eeef - European Energy Efficiency Fund

Transcription

1 eeef - European Energy Efficiency Fund Iñigo Prior Senior Advisor Deutsche Bank Investment Manager eeef Inigo.prior@db.com April 26th, 2017 Advancing Sustainable Energy for Europe

2 Agenda 1 eeef key elements 2 Portfolio Overview

3 eeef Key Elements

4 eeef at a glance Objective eeef is an innovative public-private partnership dedicated to mitigating climate change through market based financing in the member states of the European Union Beneficiaries Municipal, local and regional (and central) authorities or public and private entities acting on behalf of those authorities such as utilities, public transportation providers, social housing associations, ESCOs etc. eeef s capital Initial capitalization of the fund amounting to 265m provided by the European Commission, the European Investment Bank, Cassa Depositi e Prestiti and Deutsche Bank Fund s investments are split into three project categories: Investments Energy Efficiency (EE) Renewable Energy (RE) Clean Urban Transport

5 Objective and sponsors of the eeef Background and objective Commitment of the EU member states to achieve the 20/20/20 goals: 20% increase in EE, 20% reduction of CO2 emissions, and 20% RE in EU's energy mix by 2020 Substantial potential for EE and small scale RE in the European public sector Set up a funding source to enhance EE and foster RE dedicated financing within the European Union, primarily through the provision of dedicated financing to: municipal, local and regional (and national) authorities public and private entities acting on behalf of those authorities such as utilities, public transportation providers, social housing associations, ESCOs etc. Sponsors European Commission (Initiator) European Investment Bank (Founding investor) Cassa Depositi e Prestiti (Founding investor) Deutsche Bank (Investor and investment advisor) Focus areas: EE, RE and clean urban transport

6 Municipal, local, regional and national authorities and public or private entities acting on behalf of those public authorities FIs Investment Advisor eeef structure EUR, Local FX investments EUR funding Technical Assistance Facility Investment Committee Management Board Issuer Vehicle Luxembourg Investors Direct Debt & Equity Super-Senior Tranche (Notes) Institutional Investors Senior Tranche (A Shares) Private Investors, International Financial Institutions or Development Finance Institutions Loans Senior & Sub Debt Loans Mezzanine Tranche (B Shares) Private Investors, International Financial Institutions or Development Finance Institutions Junior Tranche (C Shares)

7 Advantages of the eeef Fast and flexible financing Professional investment advisor, decision making process from initial screening (assuming all information is provided) until financial close no longer than 6 months One-stop shop from project development support via grants from the TA facility to tailor-made financing of projects Various financing instruments The fund offers various financing instruments including senior debt, mezzanine, equity, leasing structures and forfeiting loans Fund can also operate as the sole investor in projects (single investor transactions) to simplify implementation and lower execution costs Flexible with respect to maturities: Long maturities Debt can be provided for maturities up to years Equity or mezzanine capital can be provided to act as co-sponsor or long-term subordinated risk taker

8 Eligibility criteria of the eeef According to eeef s investment guidelines an investment has to meet several eligibility criteria: General eligibility criteria such as: public link commitment of municipality to mitigate climate change (e.g. Covenant of Mayors Initiative) Primary energy savings of at least 20% (Co2 savings for certain technologies) use of proven technologies Furthermore, each technology may have its own specific eligibility criteria Financing need of the Project from eeef shall be preferably in the range of 5m to 25m smaller project sizes will be reviewed on a case-by-case basis Alignment with relevant EU legislation Project eligibility

9 Role of Deutsche Bank in the eeef Deutsche Bank, in its role as investment advisor for eeef, is the first point of contact for private and public clients, developing projects in the energy efficiency, renewable energy or clean urban transport sector Identifies, evaluates and structures the investments for the Fund, the final investment decision is taken by the Management Board Manages the existing project portfolio and interacts with all fund s service providers Sources new investors for the Fund Is the key point of contact for all investors, service providers, sponsors and project companies

10 eeef s typical projects are so far... Project examples Characteristics Project structures Building upgrades Street lighting Biomass plants Photovoltaic Energy audits completed, vast energy savings potential Sufficient know-how of ESCO in case of big projects Savings guarantee required Depending on counterparty risk additional parental/municipal guarantee required Only light bulbs, switch boards plus EE related measures can be financed, not the light pole itself Ownership of lighting points need to be in municipal hand Technology with good track-record only Contracts for input (feed-stock) / output (e.g. electricity/heat) in place Substitution of input possible Technology with good-track record (e.g. boilers, turbines etc.) O&M concept Land ownership in municipal hand Grid connection secured Feed-in tariff secured O&M concept Bankable module supplier Senior debt Mezzanine / equity Funding via coinvestments in SPV or NewCo Forfaiting Leasing (mostly for clean urban transport projects)

11 eeef investments by country project details UK 4.2m senior debt to project entitiy Cardenden Heat and Power (EE: boiler replacement and RE: onshore wind) FRANCE 5.1m junior funds to project vehicle to supply heat to City of Orléans (EE: CHP/biomass) 7.3m junior funds to project vehicle to supply heat to City of Rennes (EE: CHP/biomass) 30m senior funding to Bolloré (Clean Urban Transport: electric cars) 5m senior construction facility to project vehicle of Région Rhône-Alpes (EE: schools retrofit) SPAIN 2.5m forfaiting loan to Universidad Politécnica de Madrid via Enertika (EE: building retrofit) NETHERLANDS 8.5m senior debt to City of Venlo (EE: public lighting) GERMANY 0.9m forfeiting loan to Jewish Museum Berlin via Johnson Controls ESCO (EE: building retrofit) 0.6m forfeiting loan to University of Applied Sciences Munich via Johnson Controls ECSO (EE: building retrofit + CHP) ITALY 32m project and VAT bond facility to project entity upgrading University Hospital S.Orsola Malpighi in Bologna (EE: reduction on energy in entire fluid production and distribution system) ROMANIA 25m subdebt to Banca Transilvania (Financial Intermediary investment: EE, RE, Clean Urban Transport)

