Marc Schmitz

Senior Vice President REIF, Rabobank International

European Offshore Wind 2009

A bankers view on the European offshore wind energy market

Rabobank and Clean Tech

Rabo Greenbank € 4.0

Rabo Ventures € 0.2

Project Finance Renewable Energy € 1.2

SAM (CH) € 6.5

Robeco Sustainable Engagement € 5.4

Robeco Clean Tech I and II € 0.8

Sarasin (CH) € 0.7

Low energy Real Estate € 0.9

Total € 20

Rabobank’s investments in Clean

Tech

In bln Euros Rabobanks global clean tech ambitions:

Sustainability is engrained in the genes of Rabobank and all its core activities

Climate is a priority and viewed as a crucial theme in sustainability

Ambition to engage actively in the transition towards a low-carbon economy

Q7The Netherlands

2006

120 MW Off-Shore WindfarmEUR 218mln Project Financing Senior Facilities

EUR 166mln Mezzanine FacilityEUR 160 LC Facility

Financial Advisor, LeadArrangerand Joint Underwriter

C-PowerBelgium

2007

First phase of 300 MW Offshore Windfarm

MandatedLeadArranger

BELWIND

Belgium

EUR 482,500,000

Senior Debt Facilities

Mandated Lead Arranger

EUR 63,430,000

Mezzanine Facility

Sole Mandated Lead Arranger

July 2009

3

The REIF team is a highly experienced and professional team with extensive experience in financing of renewable energy and PPP projects

The team consists of 15 individuals

Languages: Dutch, English, German, French, Spanish and Italian.

Team experience: large innovative deals across Europe (i.e. first non recourse offshore wind park in the Netherlands and experience in bio fuels)

REIF has an international orientation and network, covering Europe, the Americas and a part of Asia. The team is supported by a network of local relationship managers in each International Branch, as well as dedicated loan syndicators and credit analysts

REIF offers tailor made structures that enable the financing of various projects. Being a partner of key customers in the renewable energy market, REIF always makes an extensive analysis to find a suitable structuring for every project

Renewable Energy & Infrastructure Finance

Tanja Cuppen

Head Corporate Finance

Marcel Gerritsen

Global Head of REIF

Secretary

REIF Asia REIF AmericasREIF Europe

APreconditions

Suitable locations and leases

Subsidy

– Level

– Security

Other legislation

– Permits

– Offshore spatial planning

– Grid connection

Public opinion

B

Project Viability

Location

– Wind characteristics

– Water depth

– Distance to shore and harbour

Availability of

– Sponsors

– Staff

– Contractors

– Turbines

– Vessels

C

Project Economics

Risk

– Risk in offshore wind

– Interface risk

– Risk mitigation

Project Structure

Financing structure detail

Factors influencing offshore wind

Investment decision

Country focus Site selection

Investment decision and bankability

Three essential elements:

Turbines & Vessels, BOP (incl. guarantee structure)

Project structure / risk mitigation

(usage of ECAs and EIB)

Subsidy regime

(different per country)

Country choice – government support important factor

  Support systemTotal

revenue

(EUR/MWh)

Level of support

(EUR/MWh)

Duration of

support (years)

Market electricity price

estimate (EUR/MWh)

Grid connection

paid by

BelgiumHybrid green

certificates150

(variable)107 20 35-50 Both

Germany Feed-in-Tariff 150 150 12+81 Not relevant Government

NetherlandsLikely: Tender plus premium payment

Unknown UnknownUnknown,

likely 1535-50 Developer

UK Green Certificates123

(variable)832

(variable)Asset

lifetime30-50 Developer

1 In Germany, offshore wind producers receive a high FiT for the first 12 years, and after that a lower tariff, depending on project circumstances (water depth and distance to shore)

2 This level is valid for the normal support level of 1.5 ROC/MWh. For those projects that will receive 2 ROCs per MWh under the UK Governments economic stimulus measures, the level of support will be higher, at around 100 EUR/MWh, and total revenue will in that case end up around 150 EUR/MWh.

