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EWEC Warsaw, April 21, 2010
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EWEC Warsaw, April 21, 2010 Marc Schmitz Senior Vice President, Renewable Energy and Infrastructure Finance Wind – key developments Rabobank: Current wind market developments from a bankers’ point of view
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Wind – key developments. Rabobank: Current wind market developments from a bankers’ point of view. EWEC Warsaw, April 21, 2010 Marc Schmitz Senior Vice President, Renewable Energy and Infrastructure Finance. Introducing Rabobank. 9.5 million clients. EUR 568bn Total Assets. - PowerPoint PPT Presentation
Transcript of EWEC Warsaw, April 21, 2010
EWEC Warsaw, April 21, 2010
Marc Schmitz Senior Vice President, Renewable Energy and Infrastructure Finance
Wind – key developments
Rabobank: Current wind market developments from a bankers’ point of view
Introducing Rabobank
Rabobank International Rabobank Nederland Local Rabobanks
Wholesale banking
- REIF
- Rabo Securities
- Food & agri M&A cooperation with
Rothschild
- Corporate clients
- Leveraged finance
International retail banking
Corporate social responsibility
Investor relations
Long term funding
Other staff units
Private individuals
Small & medium sized enterprises
Private banking
Other support units
AssetManagement Leasing Real Estate Insurance Housing
Robeco
Schretlen & Co
Sarasin
IRIS
De Lage Landen
- Athlon
Rabo Real Estate
- FGH Bank
Business
Eureko (39%)
- Interpolis
Obvion
Zoekallehuizen.nl
Bizner
Rembrandt
World’s safest privately owned bank(Global Finance award, 2008)
9.5 million clients EUR 568bn Total Assets EUR 2.7bn Net Income
S&P and Moody’s re-confirm triple-A rating
(June/August, 2009)
Introducing REIF Renewable Energy & Infrastructure Finance is Rabobank’s center of
competence for project finance and renewable energy transactions
Product offering and positioning
Providing project finance to the renewable energy sector
REIF is a leading player in the renewable energy markets
Sector focus
Offshore Wind
Onshore Wind
Solar
Biofuels / Biomass
Infrastructure
Geographic focus
Europe (team in Utrecht)
Americas (team in New York - especially USA & Canada)
India (team in India)
4
Global installed wind energy capacity, GW, 1996– 2009
0
50
100
150
200
250
Accumulated installed capacity selected countries, GW, 2008 vs. 2009
The Market – Onshore wind
• Installed capacity end 2009 is 158 GW• Large regional differences: China very
fast and continuous growth, US fast recovery from economic crisis sustained by additional government support, Europe diverse but generally slower recovery with 2010 still a difficult year
• Relatively mature sector; technical progress is focused on increased turbine efficiency and grid compatibility
• Shortages in value chain have disappeared, especially in US and Europe now more buyers market, leading to falling prices. Regionally the increased manufacturing base may lead to fierce competition (especially in the US)
• Wind farm O&M, refitting and repowering will become increasingly important
• Installed capacity end 2009 is 2.1 GW; this is expected to increase to around 35 GW by 2020
• Total global installed offshore wind capacity is a mere 1% of total installed wind capacity
• Currently most attractive markets: UK, Germany, Belgium, Denmark. Upcoming markets: The Netherlands, France, Scandinavian countries, US, China
• Technical progress is leading to increasing efficiency, decreasing cost, better reliability – ultimately higher returns
• A fast developing sector, causing (possible) shortages in the value chain; most notably in turbines, foundations, and bank funding
