Energies and Minerals

Transcription

1 Group Infrastructure Finance As individual as your business Austria Czech Republic Slovakia Hungary Romania Croatia Serbia Ukraine

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3 03 Group Infrastructure Finance Supporting economic growth Every day we use services provided to us by the public or the private sector. These services are fundamental for an economy and essential for its society. An operating infrastructure also facilitates the efficient production of goods and services necessary for every country. Years of underinvestment by governments and the private sector have led to shortages of infrastructure services across Europe in many areas such as power shortages, transport infrastructure bottlenecks or low standards in social infrastructure. Although governments largely recognise those challenges, they often lack the necessary funds to do what is needed. In addition, infrastructure projects require a thorough understanding of key risks. In emerging markets, like Central Eastern Europe (CEE), the public sector can t solely meet the huge infrastructure development needs. Public bodies increasingly turn to the private sector for financing, construction and operation of infrastructure projects. Besides positive medium and long-term effects in the economy, infrastructure projects offer immediate stimulus for a country s labour market and provide a basis for foreign investment. With a specialised team of professionals we provide financial solutions in the segment of Public Private Partnerships (PPP) or other infrastructure related projects throughout the CEE markets. Sincerely, Werner Weihs-Raabl Managing Director Head of Group Infrastructure Finance

4 04 Your gateway to Central and Eastern Europe A strong central European banking group Erste Bank was founded in 1819 as the first Austrian Savings Bank and has developed over the last ten years into one of the largest providers of financial services in Central and Eastern Europe the Erste Group. Today, we operate successfully in eight countries such as Austria, Croatia, the Czech Republic, Hungary, Romania, Serbia, Slovakia and the Ukraine. Over the years, Erste Group has established itself as a key player in corporate and retail banking, providing more than 17 million clients with a high standard of personal service and a comprehensive range of financial products at its 3,200 branches. The department Group Infrastructure Finance was founded in 2008 as a group-wide Competence Centre to bundle existing expertise with a strong regional banking network. In this area, we can offer our customers a wide range of products and services such as: Infrastructure and Public Private Partnership Financing as project based secured lending Financial and Public Private Partnership Advisory covering the management and coordination of the whole transaction process Structured Funding Management Together with extensive regional expertise we are able to offer an outstanding level of service. A tailor-made combination of particular products and services throughout the entire infrastructure project chain helps to better exploit business opportunities, and to control and mitigate risks much better. To enhance our expertise, the Competence Centre in Vienna was split into three business units: Transport Infrastructure Energy & Environment Social Infrastructure Our Core Competencies lnfrastructure Finance, Public Private Partnership Finance Financial Advisory, Public Private Partnership Advisory Financial Engineering Structured Funding Management Activities Senior Lending, Junior Lending, Mezzanine Financing, Mini-Perm Structures, Refinancing, Facility/Security Agent Roles, Syndicated Transactions Valuation, Financial Modelling, Structuring, Local Advisory, Equity & Debt Raising, Public Sector Advisory, Tender Financial Modelling, Valuation Funding of Loan Financing, Funding of Equity Sector expertise combined with regional know-how As the leading financial services provider in CEE, Erste Group is already one of the main banking partners of leading local infrastructure providers and the public sector. Our structured approach to finance infrastructure projects, as well as our expertise in products and services and a strong local presence puts us in a unique position for our clients. This combination has made us the partner of choice for many international companies in industries such as Transport, Energy & Environment and Social Infrastructure, as well as for the public sector.

