Financing offshore wind

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Financing offshore wind Copenhagen 4 November Marie de Graaf m.degraaf@greengiraffe.eu +31646318495 greengiraffe.eu

Transcript of Financing offshore wind

Financing  offshore  wind  Copenhagen  4  November    Marie  de  Graaf  m.degraaf@green-­‐giraffe.eu  +31646318495    green-­‐giraffe.eu    

Financing  offshore  wind  

1.   GGEB  introduc7on  

2.  How  projects  are  financed  

3.  The  debt  market  

4.  Risk  analysis  by  the  lenders  

5.  How  to  approach  project  finance  

6.  What  GGEB  can  do  for  you      

 

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Table  of  contents  

We  have  an  unparalleled  track  record  in  successfully  closing  deals  for  our  clients  

1.  GGEB  introduc7on  –  the  offshore  wind  finance  specialists  

Advisor  to  C-­‐Power  to  raise  project  finance  debt  

   

325  MW          

Belgium  2010  

•  19  professionals  in  London  (UK),  Paris  (FR),  Utrecht  (NL)  and  Hamburg  (DE)    

•  Project  &  structured  finance,  full  scope  equity  advisory  and  contrac\ng  exper\se  •  Focus  on  renewables  and  specifically  offshore  wind  

Advisor  to  Northwind  to  raise  project  finance  debt  

   

216  MW          

Belgium  2012  

(Sponsor)  

Advisor  to  WindMW  to  raise  project  finance  debt  

   

288  MW          

Germany  2011  

The GroupBlackstone ®

Non-­‐recourse  financing  of  25%  stake  in  Walney  offshore  wind  farm  

 367  MW    

     

UK  2012  

(Sponsor)  

Advisor  to  Highland  in  the  acquisi7on  of  the  

Deutsche  Bucht  project      

210  MW      

Highland    Group    Holdings  

   Germany  

2012  

Financial  advisory  services  French  offshore  

wind  tender    

1,428  MW  

France  2012  

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Financing  offshore  wind  

1.  GGEB  introduc\on  

2.   How  projects  are  financed  

3.  The  debt  market  

4.  Risk  analysis  by  the  lenders  

5.  How  to  approach  project  finance  

6.  What  GGEB  can  do  for  you      

 

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Table  of  contents  

2.  How  projects  are  financed  

“Balance  sheet”  vs  “non  recourse  finance”  

Direct  contractors  have  a  direct  incen7ve  to  understand  who  will  be  funding  the  project  

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Large  projects  are  typically  developed  through  a  stand  alone  project  company  •  Owned  by  the  project  investors  •  With  its  own  revenues  &  balance  sheet  and  thus  the  

ability  to  raise  debt  on  its  own  merits  

There  are  only  two  discrete  sources  of  funding  •  By  the  owners  (directly  via  equity  or  shareholder  loans,  

or  indirectly  via  guarantees)  •  By  banks  without  recourse  to  the  equity  investors  –  this  

is  “project  finance”  

The  way  a  project  is  funded  will  have  a  material  impact  on  how  it  deals  with  contractors  •  In  a  project  finance  deal,  you  need  to  deal  with  the  

banks’  requirements!    

Project    company  

Lenders  Sponsor(s)  

Dividends   Debt  service  

Equity   Debt  

No  recourse  

Recourse  to  investors  is  contractually  limited  •  Lenders  rely  on  project  revenues  only      Capital  intensive  projects  requiring  long  term  financing  •  Lenders  need  LT  opera\onal  performance  

Lenders  need  to  make  sure  that  the  project  works  on  a  standalone  basis,  with  no  third  party  commitments  than  those  made  at  financial  close.  Such  commitments  must  be  realis;c,  credible  and  durable,  both  contractually  and  economically      This  typically  entails  very  detailed  contractual  frameworks  and  extensive  due  diligence    

No  upside  

Lenders  receive  a  fixed  remunera7on  •  Lenders  do  not  benefit  from  beeer  performance      Low  single  digits  margins  vs  high  leverage  •  Risks  to  be  commensurate  to  remunera\on  