• Currently offshore wind is a utility play, however, future investments will become too large to carry on-balance; becoming a more investor-driven market
Annual offshore wind market: shortages may
develop by 2014/2015
5
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Rabobank annual installation prediction
Turbine production level
Ship installation capacity
Steel production capacity
The Market – Offshore wind
Rabobank offshore wind pipeline
Current offshore wind non-recourse financed deals:
•Prinses Amalia Windpark 120 MW (Vestas 2 MW)
•C-Power 30 MW (Repower 5 MW)
•Boreas 196 MW (Siemens 3,6 MW)
•Belwind 165 MW (Vestas 3 MW)
New offshore wind non-recourse financed deals in pipeline:
•Borkum (Multibrid)
•Wetfeet (Multibrid)
•Lincs (Siemens)
•Bard (Bard)
Commercial banks in the offshore wind PF marketSenior debt
arrangerSenior lender
Financial debt advisor
Mezzanine lender
Equity provider
Rabobank √ √ √ √ √ Dexia √ √ √ BNP Paribas / Fortis √ √ ASN Bank √ √ BoTM √ √ HSH √ √ SocGen √ √ NIBC √ KBC √ Unicredit / HVB √ KfW √ RBC √ NordLB √ LBBW √
Specifics of non-recourse financing in offshore wind• Project size large (EUR 500 – 1,500 mln)
• Involvement of ECAs (EKF, Hermes) (EUR 200 – 250 mln)
• Involvement of EIB (EUR 150 – 250 mln)
• Limited number of commercial banks active in the offshore wind market
• Shortage of capital due to size of future projects and number of banks active
Wind energy financing parameters
Offshore Onshore
Tenors16 years (including 2 years construction)
15-20 years (including 1 year construction)
DSCR (P90) 1.30x - 1.35x 1.20x
Cashsweep Yes Mostly
Margin 300 - 375 bps 225 - 300 bps
DSRA 6 months 6 months
Debt:Equity ratio 70:30 85:15
Ticket Size EUR 40 - 75 mln EUR 20 - 40 mln
Total deal size EUR 600 - 1,500 mln EUR 75 - 400 mln
Multi-contracting Yes Limited
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)
Rabobank REIF
DebtBelwind NV
(Belwind I&II)
ColruytSHV
Rabobank,
Dexia, ASN,
EIB, EKF
Electricity Off
taker:
Electrabel
Electricity
Supply &
Revenues
Equit
y
Green
Certificates Off
taker: Elia
Green
Certificates &
Revenues
MeewindPMV
Rabo
Project
Equity
Rabobank,
Colruyt, PMV,
Van Oord
Mezzanin
e
EPC
Contractor:
Van Oord
Turbine
supplier and
O&M: Vestas
Legal: Allen & Overy
Insurance: JLT
Market:
Poyry
Technical: Mott Mac
Do
Lenders’
advisors
Belwind deal – the structure
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
Financial difficulties developer
Low grey electricity prices
High financing costs
Time consuming
The Belwind deal: award winning
• Euromoney and Ernst & Young Global Renewable Energy Awards 2009 – Deal
of the Year – Infrastructure
• PFI Awards 2009 – Power Deal of the Year (Europe)
• Euromoney Project Finance Magazine 2009 – Offshore Wind Deal of the Year
• IJ Infrastructure Awards 2009 – Global Deal of the Year
Rabobank credentials – Wind
13
13
EUR 184 ,000,000
Senior Debt Facility
April 2008
Participant
Olivento S.L.
EUR 531,500,000
Senior & Subordinated Debt Facility
J anuary 2009
Mandated Lead Arranger
Canada I nc.
Babcock and Brown Wind Partners Portfolio
EUR 1,830,500,000
Global Refinancing Facilities
March 2008
Mandated Lead Arranger
EUR 90,286,000 Senior Debt FacilityEUR 11,200,000 Contingent Debt Facility
EUR 20,000,000 Mezzanine Facility
May 2007 and restructured in March 2009
Participant in the Senior Facilities and Mandated Lead Arranger &
Sole Mezzanine Lender
USD 49,600,000
Senior Debt Facility
March 2009
Mandated Lead Arranger & Sole Lender
EUR 218,000,000
Project Financing,Senior and Mezzanine Facilities
October 2006Mandated Lead Arranger
USD 240,000,000
October 2009
Construction and Term LoanMandated Lead Arranger
and Technical Agent
Boreas UK
GBP 343,283,296
Senior Debt Facility
November 2009
Mandated Lead Arranger & Insurance Bank
Castledockrell Wind Group Ltd.
