Clean Energy Project Financing. March 5, 2012

Transcription

1 Clean Energy Project Financing March 5, 2012

2 Disclaimer This presentation is solely for discussion purposes. In preparing this presentation, we, KASIKORNBANK PLC. ( KBank ) have made crucial assumptions and relied heavily on the financial and other information made available by general public sources. KBank assumes no responsibility and no representations with respect to the accuracy and/or completeness of the information presented herein. No responsibility is accepted by KBank and/or any employee of KBank for any losses which might result from use (directly or indirectly) of this presentation by any third parties. This document and its contents are confidential and the proprietary information and product of KBank and may not be reproduced or otherwise disseminated in whole or in part without our prior written consent.

3 KASIKORNBANKGROUP at a Glance Established on June 8, 1945 with registered capital of Bt5mn (USD0.16mn) Listed on the Stock Exchange of Thailand (SET) since 1976 Consolidated (as of December 2011) Assets Bt 1, 723 bn ( USD 54.3bn) Ranked # 4 in Thai banking industry Loans Bt 1,211 bn ( USD 38.2bn) Ranked # 4 with % market share * Deposits Bt 1,242 bn ( USD 39.2bn) Ranked # 3 with % market share * CAR ** % ROE % ROA *** 1. 5 % Number of Branches 816 Number of ATMs 7, 366 Number of Employees 16, 580 Share Information SET Symbol Share Capital: Authorized KBANK, KBANK-F Bt bn ( USD 1. 0 bn ) Issued and Paid-up Bt bn ( USD 0. 8 bn ) Number of Shares 2. 4 bn shares Market Capitalization Bt 292 bn ( USD 9. 2 bn ) Ranked # 3 in Thai banking sector 4 Q 11 Avg. Share Price : KBANK Bt (USD3.73) KBANK-F Bt (USD3.77) EPS Bt10.12 (USD0.32) BVPS Bt64.68 (USD2.04)

4 KBank s Vision for Green Strategy

5 KBank s Green Vision Statement As an old saying goes, nothing is as powerful as an idea of whose time has come. And why the idea of whose time has come is for human kind to be able to produce energy, the way that is low carbon energy, less damaging to the environment and yet be able to help propel the economic development in a sustainable manner.. Banthoon Lamsam President & CEO

6 KBank Green Strategy The 3 Pillars Environmental-Social Environmental Regulation Environmental Environmental - Business Renewable Energy Financing (Solar Energy, Wind Power, Biomass) Energy Efficiency Financing (Chiller replacement, Boiler, Lighting control) Sustainability Social Business Business Social Business Ethics Fair s Trade Worker s rights

7 Structuring a Bankable Clean Energy Project

8 How Stakeholders Enhance the Project Structure Financial soundness Relationship with communities Experience in renewable projects Sponsors Sponsors Undertaking Experience / Technology / Financial strength Contract terms/ Liquidated damages Insurance and Warranty (performance guarantee) Independent engineer required EPC / Operator Project EPC/ O&M Contract Contract terms Pricing mechanism Reliable customers Main Product Offtakers Offtake Agreement Financiers Industry knowledge Dedicated team Total comprehensive financial solution Credit Facility Agreement Raw Material Supplier Supply Purchase Agreement Secure and reliable feedstock Alternative source / Reserve supply Operating track record CERs Offtakers CERs pricing stability Terms of contracts Credit worthiness of offtakers

9 Understanding Key Risks & Mitigations on Thailand Renewable Industry Risk Magnitude Mitigation Party Involvement Construction Risk High Moderate Low Fixed price, turn key construction contract Guarantee completion date Experienced EPC contractor Equity commitment Contractor Sponsors Independent engineer supervision Operational Risk High Moderate Low Proven technology Performance evaluation / testing Performance guarantee / insurance Maintenance program Experienced operator of the plant Reputable equipment supplier Independent engineer supervision Plant operator PPA Contractual Risk (non-firm PPA) High Moderate Low Automatic extension of PPA every 5 years Long-term government s strategic support PEA Government