Lenders  need  risks  to  be  measurable  and  to  have  probabili;es  of  occurring  in  the  low  single  digits  for  investment  to  make  sense.  Risks  which  are  (seen  as)  well  understood  are  thus  easier  to  bear  

 Project  finance  lenders  will  usually  have  priority  access  to  cash-­‐flows  (aGer  certain  pre-­‐agreed  opera;on  expenses  necessary  to  keep  the  project  running)  and  security  on  all  assets,  contracts  and  equity  of  the  project    

2.  How  projects  are  financed  –  non  recourse  debt  

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Revenue  side  constraint   Capital  expenditure  constraint  

Total capital expenditures

CONSTRUCTION

Turbines

Foundations

Electricals

Installation

Insurance

Construction engineering

Development costs

FINANCE

MLA and due diligence costs

Debt fees (arranging + commitment)

Interest during construction

DSRA

Senior Debt

Equity and quasi equity

2.  How  projects  are  financed  –  non  recourse  debt  

Offshore  DSCR  constraint:  1.50  with  p50  or  1.30  with  p90  

•  No  or  very  limited  price  risk  on  revenue  side  

•  Net  availability  number  in  the  90-­‐92%  range  

•  Conserva\ve  O&M  cost  assump\ons  

Debt  :  Equity  <  70:30  

•  Limited  tolerance  for  junior  debt  mechanisms  

•  Limited  tolerance  for  pre-­‐comple\on  revenues  

•  Strong  requirement  for  equity  to  be  paid  upfront  

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Debt  structuring  principles  

Revenues  

Opera\onal  costs  

Cash  flow  available  

Senior  debt:  DSCR  constraint    

Junior  debt:  DSCR  constraint  2  

Total  debt  capacity  

Total  investment  cost  

•  Opera\onal  cash  flows  •  Approximately:    

•  EBITDA  –  tax  •  Banks  calculate  debt  

capacity  assuming  a  safety  margin  

 

•  Safety  margin  expressed  as  Debt  Service  Coverage  Ra\o  (DSCR)  

•  CFADS  (Cash  Flow  Available  for  Debt  Service)  equals  cash  flow  divided  by  DSCR  

•  Sculpted  modeling  to  op\mize  debt  capacity    

Capex  (hardware)  

Capitalised  (financing)  costs  

IRR  /  dividend  yield  

Commercial  contracts  

Finance  documenta\on  

Pre  comple\on  revenues  

Subsidies  

Equity  requirement  

 Senior/Junior  op\misa\on  

Vendor  loans  

Tax  equity  

•  One  of  the  goals  of  financial  structuring  is  to  ensure  that  all  constraints  bring  the  same  ul\mate  amount  of  debt  (or  as  close  to  that  as  possible)  so  that  no  poten\al  debt  capacity  goes  unused  or  wasted  

•  Ways  to  do  that  (other  than  nego\a\ng  different  values  for  the  key  parameters  like  the  DSCR  or  gearing)  include  modifying  investment  budgets  or  opera\ng  costs  (by  switching  one  into  the  other),  or  bringing  subordinated  sources  of  funding  by  third  par\es  as  quasi-­‐equity  

CFADS  

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2.  How  projects  are  financed  –  non  recourse  debt  

Financing  offshore  wind  

1.  GGEB  introduc\on  

2.  How  projects  are  financed  

3.   The  debt  market  

4.  Risk  analysis  by  the  lenders  

5.  How  to  approach  project  finance  

6.  What  GGEB  can  do  for  you      

 

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Table  of  contents  

3.  The  debt  market  –  lessons  learned  from  the  early  years  

The  banking  market  is  there  if  the  transac\ons  are  well  structured  

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32% 5%

0% 41%

35%

37% 33%

0

500

1000

1500

2000

2500

2006 2007 2008 2009 2010 2011 2012

Offshore wind project financed volumes

Installed capacity (MW) - brought forward 2 years (est)

Project financed capacity (MW)

