2 PL, A4 PL: 3m Euribor + spread (Act/360) Class A1 PL, A2 PL, A4 PL: 3m Euribor + spread (Act/360) Class A3 PL: Class A3 PL: Fixed up to the Class A3 PL Interest Rate Conversion Event (Act/Act), Fixed up to the Class A3 PL Interest Rate Conversion Event (Act/Act), Floating – 3m Euribor + spread (Actual/360) thereafter Floating – 3m Euribor + spread (Actual/360) thereafter
Coupon Frequency
Class: A1 PL, A2 PL, A4 PL Class: A1 PL, A2 PL, A4 PL: : Quarterly on 21 March, June, September, December. Long first coupon on 21 March 2004 Quarterly on 21 March, June, September, December. Long first coupon on 21 March 2004 Class A3 PL: Annually up to the Class A3 PL Interest Rate Conversion Event. First coupon on 21 December 2004 Class A3 PL: Annually up to the Class A3 PL Interest Rate Conversion Event. First coupon on 21 December 2004
Listing
Luxembourg Stock Exchange – Trading on MTS Luxembourg Stock Exchange – Trading on MTS
Settlement
Italian domestic ( Italian domestic (Montetitoli Montetitoli Spa), Spa), Euroclear Euroclear, , Clearstream
. Notes will be held in Montetitoli Montetitoli in in dematerialised dematerialised form form
Governing Law
Italian Italian
Tax Treatment
Eurobond format: Eurobond format: Payments on the Notes will be exempt from deduction of substitute tax in Italy for Payments on the Notes will be exempt from deduction of substitute tax in Italy for non-Italian residents non-Italian residents
Expected BIS Risk Weighting
100% 100%
Credit and Liquidity Enhancement
Overcollateralization Overcollateralization of 7%
All cash flows generated by the Portfolio will be used to cover the transaction expenses and to make interest and All cash flows generated by the Portfolio will be used to cover the transaction expenses and to make interest and principal payments on the Notes. No cash will be paid to the Originator, in accordance with the priority of principal payments on the Notes. No cash will be paid to the Originator, in accordance with the priority of payments, until all classes of Notes have been redeemed in full payments, until all classes of Notes have been redeemed in full
Clean Up Call
Allowed when the amount of principal on the Notes is equal to, or lower than, 10% of the originally issued Notes Allowed when the amount of principal on the Notes is equal to, or lower than, 10% of the originally issued Notes
ECB Eligibility
The Notes are expected to fulfill ECB eligibility criteria for The Notes are expected to fulfill ECB eligibility criteria for Eurosystem Eurosystem credit operations (Repurchase Agreements) credit operations (Repurchase Agreements)
Denomination
Euro 1,000 Euro 1,000
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INPDAP provides social security services, such as pensions and severance payments, to public sector employees employed by: to public sector employees employed by:
The Italian State
Local authorities, such as regions, provinces and municipalities
Other public law entities
In 2003 selected summary information for INPDAP was approximately as follows:
[8,300] employees
[103] provincial offices
[3,283,000] registered members
[2,366,211] pension disbursed to registered members
In addition to the core social security services to public sector employees (similar to those provided by INPS to the private sector), INPDAP offers the following services to those provided by INPS to the private sector), INPDAP offers the following services to its members: its members:
Social benefits (e.g. nursing homes, holidays camps, scholarships)
Loans (short and medium term personal loans and mortgage loans)
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INPDAP's lending activities are carried out through a dedicated department, the lending activities are carried out through a dedicated department, the Gestione Unitaria Autonoma Gestione Unitaria Autonoma per per il Credito il Credito e le e le Attività Sociali Attività Sociali (the “ (the “Gestione Unitaria Gestione Unitaria”) ”) which manages the fund out of which loans to public sector employees are granted which manages the fund out of which loans to public sector employees are granted
All employees covered by INPDAP’s INPDAP’s pension treatments, are registered with the pension treatments, are registered with the Gestione Unitaria Gestione Unitaria and are subject to a mandatory contribution of 0.35 per cent of their and are subject to a mandatory contribution of 0.35 per cent of their monthly gross salary. Inflows from employees’ contributions are allocated on the basis monthly gross salary. Inflows from employees’ contributions are allocated on the basis
INPDAP’s Board of Directors, among social benefits and Board of Directors, among social benefits and Gestione Gestione Unitaria Unitaria fund fund
INPDAP's lending services, conducted through the lending services, conducted through the Gestione Unitaria Gestione Unitaria, include: , include:
Personal loans
Mortgage loans
Money is lent by INPDAP from the fund’s resources, the majority of which derive from the repayment of outstanding loans the repayment of outstanding loans
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INPDAP will securitise all outstanding personal loans at the time of closing and all personal loans which will be originated until [5 December 2003] personal loans which will be originated until [5 December 2003]
The portfolio sold to SCIC includes:
Entire personal loans portfolio outstanding as of 30 September 2003 for a total amount of Euro 4,347 million (the “Existing Portfolio”) amount of Euro 4,347 million (the “Existing Portfolio”)
All loans originated during October, November and December (the “New Portfolio”)
