Introduction to Green Giraffe March 2017
A specialist advisory boutique focused on renewable energy We get deals done Deep roots in renewable energy finance Launched in 2010 by experienced finance specialists with a strong and proven track record in renewable energy 60+ professionals with offices in Hamburg (Germany), London (UK), Paris (France) and Utrecht (the Netherlands) Multi-disciplinary skill set including project & structured finance, contract management, M&A, and legal expertise High quality, specialised advisory services Close to EUR 15 billion funding raised for renewable energy projects in 7 years 60+ professionals in 4 countries Focus on projects where we can actually add value We can provide a holistic approach and are able to include sector-specific tasks in addition to traditional debt or equity advisory (such as contracting, strategic advisory and development services) Widening geographical reach with a burgeoning presence in the Americas and Africa in addition to Europe Involved in over 80 renewable energy projects with a capacity of more than 18 GW Priority given to getting the deal done! 2 INTRODUCTION TO GREEN GIRAFFE
Consistently highly-ranked in league tables 2015 renewable energy IJ Global 2016 renewable energy Inspiratia Company USD bn Deal count 1 Green Giraffe 5.5 5 2 EY 4.4 7 3 BNP Paribas 3.1 2 4 Macquarie 2.9 4 5 Santander 2.4 19 6 Barclays 2.4 1 7 Alderbrook 2.0 2 8 Chatham Financial 1.8 3 9 Fieldstone 1.3 4 10 PwC 1.3 3 Company Deal count USD bn 1 KPMG 22 17.8 2 Green Giraffe 11 3.6 3 PWC 10 1.5 4 EY 8-5 JLL 7-6= Santander 6 4.9 6= Elgar Middleton 6-6= Augusta & Co 6-9 Crédit Suisse 5 16.1 10 JC Rathbone 4 2.3 IJ Global league tables 2015 (website) Inspiratia Global league tables 2016 (website) 3 INTRODUCTION TO GREEN GIRAFFE
Consistently highly-ranked in league tables Global renewables financial advisors by deal count (InfraNews) Ranking Company Deal count Value (USD M) 2016 2015 2014 2016 2015 2014 2016 2015 2014 1 2 7= KPMG 17 18 4 1,073 5,595 794 2= 7 3 Green Giraffe 14 8 8 3,636 5,578 5,177 2= 3= 7= EY 14 11 4 3,430 3,977 355 4 1 1 Santander 12 22 45 10,042 2,494 3,549 5 3= 2 Elgar Middleton 11 11 14 823 155 156 6 16= - Crédit Suisse 10 2-10,604 202-7 3= 7= Macquarie Capital 8 11 4 5,856 4,279 259 8 16= 10= Bank of America Merrill Lynch 7 2 3 6,586 440 1,710 9= 16= - Rothschild 6 2-3,558 1,045-9= 15 4 BNP Paribas 6 3 6 1,975 3,690 3,072 Financial advisor league tables derived from InfraNews website 4 INTRODUCTION TO GREEN GIRAFFE
We are a renewable energy pure player We are active in all sub-sectors Offshore wind We have a strong presence in the market and a proven track record on more than 40 projects worldwide. Drawing from a wealth of experience including multiple award-winning deals, we will help you develop, finance and build your project Offshore wind Onshore wind Your project will benefit from our extensive experience in wind energy projects. We have deep knowledge of the onshore wind market and are able to assist you on different missions like debt or equity raising, strategic advisory and market studies Onshore wind Solar Solar energy markets are particularly dynamic and require deep market understanding to bring about successful projects and transactions. Green Giraffe has worked on 1+ GW of solar capacity in 7 countries since 2010 Solar Others We have diversified our activities to all sub-sectors of the renewable energy scene, including biomass, geothermal and energy efficiency projects. We are actively looking at projects in new areas like floating offshore, wave, tidal and energy storage Other renewables 5 INTRODUCTION TO GREEN GIRAFFE
What we can do for you Proven track record in closing deals and maximising value for our clients and their projects What Green Giraffe brings to the table Specialised expertise in fund raising and financial structuring, project development and contracting for complex transactions Credibility in the equity markets through a strong and proven track record in buy/sell side advisory and brokerage in the wind and solar industry An extensive and first class network with investors, contractors, banks, advisors and intermediaries in the renewable energy market The lessons we have already learned will enable you to optimize the development process and avoid costly mistakes and delays We are deeply committed to the success of our clients and we offer you highly competitive fee structures including success oriented schemes Strategic advisory Corporate strategy advisory and market intelligence Technology and project bankability assessment Business plan analysis, financial modelling and valuation Debt and equity raising and structuring Detailed financial analysis and valuation Fully structured packages to banks or potential investors Commercial negotiations with investors or banks For greenfield or brownfield projects Assistance in project development and contracting Support in early project development (business plan, tariff tenders, permit process) Project- and sponsor-specific contracting services Support in negotiation (or review) of commercial terms, e.g. EPC warranties, availability levels, etc. 6 INTRODUCTION TO GREEN GIRAFFE
