BAMC's strategic goals are:
- financially: (1) to redeem the state guaranteed bonds issued to pay for the transferred assets, and (2) in addition, to generate the required return of the initially invested equity by the Republic of Slovenia,
- to manage assets intensively and invest in them so as to optimise their income-producing potential and disposal value,
- consistent with the previous objective, to act in the way which will aim to restructure companies if economically justifiable and to contribute to a renewal of sustainable activity in the property and other asset markets in Slovenia.
All BAMC's activities are geared towards adding value to the Republic of Slovenia and its taxpayers. BAMC's strategy encompasses the acquisition, management and restructuring of non-performing assets from NLB, NKBM, Abanka and Banka Celje and other complementary asset acquisitions, all in all at a value of almost €1,6 billion. After successful restructuring, the assets will be sold.
STRATEGIC ROADMAP FOR BAMC 2014-2022
BAMC has set ambitious objectives for its business. Based on the assumptions and information available at present, the current financial plan is targeting the repayment of all issued bonds (€1.563,2 million) and full return of the equity invested in BAMC with a required rate of return of 8%.
The €204 million of equity provided by the Republic of Slovenia in 2013 and 2014 was reduced by the one day losses of €108 million caused by adjusting the value of the acquired assets to fair values. This is to be seen as an immediate repayment of equity to the Republic of Slovenia. Therefore, initial equity provided by the owner is €96 million. In 2022, gains from managing the assets and improved market conditions are expected to have increased the value to €216 million, an increase of €120 million. Thus, according to the plan, BAMC will return the original equity to the Republic of Slovenia with a sizeable gain.
However, there are considerable risk elements associated with achieving this target. BAMC financial leverage is high and future results depend on a number of important restructurings. Furthermore, the expected return on equity is sensitive to amount and timing of planned exits.