10 Understanding Key Risks & Mitigations on Thailand Renewable Industry Risk Magnitude Mitigation Party Involvement Biomass Supply Risk High Moderate Low Guarantee (quantity / price) from reputable and sizable source of feedstock supply Acceptable heat value to the plant Economically proven of logistic for biomass supply Owner of biomass supply Sponsors Independent engineer supervision Alternative sources of supply Solar Supply Risk High Moderate Low Historical data review Site Selection On site survey and verification Technology suitability test Sponsors to select appropriate location Independent engineer supervision Wind Supply Risk High Moderate Low Ensure data quality and properly assessment At least 2-year wind data to confirm seasonality effect Energy Yield calculation at different confident level Wind farm consultant Sponsors Independent engineer supervision

11 Understanding Key Risks & Mitigations on Thailand Renewable Industry Risk Magnitude Mitigation Party Involvement Environmental Risk (Biomass) High Moderate Low Installment of DeNOx and other equipments to filter the pollution Potential environment pollutions assessments Community management program Sponsors EPC contractor / designer Local community Environmental Risk (Solar & Wind) High Moderate Low No potential environment pollutions to the neighborhoods Noise warranty (for wind farm) Local people employment Community management program Sponsors Wind turbine supplier Local community

12 Indicative Project Financing Terms of Typical Clean Energy Project Facility Types Purpose Interest Rate Tenor Key Security Key Financial covenant and other key covenants Tranche A: Long Term Facility Tranche B: Working Capital and/or Trade Finance Facility Tranche C: Hedging Facility Financial Facility to support development and construction of a clean energy project MLR / THBFIX / Fixed Rate (Limited) Not exceeding the tenor of government support (Adder) i) Conditional assignments of all related contracts and Project s proceeds ii) Mortgage of Project s security iii) Pledge of Reserves and waterfall accounts iv) Sponsor Supports i) Debt service ratios -- ie. Debt Service Coverage Ratio (DSCR) ii) Leverage ratios ie. Debt to Equity (D/E Ratio) iii) Minimum cash position iv) Sponsor s undertaking in project ownership

13 KBank s Credentials

14 Highlights of KBank s Recent Achievements in Debt Capital Market (DCM) 2011 Best Domestic Bank in Thailand Best Domestic Bond House in Thailand 2010 Best Bond House (2008, 2009, 2010) Best Investment Bank Best Project Financing Deal of the Year in Southeast Asia (NED) Best Project Finance Deal of the Year for 2 consecutive years (2009, 2010) 2010 Best Project Finance Deal of the Year (NED) 2010 Best Debt House Best Debt House for 3 consecutive years (2008, 2009, 2010) 2010 First rank in Thailand loans mandated arrangers league table First rank in Thailand loans book runners league table 2011 Corporate Bond (Asia) Deal of the Year (PTT century bond) 2010 Best Bond House for 4 consecutive years (2007, 2008, 2009, 2010) Deal of the Year THB 100,000 million PTT PCL. Straight Bond under Loyalty Program (won for 4 consecutive years 2007, 2008, 2009, 2010) Most Creative Issue THB 4,000 million PTT PCL. Century Straight Bond