INPDAP will guarantee that the personal loans (all granted under INPDAP’s INPDAP’s statutory statutory lending criteria) originated in October, November and December will have an aggregate lending criteria) originated in October, November and December will have an aggregate notional amount of not less than Euro 203 million for a total portfolio (the “Portfolio”) notional amount of not less than Euro 203 million for a total portfolio (the “Portfolio”) notional amount of Euro 4,550 million. The Receivables Purchase Agreement will notional amount of Euro 4,550 million. The Receivables Purchase Agreement will provide that: provide that:
The purchase price paid to INPDAP will not be increased in case the Portfolio notional amount is higher than Euro 4,550 million notional amount is higher than Euro 4,550 million
In case the aggregate principal balance of the New Portfolio is lower than Euro
203
203 million INPDAP will pay to SCIC an amount of cash equivalent to the shortfall million INPDAP will pay to SCIC an amount of cash equivalent to the shortfall
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1, 2 or 3 years 1, 2 or 3 years 5 or 10 years 5 or 10 years Standard Tenor Prepayments are allowed at no cost subject to Prepayments are allowed at no cost subject to certain restrictions certain restrictions Prepayments are allowed at no cost subject to Prepayments are allowed at no cost subject to certain restrictions certain restrictions Prepayment Public sector employees for over 1, 2 or 3 Public sector employees for over 1, 2 or 3 years depending on the tenor of the loan years depending on the tenor of the loan Public sector employees with a fixed term Public sector employees with a fixed term contract expiring not earlier than the loan’s final contract expiring not earlier than the loan’s final maturity maturity Public sector employees under 65 years of age Public sector employees under 65 years of age Public sector employees for over 4 years Public sector employees for over 4 years Public sector employees with a fixed term Public sector employees with a fixed term contract expiring not earlier than the loan’s contract expiring not earlier than the loan’s final maturity final maturity Public sector employees with an age lower Public sector employees with an age lower than 65 than 65 Beneficiaries None None Medical certification and documentation of the Medical certification and documentation of the expenses for which the loans are granted to expenses for which the loans are granted to cover specific expenses by the debtor cover specific expenses by the debtor Required Documentation 1 or 2 times the debtor’s net monthly salary for 1 or 2 times the debtor’s net monthly salary for 1 year loan. 2 or 4 times the debtor’s net 1 year loan. 2 or 4 times the debtor’s net monthly salary for 2 years loan. 3 or 6 times the monthly salary for 2 years loan. 3 or 6 times the debtor’s net monthly salary for 3 years loan debtor’s net monthly salary for 3 years loan The amount of the loan should generate The amount of the loan should generate installment which are the lesser of 1/5 of the installment which are the lesser of 1/5 of the debtor’s net monthly salary and Euro 516.46 debtor’s net monthly salary and Euro 516.46 Max Amount Short-Term Loans Medium-Term Loans
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Loans are fully collateralized by irrevocable assignment of a portion of
up to one fifth of the debtor’s net monthly salary the debtor’s net monthly salary
According to the law, debtors and employers are jointly and severally responsible for the payments of the payments of instalments instalments under the loan under the loan
The debtor is obliged under the provisions of the loan agreement
The employer is obliged to retain and pay to INPDAP the portion of the net monthly salary assigned to the lender salary assigned to the lender
In case of payment delay, the employer is bound to pay interest at the contractual interest rate on the loan interest rate on the loan
No third party creditor may seize or attach the portion of the salary previously assigned to INPDAP to INPDAP
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To cover certain credit risks, debtors are required to pay upfront “insurance premium” to which INPDAP deducts from the amount of the loan at the time of disbursement. which INPDAP deducts from the amount of the loan at the time of disbursement. Following the sale of the portfolio, INPDAP will cover the Issuer from losses due to: Following the sale of the portfolio, INPDAP will cover the Issuer from losses due to:
death of the debtor for medium term loans
permanent disability of the debtor due to work related accidents for short term loans
Instalments are not modified in case of salary reductions unless such reduction exceeds 1/3 of the original net salary exceeds 1/3 of the original net salary
In case of termination of the employment without the loan having fully been repaid:
if the debtor is immediately entitled to pension, loan instalments continue to be paid by deduction from the debtor’s pension by deduction from the debtor’s pension – – The tenor of loans maturity never exceeds the ordinary retirement age of The tenor of loans maturity never exceeds the ordinary retirement age of
early retirement early retirement
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Should part of debt remain outstanding after using the severance payment, the debtor is obliged to pay the outstanding balance within 30 days is obliged to pay the outstanding balance within 30 days
If the debtor does not pay the remaining debt, the recovery procedure is started immediately immediately