Lessons  learned  from  the  first  projects  –  now  up  and  running  •  The  first  projects  using  project  finance  closed  in  the  “early  years”  (2006-­‐2009)  are  now  in  opera\on.    •  Construc\on  has  never  been  easy   (it   is  a   full-­‐\me   job   for   the  banks  as  well)  but  mechanisms   to   limit   the   risk  have  

proved  to  be  successful  and  all  projects  using  PF  have  been  built  on  \me  and  within  budget  (including  con\ngencies)  

An  ac7ve  PF  market  becoming  mature  

•  Most  ac\ve  market  ever,  despite  the  crisis  and  the  atmosphere  of  gloom  

•  No  bank  or  individual  ins\tu\on  is  indispensable  

•  Debt  sizing  principles  are  quite  stable  and  predictable  

•  Due  diligence  standards  and  main  covenants  are  similar  across  transac\ons  

•  The  same  rules  apply  in  different  countries  and  with  different  banks  involved  

3.  The  debt  market  –  some  recent  highlights  

A  number  of  large  transac\ons  have  taken  place  

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Notable  transac7ons:  •  C-­‐Power   –   Belgium   –   2010:  

billion-­‐euro  senior  debt  can  be  raised   with   construc\on   risk  for  a  project  with    new  turbine  

•  Meerwind  –  Germany  –  2011:  private   equity   enters   into   the  market  and  uses  PF  

•  Walney   –   UK   –   2012:   first  commercial   financing   of   a  minority  stake  

3.  The  debt  market  –  current  market  –  volumes  available  

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The  bank  market  is  broader  and  broader  •  More  than  30  banks  have  taken  offshore  wind  risk  today    •  More  than  20  banks  have  construc\on  exposure  •  Experienced  banks  –  an  ac\ve  pool  of  banks  able  to  structure  and  lead  transac\ons:  

•  Rabobank,  KfW-­‐IPEX,  Unicredit,  BoTM,  SocGen,  BNPP,  Santander,  Commerzbank,  (Dexia)  •  HSH,  NordLB  (German  focus)  

•  Many  banks  were  involved  in  recent  deals  in  the  last  2  years:  

•  Lloyds,  ING,  KBC,  Siemens  Bank,  Deutsche  Bank,  NIBC,  ASN  •  Calyon,  BayLB,  NAB,  Helaba,  SEB,  Deka,  DnB  Nor,  Na\xis,  NIBC,  Sabadell,  Nordea,  BBVA,  LBBW,  Mizuho,  SMBC  •  RBS,  HSBC  (UK  focus)  

•  More  have  expressed  their  appe\te  

An  average  EUR  100  M  available  per  bank  per  year  

•  EUR  30-­‐150  M  exposure  per  bank  per  year,  in  1-­‐3  deals  

Commercial  banks  

At  least  EUR  2.5  billion  available  per  year  

3.  The  debt  market  –  current  market  –  volumes  available  

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Public  Financial  Ins\tu\ons  

Several  ac7ve  public  financial  ins7tu7ons  •  EIB  –  historic  key  player  with  cheaper  funds  (support  to  European  offshore  projects),  but  generally  conserva\ve  •  EKF  –  offshore  wind’s  “best  kept  secret”:  par\cipa\on  linked  to  Danish  exports,  up  to  EUR  250  M  per  transac\on  •  Euler-­‐Hermes  –  par\cipa\on  linked  to  German  exports,  can  do  large  \ckets  •  KfW  –  poten\ally  large  amounts  available  (in  Germany):  able  to  provide  cheaper  funding  in  significant  volumes  •  GIB  –  UK  Green  Investment  Bank,  first  involved  in  Walney  

Their  role  has  been  instrumental  to  get  deals  done  

•  Will  typically  bear  approximately  half  of  the  risk  and/or  funding  of  a  transac\on  •  Will  normally  take  the  same  risks  as  the  commercial  banks,  but  they  usually  run  their  own  internal  assessment  •  Some  geographical  /  na\onal  restric\ons  •  Small  deal  teams,  so  availability  is  a  constraint  