15 KBank s Performance in DCM Recognized Domestically and Internationally 2010 Best Bond House Best Investment Bank Best Project Financing Deal of the Year in Southeast Asia (NED) 2009 Best Bond House Best Cash & Liquidity Management Bank Best Private Wealth Management House 2008 Best Bond House Best REIT Deal of the Year in Southeast Asia Centara Hotels & Resorts Leasehold Property Fund CTARAF Best Local Currency Bond Deal of the Year in Southeast Asia PTT PCL st Ranked in Thailand Loans Mandated Arranger League Tables st Ranked in Thailand Domestic Bonds Underwriter League Tables 1st Ranked in Thailand Loans Mandated Arranger League Tables 2009 Best Bond House Best Cash Management Bank Best Trade Finance Bank 2008 Country Awards for Achievement Best Investment Bank 2007 Thailand s Best Deal PTT Exploration & Production PCL 2009 Best Debt House Best Domestic Providers for Local Currency Products and Interest Rate Products 2006 & 2007 Best Domestic Debt House 2009 Project Finance Deal of the Year (Theun-Hinboun Expansion) 2010 Best Debt House 2009 Best Debt House 2009 Best Bond House Deal of the Year Dealer of the Year Best Market Contributor 2008 Best Debt House Best Domestic Investment Bank 2007 # 1 Sellside for Thai Baht Government Bonds Best Bond House Deal of the Year Dealer of the Year Top Underwriter 2011 Best Domestic Bank in Thailand Best Domestic Debt House in Thailand 2008 Top Bookrunners of Thailand s 2009 Top Bookrunners of Thailand s

16 Extensive Experience in Fund Raising for Power Industry (1/2) KBank has been consistently introducing initiative financing structures to the power industry including derivative products, THBFIX structure, new development of Engineering Procurement Construction Management etc. to help enhance value for our clients. Especially, KBank has been very active in financing of SPP projects. Solar Power (Loei1) Company Limited THB 385 m. and USD 2 m. Mandated Lead Arranger Facility and Security Agents July 2011 Solar Power (Korat2) Company Limited THB 385 m. and USD 2 m. Mandated Lead Arranger Facility and Security Agents July 2011 Solarta Company Limited THB 3,300 m. Mandated Lead Arranger Facility and Security Agents June 2011 Amata B.Grimm Power Rayong 1 Amata B.Grimm Power Rayong 2 USD 84,100,000 THB 5,290,000,000 Mandated Lead Arranger& Financial Advisor April 2011 Bangpa-in Cogeneration Limited New SPP Project Baht 4,110 m. Joint Lead Arranger Security Agent March 2011 Gulf JP Company Limited Seven SPP Projects Baht 22,588 m. USD m. Joint Lead Arranger Facility Agent October 2010 Rojana Power Company Limited Refinancing, Expansion and New SPP Projects Baht 9,944 m. Joint Lead Arranger Security Agent September 2010 Hongsa Power Company Limited THB 63,000 m. USD 930 m. Joint Lead Arranger August 2010 Amata B.Grimm Power 3 Ltd. USD 41,800,000 THB 2,704,000,000 Mandated Lead Arranger & Financial Advisor July 2010 Natural Energy Development Co., Ltd. THB 5,379,400,000 Lead Arranger Financial Advisor June 2010 Thai National Power Co. Ltd. USD 12,432,555 THB 5,841,847,500 Joint Lead Arranger February 2010 Theun-Hinboun Power Co., Ltd. THB 13,940,000,000 Mandated Lead Arranger October 2008

17 Extensive Experience in Fund Raising for Power Industry (2/2) With extensive experience and achievement, KBank has been appointed to provide various services in power projects including financial advisory service, lead arranger, underwriter, facility agent and security agent. Siam Power Generation PCL THB 5,800,000,000 Sole Lead Arranger July 2008 Gheco-One Company Limited Baht 9,960 m. / USD 460 m. Financial Advisor, Sole Lead Arranger July 2008 Glow Energy Public Company Limited Guaranteed Debentures Baht 2,000 m. (May 2007) Baht 4,000 m. (June 2008) Sole Lead Underwriter Amata-EGCO Power and Amata B.Grimm Power (Bangpakong) Baht 3,856 m. USD 45 m. Lead Arranger, Lender December 2006 Sahacogen (Chonburi) Company Limited Biomass Project Baht 800 m. Financial Advisor March 2006 Rojana Power Company Limited Expansion Project Baht 2,100 m. Joint Lead Arranger Security Agent October 2006 Amata B. Grimm Power (Bangpakong) Limited Expansion Project Baht 1,500 m. Lender September 2005 Ratchaburi Electricity Generation Company Limited Baht 24,262 m. Joint Lead Arranger, Lender July 2005 Ratchaburi Electricity Generation Company Limited Secured Debentures Baht 10,000 m. Joint Lead Arranger July 2005 Nam Theun 2 Power Comany Limited Baht 20,000 m. USD 500 m. Financial Advisor, Lead Arranger, Facility Agent March 2005 Nong Khae and Samutprakarn Cogeneration Baht 5,396 m. Lender 2003 Sahacogen (Chonburi) Company Limited Expansion Project & USD-Bt refinancing Baht 3,800 m. Financial Arranger, Security Agent 2001