INPDAP’s loans enjoy the privileges of the loans enjoy the privileges of the Concessionari Concessionari recovery procedures recovery procedures applicable to taxes and social security contributions applicable to taxes and social security contributions
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Risks normally associated with Consumer Loans
instalments
income
salary by the lender INPDAP’s personal loans
(deduction of instalments from salary)
INPDAP
risk of losing job)
payment
INPDAP cannot be seized or attached by third party creditors
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The Provisional Portfolio (INPDAP’s INPDAP’s loan Portfolio as of 31 July 2003) consists of loan Portfolio as of 31 July 2003) consists of 645,694 645,694 personal loans granted to public sector employees throughout Italy, for a total personal loans granted to public sector employees throughout Italy, for a total amount of approximately Euro 4,497 million amount of approximately Euro 4,497 million
SCIC Summary Portfolio Description Portfolio Breakdown by Loan type*
*Calculated on the Portfolio Size Source: INPDAP Source: INPDAP Number of Contracts 645,694 Total Outstanding Principal 4,497,451,915 WA Max Min Current Outstanding Principal 6,965 (*) 61,756 19 Original Principal Amount 11,650 90,235 116 Remaining Term (monthly instalments) 72.27 120 1 Seasoning (monthly instalments) 24.55 119 Interest Rate 4.71 9.6 3.2
(*) Simple average Medium-Term Loans 81% Small Loans 19%
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Aggregate loan Portfolio (Static Pool Analysis) 0.000% 0.005% 0.010% 0.015% 0.020% 0.025% 0.030% 1 2 3 4 1998 1999 2000 2001 2002
Source: INPDAP
Maximum yearly layoffs of public sector employees for the period 1998-2002 was 0.6 bps
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Aggregate loan Portfolio (Static Pool Analysis) – Mortality rate of debtors 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 1 2 3 4 1998 1999 2000 2001 2002
Source: INPDAP
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Average historical prepayment rate (2001-2003): 2.6% - (Dynamic Analysis) Medium-long term loans (Dynamic Analysis) Short-term loans (Dynamic Analysis)
Average historical prepayment rate (2001-2003): 2.0% Average historical prepayment rate (2001-2003): 3.6%
Source: SCSII Source: SCSII
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2000 2001 2002 2003 (annualised) Renewal Other Total 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2000 2001 2002 2003 (annual.) Renewal Other Total 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2000 2001 2002 Renewal Other Total
Source: SCSII
2003 (annual.)
The graphs in this slide are based on personal loans managed by the SCSII of MEF (please see relevant section in of the Appendix)
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Source: INPDAP
If a debtor is temporarily suspended from employment or obtains an unpaid leave period (due, for instance, to studies or to disciplinary sanctions), loan instalments are period (due, for instance, to studies or to disciplinary sanctions), loan instalments are temporarily suspended. When the suspension ends and payments resume, the temporarily suspended. When the suspension ends and payments resume, the amortisation plan of the loan is recalculated by adding to the original loan amount amortisation plan of the loan is recalculated by adding to the original loan amount interest accrued during the suspension at the contractual rate interest accrued during the suspension at the contractual rate
The following table shows historical data on suspension of employment of local authorities for the period 1996-2000 authorities for the period 1996-2000
Year Number of Employees under Suspension Total Number of Employees % Suspensions 1996 477 1,362,095 0.04% 1997 747 1,424,185 0.05% 1998 807 1,442,377 0.06% 1999 399 1,478,999 0.03% 2000 558 1,432,777 0.04%
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INPDAP will sell the Portfolio to the Issuer (S.C.I.C. a.r.l., previously known as S.C.C.P.P. a.r.l.) pursuant to a Receivables Purchase Agreement, approved by a S.C.C.P.P. a.r.l.) pursuant to a Receivables Purchase Agreement, approved by a Ministerial Decree issued by the MEF in conjunction with the Ministry of Welfare, Ministerial Decree issued by the MEF in conjunction with the Ministry of Welfare, pursuant to Art. 15 of Law 448/1998 as later amended (“Article 15”) pursuant to Art. 15 of Law 448/1998 as later amended (“Article 15”)
The Issuer is a multi-purpose vehicle and has already engaged in the MEF Lotto securitisation transaction completed in December 2001 and involving: securitisation transaction completed in December 2001 and involving:
the acquisition of future revenues deriving from certain lottery and betting games ( (Lotto Lotto and and Superenalotto Superenalotto) )
the issue of asset-backed notes in an aggregate amount of Euro 3 billion
The Issuer may engage in other securitisation transactions in the future
The Portfolio will be segregated (“ (“patrimonio separato patrimonio separato”) ”) from all other assets of the from all other assets of the Issuer and from the assets of other securitisation transactions Issuer and from the assets of other securitisation transactions
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SCIC will use the proceeds from the Issuance of Notes to purchase the portfolio from INPDAP
Transfer of Portfolio
(Article 15)
ABS Notes Issue Proceeds SCIC SCIC Class A1 PL Class A1 PL
AAA/ AAA/Aaa Aaa/AAA Expected Rating /AAA Expected Rating
Swap Swap counterparties counterparties INPDAP INPDAP (Seller and (Seller and Servicer Servicer) ) Servicing Agreement Transfer Price
(Initial and Deferred Transfer Price)
Class A2 PL Class A2 PL
AAA/ AAA/Aaa Aaa/AAA Expected Rating /AAA Expected Rating
