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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28th of February 2013
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%
Renewable Energy – opportunities and challenges
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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)
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Incentive scheme – number of green certificates
Renewable Energy – opportunities and challenges
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
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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
Renewable Energy – opportunities and challenges
MWProducer License
Wind 1,592
Hydro 453
Biomass
628th of February 2013
Source: ANRE as of 31.12.2012
Biomass 43
Solar 71
TOTAL 2,161
Incentive scheme – participants
Renewable Energy – opportunities and challenges
E-RES PRODUCERS
Wind
� CEZ
� ENEL
� BUTAN
Hydro
� HIDROELECTRICA
� ENERGY HOLDING
� LUXTEN LIGHTING
Solar
� CASA DE INVESTITII ALIANTA
� RENOVATIO
� EUROWIND ENERGY
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� 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
Renewable Energy – opportunities and challenges
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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
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• 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
Renewable Energy – opportunities and challenges
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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
28th of February 2013
Agenda
� Renewable Energy – opportunities and challenges
� Assessing and structuring deals on Renewable Energy
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� Intesa Sanpaolo
� Contacts
28th of February 2013
� 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
1128th of February 2013
� 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
Assessing and structuring deals on Renewable Energy
� 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
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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:
Assessing and structuring deals on Renewable Energy
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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;
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The bank reserves the right to amend at anytime without any notice the main elements of the financing structure
� Reputable sponsor with relevant expertise in the fi eld
� Sponsor’s undertakings: � Ownership clause� Cost overrun guarantee� Completion guarantee� Debt service shortfall guarantee
Assessing and structuring deals on Renewable Energy
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� Debt service shortfall guarantee � Dividends distribution based on conditions precedent� Shareholders loan subordination
28th of February 2013
The bank reserves the right to amend at anytime without any notice the main elements of the financing structure
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
Assessing and structuring deals on Renewable Energy
� Approx. 80 MW closed or in advanced stage of negotiation
1528th of February 2013
Agenda
� Renewable Energy – opportunities and challenges
� Assessing and structuring deals on Renewable Energy
28th of February 201316
� 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
28th of February 2013
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
28th of February 2013
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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28th of February 2013
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
20
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
Project FinanceISPRO 2012
EUR 6,1 MHidro clear Fagaras
Project FinanceISPRO 2012
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Intesa Sanpaolo – Italian Leader with a European Scale
Source: Bloomberg :Prices as at 28 December 2012
2128th of February 2013
Agenda
� Renewable Energy – opportunities and challenges
� Assessing and structuring deals on Renewable Energy
28th of February 201322
� 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
E-mail: [email protected]
Alina BondorHead of Multinational
Carmen Maican Dragos Tudoroiu
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28th of February 2013
Office: +4021 405 3685
Mobile: +4072 8444 622
E-mail: [email protected]
Carmen MaicanRM - Structured Financed
Office: +4021 405 3627
Mobile: +40724 356 470
E-mail: [email protected]
Dragos TudoroiuSRM - Multinational
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