Financing structure

Financing structure depends on project structure:

More Equity needed in current market

Tenor (long term; depends on term of the subsidy & PPA)

Margins increased due to liquidity costs and

Cash sweeps in place due to market and technical risks

Rabobank can provide a total financing package: Project equity

Mezzanine debt

Senior debt

Belwind deal – an overview

Senior lenders: Rabobank, ASN, Dexia, EIB, EKF

Mezzanine lenders: e.g. Rabobank, PMV

Equity providers: Rabobank, Colruyt, SHV, Meewind,

PMV

Why does Rabobank consider mezzanine lending: Less equity required

Higher leverage in the projects

Higher return on equity

Total financing package (i.e. senior / mezzanine / equity)

Belwind deal – the process

Success factors

Stable group of MLA’s;

Financing already in place in

March; Support of EIB and EKF

Good subsidy regime

Relationship between

contractors, MLA’s and final

shareholders

Experienced MLA group; Rabo,

Dexia, EKF involved in Q7/

Prinses Amalia Park

Same contractors as Q7/

Prinses Amalia Park (Van Oord

& Vestas)

Issues

Hard to get equity in place;

loss of several equity providers

during the process

Low grey electricity prices

High financing costs

Time consuming

0

5000

10000

15000

20000

25000

30000

35000

40000

Cumulative planned projects (realistic case)

Total cumulative installation ship capacity

Total cumulative turbine production capacity

Offshore wind growth prediction

Rabobank expectation 2020: Around 30,000 MW installed in Europe

2009-2013:no shortage of vesselsand turbines

2014-2020:possible shortagesin the value chain

Investment level

Rabobank expectation of

app. 30 GW installed

offshore in 2020 would

require app. 100 bln EUR in

cumulative investments in

the EU27 alone

Annual investments are

predicted to reach a level

of around 15 bln EUR per

year from 2014

Investments needed for offshore wind in the EU-27Rabobank predictions to 2018 in mln EUR

0100002000030000400005000060000700008000090000

100000

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

mln EUR

Annual necessary investments (at 3.5 mln EUR/MW)

Cumulative necessary investments total (at 3.5 mln EUR/MW)

Track record offshore wind

Current mandates: Borkum, Bard, Boreas Actively involved in several other European offshore

wind projects (ongoing)

Q7The Netherlands

2006

120 MW Off-Shore WindfarmEUR 218mln Project Financing Senior Facilities

EUR 166mln Mezzanine FacilityEUR 160 LC Facility

Financial Advisor, LeadArrangerand Joint Underwriter

C-PowerBelgium

2007

Firstphase of 300 MW Offshore Windfarm

MandatedLeadArranger

Contact Details

Rabobank International – Renewable Energy and Infrastructure Finance

Visiting addressCroeselaan 28

3521 CB Utrecht (UCZ 7044)

The Netherlands

Postal addressP.O. Box 17100

3500 HG Utrecht

The Netherlands

Contact Details

Renewable Energy and Infrastructure Finance

Marc Schmitz

Senior vice president REIF

t. +31 30 216 3074

f. +31 30 216 1920

e. Marc.Schmitz@rabobank.com

Marcel Gerritsen

Global Head REIF

t. +31 30 216 5794

f. +31 30 216 1949

e. marcel.gerritsen@rabobank.com

Clean Tech Research

Maartje van den Berg

Senior Associate Clean Tech Research

t. +31 30 216 6193

f. +31 30 216 1920

e.Maartje.van.den.Berg@rabobank.com

Visiting addressGildenkwartier 199

3511 DH Utrecht

The Netherlands

Postal addressP.O. Box 17199

UH-B 2038

3500 HG Utrecht

The Netherlands

Disclaimer

This presentation has been prepared by Rabobank International (“Rabobank”) exclusively for the benefit and internal use of the audience of the EWEA offshore wind

congress (the "Client") and does not carry any right of publication or disclosure other than to its professional advisor(s) who as a matter of law or practice is (are)

bound to confidentiality obligations. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of

Rabobank. The information in this presentation reflects prevailing market conditions and our judgment as of this date, all of which may be subject to change. This

presentation is based on public information. The information and opinions contained in this presentation have been compiled or arrived at from sources believed to

be reliable, but no representation or warranty, express or implied is made as to their accuracy, completeness or correctness and all liability in respect of any such

matters or statements is expressly excluded. The information and opinions contained in this presentation are entirely indicative and for discussion purposes only

and to provide the Client with a fair indication on a potential transaction between the Client and Rabobank.

Nothing in this presentation can be construed as an offer, invitation or recommendation to the Client. to enter into a transaction with Rabobank. No rights may be

derived from this presentation nor any of its contents including any commercial ideas. For the avoidance of doubt, distribution of this presentation does not oblige

Rabobank to enter into any transaction with the Client.

 The information in this presentation is not intended and may not be understood as an advice (including without limitation an advice within the meaning of article 1:1 and

article 4:23 of the Financial Supervision Act). Client is advised to independently review, and/or obtain independent professional advice, and to draw its own

conclusions regarding the economic benefit and risks of the potential transaction and legal, regulatory, credit, tax and accounting aspects in relation to particular

circumstances.