5 05 Sector Expertise Transport Energy & Environment Social Infrastructure Roads, Airports, Railway Systems, Ports, Rolling Stocks, Electronic Tolling Power Plants, Renewable Energy (Wind, Hydro & Photovoltaic), Water/Waste Treatment, Gas/Electric Transmission, Pipelines, Energy Efficiency Projects Education (Schools, Universities), Hospitals, Healthcare Facilities, Prisons and Courts, Sport Stadia, Car Parks, Research Centres, Housing/Urban Regeneration, Street Lighting and Traffic Solutions Our commitment to economical stabilisation Core economic infrastructure in the areas of energy, transport, telecommunication, education and healthcare are essential for a country, otherwise it can t link into the global economy. But such a functioning backbone is not yet fully available in Central and Eastern Europe, which is why future infrastructure investments will have a direct impact on its economic situation and society. Consequently, the European Union and multilateral financial organisations, such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), are increasingly supporting strategic infrastructure projects. This enables governments to implement infrastructure projects on a larger scale and attract greater participation of commercial banks, which is particularly relevant in a difficult market environment. Erste Group is committed to helping communities and governments meet the challenges of today's environment and supports projects that lead to sustainable growth and modernisation in the region. Essential infrastructure for communities: Airports Utility Systems Railway Systems Energy Networks Harbours Social Infrastructure

6 06 Solutions for all sectors Erste Group develops and implements tailor-made public and private infrastructure solutions across all sectors. Although our products are based on the needs and requirements of our clients, there are also sector-specific issues where we can provide our expertise. Energy & Environment Unbundling and privatisation of energy networks Building modern efficient power generation capacities Reaching the target of a 20% Renewable Energy Quota by 2020 set by the EU Setting up adequate legislation to support Renewable Energy Social Infrastructure Building or upgrading medical facilities Modernising public administration buildings and educational institutions Incentivising private investments in applicable legal frameworks Transport Developing transportation capacity and upgrading existing transport infrastructure Increasing public safety and reducing environmental impact Gaining more value for money through private sector efficiency and reducing public budgets constraints Knowing our market Erste Group benefits from its many years of operating in international markets as well as from detailed knowledge of local markets. On the basis of our unique customer relationship approach, our customers can rely on our ability to perform similarly structured projects at the countries Erste Group is active in. By merging our international know-how with our local expertise, we ensure a high level of security, certainty, and a short time-to-market for our customers projects. Multi-level service for individual solutions We have a large team of professionals who are taking care of infrastructure and project finance, infrastructure investments, EU funding and financial advisory. They are familiar with the local legal, environmental, financial and economic environment the basis for offering tailor-made services and products across the region and developing flexible and individual solutions together with our clients. Industry Competence Centres to enhance focus We have established Competence Centres for various aspects of infrastructure finance in Vienna and Prague, who provide know-how and expertise for projects performed across Erste Group. Besides the three Competence Centres, Social Infrastructure, Energy & Environment and Transport, certain teams also specialise in various products we are able to offer, such as PPP and Infrastructure Advisory, Project Finance, Infrastructure Finance, Public Sector Finance and Structured Funding. The regional knowledge of our local teams together with the support of our industry specialists and the know how of our Group Competence Centres provide clients with a unique and tailored customer service experience.

7 07 Complete range Public Sector Finance Infrastructure and Public Sector Finance Efficient and affordable infrastructure is vital for sustainable development in an economy. Years of underinvestment by governments and the private sector are resulting in shortages of infrastructure services in many areas. Governments now largely recognise the challenges, but often lack the funds to do what is needed. By trying to decrease the infrastructure deficit, they are increasingly turning to the private sector for financing, design, construction and operation of infrastructure projects. Erste Group is committed to helping communities achieve sustainable growth and modernisation. We provide advice to governments, local authorities and state-owned entities to develop financing strategies, debt raising, privatisation and restructuring, as well as advice to the private sector, such as bid support to bidding consortia, concessionaires and special purpose vehicles or acquisition consortia. We offer: Medium-term loans for property development and during the construction phase Long-term loans to finance or refinance projects Pre-financing/co-financing of projects supported by EU funds Working capital facilities for the operation phase Documentary products to support the transactions: bank guarantees, escrow accounts etc. Bid and performance bonds Forfeiting of long-term municipal receivables Arrangement and management of syndicated transactions Derivative instruments to hedge interest and currency risks (e.g. swaps, caps, etc.) Structured combination of products and services, tailor-made for a particular project Financing in local currency or euros Fixed or floating interest rate On the public sector side we offer our services to a variety of clients like central governments and their bodies, public transportation companies, public pension & insurance funds, municipalities, public property management entities, public hospitals, towns, political parties, trade unions, churches, public universities and other educational institutions. Public Private Partnerships Public Private Partnerships (PPPs) bundle all available resources such as know-how, working capital, long-term funding resources and manpower in a long-term contractual cooperation between public parties and the private sector. The public tasks are executed by combining the resources in an organisational vehicle (SPV) by allocating the risks to all parties according to their risk management competence and capacity (see picture). Appropriate Risk Sharing: Traditional vs. PPP Financing Traditional PPP Construction Private Sector Construction Design Design Availability of services Availability of service Quality of services Quality of services Maintenance & renewal Maintenance & renewal Market Public or Private Market Obsolescence Obsolescence Shared Force majeure Force majeure Residual value Residual value Public Sector Regulation policy Regulation policy