We provide a wide set of services and skills Specialised financial services to renewable energy projects and investors Debt & equity advisory We will help you design and execute the most appropriate financing structure for your project, or provide an independent valuation, taking into account project characteristics and market conditions. We will ensure that contracts are bankable, project economics work and the transaction is successfully brought to close. We know most lenders & investors and their preferences Debt & equity advisory Modelling We offer a full suite of world class modelling services: review of existing models, implementation of sensitivities or design of new models from scratch Modelling Strategic advisory We provide benchmarking services, reviews of regulatory frameworks and analysis of market developments. This includes terms and conditions on corporate and contractual structures, debt and equity deals, participants and commercial terms Strategic advisory Development and contracting We will help your project reach critical milestones (permit, tariff) and support you during business plan development, contract structuring and negotiation Development & contracting 7 INTRODUCTION TO GREEN GIRAFFE
The leading financial advisor in offshore wind We have been involved in the majority of the debt transactions with construction risk to date EUR M 7,000 Green Giraffe projects Other projects Norther 6,000 5,000 Rentel Merkur 4,000 Galloper 3,000 Nobelwind Beatrice 2,000 Veja Mate 1,000 0 Belwind Borkum West 2 C-Power-2 Meerwind Global Tech 1 Northwind Lincs Butendiek Gemini Westermost Rough Nordergründe Nordsee Block Island Dudgeon 2009 2010 2011 2012 2013 2014 2015 2016 8 INTRODUCTION TO GREEN GIRAFFE
The renewable energy finance specialist We help projects get better terms than other advisors More leverage Less upfront equity Lower contingency Higher commitments through more aggressive terms Equity substituted by pre-completion revenues or subordinated debt Lower contingency budget via more disciplined DD process 75% Leverage 45% Upfront equity 25% Contingency 70% 65% 60% 55% 40% 35% 30% 25% 20% 20% 15% 10% 50% 2010 2011 2012 2013 2014 2015 2016 15% 2010 2011 2012 2013 2014 2015 2016 5% 2010 2011 2012 2013 2014 2015 2016 Projects advised by Green Giraffe Average Green Giraffe Projects advised by others Average others 9 INTRODUCTION TO GREEN GIRAFFE
Equity practice Our expertise Visible value added Proven track record Close to EUR 3 billion raised Involvement on 1 GW of solar PV and 8 GW of wind Buy-side advisory for infrastructure funds Sell-side advisory for several developers Strong expertise in project valuations Close relationship with a wide range of investors Industrial investors (IPPs, utilities, contractors) Financial investors (PE, SWF, infra and pension funds) Corporates (conglomerates) Technology diversity Specific focus on complex projects (offshore wind, biomass, portfolios, energy efficiency) Familiarity with multiple solar technologies (thin film, BiPV portfolios, ground mounted projects, CSP & CPV) Tailor made equity solutions Taking into account accounting & consolidation issues Optimized liquidity vs governance constraints Residual value and long term repowering upsides Junior financing to recycle equity while preserving control and governance over projects Pure equity sales to maximise liquidity Successful track record atoutperforming market standards Improved project assumptions: net yield, power prices, target internal rate of return, valuation period Pricing metrics: through our market insights and stringent processes we achieve superior valuations for our clients whether in EUR/MW or EUR/MWh/y Residual asset value after 25 years of operation: option to acquire back or benefit from potential repowering Active at all stages of renewable energy projects: development, construction, operation 10 INTRODUCTION TO GREEN GIRAFFE
Equity practice Recent transactions Esperance Closed 15 December 2016 Project highlights Sponsor 81 MW operational onshore wind farm, the largest in Belgium 11 Enercon E-126 turbines, the largest installed onshore (10 x7.5 MW and one 6 MW) Developed by Windvision and partly owned by Enercon Windvision & Enercon Investment Confidential Financial close 100% sale to Chinese engineering company CGN Europe Energy 5 months from market approach to signing of share purchase agreement, Extensive market sounding, with 50 parties educated to Belgian context Role Green Giraffe Financial advisor to Windvision for the sale of 100% of the project Thanks to Green Giraffe we were able to sell the Estinnes wind farm at a very satisfactory price. Their knowledge of the equity market and relationships with a wide variety of investors proved to be essential in organizing this process and getting good offers. We would happily appoint them again as our financial advisor in a sale process. Leon Vankan CFO Windvision 11 INTRODUCTION TO GREEN GIRAFFE
