CM Capital Markets CREDIT MARKETING FACILITY. CM Capital Markets. Company Profile ENERGY & CARBON EMISSIONS

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1 REDIT MARKETING FAILITY M apital Markets ompany Profile M apital Markets ENERGY & ARBON EMISSIONS

2 M APITAL MARKETS HOLDING, S.A. I N D E X M apital Markets Overview 2 M apital Markets Activities 4 M apital Markets in Asia 6 M apital Markets as Seller's Representative 7 M apital Markets ENERGY & ARBON EMISSIONS

3 M apital Markets Overview M apital Markets Holding S.A. M apital Markets Group was founded in 1986, nowadays the Group counts with the cooperation of more than 300 professionals working in two locations: Madrid (Spain) and São Paulo (Brazil), and focuses its activities in Spain, Europe, Brazil and North America in brokerage, hedge funds, asset management, carbon and corporate finance. In 1990, 25,5 % of the share capital was sold to AMRO BANK, N.V. (actually ABN Amro Bank N.V.), wich increased its share to the present 45,2 % in The rest of the share capital belongs to managers actively involved in the company management. DIRETORS 45,2 % apitalmarkets 54,8 % Holding M apital Markets Holding, S.A. as the group s Parent ompany is responsible for the overall strategy and business conduct of the following Group of ompanies: M apital Markets Brokerage A.V. S.A., founded in 1986, leader in the Spanish institutional brokerage market. apitalmarkets Brokerage apitalmarkets Bolsa apitalmarkets..t.v.m. M apital Markets Bolsa S.V. S.A., founded in 1999, is the company dedicated to asset management and equity, energy and corporate debt brokerage. M apital Markets ENERGY & ARBON EMISSIONS M apital Markets Brazil..T.V.M., founded in 1998, rapidly reached first position in terms of traded volume in the Brazilian Futures Exchange M apital Markets Asset Management Ltda. 4

4 M apital Markets Activities Energy & arbon Emissions Department The Energy & arbon Emissions Department carries out advisory, consultancy activities and financial management regarding carbon markets. The aim of this department is to integrate environmental and financial worlds covering all the economy sectors. The fact that the company is based worldwide enables it to play an important role in the following fields: ERUs Market EU-ETS arbon Markets ERs Market Financial Emissions Funds M apital Markets has a vast experience in the arbon Market (EU-ETS and Kyoto Mechanisms), primarily with brokerage services, followed by consultancy and advisory services. M apital Markets occupies a leadership position in the EU s market in activities such as brokerage or advisory, giving service to a wide range of European clients. In addition, M apital Markets has contributed to supply projects of Kyoto Protocol to the Spanish arbon Fund (F2E), as a major supplier, and to the Portuguese arbon Fund (Luso arbon Fund). We are also suppliers of projects for the government of Luxembourg and private companies at national, European and international level with a special scope in Asia. ERs Markets Since it began operations in 2005, M apital Markets has worked in several projects proving an excellent experience and knowledge regarding lean Development Mechanism (DM) consultancy and brokerage services. Our privileged position in carbon markets has allowed us to gain and maintain contact with many and different potential ERs buyer's and sellers. That entails having the best and most complete information about ERs prices. We also have a portfolio of DM Projects with already approved methodologies. M apital Markets works with European companies dealing with ERs coming from India, hina or Brazil and acts directly in South American countries procuring DM projects. We have formalized collaboration agreements with some of the main public and private Institutions involved in the creation, financing, consultancy and validation of the DM projects in many countries. From the point of view of the investor in projects we define their strategy of purchase and sale of the product. Our firm provides the following services, regarding ERs market: Study and monitoring of the process of ERs prices evolution in spot and future markets. ER pricing structure analysis at ERPA stage Analysis of ER curves both at organized and OT markets. ER pricing risk analysis. PDD advisory. ERPA Legal advisory service. 6 Nowadays, we are leaders in Europe in emissions trading and provide advisory services in the acquisition and structured products of ERs and ERUs mainly focused on Renewable Energy and arbon Funds, as well as big utilities. On the side of market analyses we offer to our clients some services like: Study and monitoring of the process of evolution of prices of O2 allowances Monitoring of the market's curves both at organized and OT markets Market access and its spot, forward and futures operations Access to international carbon markets.