8 08 Benefits of PPP In the traditional way of financing infrastructure projects, the public sector has to face enormous capital expenditures during the construction phase and bears the risk of cost overruns during the construction and operation phase. Public Private Partnerships on the other hand do not only shift certain risks to the private sector, but also allow the costs of the investment to be spread over the lifetime of the asset. Thus also very capital intensive projects may become affordable within the annual budget. PPPs have a solid track record of on-time and on-budget delivery. The risk transfer of PPP structures to the private sector provides incentives for assets to be properly maintained. Public Private Partnerships can lower the costs of infrastructure investments by reducing both construction costs and overall lifecycle costs. Infrastructure Advisory Erste Group offers a team of experienced international infrastructure specialists to provide advisory services. The client is in charge of all advisers directly employed by the client. We coordinate and manage the transaction process in an effective manner to assist the client in being able to focus on decision making rather than processing the deal. Additionally, Erste Group supports clients decisions by providing an independent Fairness Appraisal and provides its reputation and local experience to act as a mediator between various stakeholders. We offer: Financial Advisory Public Private Partnership Advisory Equity and Debt Raising Valuation/Financial Modelling Structuring Local Advisory Public Sector Advisory, such as evaluation, structuring and tender preparation A dedicated PPP Advisory Team At Erste Group we also offer a Competence Centre for PPP Advisory. This team supports public sector clients in preparing and tendering PPP projects as well as private sector clients in bidding and raising financing for such projects. The PPP Advisory team includes specialists with extensive experience in infrastructure project finance, financial modelling, equity and debt raising, project management, and other financial competencies necessary for the successful implementation of PPPs. We create added value for our clients mainly through our intimate knowledge of the financial markets, our strong presence in Central and Eastern Europe and our many years of experience with local PPP projects.

9 09 Our comprehensive consultancy services offer We offer a wide range of consulting services starting from feasibility studies for investment projects, investment funding proposals to investment and funding concepts and strategies and also public tender advisory. Feasibility study for investment projects Mapping the assignment and objectives of investment projects, their feasibility Responsible distribution of activities and risks among the client and investor Assessment and establishment of accountable payment mechanisms and performance measurement systems Cash flow analysis and impact on client s budget in the long-term Market research and demand research with respect to a given project Investment funding proposal Analysis of funding options for short-term and long-term investment activities Evaluation and comparison of respective funding methods Long-term management of financial resources Market research, assistance in contractual documentation drafting, etc. Investment and funding concept and strategy Definition and analysis of long-term strategic visions and needs, respecting financial relations and possibilities of the given entity Assessment of key investment activities, financial coverage, etc. Public tenders (financial part) Complex definition of project economy, key financial aspects reflected in contract documentation Securing of projects funding feasibility, analysis and recommendations for selection qualification criteria, impacting on optimum applicants structure Possible selection of evaluation criteria, assessment of offers, etc. Structured funding management Erste Group offers a centralised desk for relationshipmanagement with multilaterals providing business-units like the Group Infrastructure Finance with support in their cooperation with multilaterals, such as e.g.: Funding of loan financing on a single project basis (EIB-product) in cooperation with the entire corporate unit or based on a loan framework, which will be provided by Erste Group s subsidiaries to certain defined projects (EIB-product) Funding of equity of local SPVs for a limited period in accordance with the financing terms of the project World Bank Group International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA) European Investment Bank (EIB) European Bank for Reconstruction and Development (EBRD) Kreditanstalt für Wiederaufbau (KfW) Oesterreichische Entwicklungsbank (OeEB) Oesterreichische Kontrollbank (OeKB)

