Financing Opportunities for Photovoltaic in Rio de Janeiro and Northeast Brazil

Financing Opportunities for Photovoltaic in Rio de Janeiro and Northeast Brazil

Presentation Content 1. General Remarks about Brazil 2. Financing Opportunities a. Financing Support from Germany b. National Support c. International Financing Support

General Remarks about Brazil Investment climate in Brazil Country rating (Baa3 BB+) Interest rate (BACEN Selic: currently 14,25%) The Brazilian Banking system Stable banking system, 4 public and 7 private banks and many others

Overview Germany Brazil Bilateral Cooperation: GIZ, KfW, DEG Federal Ministries: BMZ Export financing: Euler Hermes, Commercial Banks, AKA BNDES (Energia Elétrica, Automático, etc.) Pronaf ECO, FNE Verde International Worldbank Group IADB EIB

Financing Opportunities www.renewables-made-in-germany.com

Letter of Credit (L/C) Importer Sale Contract Shipment Exporter Documents release Notification Confirmation Presentation of Documents, Examination, Payment Importer s Bank Issuing L/C Confirmation request Documents Release, Exmination, Payment Exporter s Bank

Investment Promotion Scheme Precondition: Investment Protection Deed between the countries (as a general rule) Acceptance of Commercial Risk by the shareholder Exertion of Influence on the company s corporate policy New investment: shareholdings, shareholderloans, profits up to 10% p.a. Covered risks: Term: Costs: political risk only max. 20 years 0,5 % p.a. of the annual insured peak amount

Risk and Challenges Market Price Credit Foreign Exchange Rates Interest Rates Ratings Politics expropriation, war, riots, moratorium, civil war, freezing of payments, etc.

Financing Opportunities National Support Programs www.renewables-made-in-germany.com

Major Banks in Brazil Banco do Brazil BNDES Banco do Nordeste Caixa Economica Federal Itaú Unibanco Banco Bradesco S.A. Safra Votorantim Commercial Bank Banco Santander HSBC Citibank public private private international

National Support Programs General remarks Support programs for PV aim at medium-to long-term interventions Direct support program for solar energy General support program Eligible beneficiaries / recipients

National Support Programs BNDES: Energia Elétrica Geração Renovável Projects aiming at the expansion and / or modernization of infrastructure of power generation (including photovoltaic) Up to 90% of the investment volume (minimum 20 Mio. R$) Up to 20 years Local content of 60 % (value chain)

National Support Programs BNDES Credit lines: Automático Up to 90% of the investment volume (up to 20 Mio. R$) Credit lines: SME investment in all sectors Programs related to the size of the company and financing volume

National Support Programs Regional Development Programmes Banco do Nordeste do Brasil (BNB) FNE Verde Pronaf ECO

Financing Opportunities International Financing Support www.renewables-made-in-germany.com

International Financing Support Financing Support from Germany KfW Development Bank Deutsche Investitions- und Entwicklungsgesellschaft (DEG) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

International Financing Support Programs of multilateral institutions Inter-American Development Bank (IDB) European Investment Bank (EIB) International Finance Corporation (IFC) Equity Fund: Emerging Energy Environment (EEE)

Export Initiative Renewable Energies Obrigado pela atenção! ICON-INSTITUT Engineering GmbH engineering@icon-institute.de www.renewables-made-in-germany.com