Equity practice Some of our transactions Multiple transactions across sectors and countries 12 INTRODUCTION TO GREEN GIRAFFE
Debt practice Our expertise Visible value added We are a leader in the market Close to EUR 12 billion raised Involvement in 1+ GW of solar PV and 17+ GW of wind Leader and market maker in European offshore wind Proven track record at structuring complex transactions Focus on large and or complex projects where we can provide substantial value added Transactions with multiple parties (banking club deals with syndication), multi-contracting and multi-currencies Strong relationship with export credit agencies (ECA) and multilateral agencies Deep knowledge of renewable energy support schemes Early involvement in projects to Review and negotiate the contracts Structure and negotiate the financing We help projects get much better terms We are able to identify your project s strengths and weaknesses and to tailor the structure accordingly More leverage: higher debt commitments and more aggressive terms thanks to convincing debt packages Less equity upfront: equity replaced by pre-completion revenues (if applicable) or subordinated debt Lower contingency (if applicable): Lower contingency budget via more disciplined due diligence process Sponsor-friendly governance and covenant package We get deals done! Creative solutions to complex business environments Projects structured by us always close after a fast process while others take more time or do not close In offshore wind we close deals in less than 6 months Run the due diligence process 13 INTRODUCTION TO GREEN GIRAFFE
Debt practice Recent transactions Rentel Closed 3 October 2016 Project highlights Sponsors Investment 309 MW offshore wind farm, using Siemens SWT 7.0 154 turbines (with power boost) 42 km from the Harbour of Ostend in the eastern part of the Belgian North Sea Will produce over 1.1 TWh of electricity per annum Group of 8 Belgian sponsors equally owning Rentel and Otary (development company): Aspiravi, DEME, Elicio, Power at Sea, Rent A Port, Socofe, SRIW, Z-Kracht EUR 1.1 billion Financial close EUR 850 M senior debt facilities 17-year tenor post construction and 75% debt to equity ratio Split signing and hedging Role Green Giraffe Financial advisor to the project company to raise non-recourse construction debt funding Thank you for your consistent professionalism and friendly approach during the Rentel transaction. It has also been our pleasure to work with you and with Green Giraffe again Christian Lambert, EKF 14 INTRODUCTION TO GREEN GIRAFFE
Debt practice Some of our transactions Multiple transactions across sectors and countries 15 INTRODUCTION TO GREEN GIRAFFE
Contracting practice Our expertise Visible value added Making project contracts financeable Our role will often start 2-3 years before funding close We ensure the project can bring to the equity and/or debt markets contractual packages that will not be reopened We help optimise the economics for the project We get deals done! Contractors selected and contracts agreed No second guessing of the project team by investors or lenders during finance process Contracting work stream does not delay other processes Proven track record at negotiating contracts Support to tender process (review of tender documents, assessment of offers, negotiations with bidders) Involvement in detailed contract negotiations Assistance in the parallel technical, legal, tax & insurance due diligence review processes Support in the process all the way to financial close Management of parallel work streams: project contracts, due diligence, financing process Specialists available to be integrated in project team and negotiate contracts full time We help projects get much better terms By taking into account the financing structure from the start, we help optimise the contracts for the project Better allocation of risk between parties helps raise finance on better terms (more leverage, lower contingency budgets, limited equity commitments) Depending on your needs we can support your team or take an active leadership role in all tasks to make them happen We can also work with contractors to help them optimise their offers or ensure projects do not hide behind bankability to impose commercially onerous terms 16 INTRODUCTION TO GREEN GIRAFFE
Contracting practice Some of our transactions Multiple transactions across sectors and countries 17 INTRODUCTION TO GREEN GIRAFFE
