Ecobank Capital Renewable Energy and Carbon Credit Origination. November 2012

Transcription

1 Renewable Energy and Carbon Credit Origination November

2 Disclaimer This presentation has been prepared by Ecobank Capital for informational purposes only. Although the information contained in this presentation has been obtained from sources which Ecobank Capital believes to be reliable, it has not been independently verified and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by Ecobank Capital as to or in relation to the accuracy, reliability or completeness of any such information. Opinions expressed herein reflect the judgement of Ecobank Capital as of the date of this presentation and may be subject to change without notice if Ecobank Capital becomes aware of any information, whether specific or general, which may have a material impact on any such opinions. Ecobank Capital will not be responsible for any consequences resulting from the use of this presentation as well as the reliance upon any opinion or statement contained herein or for any omission. This presentation is confidential and may not be reproduced (in whole or in part) nor summarised or distributed without the prior written permission of Ecobank Capital. Ecobank Capital. All rights reserved.

3 Contents Ecobank Group and Ecobank Capital 2 Introduction to Renewable Energy and Carbon Credits 8 Finance and Structuring 12 Key Contacts 20 Selected Recent Transactions 22 1

4 Ecobank Group and Ecobank Capital 2

5 Ecobank Group Overview Created in 1985, Ecobank Group is operating in 32 countries in West, Central, Eastern and Southern Africa Ecobank Group is a full-service regional banking institution employing over 18,000 staff with over 1,200 branches and 37 subsidiaries Ecobank s distribution platform includes both local banks and pension funds, as well as off-shore lenders (including both banks and DFI s) Ecobank has been ranked best bank in Africa in by Euromoney Total assets of $17.2 billion in Total Equity of $1.5 billion in More than 9 million customers International offices established in Paris (2009), Dubai (2010) and London (), with Beijing and New York planned (2013) Ecobank Group has strategic alliances with Nedbank, Bank of China, Old Mutual, ACCION, ICICI Bank and Banco Espirito Santo Cape Verde Senegal Gambia Guinea-Bissau Guinea Sierra Leone Liberia Mali Burkina Faso Benin Côte d Ivoire Ghana Togo Sao Tome and Principe Niger Nigeria Equatorial Guinea Cameroon Chad Gabon Congo (Brazzaville) Luanda Central African Republic Congo (Democratic Republic) Zambia Uganda Rwanda Burundi Tanzania Kenya Malawi Johannesburg 3

6 Distribution Platform London New York (Representative office planned 2013) Research and global distribution Paris Beijing Dubai Coverage and distribution to Middle East and Asian investors Local knowledge, relationships and Africa coverage from key financial centers in Middle Africa - Abidjan, Accra, Douala, Lagos and Nairobi Middle Africa South Africa Strategic relationship with Nedbank: leveraging Nedbank s expertise and market reach and promoting expansion of South African businesses into Middle Africa 4

7 Ecobank Capital: A Key Financial Partner Ecobank Capital is the Investment banking arm of the Ecobank Group, operating in 32 countries in West, Central, Eastern and Southern Africa Ecobank Capital is present in the WAEMU zone (based in Abidjan), CEMAC zone (based in Douala), and also has offices in Nigeria, Ghana, Kenya and Zimbabwe Ecobank Capital has been involved in over US$10 billion transactions in recent times covering several countries in Africa We have developed unparalleled knowledge and understanding of the African market through managing most of the big ticket local currency transactions In particular, our expertise in project financing and debt capital markets is unparalleled, with an extensive track record of arranging, financing and providing advisory work to world leading companies operating in Sub-Saharan Africa Strong management team with extensive knowledge of the financial markets in Sub-Saharan Africa Strong capacity to mobilize funds and structure large-scale operations in multiple regions Our strategy focuses on the involvement of local financial institutions 5

8 Business Structure Corporate and Investment Banking Asset Management Treasury Research Investment Banking / Ecobank Capital Professionals with extensive local knowledge and qualitative experience in Asset Management Multinational team of 100 people across 30 African countries with a Corporate office in Paris A multinational team of 10 people in Africa and Paris 25 professionals with vast experience in originating and structuring deals in Africa Portfolio Management of High Net Worth Individuals and Institutions Funds under Management is over US$130 million Advisory services to funds Operating on NSE, GSE, BRVM (Cote d Ivoire), BVMAC (Gabon) Plan to leverage on our presence in Europe to distribute our products to international investors Total solutions to the needs of our Corporate and Institutional Clients in Africa and beyond We quote and trade Sub-Saharan African Currencies from our central platform in Paris We quote and trade Sub-Saharan African Sovereign and Corporate Bonds. Formalizing market intelligence from 35 countries where Ecobank has a presence; Research department supports Ecobank Corporate and Capital business in origination and distribution; Our coverage area cuts across: Credit/Industry research, Commodities Research, FX and Fixed Income Research and Equity Research Mergers and Strategic Advisory Capital Raising Structured and Project Finance Capital Markets Renewable Energy and Carbon Finance 6

