GENERAL MEETING DRAFT - Bankier.pl

The following table gives the amount of these exposures by monoliner.
Exposures to monoliners
Counterparty
AMBAC Assurance Corporation
Assured Guaranty Corporation
FGIC Corporation
FSA Global Funding
MBIA Insurance Corporation
Radian Group
XL Capital Assurance
Total
413
Nominal amounts as at
31.12.2009
9,158,236
7,660,068
5,081,114
17,215,047
27,348,397
34,982,901
4,551,169
105,996,932
>> Consolidated Financial Statements
Part E – Information on risks and related risk management policies
The Group’s portfolio includes asset-backed securities and other debt securities amounting to �872,427
thousand, which are guaranteed also by monoline insurers.
1.7 Group Exposure to Leveraged Finance
(� (� thousand)
31.12.2008
2,674,491
11,902,696
1,202,050
9,307,514
8,715,789
4,164,326
37,966,866
As part of its lending business, the Group grants loans or credit lines that may be classified as leveraged
finance, in that they finance the acquisition of significant stakes in target companies, which are usually
subsequently absorbed by the borrower.
Repayment and debt service depend largely on the cash flow generated by the new company postabsorption.
These transactions bear good yields in terms of both interest and fees. However, the risk is higher given
the borrower’s greater leverage.
The Group is generally involved in leveraged finance through participation in syndicated loans made by a
banking syndicate.
In December 2009 the total amount of these transactions, mainly concentrated in the CIB Division, was
8,346,800 thousand (net of value adjustments totaling � 215,800 thousand), 63% of which was with 20
counterparties, almost totally EU residents.
These exposures are monitored continuously for credit quality by analyzing the borrower’s business
performance indicators and fulfillment of budget objectives in order to detect any lasting impairment
losses.
In the case of further future syndications through the sale of a portion of the loan to third parties, at the
same paying a portion of fees already received, these fees are not recognized as income.
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