Development practice Our expertise Visible value added Project development We assist our clients to bring their projects to consent, contractual and financial close We provide technical, legal and financial expertise We work as a consultant or as a development partner Proven track record at developing projects Support to the development process (permitting, consents, technical design) We have our own permitting experts and a pool of technical experts and sub-contractors for all requisite studies and independent reports Support in the process all the way to financial close We get deals done! Projects developed and brought to financial close Hands-on development experience which results in a quick and efficient development process Due to our combined technical, legal and financial knowledge, we can secure a matching set of contracts and permits that allows for an easy financing process We help projects get much better terms By taking into account the financing structure from the start, we help optimise the permits and project contracts Thanks to the efficient and short development process and the improved financial terms, the project owners experience higher returns on investment Our contracting experts review and negotiate all contracts, from EPC and O&M contract to the power purchase agreement, land lease, etc. We will ensure that the project can raise equity and/or debt and will support the process to financial close 18 INTRODUCTION TO GREEN GIRAFFE
Development practice Recent transactions SunPort Delfzijl Closed 14 January 2016 Project highlights Sponsor 30 MWp solar park on the Delfzijl harbour area, to produce 30 GWh/y of electricity East-west orientation resulting in a higher yield and improved generation daily profile Power will be sold to the industries in the Eemsdelta harbour area SunPort Energy Investment EUR 35 M Financial close Sale of the project to WIRCON, a German developer Role Green Giraffe Financial advisor to the developer to assist in the development of the project and its sale 19 INTRODUCTION TO GREEN GIRAFFE
Tender practice Our expertise Visible value added Proven track record Involved in numerous renewable energy tenders throughout the world (on the bidder or the tenderer side) First French offshore wind tender (1,400 MW) with EDF EN and DONG (won) Dutch offshore wind tender Borssele 3&4 (680 MW) with Shell, Eneco, DGE & Van Oord (won) Assistance to several bids to obtain DoE grants in offshore wind in the US (LEEDCO won) 28 MWp of PV tender in France Technology diversity Complex projects, and new regulatory environments Familiarity with multiple technologies Solar: thin film, BiPV portfolios, ground-mounted projects, CSP & CPV Offshore wind Tenders require tailor made solutions Active sourcing of contractors Optimized financing options Sale optimization Project finance constraints Option to simulate mezzanine or bonds financing Delivery of adaptable yet versatile financial model Knowledge of market s standards We get projects awarded By aligning interests of both contractors and sponsors we are able to get bankable competitive offers By finding adapted and innovative financing solutions that reduce the cost of capital We work closely with the project team to take identified reasonable risks while maintaining competitiveness Onshore wind 20 INTRODUCTION TO GREEN GIRAFFE
Tender practice Recent transactions Borssele 3&4 Tender won 12 December 2016 Project highlights Sponsors 680 MW offshore wind farm Project developed by public authorities and tendered with concession and tariff under the SDE regime (15-year contract for difference) awarded jointly Consortium of Shell, Van Oord, Eneco, Mitsubishi/DGE Investment Not disclosed Financial close The consortium was awarded the concession with a tariff of 54.5 EUR/MWh Work towards financial close ongoing Role Green Giraffe Financial advisor to the consortium Use of Green Giraffe s CROSS model to size the contingency budget for the lenders 21 INTRODUCTION TO GREEN GIRAFFE
Expanding into Latin America and Africa The same high quality services in new geographies Why we go into Latin America Growing energy demand: we support our clients from the manufacturing, developer and investor space Large and complex renewable energy projects, room for export credit agencies, multilaterals: we have the skill set Experience in Latin America within Green Giraffe Strong business case for renewables in Africa driven by World s fastest growing population with soaring energy needs to sustain the economic development Significant social and economic benefits compared to the current heavy reliance on fossil fuels Good renewable energy resources How we serve the market Dedicated team, currently based in Europe Opening of local office under consideration Focus on selected countries/clients Focus on Sub-Saharan Africa, primary target South Africa Current projects managed from Europe Office to open in 2017 Full region coverage between Europe and South Africa Examples from our track record to date Analysis of ten Latin American power markets for existing client looking to invest in the region Red flag analysis of two wind farms under development in Mexico for European investor PPA tender support for existing client Examples from our track record to date Lake Turkana onshore wind farm: advisory services on the debt negotiations with the multilaterals PV project in Kenya : development advisory Noor 3 CSP tender: PPA tender support for EDFEN Noor PV I tender : financial advisor of MASEN 22 INTRODUCTION TO GREEN GIRAFFE
Debt advisory Equity advisory Modelling Strategic advisory HAMBURG LONDON PARIS UTRECHT green-giraffe.eu Offshore wind Onshore wind Solar Other renewables