B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

Transcription

1 "INOGATE Technical Secretariat & Integrated Programme in support of the Baku Initiative and the Eastern Partnership energy objectives" Project B U I L D I N G P A R T N E R S H I P S F O R E N E R G Y S E C U R I T Y

2 ТRAIN THE TRAINERS SPECIAL COURSE AHEF AM.093 WORKSHOP: Capacity building for financing of EE / RES projects January 14-18, 014 Yerevan, Armenia Vahan Babajanyan EE / RE Source Financial Training & Research Expert, INOGATE TS

3 1. FINANCING In the field of ENERGY EFFICIENCY and RENEWABLE ENERGY SOURCES

4 EE / RES FINANCING: SPECIFIC and DISTINCTIVE FEATURES MAKING USE of VARIUOS TOOLS MONEY FLOWS as a FORM of COLLATERAL ESTABLISHMENT of an IMPLEMENTATION CONSORTIUM FEASIBILITY ASSESSMENT FUTURE REVENUE

5 EE / RES FINANCING: COMRARATIVE ANALYSIS of SOURCES BANK, LFI 60% - 80% EQUITY FUNDS CAPITAL INVESTMENTS / ISSUE COMERCIAL LOANS LEASING (FINANCIAL / OPERATIONAL) PROJECT FINANCING OPERATION / CAPITAL FINANCING COLLATERALS, BILLS of EXCHANGE, LC

6 EE / RES FINANCING: COMPARATIVE ANALYIS of SOURCES TIME FRAME of INVESTMENT ATTRACTION UNLIMITED CLOSE to PROJECT LIFE CLOSE to PROJECT LIFE EQUAL to PROJECT LIFE EQUAL to PROJECT LIFE OPTIMISATION of ATTRACTION and REPAYMENT SCHEDULES!

7 EE / RES FINANCING: COMPARATIVE ANALYIS of SOURCES DIVIDENDS and REINVESTMENTS MANAGEMENT is INDEPENDENT in DECISIONS MANAGEMENT is INDEPENDENT in DECISIONS MANAGEMENT is INDEPENDENT in DECISIONS MANAGEMENT is INDEPENDENT in DECISIONS NO REINVESTMENTS OPTIMAL DIVIDEND to REINVESTMENT RATIO!

8 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES INVESTMENT DECISIONS for CREDITORS NO TRANSPARENCY NO TRANSPARENCY INSUFFICIENT TRANSPARENCY NO TRANSPARENCY HIGH TRANSPARENCY DEVELOPMENT of MECHANISMS to ENSURE TRANSPARENCY!

9 EE/RES FINANCING: COMPARARIVE ANALYSIS of SOURCES COMPLEXITY of FINANCIAL STRUCTURING LOW, LINITED POSSIBILITIES MIDDLE, GROWTH POTENTIAL LOW, LIMITED POSSIBILITIES LOW, GROWTH POTENTIAL HIGH, LIMITED FIELD OPTIMISE MANAGEMENT of CASH FLOWS!

10 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES TRANSACTION EXPENSES LOW / MIDDLE MIDDLE, ABOVE THE AVERAGE LOW, MIDDLE LOW, MIDDLE MOSTLY HIGH OPTIMISATION / REDUCTION of FINANCIAL EXPENSES!

11 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES LOWER LIMIT of FINANCING YES, WHEN ADDITIONAL ISSUE YES, DEPENDING on the SOURCE NO, DEPENDING on PROFITABILITY NO, DEPENDING on the SOURCE YES, HIGH NEED to CREATE a FINANCIAL BUFFER!

12 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES BASIS of CREDIT ASSESSMENT ANALYSIS of FINANCIAL REPORTING ANALYSIS of FINANCIAL REPORTING ANALYSIS of FINANCIAL REPORTING ANALYSIS of FINANCIAL REPORTING ToR, MONEY FLOWS COLLECTION of RELIABLE DATA / INDICATORS!

13 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES SECONDARY MARKET for a SOURCE of FINANCING DEVELOPED, GROWTH TREND DEVELOPED, GROWTH TREND LIMITED, POTENTIAL for GROWTH LIMITED, POTENTIAL for GROWTH LIMITED, TEETHING PROBLEMS REALISTIC ASSESSMENT of the CURRENT VOLUME!

14 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES DEBT-to-EQUITY RATIO CONSERVATIVE, UP TO 30-40% CONSERVATIVE, UP TO 30-40% HIGHLY CONSERVATIVE, 0-30% MAINLY AGGRESSIVE, UP TO 70% HIGHLY AGGRESSIVE, UP TO 70-80% PRIORITY to the MODERATELY CONSERVATIVE APPROACH!

15 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES SUBJECT of CREDIT / INVESTMENT ACTIVITIES OPERATING COMPANY with GOOD RECORDS OPERATING COMPANY with GOOD RECORDS OPERATING COMPANY with GOOD RECORDS OPERATING COMPANY with GOOD RECORDS SPECIAL PURPOSE COMPANY RECORD in PROJECT IMPLEMENTATION!

16 EE/RES FINANCING: COMPARATIVE ANALYSIS of SOURCES COLLATERAL on FINANCING ASSETS of COMPANY, SHAREHOLDERS, PARTNERS ASSETS of COMPANY, SHAREHOLDERS, PARTNERS ASSETS of COMPANY, SHAREHOLDERS, PARTNERS ASSETS to PLEDGE CASH FLOWS and ASSESTS AVAILABLITY of and ENSURING HIGH LIQUIDITY!