Can  contribute  as  much  as  the  commercial  banks  

3.  The  debt  market  –  current  market  –  financial  condi7ons  

Market  trends  

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Typical  project  finance  condi\ons  offshore   Leverage   Maturity  

post-­‐comple\on   Margins   Maximum  underwri\ng  

2006-­‐2007   60:40   10-­‐15  years   150-­‐200  bp   50-­‐100  M  

2009   70:30   15  years   300  bp   30-­‐50  M  

2010-­‐2011     65:35   12-­‐15  years   250-­‐300  bp   50-­‐75  M  

Current  market   70:30   10-­‐15  years   275-­‐375  bp   30-­‐50  M  

Structures  have  been  quite  stable  since  2007  

•  Long-­‐term  debt  is  s\ll  available  

•  Consensus  on  70%  leverage  

•  DSCR  reflects  price  risk  in  the  UK  

Banks  have  refocused  on  known  clients,  core  countries  and  strategic  sectors  of  ac7vity  

•  The  good  news  is  that  offshore  wind  is  unambiguously  “strategic”  for  many  banks  today  

•  Countries  where  offshore  wind  is  developing  are  seen  as  “safe”  (Germany  –  un\l  now)  and  core  for  most  banks  

Debt  is  not  that  expensive  

•  Margins  rise  reflects  higher  bank  cost  of  funding  rather  than  higher  cost  of  risk,  but  the  overall  cost  of  debt  is  stable    

•  Recent  deals  have  seen  overall  cost  of  >15-­‐year  debt  at  6.0%  or  less  

Financing  offshore  wind  

1.  GGEB  introduc\on  

2.  How  projects  are  financed  

3.  The  debt  market  

4.   Risk  analysis  by  the  lenders  

5.  How  to  approach  project  finance  

6.  What  GGEB  can  do  for  you      

 

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Table  of  contents  

Development  phase   Construc7on  phase   Opera7onal  phase  

No  project!    

No  permits  No  tariff  /  PPA  No  contracts  

Not  enough  money    

Delay  and  cost  overruns    

Scope  gaps  Contractor  delays    Adverse  weather  

Accidents    

Lost  revenue    

Lower  availability  Higher  O&M  cost  Lower  prices  Less  wind    

Mi7ga7on  cascade  

 Project  management  Detailed  planning  

Commieed  sponsors  

 Project  coordina\on  Solid  contracts  (LDs)  Con\ngency  budget  

Insurance    

 Project  management  LT  O&M  contract  

Turbine  manufacturer  commitment  Insurance    

 

Risks  are  different  in  each  project  phase  

4.  Risk  analysis  by  the  lenders  

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Stuff  happens,  offshore  

4.  Risk  analysis  by  the  lenders  

A  crane  collapsed  in  the  marshaling  harbour  

A  monopile  sank  and  was  damaged    

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4.  Risk  analysis  by  the  lenders  

Regulatory  /  poli7cal  risk  –  no  to  permisng  risk,  yes  to  (some)  regulatory  change  risk  

Price  /  market  risk  –  no  to  volume  risk,  yes  to  (some)  price  risk  

Counterparty  risk  –  increasing  aeen\on  as  projects  grow  in  size  

Technology  risk  –  core  risk,  but  banks  have  shown  willingness  to  bank  new  turbines  

Wind  risk  –  easier  offshore  than  onshore;  wake  effect  is  key  worry  

Construc7on  risk  –  s\ll  the  toughest  risk  (mul\-­‐contrac\ng),  not  done  in  London  market  yet  

Opera7ng  risk  –  taken  on  the  basis  of  long  term  O&M  agreements  with  WTG  manufacturers    

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Offshore  wind  adds  new  risks  to  tradi\onal  PF  risks  

 Offshore  wind  is  one  of  the  most  complex  industries  to  be  project-­‐financed  

4.  Risk  analysis  by  the  lenders  

Banks  do  take  construc7on  risk  •  Really  non-­‐recourse  •  Commercial  terms  of  contracts  not  substan\ally  different  from  contracts  with  non-­‐banked  clients  