10 10 Selected Credentials Infrastructure financial advisory Karlovy Vary Hospital, Czech Republic, Transaction Volume: EUR 30 million Pardubice County Hospital, Czech Republic, Transaction Volume: EUR 80 million Emergency Care Centre, Czech Republic, Transaction Volume: EUR 65 million Courthouses, Czech Republic, Transaction Volume: EUR 75 million Zlìn Congress Centre, Czech Republic, Transaction Volume: EUR 20 million Multifunctional Centre Telč, Czech Republic, Transaction Volume: EUR 55 million City Town Hall Prague 7, Czech Republic, Transaction Volume: EUR 40 million Rapotice Prison, Czech Republic, Transaction Volume: EUR 45 million D1, Slovakia, Transaction Volume: EUR 3.6 billion Kiev Ring Road Košice Administrative Complex, Transaction Volume: EUR 60 million Central Military Hospital Ružomberok, Transaction Volume: EUR 100 million Prison Service of the Czech Republic Social infrastructure financing Hospital in Warsaw, Medicover Group, Poland Financing Volume: EUR 32 million National Technical Library, Czech Republic, Financing Volume: EUR 58 million Aquapark Olomouc, Czech Republic, Financing Volume: EUR 20 million Municipal Lighting Project, Czech Republic, Financing Volume: EUR 8 million Jelačićka Sports Hall, Croatia, 28y, Investment Loan: EUR 29 million Sportski Grad, Croatia, Financing Volume: EUR 46 million Administrative Building of Hradec Králové Region, Czech Republic, Transaction Volume: EUR 48 million This project was jointly financed by česká spořitelna & Immorent Czech Republic Activ Praha, Parking Systems, Czech Republic, Financing Volume: EUR 2 million

11 11 Transport infrastructure financing Dubrovnik Airport, Croatia, Financing Volume: EUR 18.8 million R1, Slovakia, Financing Volume: EUR 1 billion (Erste Group participation: EUR 85 million), European Road Deal of the Year 2009 by Project Finance Magazine Bina Istra, Croatia, Phase II, Financing Volume: EUR 693 billion (Erste Group participation: EUR 30 million) M6 Phase III, Hungary, Financing Volume: EUR 445 million (Erste Group participation: EUR 60 million) Ostrava Airport, Czech Republic, Financing Volume: EUR 10 million Interleaseinvest, Rolling Stock financing, Ukraine Financing volume: USD 90 million (Erste Group participation: USD 17 million) Energy finance Enerji SA, Turkey, Transaction Volume: EUR 1 billion, (Erste Group participation: EUR 50 million), European Power Portfolio Deal of the Year 2008 Energyi SA Phase II, Turkey, Financing Volume: EUR 700 million (Erste Group participation: EUR 55 million) Energy 21, Solar Plants, Czech Republic Financing Volume: EUR 40 million (Erste Group participation: EUR 20 million) Kisielice, Wind Park, Poland Financing Volume: EUR 36 million (Erste Group participation: EUR 12 million) Martifer, Wind Park, Romania Financing Volume: EUR 23 million Tauernwind Windkraftanlagen GmbH, Austria, Financing Volume: EUR 3 million S&M CZ, s.r.o., Czech Republic, Investment loan supported by IFC Guarantee, Transaction Volume: EUR 7 million HT WIND, s.r.o., Czech Republic, Investment loan supported by IFC Guarantee, Transaction Volume: EUR 2 million Yellow energy s.r.o., Czech Republic, 2.2 MW Photovoltaic Power Plant Garnet VRX phase I+II, Czech Republic, 2.3 MW Photovoltaic Power Plant Reno Energie, Czech Republic, 2.3 MW Hydro Power Plant

12 Imprint: Published by Erste Group Bank AG Graben 21, 1010 Vienna, Austria Edition May