9 Organizational Structure Local and Regional* Origination International Execution and Distribution CEMAC Product Specialists Project Finance Johannesburg Corporate and Domestic Banking EAC UEMOA WAMZ NIGERIA Renewable Energy and Carbon Mergers and Acquisitions Structured Trade and Commodities Finance Debt Capital Markets Distribution Origination London Dubai Equity Capital Markets SADC Sales Paris *CEMAC: Central Africa; EAC: East Africa; UEMOA: West African Monetary Union; WAMZ: West Africa Monetary Zone; SADC: Southern African Development Community. 7

10 Introduction: Renewable Energy and Carbon Origination 8

11 Concerns over destructive and irreversible climate change has meant the world needs major de-carbonisation This shift in the global energy mix will require massive amounts of capital investment for cleaner technologies I E A* estimates USD317 Trillion in Renewable Energy and Clean tech capital investment is required to reduce emissions, 50% by 2050, representing a 17% increase in BAU spending Market opportunities for trading emissions are enormous On the Buy-Side Annex 1 Nations need to purchase Carbon Credits to meet caps imposed on their industries On the Sell-Side Non Annex-1 Nations, including Ecobank clients across Africa, will be able to gain revenues from the sale of Carbon Credits from their Projects Investment in Cleaner/Renewable Energy production will need to double and investment in energy efficiency will need to quadruple Carbon Credits have been shown to provide supplementary funding for well-structured African Renewable Energy projects that can get through the complex Carbon Credit approval process The CDM*: A project-based system to award developing countries who choose greener options for energy generation and use Ecobank clients will be able to benefit from our experience and expertise in this area *CDM is the Clean Development Mechanism. IEA is the International Energy Agency 9

12 Definition of a Carbon Credit (CER) A Carbon Credit is the right to emit a tonne of carbon dioxide equivalent gas. It provides the owner with the Right to emit a tonne of greenhouse gases measured in Carbon Dioxide equivalent and so it acts as a tradable financial asset. African CERs are initially subject to the Primary Market price. They are usually sold without a guarantee of delivery i.e. the buyer purchases whatever volume is produced at the agreed price. Carbon Credits traded on commodity exchanges have a guaranteed delivery attached to them these are known as secondary or guaranteed credits. 10

13 Renewable Energy Defined Renewable energy or renewable power is by definition renewable, such that this source of power can replenish itself over and over again. Renewable energy is also considered clean energy, because it does not produce toxins or pollutants that are harmful to the environment in the same manner that non-renewable energy does. Renewable energy is also known as green or clean energy. Much of the world today is converting to renewable energy sources as a means of providing power to homes and businesses in order to operate in a more environmentally-friendly manner. The most commonly used types of renewable energy today are wind power, solar power, and hydroelectric power but others also exist. 11

14 Finance and Structuring 12

15 Financing and Carbon Credit Revenue Generation for your Renewable Energy Project The Key CDM Industry Players: CDM Executive Board (EB) Designated Operational Entities (DOE) Designated National Authorities (DNA) CDM Project Developer/Investor Certified Emission Reduction (CER or VER/Carbon Credit) Buyer and/or Financier Clean Development Mechanism (CDM) Doe CDM EB Project Developer Ecobank will guide you through the complex Carbon Credit Revenue Generation process DNA Technology Supplier Technology/ Know-how Renewable or CDM-Project Management Owner/ Sponsor Capital Financing CERs/Funds Flow 13

16 Ecobank as the Partner in your Renewable Energy and Carbon Projects Sell Side Renewable or CDM Project Funds against CERs Ecobank Pooled CERs Compliance/ Market Buyers Buy Side Finance Project Transactional Structured Origination Primary Structuring Purchase Distribution Primary Purchase Pooling Structuring against finance Risk Management Meet Cap requirements Secondary Market trading Prop trading 14

17 Strengths of Ecobank as an African Renewables and CDM Partner Origination potential widest footprint and on-the-ground coverage globally of any bank in Africa with offices in 32 African countries High quality potential pipeline with proper firsthand due diligence and representations locally Understanding of and ability to manage risks in an African environment / structuring abilities Ability to solve financing problems (in country) Broad African experience CDM experience, Primary markets, with a number of firsts achieved by our personnel in Africa Financial strength and brand recognition Fewer restrictions affecting ability to mandate projects and hence ability to respond quickly 15

18 Project Finance Illustration Capital Expenditure Maintenance Power Sales Carbon Credits Sales Creditworthy Offtakers Loan and prepayment blend Ecobank Cash/ Gtees Loan Against Assets and PPA related Tariffs/receivables 16

19 Pre-financing against a Government (supported) project For Government or Private Sector Renewable Energy projects in Africa, the following structure has been used: Ecobank would contract under an ERPA with the project owner to purchase their Carbon Credits Against this forward stream of income to the project the bank would provide a blended payment structure We will likely fund the project too, so we will have two sources of repayment Favorable funding costs for the client Carbon Credits Ecobank (Carbon) Prepayment against Carbon Credits Parastatal Carbon Project Owner Term Loan and Equity Finance Ecobank Project Finance Possible Guarantee of Payment obligations African Government 17