Class A3 PL Class A3 PL
AAA/ AAA/Aaa Aaa/AAA Expected Rating /AAA Expected Rating
Class A4 PL Class A4 PL
AAA/ AAA/Aaa Aaa/AAA Expected Rating /AAA Expected Rating
NOTES NOTES NOTE TYPE Floating Rate, Soft Bullet Floating Rate, Soft Bullet Floating Rate, Amortising Fixed Rate, Soft Bullet
(switches to floating on the Class A3 Expected Maturity or in case of Acceleration)
Citibank Citibank Paying Agent and Paying Agent and Cash Manager Cash Manager Securitisation Services Securitisation Services SpA SpA Representative of Representative of Noteholders Noteholders and and Programme Programme Administrator Administrator
The Programme Administrator coordinates the reporting activities of the Servicer
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€ € 4,550 million 4,550 million Collateralised Collateralised Personal Loan Personal Loan Portfolio Portfolio € € 4,347 million 4,347 million Existing Portfolio Existing Portfolio + + min min € € 203 million 203 million New Portfolio New Portfolio
Class A1 PL - AAA / Class A1 PL - AAA / Aaa Aaa / AAA / AAA € € [ [1,170 1,170] ] million million Class A2 PL - AAA / Class A2 PL - AAA / Aaa Aaa/ AAA / AAA € € [ [1,500 1,500] ] million million Class A3 PL - AAA / Class A3 PL - AAA / Aaa Aaa / AAA / AAA € € [ [860 860] ] million million Class A4 PL - AAA / Class A4 PL - AAA / Aaa Aaa / AAA / AAA € € [700] [700] million million Overcollateralisation Overcollateralisation € € [320] [320] million million
Credit Tranching Credit Tranching [ [25.7 25.7] ] % [ [33.0 33.0] ] % [ [18.9 18.9] ] % [ [15.4 15.4] ] % [7.0] %
32
Full Excess Spread Trapping
All cash flows generated by the Portfolio paid to SCIC under the Transaction All cash flows generated by the Portfolio paid to SCIC under the Transaction Documents will be used to cover transaction expenses and pay interest and principal Documents will be used to cover transaction expenses and pay interest and principal
any payments until all classes of Notes have been fully reimbursed any payments until all classes of Notes have been fully reimbursed
Overcollateralisation
Overcollateralization Overcollateralization of 7%
Interest Rate Swap
Interest rate Interest rate swaps will swaps will cover interest rate cover interest rate risks associated with risks associated with the Notes the Notes
Collection Account
Issuer Available Funds will be held at Bank of Italy, earning an interest rate equal to Issuer Available Funds will be held at Bank of Italy, earning an interest rate equal to the average interest rate of Italian 3, 6 and 12 months Treasury Bills plus an the average interest rate of Italian 3, 6 and 12 months Treasury Bills plus an additional percentage fixed by law additional percentage fixed by law
Clean Up Call
Allowed when amount principal on the Notes is equal to, or lower than, 10% of the Allowed when amount principal on the Notes is equal to, or lower than, 10% of the
Interest Rate on the Notes
Class A1 PL, A2 PL and A4 PL will be floating rate Notes Class A1 PL, A2 PL and A4 PL will be floating rate Notes Class A3 PL Notes will pay a fixed interest rate until the Expected Maturity Date (or Class A3 PL Notes will pay a fixed interest rate until the Expected Maturity Date (or the date an Issuer Acceleration notice is served to the Issuer) and will switch to 3 m the date an Issuer Acceleration notice is served to the Issuer) and will switch to 3 m Euribor Euribor thereafter thereafter
33
Notes Structure Notes Structure
Time tranched tranched structure with repayment of principal fully structure with repayment of principal fully sequential amongst the various classes of Notes sequential amongst the various classes of Notes
Traches A1, A2 and A3 are soft bullets A1, A2 and A3 are soft bullets
Tranche A4 is amortising A4 is amortising
Tranches A1, A2 and A4 pay quarterly floating coupons A1, A2 and A4 pay quarterly floating coupons
Tranche A3 pays annual fixed rate coupon up to the A3 PL A3 pays annual fixed rate coupon up to the A3 PL Interest Rate Conversion event, quarterly floating thereafter Interest Rate Conversion event, quarterly floating thereafter
The Issuer will enter into interest rate swaps to hedge the interest rate exposure under the Notes interest rate exposure under the Notes
On going SCIC expenses Interest Rate swap payments Pro-rata Interest on Class A1, A2, A3, A4 Class A1 principal Class A2 principal Crediting residual funds to the Collection Account (until full payment of the Notes) Swap termination payments (*) Deferred Transfer Price INPDAP INPDAP SCIC SCIC Swap Swap Counterparties Counterparties Issuer Available Funds Cash Flows from the loans Class A3 principal Class A4 principal Citibank Citibank Paying Agent and Paying Agent and Cash Manager Cash Manager
Securitisation Services Securitisation Services SpA SpA Representative of Representative of Noteholders Noteholders and and Programme Programme Administrator Administrator (*) Termination payments due and payable to the hedging counterparties under the Hedging Agreements due to default, bankruptcy or downgrading of the counterparty
34
Trigger Notices Trigger Notices
Following the service of a Trigger Notice, funds available to the Issuer will be used to make payments in the order of the Issuer will be used to make payments in the order of priority summarised on this slide priority summarised on this slide
Trigger Notices include, inter inter alia alia, ,
Payment default of Interest on a coupon date and/or default on Principal on the Notes on the relevant legal default on Principal on the Notes on the relevant legal maturity maturity
Unremedied Issuer default on its contractual obligations Issuer default on its contractual obligations
Issuer insolvency, winding-up, unlawfulness, etc.
