ABREC PRESENTATION AFRICA CARBON FORUM 2015 MARRAKESH, MOROCCO, 13 15 APRIL
A brief description ABREC is an international organisation backed by African states and financial institutions who s mission is the fostering of a Green Economy in Africa through the conception, funding and sponsoring of high impact public sector and private sector renewable energy initiatives in Africa. It has emerged in the five years since its funding as a force for sustainable development in Africa by implementing landmark projects such as the launch of the $150m African Renewable Energy fund, the management of the $100m PRODERE programme of the WAEMU commission and the seeding of the SME focused African Green Development fund. ABREC seeks to continue to build on its track record by funding sponsoring and managing further high impact strategic initiatives that promote the green economy across the African continent. 2
ABREC factsheet Legal status Full name Headquarters Offices Web address Staff Share capital Shareholders International for profit organisation African Biofuel and Renewable Energy Company SA 128, Boulevard du 13 Janvier, P.B. 2704 Lomé, TOGO Lome, London, www.saber-abrec.org 15 based in Lome & London $3.7m Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea Bissau, Ivory Coast, Mali, Niger, Nigeria, Sierra Leone, Senegal, Chad, Togo, ECOWAS Bank for Investment and Development (EBID), International Energy Insurance of Nigeria (IEI), ECOBANK Development Corporation (Ecobank), African Guarantee and Economic Cooperation Fund (FAGACE), NEXIM Bank (Nigeria EXIMBANK) 3
What ABREC Stands for Building Africa s hub for renewable energy Reinforce energy and economic self sufficiency in Africa Take advantage of advances in the clean energy market Tackle the challenge of global warming Promotion and funding of renewable energy projects in the private and public sectors Advising governments and the private sector to enable them obtain maximum benefit from clean energy markets Transfer of new green technologies for the development of renewable energy industries Funding of SME/SMIs in the area of renewable energies Contribute to the development of the biofuels and renewable energy industry in sub-saharan Africa, with a particular focus on West Africa Provide investors with superior returns through investments in renewable energy projects which generate certified emission reductions 4
ABREC is delivering on its mission Hub: we capture an increasing share of RE projects in west Africa Impact: the projects we have executed have a tangible positive impact in terms of carbon sequestration, livelihoods of people, renewable energy use Awareness: We have contributed to the divulgation of RE amongst governments, African institutions, receptors of technological transfer and African consumers Case 1: PRODERE Strategy In close collaboration with the WAEMU commission ABREC proposed and structure a strategy for deployment of funds under the PRODERE programme Case 2: Djemegni Ecovillage ABREC project managed the implementation of extensive RE infrastructure in a village of Togo with limited grid access where Solar lamps and kits power Public and private structure Case 3: AREF Structuring ABREC conceived, structure, promoted and funded the African Renewable Energy fund a $300m renewable energy in partnership with the ADB. ABREC and the ADB awarded the management of the fund to Berkley Energy. 5
Selected key milestones ABREC Togo Sierra Leone PRODERE 1 Benin $55m 13k Street Lamps Origination, Structuring, Fund Raising, Project management $20m 13K Solar Street Lamps Origination, Structuring Fund Raising, Project management $50m Origination, Project Management $100m $15k Solar Street Lamps, 5MW micro Solar power plant Origination, Structuring Fund Raising, Project management AREF ETHIOPIA UGANDA UGANDA KENYA Geothermal Power Plant Origination, Structuring, Investment, Build Hydro Power Plant Origination, Structuring, Investment, Build Hydro Power Plant Origination, Structuring, Investment, Build Geothermal Power Plant Origination, Structuring, Investment, Build Net Income Team $ 2.1m (2013) $ 2.5m (2014) CEO 2 Legal 5 Financial 10 Engineers Abrec has demonstrated robust financial performance Supported by a strong execution team 6
Significant project pipeline 15k Solar Street Lamps Origination, Structuring, Fund Raising, Project management 5MW Solar power stations in 8 countries of WAEMU IPP support fund of WAEMU Commission with a target of 200MW incremental power generated by IPP in the 8 countries of the union The OMVS is working in partnership with ABREC to bring to market 200MW power generation projects in Senegal ABREC has identified a significant pipeline representing 400MW of solar, wind and biomass projects across Africa $50m Senegal $50m PRODERE II $100m FRAED $500m OMVS Project Pipeline $1bn Proprietary Project Pipeline H1 2015 H2 2015 7
