EDP Renováveis Project Finance with EBRD. November,

Transcription

1 EDP Renováveis Project Finance with EBRD November,

2 EDPR top quality and diversified portfolio Canada CAD 44.9M Brazil BRL 322.7M Portugal 454.9M France 49.8M Spain 466M Belgium 42.1M Poland PLN 1,007.9M Romania CUR PF Amount 158.4M

3 Operating cash-flow and asset rotation as key sources of funding of EDPR Operating Cash-Flow to clearly cover Capex needs Balance sheet discipline >120% Operating Cash-Flow as % CAPEX ( E) Financial debt mainly raised at EDPR Group level, complemented by PF and TE when justified Asset Rotation target EDPR to keep debt levels and cost of debt under control in a growth environment 2bn Proceeds from Asset Rotation ( E) Sources of funds to both cover capex levels and allow for a reduction of Net Debt/EBITDA ratio 3

4 EDPR s financing approach and PF rational Cost of Capital throughout the life cycle of a wind farm (WACC; %) Cumulative value creation PF Approach? EDPR decision to go for a PF solution, is driven by several topics from which we can point out: 1) Other SH(s) in place 2) Foreign currency 3) PF availability 4) PF competiveness 5) Other corporate reasons EDPR PF track record High Risk Risk Reduction Low Risk Development Construction Operation 1 1 Equity Financing Bridge Financing Project Finance LT Financing Structure in place 4

5 Project Finance approach in Poland and Romania 1 EDPR financing assessment approaching Polish & Romanian markets Geografias with third SH In Romania there is a third relevant SH In Poland there is also a relevant third SH in several projects PL DEV Bridge L CONST COD PF Margonin Pwlowo End of Regulation M PLN Foreign Currency Ongoing In Romania there is a foreign currency RON - nevetheless the regulatory scheme provides FX natural hedging. The issue is mitigated In Poland there is a foreign currency PLN - and the expected cash flows are to be generated EDP Group policy is to match Cash out Flows and the financing currency RO DEV Bridge L CONST COD PF End of Regulation M 3 Financing Market & Dev Banks Not too much developed, being supported by International Development Banks like EBRD, EIB, IFC and BSTDB. Dev Banks are also an important to promote stability Cernavoda Pestera V&S Solar Projects Notes: (1) Forecasted. 30

6 Eligibility for EBRD financing is subject to several restrictions 1. EBRD basic requirements Location All EBRD projects must be located in a country of operations Activities No EBRD project can be in defence-related activities, tobacco, substances banned by international law or gambling facilities No related to No EBRD project can relate to subsidies, sponsorship or donations 2. Level of assessment Strategy & Policies Loans for larger projects [5-250]M Review process Power & Energy Sustainability (several others) They can also provide equity or guarantees For smaller projects there are indirect financing 1. Concept review ML 2. Final review 3. Board review 4. Signing 6

7 Topics to be point out working with EBRD DD Process Project Summary Loan features Integrity & Ownership verification Financial & Economics Market Management Technical & Operational Legal Enviromental & Social Procurement Project description Transition impact The client EBRD Finance Project Cost Enviromental Impact Technical cooperation Project Information Policy Project Complaint Mechant Minimum 5M Fixed/Floating rate Up front, Commitment & breakage fee Major or Local currency Tenor up to 15Y/amortizing Non Recourse Insurance Security Covenants + + Quite deep process Full understanding Typically up to 35% capex 7

8 EDPR view about EBRD Tems & conditions EDPR experience, we can say that EBRD Technical and financing teams are open to be aligned with market trends and able to understand project specificities adjusting their standards accordingly Support EDPR has already faced several major issues with some of the projects and EBRD has always been quite supportive either in terms of local management or approving waivers or even renegotiating clauses Replication 1 st transaction with EBRD can be tough, however it will contribute to establish a strong relationship which will allow and promote new deals in a smooth way 8

9