(*) Termination payments due and payable to the hedging counterparties under the Hedging Agreements due to default, bankruptcy or downgrading of the counterparty
On going SCIC expenses Interest Rate swap payments Pro-rata Accrued and Unpaid Interest on Class A1, A2, A3, A4 Subordinated Swap termination payments (*) Deferred Transfer Price Pro-rata of Principal Amount Outstanding Class A1, A2, A3, A4 INPDAP INPDAP SCIC SCIC Swap Swap Counterparties Counterparties Issuer Available Funds Cash Flows from the loans Citibank Citibank Paying Agent and Paying Agent and Cash Manager Cash Manager
Securitisation Services Securitisation Services SpA SpA Representative of Representative of Noteholders Noteholders Programme Programme Administrator Administrator
35
Issuer
Società Società di di Cartolarizzazione Cartolarizzazione Italiana Crediti Italiana Crediti a r.l. (“SCIC”) a r.l. (“SCIC”)
Sponsor
The Italian Ministry of Economy and Finance (“MEF”) The Italian Ministry of Economy and Finance (“MEF”)
Servicer
INPDAP INPDAP
Paying Agent and Cash Manager
[Citibank NA, London Branch] [Citibank NA, London Branch]
Arrangers and Joint Lead Managers
Citigroup Global Markets Ltd Citigroup Global Markets Ltd Credit Suisse First Boston (Europe) Ltd Credit Suisse First Boston (Europe) Ltd UBM - UBM - UniCredit Banca Mobiliare UniCredit Banca Mobiliare
Representative of Noteholders
[Securitisation Services [Securitisation Services SpA SpA] ]
Deposit Bank
Tesoreria Centrale dello Stato Tesoreria Centrale dello Stato, acting through the Bank of Italy , acting through the Bank of Italy
Originator
I.N.P.D.A.P. I.N.P.D.A.P. Istituto Nazionale di Previdenza dei Dipendenti dell'Amministrazione Pubblica Istituto Nazionale di Previdenza dei Dipendenti dell'Amministrazione Pubblica ("INPDAP") ("INPDAP")
Servicing Report Auditors
Deloitte & Deloitte & Touche SpA Touche SpA
Programme Administrator
[Securitisation Services [Securitisation Services SpA SpA] ]
37
Projected Base Case Notes Repayment Profile
200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 Class A1 outstanding Class A2 outstanding Class A3 outstanding Class A4 outstanding with clean up
38
* Constant Prepayment Rate
The The table shows table shows the the estimated weighted average estimated weighted average life of Class A4 PL Notes under life of Class A4 PL Notes under different different CPR CPR scenarios scenarios and, and, based based, , inter alia inter alia, on the , on the following assumptions following assumptions: a : a mortality mortality rate of rate of 0.15% per 0.15% per annum annum, and Notes , and Notes issued issued of
€1,170 1,170 mln mln (Class A1 PL), (Class A1 PL), € €1,500 1,500 mln mln (Class A2 (Class A2 PL), PL), € €860 860 mln mln (Class A3 PL), and (Class A3 PL), and € €700 700 mln mln (Class A4) (Class A4)
CPR *
1.5%
Weighted Average Life A1 (years)
[1.08] [3.08]
Weighted Average Life A2 (years) Weighted Average Life A3 (years) Weighted Average Life A4 (years)
2.5% 3.5% 6.0% [1.08] [1.08] [1.08] [3.08] [3.08] [3.08] [5.09] [5.99] [5.09] [5.09] [5.09] [5.81] [5.76] [5.54]
40
Investor Reports will be published quarterly on Bloomberg and on the websites of the MEF ( the MEF (www.tesoro.it www.tesoro.it), of INPDAP ( ), of INPDAP (www.inpdap.gov.it www.inpdap.gov.it), of Citigroup ), of Citigroup ( (www. www.sf sf. .citidirect citidirect.com .com) and of Securitisation Services ( ) and of Securitisation Services (www.securitisation- www.securitisation- services.com services.com) )
Investor Reports will be audited semi-annually by an internationally recognized auditing firm auditing firm
41
All Issues are traded on MTS, ensuring transparent market prices and providing , ensuring transparent market prices and providing price transparency also to OTC trades price transparency also to OTC trades
The MEF intends to maintain and improve secondary market liquidity by monitoring by monitoring and encouraging the trading activity of banks. Arranging banks will formally commit and encouraging the trading activity of banks. Arranging banks will formally commit to certain minimum market making standards to certain minimum market making standards
To further improve secondary market liquidity, market making activities will formally be adopted as one of the arrangement of its future transactions be adopted as one of the arrangement of its future transactions
The MEF is the largest European originator of ABS Notes and is strongly committed to performance and secondary market liquidity: to performance and secondary market liquidity: – – MEF sponsored MEF sponsored securitisations securitisations have an investor base of over 460 institutions in have an investor base of over 460 institutions in 26 countries 26 countries – – Issues benefit from an unparalleled domestic investor base traditionally Issues benefit from an unparalleled domestic investor base traditionally absorbing half of the absorbing half of the MEF’s MEF’s volumes and a growing European distribution volumes and a growing European distribution – – The repeat issuance format ensures easy credit approval by investors for all The repeat issuance format ensures easy credit approval by investors for all tranches tranches issued under a single securitisation issued under a single securitisation programme programme
44
Trattamento di Fine Fine Rapporto Rapporto (“TFR”) is a characteristic of the Italian private sector (“TFR”) is a characteristic of the Italian private sector labour contracts. TFR has been recently extended, pursuant to law 335 of 1995, to labour contracts. TFR has been recently extended, pursuant to law 335 of 1995, to public sector contracts and will gradually substitute the so-called ‘ public sector contracts and will gradually substitute the so-called ‘Indennità di Indennità di Buonuscita’ Buonuscita’ (“IB”), the public sector version of TFR (“IB”), the public sector version of TFR
