ALASKA S DEVELOPMENT FINANCE AUTHORITY

Transcription

1 Infrastructure Development Project Development AIDEA Programs Energy Development Commercial Finance Specialty Financing Conduit Bonds ALASKA S DEVELOPMENT FINANCE AUTHORITY Energy Development Presentation Mark Davis Investing in Alaskans

2 Mission To promote, develop, and advance economic growth and diversification in Alaska by providing various means of financing and investment. AIDEA fulfills its mission by providing access to affordable, long-term, asset financing

3 Programs Infrastructure Development Project Development AIDEA Programs Energy Development Commercial Finance Specialty Financing Conduit Bonds

4 What Does AIDEA Do? Debt Loan Participations Energy Loans Development Project Finance Tax-Exempt Bonds Taxable Bonds Equity 100% Ownership Partner in LLC or Subsidiary Corporation Secured/collateralized Equity Equivalent Investments Enhancements Loan Guarantees Bond Guarantees

5 Project & Infrastructure Development Long-term financing for energy projects and infrastructure Own all or a part of an economic development or infrastructure project. Co-Invest in a Corporation or LLC that owns the project or infrastructure. Provide direct loans or loan/bond guarantees for development projects.

6 Project & Infrastructure Development Eligible Energy Projects AS (13) "project" means (D) a plant or facility demonstrating technological advances of new methods and procedures and prototype commercial applications for the exploration development production transportation conversion, and use of energy resources (F) a plant or facility, other than a plant or facility described in (D) of this paragraph, for the generation transmission development transportation conversion, or use of energy resources

7 AIDEA s Role in Energy Financing Sustainable Energy Transmission and Supply Fund - SETS Investing in Alaskans

8 SETS Program Established and capitalized by the Legislature in Currently, SETS has limited funds available. Provides AIDEA tools for financing Alaska s energy infrastructure: Direct Loans Loan & Bond Guarantees Bond Issuances Financing limits: 33% of direct financing, or Up to $20 million in guarantees and credit enhancements

9 SETS Program Possible SETS Financing Structure Equity Tax Credit Debt Grants 100% = Project Cost Maximum Amount: Loan up to $20 million Maximum Term: 30 Years (depends on useful life of collateral) Rate: Corresponding U.S. Treasury of term on note + spread up to 450 basis points

10 Loan Participation Program Usually, AIDEA s Loan Participation Program is used to finance commercial grade real estate AIDEA partners with commercial banks and credit unions to lend in the secondary market Loan Participations, however, can be used to finance certain energy projects

11 Long-term commercial financing for energy efficiency & conservation Working with banks and credit unions Participation may be up to 90% of a loan originated by an eligible commercial lender up to $25 million. Terms: Up to 15 years for personal property Up to 25 years for real property 75% loan-to-value fixed or variable interest rate

12 Alaska Pacific University Long-term commercial financing for energy efficiency - Anchorage Northrim Bank - $250,000 (10%) AIDEA - $2,250,000 (90%) Energy renovations and upgrades to six buildings on APU s core campus Estimated annual savings of $340,000

13 Conduit Revenue Bond Program Using Tax-Exempt and Taxable Bonds for Energy Projects Conduit Bonds are graded and issued on the financial strength of the project funded Essential to the underwriting and placement of bonds are: the creditworthiness of the project, and any credit enhancements offered by the applicant Neither the assets nor credit of AIDEA or the State of Alaska are at risk Significant increase in green bond issuances, globally: Municipal and corporate bonds Renewable energy Energy efficiency (i.e. efficient buildings) Other green projects

14 Project-Phase Financing Allocate resources appropriately Pre-Development Costs Feasibility, Design, Engineering, and Permitting Costs are difficult to borrow against Best funded using equity by developer, municipal and legislative appropriations, and/or grant funding Development Costs Real estate acquisition, equipment purchases, and construction Bankable activities using a variety of commercial and incentive programs described previously, but rely on pre-development items being in place Caveat Some communities/utilities are either too small or do not have the economic base to utilize commercial financing of development items. These communities may be reliant on appropriations and grants.

15 AIDEA Interfaces with AEA State Energy Policy Investing in Alaskans

16 AIDEA, AEA and HB 306 (2010) HB 306: LEGISLATIVE INTENT Statement It is the intent of the legislature that: (4) the power project fund (AS ) serve as the main source of state assistance for energy projects The PPF Fund is Administered by the Alaska Energy Authority (AEA) AIDEA provides underwriting assistance to AEA in making qualified PPF loans Investing in Alaskans

17 Contact Alaska Industrial Development and Export Authority 813 West Northern Lights Blvd., Anchorage, Alaska (907) (888) (Toll Free in Alaska) #AIDEA