Focus  on  project  management  capacity  and  project  7metable  •  Overall  risk  dealt  with  through  conserva\ve  project  schedule  and  con\ngency  mechanism  (both  \me  and  money)  •   iden\fica\on  of  cri\cal  path  /  long  lead  items  /  knock  on  risks  •  Specific  aeen\on  to  availability  of  vessels,  including  for  extended  periods,  and  availability  of  “plan  Bs”  

They  actually  prefer  mul7-­‐contrac7ng  (2  to  8  contracts)  •  Easier  to  make  interfaces  visible  and  deal  with  them  explicitly  in  the  contracts  and  project  \metable  •  Makes  due  diligence  more  transparent  

Ac7ve  due  diligence  and  involvement  in  contract  nego7a7ons  •  Sub-­‐contractors,  supply  chains,  quality  control  procedures,  creditworthiness  &  infrastructure  of  suppliers  •  More  detail  on  turbine  supply  and  long  term  O&M  than  to  other  contracts  

Construc\on  risk  and  mul\-­‐contrac\ng  

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4.  Risk  analysis  by  the  lenders  

Offshore  wind  transac7ons  require  a  tradi7onal  PF  security  package  •  Pledge  of  all  accounts,  assets  and  rights  of  the  project  •  Pledge  on  the  shares  of  the  project  company  

Equity  reten7on  clauses  are  more  stringent  than  usual  •  Lenders  are  very  sensi\ve  to  both  who  owns  and  who  manages  the  project  •  Share  reten\on  and  ownership  clauses  are  stronger  than  in  other  sectors  •  This  is  linked  to  payment  commitments  during  construc\on,  but  also  to  the  perceived  need  for  strong  owners  in  the  

early  years  of  opera\ons  when  problems  are  perceived  as  more  frequent  •  This  has  been  a  topic  of  difficult  nego\a\ons  between  lenders  and  project  sponsors  

Requirement  for  direct  agreements  and  oversight  of  commercial  contracts  •  Tradi\onal  in  PF  but  more  systema\c  (and  with  more  counterpar\es)  in  offshore  wind  •  Lenders  also  want  stronger  involvement  in  commercial  contracts  (right  to  allow  or  veto  changes)    •  Confiden\ality  issues  with  contractors  are  quite  sensi\ve  •  More  intrusive  due  diligence  in  contracts  &  subcontractors  and  more  informa\on  provisions  

Security  package  

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Financing  offshore  wind  

1.  GGEB  introduc\on  

2.  How  projects  are  financed  

3.  The  debt  market  

4.  Risk  analysis  by  the  lenders  

5.   How  to  approach  project  finance  

6.  What  GGEB  can  do  for  you      

 

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Table  of  contents  

 5.  How  to  approach  project  finance  

It  needs  to  be  an  early  decision  by  investors  •  A  lot  of  the  value  from  project  finance  discipline  comes  at  an  early  stage,  when  choosing  the  contractual  structure  and  

nego\a\ng  the  relevant  contracts  •  The  good  news  is  that  a  lot  of  that  work  can  be  done  without  involving  large  banking  groups,  by  using  a  small  number  

of  specialised  advisors  

It  requires  experienced  advisors  •  Bring  in  at  your  side  en\\es  which  have  credibility  as  lenders’  advisors  and  ask  them  to  look  at  the  project  from  the  

perspec\ve  of  lenders  •  Technical  advisors  (Moe,  Sgurr)  are  indispensable  •  We  believe  we  can  also  bring  value  in  pre-­‐packaging  a  deal  that  banks  will  accept  

Investors  and  contractors  need  to  be  commiged  to  it  •  Counterpar\es  will  accept  to  incorporate  banks’  requirements  in  their  commercial  offers  only  if  they  really  believe  that  

the  project  will  not  happen  without  external  financing  

•  Do  take  into  account  the  feedback  from  specialised  advisors,  otherwise  it  won’t  work  