We have a unique positioning in Africa West Central East Strong team & governance Experienced Team International standards processes Pan African presence Institutional partnerships Shaping policy Project Execution Private Equity Broad scope of activities AfDB, AFREXIM, AREF, BOAD, EBID, ECOBANK OMVS, UEMOA, 8
Structure Diagram African States African Financial Institutions UEMOA Donors Investor 100% ABREC Public Sector ABREC Capital BERKELEY ENERGY 25% 75% Policy Formation Project Execution Advisory Investment Committee Investment Banking Private Equity AREF GP FRAED AGDF
We have a broad span of business activities Public Sector PRODERE Originating, Advising and managing initiatives for sovereign states and supranational institutions -Policy shaping -Advisory Services -Project Execution -Guarantees management Private Equity AREF, AGDF Conceiving, sponsoring, funding and managing dedicated funds for institutional investors seeking commercial returns -PE Fund Management -PE Joint Ventures Advisory Abrec Capital Originating, structuring and raising finance for corporates, institutions and sovereign client -Advisory -Capital Raising Power Generation Project development - Project Identification - Project conception - Building of power assets - IPP negotiation - Management and exit H2 2015 10
Private Equity - AREF ABREC conceived and structure the African Renewable Energy Fund. ABREC engaged the ADB to get support in funding further market research and the selection of specialist fund manager to manage the fund. The ADB supported by ABREC ran a tender process for the management of the fund. At the end of the selection process Berkley energy was retained. The Process The Fund The Fund Manager The Projects ABREC engaged ADB to commit financial resource ABREC set out project scope ADB & ABREC managed tender processed ADB & ABREC went through 2 round selection process ADB & ABREC undertook final interviews, selection and negotiation ADB & ABREC established GP $150m 10-Year Fund Cornerstone investors AfDB & SEFA Development stage projects in Sub-Saharan Africa (ex S Africa) 18-20% equity IRR / 2 x money project return Fund Manager with Developer Skills Engineers, operators, project managers, legal + financial analysis Deep market presence & JV with ABREC Low cost, no fees Partner local developers for sensibly-sized projects Assuring the project timetable, minimising development cost, making the project happen! 5 50 MW Projects, all Renewable Technologies Across sub-saharan country (ex South Africa), Strong resource Compelling system need Supportive enabling environment Willing partner Financial viability 11
Private Equity - AGDF ABREC Capital has seeded the African Green Development Fund, a 50-100mm private equity investment vehicle focused on impact investing in small and medium sized enterprises across Africa. Vehicle Legal Structure Terms Mauritius Target Vehicle Size 50-100m Investment Horizon Investment Advisor Fund Location Instruments Capital Structure NAV Calculation Management Fee Performance Fess 5 years for debt component and 3 years for equity component Abrec Capital Ltd Mauritius Hybrid equity A, B and D shares, Management, Investor and Donor Shares Annually by BDO London and Half yearly updates 2% of the aggregate equity commitment 20% of all distributions after payback Soft & Hard Close 31 Dec 2015, 31 Dec 2016 12
Experience Management skills Staff capability Institutional Ties Diversity Advisory - Abrec Capital Abrec Capital is firm that provides a wide range of services relating to a diversified client base that includes governments, corporations and institutions. Headquartered in London the firm was founded in 2014 as a subsidiary of ABREC an International organisations that promotes sustainable development in Africa. Our business is formed of two distinct business lines. Investments We invest the capital of ABREC and its partners in early stage and development stage projects in the African green economy. We are building an ecosystem of specialised companies which will be the leaders of sustainable development on the continent. Advisory We provide strategic advisory services to African based, Institutions, corporations and entrepreneurs with respect to their strategic growth and funding initiatives. We have in aggregate over 150 years of Investment and investment banking experience Our management has deep management experience of companies, people and processes to deliver on the Company s vision We recruit high calibre professionals with a track record of delivery and excellence We have privileged access to large institutions that allow us to operate at the highest level of advisory We pride ourselves in our diversity in terms of backgrounds, experiences, gender and race
