Finanziamento dei Progetti di Energia Rinnovabile in...

Finanziamento dei Progetti di Energia Rinnovabile in RomaniaRinnovabile in Romania

L’Anno della Green Economy in Romania Ana Maria Cretu – Responsabile Project & Specialised Lending, Corporate DepartmentConfindustria Romania – JW Marriott Bucharest Grand Hotel Giovedi’ 28 Febbraio 2013

Agenda

� Renewable Energy – opportunities and challenges

� Assessing and structuring deals on Renewable Energy

28th of February 20132

� Intesa Sanpaolo

� Contacts

Legal Frame – National Regulatory

� Law no. 220/2008 regarding the promotion of renewable energy sources, successively amended and supplemented by:� Government Ordinance no. 29/2010� Government Emergency Ordinance no. 88/2011

Renewable Energy – opportunities and challenges

� Law no. 134/2012 for the approval of GEO 8011, amending and adjusting law 220/2008 8/2

� Law no. 123/2012 regarding electricity and gas

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Incentive scheme – mandatory quota combined with green certificates [GC] or feed-in tariff [FIT]:

1. National target for 2020:

- RES-E (including large hydro) in the final gross electricity consumption - 38%- RES-E (excluding large hydro) in the final gross electricity consumption - 20%- RES (heat, electricity and transportation) in the final gross energy consumption - 24%


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2. Annual mandatory quota for acquisition of GC – se t by ANRE- assumptions: mandatory quota, estimated energy consumption, estimated E-RES installed

capacity, no. of green certificate incentive scheme approved by law- 2011 – 0,03746 GC/MWh, 2012 – 0,116 GC/MWh (estimated), 2013 - 0,2117 GC/MWH

(estimated)


Incentive scheme – number of green certificates


Hydro

•3 GC/1 MWh if the plants are new•2 GC/1 MWh if the power plants are refurbished•1 GC/2 MWh if the power plants are old and are not refurbished

Wind

•2 GC/1 MWh, until 2017•1 GC/1 MWh starting with 2018


Solar• 6 GC/1 MWh

Bioenergy

•1GC/1MWh-additional for electricity produced in high efficiency cogeneration•1GC/1MWh-additional for electricity produced in power plants which use biomass from energetic crops or forestry wastes

•2 GC/1 MWh –geothermal energy, biomass, bio liquids, biogas•1 GC/1 MWh - gas from wastes processing, process of fermentation of sludge from wastewater treatment plants

Market: E-RES producers in Romania


MWProducer License

Wind 1,592

Hydro 453

Biomass


Source: ANRE as of 31.12.2012

Biomass 43

Solar 71

TOTAL 2,161

Incentive scheme – participants


E-RES PRODUCERS

Wind

� CEZ

� ENEL

� BUTAN

Hydro

� HIDROELECTRICA

� ENERGY HOLDING

� LUXTEN LIGHTING

Solar

� CASA DE INVESTITII ALIANTA

� RENOVATIO

� EUROWIND ENERGY


� BUTAN

� OMV

� IBERDROLA

� SORGENIA

� EDP

� MONSSON ALMA

� LUXTEN LIGHTING

� ELSID

� ROMENERGO

� ELECTROMAGNETICA

� ROMELECTRO

� ISPH

� CLEAR ENERGY-ETEA

� ESPE ENERGIA

� EUROWIND ENERGY

� ELECTROALFA

Romanian Energy Regulatory AuthorityAccredits Producers of E-SREControls quota fulfillmentApplies penalties for non-complianceEstablishes the yearly mandatory quota of GC

Power Market Operator

Incentive scheme – participants


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Power Market OperatorEnsures the framework for GC tradingManaging the Green Certificates MarketManaging the Register for Green CertificatesManaging the Register of GCM Participants

Transport and System OperatorIssues GC

Offer and Supply of Green CertificatesRES-E Producers, Suppliers, Network operators

OPERATORS


• Changes in Legislation [overcompensation, PPA, oversupply]• Projects over 125 Mw installed capacity

Legal risk-Regulatory

• Off–take contracts [PPAs / GCPAs duration]• Dispatching risk

Market risk

• Permitting process

Main issues with impact on projects’ bankability


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• Permitting process• Third parties involved in project (legal and technical due diligence, EPC

contractors)• Limited grid capacity

Development risk

• Prices predictability [energy and green certificates]• Green certificate price - FX rate applied, indexation with euro-inflation rate

Revenue risk

Operational risk

• Inexperienced local operators• International players with limited track record on local market


Agenda



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� Intesa Sanpaolo

� Contacts


� Documentation Requirements

Standard information package requested for issuing an expression of interest / non-binding offer:

� Sponsor presentation, including a description of relevant projects developed� Project description [numbers, timing, components] and project company [borrower]

presentation� Property documents and status of the permits

Assessing and structuring deals on Renewable Energy

� Property documents and status of the permits� Business plan during project operation� Project participants and related [drafts of] contracts [EPC, O&M]� Financials of the project company and of the Sponsor� Technical and legal preliminary due diligence satisfactory to the bank

The assessment of the bank for credit granting starts only at an advanced stage of permitting


� Main characteristics of the financing structure:

� Financed amount – up to 60-70% of Total Project Costs� Upfront equity � Maturity – weighted average life10 years, to be fine-tuned according to Cash-Flow Bank

case� Disbursement – upon fulfilment of Conditions Precedent [grid connection, executed

GCPA]� Disbursement period – tailored on construction period plus necessary time to obtain

permits to start operations � Grace period – up to 3 months after last disbursement date


� Grace period – up to 3 months after last disbursement date� Reimbursement – amortizing, monthly instalments� Standard security package typically including:

o Pledge/mortgage over project’s assets, fully insured;o Assignment of project’s revenues [off-take contracts]o Assignment of all insurance policies (CAR and OAR) and of all

securities/warranties from the contractorso Pledge over the shares of the Borrowero Pledge on all bank accounts


The bank reserves the right to amend at anytime without any notice the main elements of the financing structure

� Accounts – Current Account, Collection Account, Equity Account, Debt Service Reserve Account, Operation & Maintenance Reserve Account

� Standard Financial covenants:� DSCR – function of energy type� DSRA set-up to cover at least 6 months of DS� O&MRA set-up to cover 6 months of O&M costs� FX risk coverage

� Typical non -financial conditions including:


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� Typical non -financial conditions including:� GCPA signed for a period equal with loan maturity, guaranteing a floor price or

indexed to the market� Insurer, valuator, equipment providers, EPC and O&M contractors, loan monitor -

acceptable to the bank� Legal, technical (including insurance), market due diligences � Insurance policies construction all-risks (CAR) & operation all risks (OAR)� Standard covenants: interdiction for other financial debt and for opening current

accounts with other financing institutions, covenants for distributions;



� Reputable sponsor with relevant expertise in the fi eld

� Sponsor’s undertakings: � Ownership clause� Cost overrun guarantee� Completion guarantee� Debt service shortfall guarantee


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� Debt service shortfall guarantee � Dividends distribution based on conditions precedent� Shareholders loan subordination



Intesa Sanpaolo Romania – current activity on Renewable Energy Field:

� High interest on photovoltaic and micro-hydro

� Over 100 investors approached Intesa Sanpaolo Romania in 2012

� Main leads originated through Intesa Sanpaolo Group Worldwide network


� Approx. 80 MW closed or in advanced stage of negotiation


Agenda




� Intesa Sanpaolo

� Contacts

Intesa Sanpaolo - Romania coverage

� The Bank is present in most of the regions of the country covering with its network the entire financial range of products needed by both corporate and retail customers.

� Total units: 86

TIMIS

ARAD

BIHOR

SATUMARE

SALAJ

MARAMURES

CLUJ

BISTRITA NASAUD

SUCEAVA

MURES

IASI

VASLUIBACAU

GALATI

ALBA

SIBIU BRASOV

BOTOSANI

NEAMT

COVASNAVRANCEA

HARGHITA

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TIMIS GALATIHUNEDOARA

CARAS SEVERIN

MEHEDINTI

DOLJ

ARGES

DÂMBOVITA

PRAHOVA

SIBIU BRASOV

BUZAU

CONSTANTA

BUCURESTI

GORJ

COVASNA

VALCEA

OLT

TELEORMANGIURGIU

CALARASI

IALOMITA

BRAILA TULCEA

VRANCEA

Branches


Intesa Sanpaolo – Romania Corporate Approach

Cash Management: Financing Solutions: Trade Finance:

� Current accounts, cash & FX operations

� Electronic account statements (MT940) via SWIFT

� Incoming & outgoing payments, Standing Orders

� I-B@nk (Internet Banking

� Working Capital Financing– Short-term non revolving loans & credit lines– Mixed credit lines (cash and non-cash)– Short-term advances to fund working capital– Loans to finance commercial contracts– Overdraft facilities

� Investment Loans– Bridge loans to fund preliminary costs– Medium & long term loans for company

� Documentary Collections

� Conditional payments

� Export/Import Letters of Credit

� Letters of Guarantees

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� I-B@nk (Internet Banking service)

� Advanced collection solutions (POS Acquiring terminals, Direct Debit, Invoice cash payments at Bank’s Tellers)

� Sight & Term Deposits

� Global Transaction Services for International Corporate Groups

– Medium & long term loans for company development

� Structured finance – Bridge loans to fund preliminary costs– Specialized lending products dedicated to:

Project Finance, Public Finance, Real Estate Finance, Acquisition Finance

– Syndications

� Special finance for projects with structural funds

Guarantees


Chief Business OfficerStefano Burani

CorporateSME & Small Business

Intesa Sanpaolo – Romania Organizational Chart

CorporateStefano Burani

Ad interim

DomesticCosmin Popa

MultinationalAlina Bondor

Structured FinanceAna Maria Cretu

SME & Small BusinessMarco Petriccione

Network

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Intesa Sanpaolo – Credentials of Banca IMI, BIIS, IS PRO

USD 225 MProject financing of a gas fired

power plantLead Arrangers & Hedging Bank

USA2011

USD 235 MProject financing for a 201 MW wind

power plantMandated Lead Arranger

China2010

EUR 255 M3SUN

Photovoltaic FactoryMandated Lead Arranger

Italy2010

EUR 107 MFixed Structure Land Photovoltaic

Project 35 MWArranger

Italy2010

EUR 600 M150 MW Termosolar Planta Saetilla

S.L. & Majadas S.L.Mandated Lead Arranger

Spain2009

EUR 604 MSER Portfolio

350 MW Wind FarmMandated Lead Arranger

Italy2008

EUR 115 MProject Financing

EUR 146 MWind Plant-GEMSA SRL

Project FinancingEUR 25 M

INTER SOLAR

EUR 91 MDAUNIA SAVIGNANO

TOZZI RENEWABLE ENERGY

Eur 20 MPhotovoltaic Power Plant

Compagnia Solare

Eur 20 MPhotovoltaic Power Plants

On GREENHOUSES MARCHE REGION

USD 1.4 BNProject financing for wind farm

LC Issuer USA2010

EUR 49 MCRE Project

20 MW Wind FarmFinancial Advisor, Sole

Underwriter & MLA Italy2007

USD 1.78 BNProject financing for a 550MW thin-film PV generation facility

LC Facility ProviderUSA2011

EUR 85.5 MFixed Structure Land

Photovoltaic Project 20 MWMandated Lead Arranger

Italy2011

Solar Life Energy

EUR 22.5 MRooftop Photovoltaic Project

7.5 MWMandated Lead Arranger

Italy2010

EUR 589.2 MFinancing the construction of twoconcentrated Solar power

PlantsMandated Lead Arranger

Spain2011

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Project FinancingMandated Lead Arranger

2010

Project FinancingMandated Lead Arranger

2010

INTER SOLAR Mandated Lead Arranger

2011

TOZZI RENEWABLE ENERGYMandated Lead Arranger

2010

Compagnia SolareLead Arranger, Underwriter

2010

MARCHE REGIONMandated Lead Arranger

2010

EUR 2 MHidro Clear/ Clear Energy

Project FinanceISPRO 2010

FORUM DEVELOPMENT

EUR 1.2 MProject Finance

ISPRO

EUR 24 MVENUSIA S.R.L.

Sole ArrangerUnderwriter

2011

EUR 24 MPHOTOVOLTAIC POWER

PLANT - SISTEMA SOLARE Advisor, Arranger

Underwriter2009

EUR 68,5 MSOLETO CITTA' DEL SOLE -

SOLENERGYHOLDING FOTOVOLTAICA

Mandated Lead Arranger, Underwriter

2010

EUR 142 MMONTALTO DI CASTRO

PHOTOVOLTAIC POWER PLANT - CASSIOPEA PV Mandated Lead Arranger,

Underwriter, Insurance Bank and Account Bank

2009

EUR 261 MWIND PLANT – GEOPOWER

SARDEGNAMandated Lead Arranger,

Underwriter, Coordinating Bank and Modeling Bank

2010

EUR 41 MPHOTOVOLTAIC POWER

PLANT - GRANSOLAR GHELLA

Arranger, Underwriter2010

EUR 50 MINTERPORTO SOLARE

DI PADOVAMandated Lead Arranger, Underwriter, Agent Bank

2010

EUR 55 MDEL ENERGY

Sole Arranger, Underwriter2011

EUR 10 MSamsung/LJG Building Solution


EUR 6,1 MHidro clear Fagaras



Intesa Sanpaolo – Italian Leader with a European Scale

Source: Bloomberg :Prices as at 28 December 2012


Agenda




� Intesa Sanpaolo

� Contacts

Contacts

Office: +4021 405 3638

Mobile: +4072 778 8180

E-mail: [email protected]

Ana Maria CretuHead of Structured Financed

Office: +4021 405 3639

Mobile: +4073 093 0579


Alina BondorHead of Multinational

Carmen Maican Dragos Tudoroiu

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Office: +4021 405 3685

Mobile: +4072 8444 622


Carmen MaicanRM - Structured Financed

Office: +4021 405 3627

Mobile: +40724 356 470


Dragos TudoroiuSRM - Multinational

Finanziamento dei Progetti di Energia Rinnovabile in...

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