EUR 56,600,000
Construction, term loan, VAT and working capital facilities
Project financing of 41.4MW onshore windfarm, Bunclody,
Co.Wexford, Ireland
October 2009Rabobank International:Arranger, Original Lender, Account Bank, Issuing Bank, Hedging Bank, Facility Agent and Security Agent
Alta Wind 1, LLC
USD 150,000,000
Pre-Construction Loan
October 2009
Lender
Castledockrell Wind Group Ltd.
EUR 56,600,000
Construction, term loan, VAT and working capital facilitiesProject financing of 41.4MW onshore windfarm located
Bunclody, Co.Wexford, Ireland
October 2009Rabobank International:Arranger, Original Lender, Account Bank, Issuing Bank,HedgingBank, Facility Agentand Security Agent
EUR 482,500,000Senior Debt Facilities
J oint Mandated Lead ArrangerEUR 63,430,000Mezzanine Facility
Sole Mandated Lead Arranger
Hedge Coordinator Equity providerJ uly 2009
Equity Providers:
USD 240,000,000
October 2009
Construction and Term LoanMandated Lead Arranger
and Technical Agent
Boreas UK
GBP 343,283,296
Senior Debt Facility
November 2009
Mandated Lead Arranger & Insurance Bank
Castledockrell Wind Group Ltd.
EUR 56,600,000
Construction, term loan, VAT and working capital facilities
Project financing of 41.4MW onshore windfarm, Bunclody,
Co.Wexford, Ireland
October 2009Rabobank International:Arranger, Original Lender, Account Bank, Issuing Bank, Hedging Bank, Facility Agent and Security Agent
Alta Wind 1, LLC
USD 150,000,000
Pre-Construction Loan
October 2009
Lender
Castledockrell Wind Group Ltd.
EUR 56,600,000
Construction, term loan, VAT and working capital facilitiesProject financing of 41.4MW onshore windfarm located
Bunclody, Co.Wexford, Ireland
October 2009Rabobank International:Arranger, Original Lender, Account Bank, Issuing Bank,HedgingBank, Facility Agentand Security Agent
EUR 482,500,000Senior Debt Facilities
J oint Mandated Lead ArrangerEUR 63,430,000Mezzanine Facility
Sole Mandated Lead Arranger
Hedge Coordinator Equity providerJ uly 2009
Equity Providers:
USD 240,000,000
October 2009
Construction and Term LoanMandated Lead Arranger
and Technical Agent
Boreas UK
GBP 343,283,296
Senior Debt Facility
November 2009
Mandated Lead Arranger & Insurance Bank
Castledockrell Wind Group Ltd.
EUR 56,600,000
Construction, term loan, VAT and working capital facilities
Project financing of 41.4MW onshore windfarm, Bunclody,
Co.Wexford, Ireland
October 2009Rabobank International:Arranger, Original Lender, Account Bank, Issuing Bank, Hedging Bank, Facility Agent and Security Agent
Alta Wind 1, LLC
USD 150,000,000
Pre-Construction Loan
October 2009
Lender
Castledockrell Wind Group Ltd.
EUR 56,600,000
Construction, term loan, VAT and working capital facilitiesProject financing of 41.4MW onshore windfarm located
Bunclody, Co.Wexford, Ireland
October 2009Rabobank International:Arranger, Original Lender, Account Bank, Issuing Bank,HedgingBank, Facility Agentand Security Agent
EUR 482,500,000Senior Debt Facilities
J oint Mandated Lead ArrangerEUR 63,430,000Mezzanine Facility
Sole Mandated Lead Arranger
Hedge Coordinator Equity providerJ uly 2009
Equity Providers:
Contact details
Rabobank internationalRenewable Energy &
Infrastructure Finance
Visiting address
Croeselaan 28
3521 CB Utrecht
Postal address
P.O. Box 17100
3500 HG Utrecht
The Netherlands
Marcel GerritsenGlobal Head of REIF – Managing DirectorT. +31 30 712 3342E. [email protected]
Marc SchmitzSenior Vice PresidentT. +31 30 71 23351E. [email protected]
Roland TheuwsSenior Vice PresidentT. +31 30 71 23352E. [email protected]