You  cannot  improvise  a  project  finance  deal  

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5.  How  to  approach  project  finance  

It  helps  improve  risk  discipline  for  the  project  •  More  external  eyes  on  contracts,  interfaces  and  detailed  project  structure  •  Specific  focus  by  banks  and  their  advisors  on  poten\al  downside  scenarios  •  Project  can  “work”  on  a  stand-­‐alone  basis  (which  makes  it  easier  to  sell)  

It  can  help  investors  –  and  contractors!  –  obtain  more  favorable  contractual  terms  •  Using  banks  as  a  “bad  cop”  can  be  useful  in  contractual  nego\a\ons  (true  for  both  investors  and  contractors!)  •  3-­‐way  nego\a\ons  can  allow  you  to  get  away  from  zero-­‐sum  nego\a\ons  

It’s  really  non-­‐recourse  •  Banks  take  construc\on  risk  on  the  basis  of  the  contracts  and  commieed  con\ngency  mechanisms  •  While  sponsor  involvement  is  valued,  banks  evaluate  deals  with  no  expecta\on  of  addi\onal  cash  in  

It’s  no  longer  so  expensive  •  Recent  deals  have  seen  overall  cost  of  >15-­‐year  debt  at  6%  

Project  finance  for  offshore  wind  is  not  just  about  leverage  

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5.  How  to  approach  project  finance  –  Conclusion:  PF  is  available  for  well-­‐structured  projects  

Structuring  a  deal  is  7me-­‐intensive  •  Non-­‐recourse  finance  requires  a  specific  discipline  

and  approach  to  project  risks    •  Mul\ple  complex  tasks  to  run  in  parallel,  with  

numerous  third  par\es  (with  owen  contradictory  requirements)  

•  Several  cri\cal  paths  to  manage    •  ongoing  development  work  •  external  advisors  •  contract  nego\a\ons  •  internal  approvals  

How  to  make  a  deal  bankable  

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The  quality  of  the  contracts  can  help  bridge  the  difference  

•  The  more  «  bankable  »  the  contracts  are,  and  the  more  flexible  banks  will  be  on  equity  issues  

•  The  stronger  the  contractual  commitments,  the  less  important  the  owner  will  be  

•  No  zero-­‐sum  game:  enhancing  some  terms  can  lead  to  win-­‐win-­‐win  solu\ons  

Offshore  wind  projects  have  access  to  a  very  diverse  project  finance  universe,  as  long  as  some  rules  are  respected    •  the  contractual  package  has  to  include  banks  requirements  as  early  as  possible    •  experienced  advisors  consulted  upstream  •  \ming  adapted  to  the  banking  process  

Financing  offshore  wind  

1.  GGEB  introduc\on  

2.  How  projects  are  financed  

3.  The  debt  market  

4.  Risk  analysis  by  the  lenders  

5.  How  to  approach  project  finance  

6.   What  GGEB  can  do  for  you      

 

25  

Table  of  contents  

•  Specialised  competence  &  exper7se  with  regard  to  debt  &  equity  raising  and  structuring,  project  development  and  contrac\ng  for  complex  transac\ons  

•  Credibility  in  the  equity  markets  through  a  strong  and  proven  track  record  in  buy/sell  side  advisory  and  brokerage  in  the  wind  and  solar  industry  

•  Access  to  an  extensive  and  first  class  network  with  investors,  EPC/technology  suppliers,  banks,  advisors  and  intermediaries  in  the  renewables  market  which  we  leverage  to  the  benefit  of  your  project  

•  The  lessons  we  have  already  learned  (some\mes  the  hard  way)  will  enable  you  to  op\mize  the  project  development  process  and  avoid  costly  mistakes  and  delays  

•  We  are  deeply  commiged  to  the  success  of  our  clients  and  we  offer  you  highly  compe77ve  fees  structures  including  success  oriented  schemes  

We  have  a  proven  track  record  in  closing  transac7ons    and  maximising  value  for  our  clients  and  their  projects  