18 KBank s Selected Fund Raising in Solar Industry Solar Power (Loei1) Co. Ltd. and Solar Power (Korat2) Co. Ltd. develop total the 12 MW photovoltaic solar power projects in Thailand with amount of THB 770 Million Baht and USD 4 Million financing cost. Solar Power (Loei1) Company Limited THB 385 m. and USD 2 m. Mandated Lead Arranger Facility and Security Agents July 2011 Solar Power (Korat2) Company Limited THB 385 m. and USD 2 m. Mandated Lead Arranger Facility and Security Agents July 2011 The PV and Inverter using in these projects are supplied by Kyocera Corporation and SMA Solar Technology AG which are reputable and leading manufacturer in solar industry These projects are the first solar project in Thailand that were fund by International Finance Corporation (IFC) which is one of the world bank group and Clean Technology Fund (CTF), the global fund to promote financing a low-carbon technology with significant potential for long-term green house gas emission savings. Natural Energy Development Co., Ltd. THB 5,379,400,000 Financial Advisor, Lead Arranger June 2010 Natural Energy Development Co., Ltd. (NED) develops the 73 MW photovoltaic solar power project which is the largest solar farm in Thailand and one of the largest solar power projects in the world with amount of THB 7,731,808 Million investment cost. This project later earns KBank The Best Project Financing Deal of the Year in Southeast Asia from Alpha Southeast Asia; and The Best Project Finance Deal of the Year 2010 from Project Finance Magazine

19 KBank s Selected Financial Advisory Services Natural Energy Development Co., Ltd. THB 5,379,400,000 Financial Advisor, Lead Arranger June 2010 Natural Energy Development Co., Ltd. (NED) develops the 73 MW photovoltaic solar power project which is the largest solar farm in Thailand and one of the largest solar power projects in the world with amount of THB 7,731,808 Million investment cost. As the financial advisor, KBank has contributed value to the successful fund raising in respect of innovative financial structure and deliberate financial analysis. KBank also introduced the structure leading the Project to achievement of low interest, long repayment tenor and risk mitigation in foreign exchange and interest rate risk. This project later earns KBank The Best Project Financing Deal of the Year in Southeast Asia from Alpha Southeast Asia; and The Best Project Finance Deal of the Year 2010 from Project Finance Magazine Amata B.Grimm Power 3 Ltd. USD 41,800,000 THB 2,704,000,000 Mandated Lead Arranger & Financial Advisor July 2010 In 2007, Amata Power Limited appointed KBank to act as the financial advisor to the power plant projects under the Small Power Producer (SPP) program in Thailand. KBank provided advisory services that led the company to achieve lowest possible interest cost and maximum possible equity return. In 2010, as sole mandated lead arranger, Kbank successfully arranged the Baht 2,704 million and USD 41.8 million to Amata B.Grimm Power 3 Limited to finance the construction of 132.5MW gas-fired combined cycle cogeneration and steam production capacity power plant.

20 Feel free to contact: Kampol Taruneeteerakul Vice President Multi-Corporate Business Department KASIKORNBANK PCL. Tel:

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