Green growth and finance. Biobased workshop 2018

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1 Green growth and finance Biobased workshop 2018 Alain Cracau Amsterdam, March

2 Rabobank at a glance 2

3 Our contribution to the UN Sustainability Goals What we do some 2017 examples Total sustainable financing 18,9 bn (SDG 12) Sustainable transactions arranged 6,2 bn (SDG12) Total investments in renewables 3,4 bn (SDG 7) Issued Green Bond 500 mln for new projects (SDG 7) Chair climate smart agriculture WBCSD (SDG 17) Sustainability performance of our larger corporate clients measured (SDG 8) Partnership UN Environment (SDG 17) 3

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5 Evolution from risk to value Environmental focus Sustainability focus Circular focus Risk Compliance Cost reduction Ecoefficiency Systems level innovation Value Creation 5

6 Oil consumption Shared long term view Agribased A brief moment in history Biobased Earth s resources are finite, human ingenuity and solar energy are infinite 6

7 Biorefinery for all purposes Plant constituents Consumer goods Personal care Proteins Packaging & disposables Automotive Sugars Biorefinery Oils & Lipids Ligno Building & construction Textiles Paints, lubricants, waxes Food additives cellulose 7

8 Cascading the value Value Health Food & Feed Biomaterials Bulkchem Energy Volume 8

9 Money goes green rapid & steep growth Total Market Green bond $150Bn Total Market Green bond $0 BN years time

10 Access to finance issues.. Growth potential is appealing for financial market participants, but high perceived risks and growth is long term Information asymmetry and technology risk limit investment which steers private capital towards more mature projects. Risk-sharing financial instruments should further be developed and more awareness, which mobilize private capital. Regulation and market and demand framework conditions are most important drivers but also biggest risks Funding gaps exist in scaling up pilots and flagships 10

11 Rabobank Project Finance offers financing and advisory for renewables and infrastructure projects Offshore services Infrastructure & Utilities Food & Agri and Biorefining Renewables Oil & gas Sector focus On&offshore wind Solar (CSP and PV) Biomass Geothermal Tank storage LNG Pipelines FPSOs Tugboats Specialised vessels Roads and bridges Who we are and what we do A strong focus on (renewable) energy and infrastructure with a global portfolio of more than 100 projects Expertise in cashflow based financing with a limited recourse character Based on future contracted cash flows, we design and deliver innovative financing solutions We have in-depth knowledge of the industries we serve. Given the technology heavy component in Project Finance, this understanding of the business is essential to maximising the added value for our client In line with our core focus on Food and Agri and sustainability, valorisation of waste and biofuels production are attractive markets for Rabobank Through our Agri-meets-Chemicals platform, Rabobank has developed strong knowledge and a wide network in this sector Rabobank No. 1 MLA transactions in the Dutch infrastructure sector, 2017 Product offering Senior debt (construction & term loans) Mezzanine financing Global Footprint Buildings Telecom Power plants and district heating Primary processing Energy solutions Biorefining Provide access to institutional investors Financial advisory (debt and equity) VAT- facilities, Guarantees, Letters of Credit Hedging, cash management, agency services Office Presence 11

12 Rabobank dedicated to developments in biobased Organiser of bio-economy Conferences 2017 Agri meets Chemicals IV 2016 Bio Economy Utrecht 2016 Agri meets Chemicals III 2015 Agri meets Chemicals II 2014 Agri meets Chemicals I Member of biobased network Bio-based Industries Consortium Biobased Circular Business NL Development Capital SHIFT Invest Dutch Greentech Fund Rabo PE Publishing reports on biochemicals Bioplastics moving to the beet Joint publications with deloitte: Opportunities for the fermentation based chemical industry Viability of biobased chemicals from beet sugar in Delfzijl Packaging strategies and the Circular Economy Financing to the bio-refinery and waste to power sectors. : Draff & Wood to heat & power, Scotland Recycled wood & Solid Waste to power, England Various, virgin wood to power, USA Meat and Bone Meal to heat and power, England Biowaste to Power, NL 12

13 Integral Approach to achieve Tailor-made Financing Solution Add value to Bio-refinery Projects by combining expertise across the entire spectrum of financing Project Finance 1 Strong focus on advising, structuring, arranging and underwriting (complex) project finance transactions Flexible approach to risk and return allocation scenarios Export Finance 2 Focus on the ex- and imports of capital goods and services Increased liquidity and lower cost due to ECA coverage Markets 3 Hedging of commodity price risks Hedging of interest rates and foreign exchange Hedging advisory and execution co-ordination Knowledge & Network 4 In-depth knowledge of waste to energy projects and the PF market Strong relationships with EIB and relevant ECAs Commitment to innovative, circular and bio-economy development 13

14 Summary Bio-economy to take center stage in post oil era Momentum for many clients and regions to play a distinctive role to capture opportunities Bio-chemicals in Rabobank s sweetspot (F&A, Circular Economy ) Closing the gap on innovation and scale-up projects with strong expertise, networks and collaboration with public-private financing 14

15 Thank you Rabobank is committed to 15