A new sovereign initiative - FRAED ABREC has driven the creation of the FRAED whose of objective is the promotion of private sector investment across the 8 states1 of the West African Monetary Union through supporting independent power producers FRAED will cost $100m of which $20m have been committed by the WAEMU commission FRAED commitment will be leveraged 5x to reach a $500m in funding capacity 200MW Incremental power generation/ 25 MW per country Technical Assistance in shaping regulatory framework Financing of feasibility studies Project Development 15% IRR Offer IPP secured rates of returns Subsidise returns to yield IRR s above 15% Stand as guarantor of PPAs 1. Benin, Birkina Faso, Guinea Bissau, Ivory Coast, Mali, Senegal, Togo 14
A new private initiative - ABREC Power Generation Our vision is to establish Africa s leading renewable energy power developer and producer that develops projects and runs power assets The opportunity is underpinned by the FRAED, OMVS and ABREC s own extensive pipeline African Blue Chip ABREC Control Leadership Ownership ABREC, Developers, Power Generation Companies, International Investors. (Perennial Equity vs Private Equity) Capitalisation Progressive ($20m, $200m, $1bn) Control ABREC representing African Stakeholders Resources Establishing a leading project development and IPP team 15
ABREC Power Generation Ecosystem Ring-fenced Funding Ring-fenced Projects CORE SHAREHOLDERS Abrec & Partners Anchor Equity CO -INVESTORS Shareholders Bondholders Project Equity SHAREHOLDERS International Developers PE Investors, Infrastructure Investors ABREC POWER GENERATION COMPANY Project Equity Project Development Incremental Equity Power Production Project 1 Project 2 IPP 1 IPP 2 BONDHOLDERS African Pension Funds, African Financial Institutions, African States ARE Bond 1 LENDERS Banks, DFI s, Yield Investors Project Loan Bond guarantee WAEMU $20m GUARANTORS Guarantco, Gari, Fagace EU $80m PPA guarantee FRAED Donors $200m Loan guarantee WAEMU 200mw 20-25mw/project OMVS 200mw 10-50mw/project ABREC Pipeline 400mw 5-50mw/project 1. ARE Bond (AREB) African Renewable Energy Bond 16
ABREC Power Generation collaboration opportunity Technical Assistance Project Development Power generation Business Streams Programme support for WAEMU commission Regulatory Framework Stipulation support Origination, Structuring PPA Negotiations Developing power assets Running IPP Energy production and distribution Structuring Financial Operational Collaboration opportunities Providing Capital deploy strategy Structuring governance and Execution Providing financial capital Fund raising across all tiers of capital structure Sourcing core and financial investors Fund raising for single projects Technical management Company management Single project investment 17
Appendices 18
Selected public sector project execution Business activity Project Client Policy Formation USAID-GVEP-MIRO-OMVS EU Carbon Program Fund Raising $30m street light project $30m street light project $25m Capacity extension $45m PRODERE Phase I Advisory Solar street lights Micro & small solar plants CFL Solar kits Solar boilers Solar water heater Project Execution PRODERE Phase 1: CFL, Solar kits, Micro-solar PV plants, Solar street lights United Nations African Development Bank (AfDB) Sustainable Energy Fund for Africa (SEFA) Sierra Leone Togo CEB WAEMU Commission Mali Niger Guinea Sierra Leone Togo Burundi WAEMU Commission Togo 19
ABREC has a significant pipeline of projects ABREC has originated a significant number of projects across Africa that it can execute1 Limited resources imply that only a careful selection can be executed Larger financial and human resources will drive further execution SECTORS PROJECTS COUNTRIES COST ($M) Waste Management 4 2 300 Hydro; 3 Biofuel; 1 Waste Managemen t; 4 Energy Efficiency 2 9 16 Wind 1 1 110 Energy Efficiency; 2 Solar 15 9 3200 Wind; 1 Hydro 3 1 77 Biofuels 1 1 59 TOTAL 30 9 3800 Solar; 15 1. We can make a more detailed pipeline available upon signing a Confidentiality Agreement 20
Some ABREC project illustrations Solar power plant in Kpokissa (Benin) Primary school fully electrified by solar kit in Djemegni (Togo) Fully illuminated street by solar street lights in Dosso (Niger) 21
Headquarters project Thierno Bocar TALL, Chairman & CEO, tbtall@saber-abrec.org, Tel. +228 22 21 68 64