The TFR is a deferred part of employees’ compensation paid upon termination of the employment contract the employment contract
The TFR is formed by setting aside a portion of the annual salary determined according to the following formula: according to the following formula:
1: ‘Base TFR: TFR Salary Basis** / 13.5
2: TFR Fund Revaluation: TFR Fund x (75% x RPI* + 1.5%) TFR Payment
* Retail Price Index ** Gross salary and other benefits
45
The IB is funded from contributions periodically made to INPDAP by both the employer and the employee for as long as the employment contract continues (contributions by and the employee for as long as the employment contract continues (contributions by the employer and by the employee are respectively 9.6% and 2.5% of the gross salary the employer and by the employee are respectively 9.6% and 2.5% of the gross salary respectively) respectively)
The IB payment in case of termination of the employment contract consists in: Number of years ‘in service’ x 8% of last salary 12
46
Employees hired prior to 31 December 2000 have the option to switch from IB to TFR (i.e. accumulated IB is (i.e. accumulated IB is recharacterised recharacterised as accrued TFR and severance payment as accrued TFR and severance payment increases are calculated according to the applicable regulation thereafter) increases are calculated according to the applicable regulation thereafter)
Employees hired after 1 January 2001 are subject to TFR treatment as described above
The TFR Payment is determined according to private sector rules, the only difference being the amount of annual payments, where gross salary of civil servants is divided by being the amount of annual payments, where gross salary of civil servants is divided by 14.47 instead of the 13.5 used in the private sector 14.47 instead of the 13.5 used in the private sector
The State and local authorities continue to pay contributions to INPDAP, as determined by IB regulation, while INPDAP is responsible for the payment of both IB and TFR to by IB regulation, while INPDAP is responsible for the payment of both IB and TFR to employees upon termination of the employment contract employees upon termination of the employment contract
48
49
The Issuer - S.C.I.C. a r.l., formerly known as S.C.C.P.P. a r.l, an SPV with the sole
Italy and by certain public sector entities Italy and by certain public sector entities
Ring-fencing of the Assets – The assets related to the present transaction will be – The assets related to the present transaction will be segregated from the assets owned by S.C.I.C. in relation to the Lotto transaction and segregated from the assets owned by S.C.I.C. in relation to the Lotto transaction and from the assets which will be from the assets which will be securitised securitised in future transactions in future transactions
Transfer of Assets – The assets will be sold by INPDAP to the Issuer pursuant to a – The assets will be sold by INPDAP to the Issuer pursuant to a Receivables Purchase Agreement executed in accordance with the Ministerial Decree Receivables Purchase Agreement executed in accordance with the Ministerial Decree authorising authorising the transaction the transaction
Transfer Price – In consideration for the transfer of the Personal Loan Portfolio, SCIC – In consideration for the transfer of the Personal Loan Portfolio, SCIC will pay an initial transfer price and a deferred transfer price will pay an initial transfer price and a deferred transfer price
50
Payments of interest and other proceeds on the Notes are exempt from deduction of Italian substitute tax if made to beneficial owners who are non- deduction of Italian substitute tax if made to beneficial owners who are non- Italian residents for tax purposes Italian residents for tax purposes
With respect to Italian beneficial owners, payments of interest and other proceeds on the Notes will be taxable in Italy in accordance with the applicable tax regime subject to the Notes will be taxable in Italy in accordance with the applicable tax regime subject to Italian substitute tax levied by custodian bank depending on the tax status of the Italian substitute tax levied by custodian bank depending on the tax status of the beneficial owner beneficial owner
In such cases, the Issuer will not be obliged to pay any additional amount to holders of Notes on account of such withholding or deduction Notes on account of such withholding or deduction
No registration tax, stamp duty, or any other indirect tax are levied in respect of the Transaction Documents Transaction Documents
The Portfolio is exempt from direct income tax
No withholding tax is applicable on interest earned on SCIC’s SCIC’s bank accounts bank accounts
52
Loan installments are deducted on a monthly basis from salary and are paid by employers (“Paying Entities”) to INPDAP on behalf of debtors employers (“Paying Entities”) to INPDAP on behalf of debtors
The main Paying Entity in the portfolio is the MEF through its centralized EDP system, responsible for salary payments of most of the State’s employees responsible for salary payments of most of the State’s employees
All other employers pay SCIC directly or through certain entities to which the payment
As servicer servicer, INPDAP will monitor payments made to SCIC, manage the loans, and , INPDAP will monitor payments made to SCIC, manage the loans, and ensure the timely update of records to changes in debtors status (e.g. following ensure the timely update of records to changes in debtors status (e.g. following resignation, early retirement, change of employer within the public sector, layoff, resignation, early retirement, change of employer within the public sector, layoff, suspension, etc.) suspension, etc.)