5 M apital Markets in Asia M apital Markets as Seller's Representative under ADB's redit Marketing Facility Relevant Projects M apital Markets has a vast experience in coordination, communication and negotiation with different DM countries, including ADB s developing countries such as hina, Thailand and Indonesia. We are currently working on the following projects: 49.3 MW Wind Power Project Huintengliang, hina 25 MW Biomass Power Plant Project Shanxi, hina 7.5 MW Waste Heat Recovery & Power Generation Project Shandong, hina ADB's arbon Market Initiative The arbon Market Initiative (MI) is one of the Asian Development Bank's initiatives under its lean Energy and Environment Program. MI has three components: Upfront carbon financing through the Asia Pacific arbon Fund (APF). Technical DM support through the Technical Support Facility (TSF). Marketing support for carbon credits through the redit Marketing Facility (MF). redit Marketing Facility ADB's redit Marketing Facility (MF) provides marketing support to project developers and sponsors in obtaining optimal prices for ERs in the global carbon market. MF has engaged a qualified third party as a seller's agent, selected from existing professional intermediaries. This seller's agent will be compensated through a success fee charged to the transactions of ERs. For M apital Markets is a great pleasure our appointment as joint exclusive Seller's Representative to the Asian Development Bank (ADB) under the bank's arbon Market Initiative. M apital Markets will assist ADB-financed projects by selling the portion of credits not purchased by the APF (typically around 50% of the total volume). 29,7 MW Wind Power Project Mongolia N. Korea Japon Karnataka, India hina S. Korea Papua/ New Guinea 61,5 MW Wind Farm Project Yeong Yang, Korea India Nepal Bangladesh Bhutan Myan mar Laos Thai Land ambodia Hong Kong Vietnam Brunei Taiwan Philippines Australia New Zealand Malaysia Singapore Indonesia 8 9

6 M apital Markets as Seller's Representative under ADB's redit Marketing Facility Services Devising a customized approach suitable for each Seller to market the excess ERs generated by the seller's project. Assisting the Sellers to determinate the best way to obtain the maximum value for the ERs and to minimize the risk. Assisting the Sellers formulate and develop acceptable terms and conditions for the sale of the ERs. One week Methodology for the sale of ERs Seller presentation Seller Representative database Potential buyers informed First Selection: 5 potential buyers Project information s Range price Best price Obligations as Seller's Representative M apital Markets shall execute a Seller's Representative Agreement if the seller wishes to retain M apital Markets to sell the ERs. M apital Markets shall negotiate in good faith with the Seller, with regard to the terms and conditions of the Seller's Representative Agreement. M apital Markets shall sell the ERs of the Seller in accordance with the terms and conditions agreed. For every completed sale of ERs, the payment of a success fees not exceeding 1% of the contract value of the transacted carbon credits, and no additional fees shall be payable to M apital Markets. Advising the Sellers on coordinating, organizing and marketing the term sheet. Promoting and marketing the project to a wide range of buyers. oordinating with buyers to obtain the best bids. Assisting the Sellers in negotiating with Buyers, and signing the term sheet and the ERPA. Supporting the Sellers for the settlement. One week Two weeks Termsheet will be requested Second selection: 3 potential buyers Draft ERPA will be requested Potential buyer will be selected ERPA End of Deal Best price Payment conditions ounterparty risk Second opportunity if ERPA will not be signed in the defined deadline M apital Markets Team Advisory Trade relations with DMs countries Environmental ommodity Expert GENERAL MANAGER TRADING MANAGER Expert on DM transactions Legal Expert

7 M apital Markets ENERGY & ARBON EMISSIONS M apital Markets Energy & arbon Emissions Department alle Ochandiano Madrid (Spain) Tel: / 15 Fax: Alberto Pérez Antuña Managing Partner alberto.perez@cmcapitalmarkets.es amadeo.gonzalez@cmcapitalmarkets.es jaime.briz@cmcapitalmarkets.es energy.desk@cmcapitalmarkets.es