US Export-Import Bank Renewable Energy & Environmental Program

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1 US Export-Import Bank Renewable Energy & Environmental Program Timothy C. Kim Senior Loan Officer US Export-Import Bank, Washington, DC Office of Renewable Energy & Environmental Finance Water NY, NY

2 US Export-Import Bank Independent agency of the United States government Established in 1934 to finance foreign buyers of US goods First transaction to Cuba for $3.5 million for silver ingots Financed USSR purchases of wheat and other commodities Since establishment, Ex-Im Bank has supported more than $525 billion of US exports, primarily to developing markets Key industries supported: Aircraft Oil & Gas Mining and Agriculture Power Generation Capital Equipment Renewable Energy & Environmental Medical Equipment Independent, self-sustaining agency; stewards of US taxpayers money

3 US Export-Import Bank Annual Authorization Profile, Bank-Wide bn Objective: RES financing 10% of bankwide authorization 25 25bn (billions) bn 21bn bn 2011-N Significant growth prospects for financing environmental-based transactions

4 US Export-Import Bank Our Approach to Transaction Review Parties Developer and EPC experience within the field SPV/SPC creation with a transparent, strong corporate structure Financial Advisor with export credit agency (ECA) experience Financing Sponsor with cash-on-hand or bridge loan for construction finance For guarantees, bank with Ex-Im Master Guarantee Agreement Single senior secured tranche or parallel financing arrangements Suppliers Major US goods component to overall project value Supplier familiarity with US Ex-Im Bank Local costs vendor/contractor identification Documents Signed offtake agreements Signed proformas with Suppliers, EPC, O&M, etc. Permits in place and final technical feasibility study completed Timeline Project start date to fit comfortably within Ex-Im s review window Ability to drawdown on equity fully prior to takeout disbursement Pre-shipments no less than 1 year from date of application

5 Financial Products & Programs General Financial Products Two major products Direct Loans (only on exports over $5 million) Bank Guarantees (no minimum/maximum) Direct Loans Interest rates based on US AAA rating, fixed USD only, no hard FX Guarantee fee (Exposure Fee) must still be paid Up to 18 years Bank Guarantees Ex-Im Bank provides guarantee of repayment to commercial lenders Transfers 100% lender risk to the US government Lender margin rate decreases due to lower risk profile Willing to extend payment terms to borrower in hard FX Guarantees up to 18 years Various payment profiles Approximately 25% of applications are direct loan requests

6 Financial Products & Programs General Program Content Ex-Im Bank only finances 85% US manufactured content and services (exception, local costs) Buyer must put down 15% cash payment, at minimum (applied towards equity) Project financing requires 25% equity, at minimum Structure Mostly corporate balance sheet up to 18 years on need-be basis Project finance reserved for strong parties with bridge financing and experience Coverage Up to 18 years for both Direct Loans and Guarantees Disbursement Typically post-construction completion, single disbursement to US Supplier(s) Local Costs up to 30% of US Contract VAT/taxes, local EPC/Developer work, labor, installation, etc.

7 Sample Transactions Water Sri Lanka Supplier: Tetra Tech Project: Water Supply System Loan: $65 million, Direct Loan, 12 years Oman Supplier: Aquatech Project: Wastewater Recycle and Reuse Loan: $23 million, Short-Term Working Capital Guarantee Saudi Arabia Supplier: Aquatech Project: Petrochemical Complex Loan: $5 billion, Credit Guarantee Facility Nigeria Supplier: American Plastics Technologies (APT) Project: Clean Water Loan: $15.5 million, Guarantee

8 Timothy C. Kim Senior Loan Officer US Export-Import Bank Renewable Energy & Environmental Finance (202)