20 Risks in a Renewable and CDM Project Construction Performance Technology Credit Country: Government support and approvals Market Carbon Other CDM Registration Baseline Performance/volume Verification Delay Eligibility Methodology 18

21 Projects that Benefit Renewable Energy and CDM Renewable energy (hydro, wind, geothermal, solar) Fuel switching (coal to gas, gas to hydro, solar or wind) Energy efficiency (waste heat to fuel) Agriculture (reduction of methane emissions) Industrial processes (changes fuel mix, biofuels alongside Gas or replacing LPFO) Municipal solar water heating instead of electric geysers Biogas digesters turning organic waste into a source of energy Efficient brick making techniques Agricultural and agro-processing opportunities (also biofuels) Keeping buildings cooler (efficient air-conditioning, efficient refrigeration) Waste management (land-filled gas and composting) Water filtration 19

22 Key Contacts 20

23 Corporate Banking Investment Banking Muyi Kazim Ehouman Kassi Rotimi Oyekanmi Head Renewable Energy and Carbon Origination EBI SA Representative Office 2nd Floor 20 Old Broad Street London EC2N 1DP United Kingdom Tel: (44) Cell: (234) Group Head Investment Banking EBI SA Ecobank Group Les Collines de Ll Arche Immeuble Concodre F 76 Route de la Demi-Lune Paris La Défense Cedex France Tel: (33) Cell: (33) / (44) ekassi@ecobank.com Group Head Ecobank Capital (Nigeria) 19A Adeola Odeku Street Victoria Island Lagos, Nigeria Tel: (234) Cell: (234) / royekanmi@ecobank.com 21

24 Selected Recent Transactions 22

25 Debt Capital Market (DCM): FY USD 320 Million State of Côte d Ivoire Côte d Ivoire USD 285 Million Ecobank Trans. Incorp Togo USD 200 Million State of Chad Chad USD 128 Million State of Benin Benin Treasury Note 6.5% 2016 Co-arranger Convertible Loan Co-arranger Government Bond Issue 6.0% 2016 Arranger Government Bond Issue 6.5% 2016 Co-arranger USD 120 Million State of Côte d Ivoire Côte d Ivoire USD 120 Million State of Burkina Burkina Faso USD 120 Million State of Togo Togo Treasury Bills 6.25% 2013 Co-arranger Government Bond Issue 6.0% 2016 Co-arranger Government Bond Issue 6.0% 2016 Co-arranger 23

26 Syndicated Loan and Project Finance: FY USD 270 Million Ecobank Nigeria Nigeria USD 180 Million KPDC Cameroon USD 225 Million SONARA Cameroon USD 63 Million OLAM / GSEZ Gabon Asset Securitization Arranger Bridge Loan for Gas Power Plant Arranger Phase II Refinery Upgrade and Expansion Arranger Development of a Special Economic Zone in KNOK Arranger USD 33 Million FER Côte d Ivoire USD 30 Million Orange Niger Niger USD 27.5 Million Colina Côte d Ivoire Road Maintenance Programme Funding Arranger Capex Funding Arranger Acquisition Finance Arranger 24

27 Syndicated Loan and Project Finance: FY USD 300 Million MTN Ghana Ghana USD 228 Million OLAM / OPG Gabon USD 80 Million Brittania U Nigeria Syndicated Short and Medium Term Facility Co-arranger Fin. Phase I of Palm Oil Plantation in Gabon Arranger Syndicated Loan Arranger USD 77 Million Oando Nigeria USD 50 Million Depthwize Nigeria Syndicated Loan Co-arranger Syndicated Loan Co-arranger 25

28 M&A and Equity Capital Market: FY 2008 USD 250 Million Ecobank Trans. Incorp Nigeria USD 140 Million Ecobank Trans. Incorp Ghana Capital Raising Co-arranger Acquisition of TTB by Ecobank Trans. Incorp Advisor USD 335 Million Ecobank Trans. Incorp Nigeria USD 900 Million Ghana Telecom Ghana Acquisition of Oceanic Bank by Ecobank Trans. Incorp Co-arranger Sale of 70% of Government Shares Advisor

29 Structured Trade and Commodity Finance: FY USD 360 Million SIR Côte d Ivoire USD 100 Million ORION OIL Ltd Congo DRC USD 78.9 Million Produce Buying Company Ghana Annual Crude Oil Acquistion Program Arranger Financing Crude Oil Pre-purchase Arranger Commercial Paper Facility Co-arranger and Advisor USD 60 Million SONARA Cameroon USD 25 Million London Mining Plc Sierra Leone USD 10 Million Webcor Burundi Working Capital Finance Arranger Iron Ore Pre-finance Facility Arranger Trade Finance Mandated Lead Arranger 27

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