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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. CONFIDENTIAL Benefits to Financial Institutions
Profitability Scenarios for Financial Institutions
22. CONFIDENTIAL Benefits to Financial Institutions
Profitability Scenarios for Financial Institutions
23. CONFIDENTIAL Sample from my duties Company Delinquency
Rate
24. CONFIDENTIAL Sample from my duties Pool Analysis
25. CONFIDENTIAL Sample from my duties Pool Analysis
26. CONFIDENTIAL Sample from my duties Outstanding Servicer
Concentrations
27. CONFIDENTIAL Sample from my duties Cash Flow
28. CONFIDENTIAL Sample from my duties BANK PROFITABILITY
29. CONFIDENTIAL Sample from my duties Repayment Schedule
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. CONFIDENTIAL Sample from my duties Bank Portfolio
33. CONFIDENTIAL Sample from my duties Coverage Ratios
Chart
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. CONFIDENTIAL Sample from my duties Reporting - Monthly
Watchlist
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. CONFIDENTIAL Sample from my duties Fleet Finance Monthly
Ageing Reports
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. 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. CONFIDENTIAL Solution Offerings 3-Future receivables
Financing Utility bills, commercial property rents i.e.: shopping
malls, business centers etc. Future potential
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. 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. CONFIDENTIAL Structure Offerings With Recourse- On Balance
Sheet financing The Originator/Seller has full responsibility of
the financed receivables collection and defaults.
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. 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.