In the event of delinquencies, the recovery process is managed by external lawyers chosen by INPDAP. chosen by INPDAP. INPDAP enjoys the privileges of the recovery procedures of the INPDAP enjoys the privileges of the recovery procedures of the Concessionari Concessionari system, also used to collect taxes and social security contributions system, also used to collect taxes and social security contributions
53
MEF’s EDP (approx 1/3 of the Portfolio): EDP (approx 1/3 of the Portfolio): pays at the end of each month, all amounts pays at the end of each month, all amounts deducted from salaries in such month, directly into the Collection Account of SCIC held deducted from salaries in such month, directly into the Collection Account of SCIC held with Bank of Italy with Bank of Italy
Other Payers: pay amounts retained from salary payments within the 15 pay amounts retained from salary payments within the 15th
th day of the
day of the month following the month for which the salary was paid into one of the 2 INPDAP month following the month for which the salary was paid into one of the 2 INPDAP accounts (securitised receivables and accounts (securitised receivables and INPDAP’s INPDAP’s receivables originated after November receivables originated after November 2003) reserved for the Personal Loans with 2003) reserved for the Personal Loans with Poste Italiane Poste Italiane Spa. Within [4] business
days, days, Poste Italiana Poste Italiana will transfer the amounts received on the Issuer’s account with the will transfer the amounts received on the Issuer’s account with the Bank of Italy Bank of Italy
State Entities Local Entities Collection Collection Account Account Dedicated Dedicated INPDAP INPDAP account account Monthly Payment of the Installments through the Monthly Payment of the Installments through the MEF’s MEF’s EDP EDP Monthly Monthly Payment of the Payment of the Installments Installments Transfer every Transfer every [4] days [4] days
55
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
5,001 – 10,000 10,001 – 20,000 20,001 – 30,000 30,001 – 50,000 50,001 – 75,000
Average Loan Size: €3,172 Average Loan Size: €9,587
Source: INPDAP Source: INPDAP Source: INPDAP 10 20 30 40 <= 5,000 5,001 – 10,000 10,001 – 20,000 20,001 – 30,000 30,001 – 50,000 50,001 – 75,000
Average Loan Size: €6,965
% 5 10 15 20 25 30 35 40 <= 5,000 %
10 20 30 40 50 60 70 <= 5,000 5,001 - 10,000 10,001 - 20,000 20,001 - 30,000
%
56
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
5 10 15 20 25 30 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 % 10 20 30 40 50 60 70 2001 2002 2003 % 5 10 15 20 25 30 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 %
Origination in October, November and December 2003
Source: INPDAP Source: INPDAP Source: INPDAP
57
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
5 10 15 20 25 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 % % 5 10 15 20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 % 5 10 15 20 25 30 35 40 45 2003 2004 2005 2006 Source: INPDAP Source: INPDAP Source: INPDAP
58
Aggregate loan Portfolio Medium-long term loans Short-term loans
% 10 20 30 40 <= 12 13 - 24 25 - 36 37 - 48 49 - 60 61 - 72 73 - 84 85 - 96 97 - 108 109 - 120 % 5 10 15 20 25 30 35 <= 12 13 - 24 25 - 36 37 - 48 49 - 60 61 - 72 73 - 84 85 - 96 97 - 108 109 - 120 % 10 20 30 40 50 60 70 80 90 <= 12 13 - 24 25 - 36 Source: INPDAP Source: INPDAP Source: INPDAP
Weighted Average: 24.55 Weighted Average: 28.36 Weighted Average: 7.85
59
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
