ProCredit bank The Financing of Mini Biogas Power Plants 1
German capital 100% 100% German capital, The only German bank in Serbia German business standards shareholder of the bank is ProCredit Holding, Germany Among the shareholders of ProCredit Holding are renowned international institutions such as KfW and IFC Among the founders of the Procredit bank Serbia were EBRD, KfW, FMO Aside from National bank of Serbia, business operations of our bank are regularly monitored by BaFin German Federal Financial Supervisory institution ProCredit bank rating is B+ 2
ProCredit bank Serbia 2001 The second decade of successful business. ProCredit bank is committed to the long-term partnership with SME companies and agro The beginning in Serbia producers What we don t finance? Public and state companies, corporations, political parties and sports clubs We don t invest in the stock exchange and speculative activities We don t support projects and companies that harm the environment We don t promote consumer loans We don t sell loans, we build long-term relationship with our clients 3
Understanding agriculture Leader in lending to the agricultural sector 44% share in financing agricultural producers The first bank in Serbia to develop technology to support a financial analysis of farmers The share of agriculture in the total loan portfolio is 27.3% The share of EE agricultural loans is 46% in total EE loan portfolio ProCredit Bank has launched Agro Glasnik, a magazine for farmers, which is published quarterly and has a circulation of 20,000 Only 1.1% of ProCredit Bank loans to agricultural businesses are in arrears, compared with a market average of 20.58% The bank for you September 2015 4
Environmental management Three-pillar approach to the Environmental Management Internal Environmental Management System Careful approach regarding better understanding and improvement of sustainable energy use and environmental impact of the bank. Environmental and social risks management in lending In-depth analysis of all economic activities that carry a potential risk to the environment and rejection of loans that are involved in environmentally risky activities and loans that are on the list of excluded activities of our institution. Green lending Promotion and further diversification of environmentally sustainable investments among our clients. 5
Investing in RE 6 millions for financing renewables Project financing Engagement of Energy Auditors and internal technical expert Loans up to 2,500,000 EUR Clients participation of minimum 20% Maturity up to 144 months Moratorium period 12 months + grace period 12 months 6
PCB loans mini biogas power plants Up to8 Years the ROI WHAT Mini biogas power plant product Loans for mini biogas plants up to 100kW WHY PCB is known as the leader in financing of green investments Knowledge and experience regarding Project Financing for renewables Benefits of investing in renewable resources projects Feed-in tariffs of 15.66 /kwh Suitable investment for small- and medium-size farmers FOR WHOM Focus on the agro segment agro clients with 60 or more cows (small and medium farmers); Business clients interested in this kind of investment 7
Mini biogas power plants Advantages to build biogas plants: Agro/business client increases its profitability in terms of generating electric energy for selling to power companies at feed-in tariffs Additionally, waste products are raw materials for agricultural production i.e. liquid fertilizer Total costs are reduced by utilization of food remains and agricultural waste material Example of financing: Investment plan for 9 years 525,000.00 Average farmer 103 cows Loan by PCB (80% of the investment) 420,000 Client s share (20% of the investment) 105,000 Monthly instalment 4,786 Monthly net profit 7,014 Yearly difference in net profit/loan installment 26,736 The remaining profit after 9 years 240,624 Total profit after the expiration of feed-in tariff 493,128 Return on investment 7.5 yrs Ownership under biogas plant Average biogas plant operation 8,000 h/year The loan is repaid at the end of 9th year, while profit is made after the expiration of the feed-in tariff after 12th year Option for covering extraordinary costs 8
Partnership builds success! Questions? 9