6.  What  GGEB  can  do  for  you  –  our  value  added  

What  GGEB  brings  to  the  table   The  services  we  can  offer  

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Strategic  financial  advisory  •  Renewable  energy  strategic  development  •  Technology  and  project  bankability  assessment  •  Business  plan  analysis,  financial  modelling  and  valua\on  •  Assis\ng  in  bidding  process    

Debt  and  equity  raising  and  structuring  •  Detailed  financial  analysis  and  valua\on  •  Prepara\on  of  all  necessary  support  materials  (informa\on  

memo,  financial  models,  management  presenta\ons,  etc.)  •  Draw  tailor  made  commercial  proposi\on  to  banks/investors  •  Ac\ve  marke\ng  of  your  project(s)  to  a  selec\on  of  poten\al  

debt  and  equity  investors  from  our  extensive  network  •  Commercial  nego\a\ons  with  investors  or  banks  •  Transac\on  documenta\on    Assistance  in  project  contract  nego7a7ons  •  Review  of  contrac\ng  strategy  to  ensure  bankability  •  Review  of  commercial  terms  (EPC  warran\es,  availability,...)  

GGEB’s  comprehensive  approach  

6.  What  GGEB  can  do  for  you  –  roadmap  to  financial  close  

Logis7cs  

Technology  

Equity  Financing  

Insurance  

PPA  

Contrac7ng  

•  Check  robustness  of  business  plan  

•  Verify  input  (on  a  no  names  basis)  with  shortlisted  suppliers  

•  Assess  (financial)  impact  of  opera7ng  decisions    

•  Request  indica7ve  term  sheets  

•  Selec7on  of  EPC  and  other  partners  

•  Nego7ate  main  commercial  terms  

•  Process  management  

•  Nego7ate  commiged  term  sheets            

 

 

•  Develop  effec7ve  financing  strategy  

•  Select  most  preferred  bank  consor7um  and  effec7ve  process  management  

•  Nego7ate  commiged  terms  from  banks  

•  Finalisa7on  of  financing  documenta7on  

Prepara7on   Business  plan   Project  contracts   Financial  Close  

Project  Financing  

Inpu

t  Business  p

lan  

 

Project  Financing  

Draw

 dow

n  of  fu

nds  

and  Start  con

struc7on

 

Added  Value  GGEB:  

•  Exper7se  to  perform  detailed  review  incl.  financial  modeling  

•  Informal  market  sounding  for  quotes,  etc.  

•  Sanity  check  on  process  and  7metables  

Added  Value  GGEB:  

•  Experience  with  all  key  project  contracts  

•   Many  lessons  learnt  (some  the  hard  way..)  

•  Ensure  process  discipline  and  contain  (legal)  costs  

 

Added  Value  GGEB:  

•  Proven  track  record  

•  Extensive  network  with  financing  banks  

•  Independent  posi7on  

•  Provide  comprehensive  process  management  

Permits  

•  Develop  effec7ve  equity  raising  strategy  

•  Valua7on  

•  Effec7ve  process  management  

•  Comparison  of  offers  and  final  nego7a7ons  

•  Finalisa7on  of  transac7on  documents  

Equity  raising  

Added  Value  GGEB:  

•  Proven  track  record  

•  Extensive  network  with  poten7al  investors  

•  Independent  posi7on  

•  Provide  comprehensive  process  management  

Financing    Project  organiza7on    

27  

8  rue  d’Uzès,  75002  Paris    

tel:  +  331  4221  3663    

email:  fr@green-­‐giraffe.eu    

 

Maliebaan  83a,  3581  CG  Utrecht    

tel:  +  31  30  820  0334  

email:  nl@green-­‐giraffe.eu    

 

30  Crown  place,  London  EC2A  4EB  

tel:  +  4475  5400  0828  

email:  uk@green-­‐giraffe.eu    

   

 

tel:  +  4917  6551  28283  

email:  de@green-­‐giraffe.eu    

   

Green  Giraffe  Energy  Bankers  

Paris  

London  

Utrecht  

Hamburg  

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