Monthly Instalments % 3 6 9 12 15 18 <= 12 13 - 24 25 - 36 37 - 48 49 - 60 61 - 72 73 - 84 85 - 96 97 - 108109 - 120 Monthly Instalments % 0% 5% 10% 15% 20% 25% <= 12 13 - 24 25 - 36 37 - 48 49 - 60 61 - 72 73 - 84 85 - 96 97 - 108 109 - 120 Monthly Instalments % 0% 10% 20% 30% 40% 50% 60% 70% <= 12 13 - 24 25 - 36 Source: INPDAP Source: INPDAP Source: INPDAP
Weighted Average: 72.27 Weighted Average: 82.83 Weighted Average: 26.09
60
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
% 10 20 30 40 50 60 70 Female Male % 10 20 30 40 50 60 70 Female Male % 10 20 30 40 50 60 70 Female Male Source: INPDAP Source: INPDAP Source: INPDAP
61
5 10 15 20 25 <=22 23 - 27 28 - 32 33 - 37 38 - 42 43 - 47 48 - 52 53 - 57 58 -62 >=63 Age %
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
5 10 15 20 25 Age 23 - 27 28 - 32 33 - 37 38 - 42 43 - 47 48 - 52 53 - 57 58 - 62 >=63 Source: INPDAP Source: INPDAP Source: INPDAP
5 10 15 20 25 <= 22 27 - 23 32 - 28 37 - 33 42 - 38 47 - 43 52 - 48 57 - 63 62 - 58 >=63 Age %
62
Aggregate loan Portfolio Medium-long term loan Portfolio Short-term loan Portfolio
20 40 60 <= 5,000 5,001 - 10,000 10,001 - 20,000 20,001 - 30,000 30,001 - 50,000 50,001 - 95,000 Euro % 20 40 60 <= 5,000 5,001 - 10,000 10,001 - 20,000 20,001 - 30,000 30,001 - 50,000 50,001 - 95,000 Euro % 20 40 60 <= 5,000 5,001 - 10,000 10,001 - 20,000 20,001 - 30,000 30,001 - 50,000 Euro % Source: INPDAP Source: INPDAP Source: INPDAP
Average Loan Size: € 11,650 Average Loan Size: € 5,031 Average Loan Size: € 16,223
63
Geographic Distribution (as of 31 July 2003) by outstanding principal amount
Aggregate loan Portfolio Medium-long term loan portfolio Short-term loan Portfolio
Lazio 16% Sicilia 13% Campania 10% Lombardia 8% Veneto 5% Calabria 6% Toscana 6% Puglia 8% Liguria 3% Emilia Romagna 5% Sardegna 5% Piemonte 5%
Lazio 17% Sicilia 12% Campania 10% Lombardia 8% Abruzzo 2% Veneto 5% Calabria 5% Toscana 6% Puglia 8% Piemonte 5% Emilia Romagna 5% Sardegna 5% Sicilia 14% Lazio 13% Campania 11% Puglia 9% Emilia Romagna 5% Veneto 5% Sardegna 4% Lombardia 8% Calabria 6% Piemonte 6% Toscana 5% Abruzzo 3%
Source: INPDAP Source: INPDAP Source: INPDAP
64
The tables on slides 24 and 25 are based on the personal loans managed by the Servizio Centrale Servizio Centrale del del Sistema Informativo Integrato Sistema Informativo Integrato ("SCSII") of MEF ("SCSII") of MEF
SCSII manages the payment of salaries and instalments instalments of the loans to the majority of
the State employees the State employees
The portfolio managed by SCSII represents approximately one third of the total Portfolio Portfolio
66
CITIGROUP CITIGROUP CREDIT SUISSE FIRST BOSTON CREDIT SUISSE FIRST BOSTON UBM UBM SYNDICATE SYNDICATE SYNDICATE SYNDICATE SYNDICATE SYNDICATE
L.
Falco / P. / P. Bianculli Bianculli
Fax +44 207 888 4342 Fax +44 207 888 4342 STRUCTURING STRUCTURING STRUCTURING STRUCTURING STRUCTURING STRUCTURING Marc Zanelli Marc Zanelli Raffaele Scote Raffaele Scote
Fax.+353 1 449 5480 Fax.+353 1 449 5480 Anna Tavano Anna Tavano Marco Germani Marco Germani Lucio Lucio Tiozzo Tiozzo
Fax +39 02 7702 2216 Fax +39 02 7702 2216
Alejandro Vide Carboni Alejandro Vide Carboni
P.
Apostolicas / J.Mann / J.Mann
Anna.Tavano@ Anna.Tavano@citigroup citigroup.com .com Alejandro. Alejandro.Videcarboni Videcarboni@ @citigroup citigroup.com .com Peter. Peter.Apostolicas Apostolicas@ @citigroup citigroup.com .com Adrian.Carr@ Adrian.Carr@csfb csfb.com .com Marc.Zanelli@ Marc.Zanelli@csfb csfb.com .com Marco.Germani@ Marco.Germani@csfb csfb.com .com Raffaele Raffaele. .Scote Scote@ @eurocapital eurocapital. .ie ie Lucio. Lucio.Tiozzo Tiozzo@ @eurocapital eurocapital. .ie ie Luca Luca. .Falco Falco@ @ubm ubm. .it it Yossi.Kraemer@ Yossi.Kraemer@csfb csfb.com .com Jason.Mann@ Jason.Mann@citigroup citigroup.com .com