17 EE/RES FINANCING: COMPARATIVE ANALYSIS of RESOURCES SPONSOR S BANKRUPCY RESULTS in PROJECT s SUSPENSION RESULTS in PROJECT S SUSPENSION RESULTS in PROJECT S SUSPENSION RESULTS in PROJECT S SUSPENSION LIMITED IMPACT EXPERIENCE in PROJECT IMPLEMENTATION!

18 EE/RES FINANCING: SPECIFIC FEATURES of RISKS a COMPANY is the PROJECT s OWNER TEAM is the PROJECT S IMPLEMENTOR SHAREHOLDER EQUITY PARTNER RELATIONS BUSINESS REPUTATION MANAGEBILITY

19 EE/RES FINANCING: SPECIFIC FEATURES of RISKS ORGANISATION and TECHNICAL RISKS COMPLETION of the PROJECT TECHNOLOGY INFRASTRUCTURE CONSTRUCTION ADMINISTRATIVE

20 EE/ ВИЭ ФИНАНСИРОВАНИЕ: SPECIFIC FEATURES of RISKS FINANCING and OPERATION CONTRACT RISKS RISKS of UNDERFINANCING RISKS of OPERATION STAGE CURRENCY / INTEREST-RATE RISKS FINANCIAL SITUATION of INVESTOR

21 EE/RES FINANCING: PRINCIPLE of REDISTRIBUTION of RISKS OWNER PROJECT OWNER RISK 100% CREDITOR INSURER GUARANTOR CONTRACTOR SUPPLIER DEVELOPER

22 FINANCIAL PRODUCT BUSINESS Who is a BORROWER MANAGEMENT What GUARANTEES PROVISION HISTORICAL DATA EXPECTED RESULTS BUSINESS IDEA and PROJECT SHAREHOLDERS OPERATIONAL MANAGEMENT PROJECT MANAGEMENT GUARANTEE TANGIBLE COLLATERAL INTANGIBLE COLLATERAL

23 COLLATERAL GRAUAL INCREASE of COLLATERAL BASE 1 3 PERIODICAL REVIEW of COLLATERAL PROPERTY HIGH LIQUIDITY ASSETS PROPERTY 40% - 60% EQUIPMENT, TRANSPORT PROPERTY GUARANTEES FLOATING CAPITAL 50% - 70% 0% - 30% 10% - 0% OTHER INTANGIBLE ASSETS 30% - 50% 30% - 50% 10% - 30% EQUIPMENT, GOODS, ETC. 30% - 50% 0% - 40%

24 EVALUATION PROCESS PROJECT OWNER CREDITORS, SOURCES of FINANCE EQUITY DEBT CAPITAL INSURANCE PROJECT FUNDS PROJECT IMPLEMENTATION RISK MANAGEMENT

25 EVALUATION PROCESS FUEL SUPPLIES PURCHACE of ENERGY EQUIPMENT SUPPLIES DESIGN and SUPERVISION CONSTRUCTION and COMMISSIONING CONSULTATIONS and AUDITS CREDIT REPAYMENT SUPPLIERS and CONSUMERS MANUFACTURERS and SUPPLIERS PROJECT ORGANISATION CONTRACTORS and SUBCONTRACTORS CONSULTANTS, ENGINEERING PROJECT IMPLEMENTATION

26 SPECIFIC FEATURES of EVALUATION LEGAL AUDIT 1 ANALYSIS of the PROJECT TECHNICAL AUDIT FINANCIAL AUDIT! SEPARATELY! ANALYSIS of the COMPANY CASH FLOWS PROFITABILITY SOLVENCY ANALYSIS of CONSOLIDATED INDICATORS PROJECT IMPLEMENTATION

27 DECISION CREDIT PRODUCT TYPE of CREDIT PRODUCT SIZE of CREDIT CURRENCY INTEREST RATE TERMS CREDIT PERIOD CREDIT SCHEDULE GRACE PERIOD REPAYMENT SCHEDULE

28 DECISION COLLATERAL / PLEDGE ESTIMATE, MARKET and LIQUID PRICE ENSURANCE, INSURANCE of LIQUIDITY BUY-BACK AGREEMENT FORM and TERMS of PLEDGE EXECUTION MONITORING TARGETED USE of CREDIT SUBJECT of MONITORING INDICATORS and SCHEDULE SPECIAL CONDITIONS

29 . PARTNER COUNTRIES FINANCING of EE and RES PROJECTS

30 ARMENIA PARTNER COUNTRIES AZERBAIJAN BELARUS GEORGIA MOLDOVA UKRAINE

31 CREDIT PORTFOLIO, PARTNER COUNTRIES (March 013, bln EURO) en.wikipedia.org PC s AM AZ BY GE MD UA CP/ GDP 39% 3% 0% 33% 39% 58% ARMENIA AZERBAIJAN BELARUS GEORGIA MOLDOVA UKRAINE Кредиты в промышленность и энергетику Кредитный Портфель

32 GROSS DOMESTIC PRODUCT (GDP), 01 en.wikipedia.org PC s AM AZ BY GE MD UA GDP, Bln EU P / C, Ths EU PER CAPITA AUSTRIA 3,440 EU GDP AUSTRIA 418,03 Bln. EU

33 DISCOUNT and LENDING RATES, TERM up to 5 YEARS, March 013, % LIBOR 0.75% A/W RATE 3.85% ARMENIA AZERBAIJAN BELARUS GEORGIA MOLDOVA UKRAINE Ставка рефинансирования Ставка коммерческого кредитования