Clean Tech and Energy Efficiency Financing in Russia & CIS

Transcription

1 Clean Tech and Energy Efficiency Financing in Russia & CIS RuDanEnergo: Financing Energy Efficiency in Russia December Jørgen Bollesen

2 SLIDE 2 Agenda Who are we EKF operations Solutions Q&A

3 Who are we

4 SLIDE 4 EKF Danish Export Credit Agency 90 years of experience. Russia was first coverage, now 12% - app. 1.2 B Owned and guaranteed by the Danish State. Operated on private business terms.

5 EKF operations

6 SLIDE 6 Area of operation Risk Private Banks & insurance Risk coverage/ insurance EKF Financial guarantee > 180 days in Russia/SNG Time

7 SLIDE 7 EKF demands Credit worthiness Responsible project EKF PROJECT Danish Economic Interests

8 SLIDE 8 Price for the guaranty Price Credit worthiness Time Country

9 Solutions

10 Buyer Credit Guarantee - (Export Credit Guarantee) Pre-payment: Minimum 15% Russian customer (borrower) Deliveries Coverage: Up to 95% Local cost: Can be financed with up to 30 % of the imported part EKF premium: Can be financed 100 % Tenor of the loan: Depends of the transaction Instalments and interest Russian Bank Loan Instalments and interest Danish Bank Cash payment The size of the premium depends on the country, the buyer and the credit period Loan Export credit guarantee

11 SLIDE 11 Shopping line Russian Utility Equipment Equipment Danish exporter Danish exporter Danish exporter Danish exporter Loan Interest and Yield Bank Funding Guarantee Premium EKF Fund Danish Federal Bank Shopping line - Fact Credit line to Russian customer Financing multiple Danish exporters sale to the same customer Loan over longer period to the customer Supplementing with attractive financing of the bank

12 SLIDE 12 Project Finance Guarantee Risk sharing with the bank Bank acting as arranger Due diligence in cooperation with the bank Rank pro rata/pari passu with the bank Pricing reference Pledge in all assets Danish Exporter Shareholder Equity Deliveries SPV Shareholder Equity Local Cost Up to 80% guarantee of senior debt if a clean tech project EKF premium can be financed 100% Tenor of the loan; up to 18 years and flexible repayment profile if a clean tech project Full documentation risk by EKF Bank Senior loan Project finance guarantee

13 SLIDE 13 Energy performance contracting (EPC) Costs Energy costs before installation Energy saving Payment Energy costs after installation Guarantee against lack of payment Time Installation

14 SLIDE 14 Energy service company (ESCO) Equipment supplier Equipment supplier Equipment supplier Equipment supplier Underwriting of bank loans, guarantee for payment from customers ESCO company Energy service contract Local Utility Local Utility Local Utility

15 SLIDE 15 Challenges Very hard to get solid credit evaluation information outside St. Petersburg and Moscow! Utility companies tent just to go into breakeven, and do not consolidate. And is the tariff applied Cost or Cost plus? Federal Law 261, g: Tariff regulations Does only fix the settings for up to max 5 years. Never the less need guarantee of tariff fixation from the Tarif committee Security of incasation of income to the project? Payment guarantees very often needed to secure repayment of the loans

16 SLIDE 16 EKF shows more risk willingness in connection with cleantech/energy efficiency trans-actions than in our normal transactions.

17 SLIDE 17

18 18 Jørgen Bollesen Financial Counselor D +7 (495) (extension 223) M +7 (926) jbo@ekf.dk EKF Royal Danish Embassy Moscow 9 Prechistensky Pereulok Moscow Russia T +7 (495) F +7 (495)