12 eeef Technical Assistance Facility Following the European Commission TA Facility managed by the EEEF, the Fund set up the EEEF TA Facility to support ambitious public beneficiaries in developing bankable sustainable energy investments. The EEEF TA Facility aims to bridge the gap between sustainable energy plans and real investments through supporting all activities necessary to prepare investments into sustainable energy projects. Going forward EEEF is open (no deadline) for TA project proposals on a first-comefirst-serve basis, subject to availability of funds and the Fund s appetite for proposed sector/technology etc. More info:

13 Portfolio Overview

14 eeef s typical projects are so far... Project examples Characteristics Project structures Building upgrades Street lighting Biomass plants Photovoltaic Energy audits completed, vast energy savings potential Sufficient know-how of ESCO in case of big projects Savings guarantee required Depending on counterparty risk additional parental/municipal guarantee required Only light bulbs, switch boards plus EE related measures can be financed, not the light pole itself Ownership of lighting points need to be in municipal hand Technology with good track-record only Contracts for input (feed-stock) / output (e.g. electricity/heat) in place Substitution of input possible Technology with good-track record (e.g. boilers, turbines etc.) O&M concept Land ownership in municipal hand Grid connection secured Feed-in tariff secured O&M concept Bankable module supplier Senior debt Mezzanine / equity Funding via coinvestments in SPV or NewCo Forfaiting Leasing (mostly for clean urban transport projects) 14

15 eeef investments as of 12/2016 Investments by Projects (in %) Investments by Country (in %) 3% 2% 1% 1% 4% 4% 26% 7% 4% 2%1% 6% 7% 21% 39% 21% 25% University Hospital S. Orsola Malpighi Bolloré Autolib 26% Banca Transilvania City of Venlo Dalkia City of Rennes Dalkia City of Olrèans SPL - Region Rhone-Alpes Cardenden Heat & Power Universidad Politécnica de Madrid Jewish Museum Berlin Foundation University of Applied Sciences Munich France Italy Romania Netherlands UK Spain Germany Investments by type of Partner Institution (in %) Investments by Sector (in %) 21% 14% 25% 61% 79% Direct Investment Financial Institution Energy Efficiency Clean Urban Transport Renewable Energy 15

16 Energy efficiency upgrade of the University Hospital S. Orsola Malpighi - Bologna, Italy Project description Location Partners: Progetto ISOM S.p.A (project SPV) University Hospital S. Orsola Malpighi (grantor of concession) Bologna, Italy Measures: energy efficiency CCHP Upgrade of entire fluids production and distribution system of the hospital Including a tri-generation plant for the combined production of cooling, heat and power (CCHP) Results: Reduction of CO2 emissions of 14,136 t p.a., approx. 31% compared to baseline Project structure Manutencoop Facility Management Siram Sinloc Project bond + VAT bond SPV Progetto ISOM S.p.A. Equity funding Concession agreement UHSOM (Grantor of concession) Regional funding of healthcare Region Emilia Romania EPC and O&M EPC & O&M consortium Investment characteristics Key data: Total project volume: 41m (equity provided by Manutencoop Facility Management, Siram, Sinloc and Iter Cooperativa Ravennate) EEEF funded volume: 32m via a project bond structure Duration of financing: 20 years Highlights: Largest energy efficiency upgrade in Italy under a Public Private Partnership (PPP) framework Complex energy efficiency upgrade of the hospital - won the 'CESEF Energy Efficiency Award 2015' in the Financial category 16

17 Combined Heat and Power Plant (biomass) City of Orléans, France Project description Location Partners: City of Orléans, Dalkia France, eeef Measures: Biomass plant/ energy efficiency Dalkia won a public tender realized under a French Regulation Commission Tender ( CRE3 ) for electricity /heat generation fired by biomass Biomass-fired combined heat and power plant with a capacity of 7.5 MW in electricity and 17 MW thermal energy Orléans, France Results: Reduction of CO2 emissions of 20,500t p.a., approx. 89.1% compared to baseline Energy production 50,826 kwh p.a. Project structure Investment characteristics Key data: eee is a 84.4% shareholder of Orléans Biomasse Energie s.a.s City of Orléans Land rights agreement Orléans Biomasse Energie s.a.s Contract for electricity sale Construction contract EDF Total project volume: 36m Total junior funds volume: 6m Duration of financing: 18 years Highlights: Public concession for Heat supply to district heating network Dalkia Biomasse Orléans s.a.s Operation and maintenance, Incl. biomass supply Decentralized energy supply for City of Orléans using existing district network Supply of biomass within 100 km Long term PPA agreement with EDF

18 Building retrofit of the University of Applied Sciences - Munich, Germany Project description Location Partners: University of Applied Sciences Munich (UoM), Johnson Controls, eeef Measures: Building upgrade/ energy efficiency Installations of combined heat and power plant Installation of energy efficient lighting Optimization of heating Optimization of building management Munich, Germany Results: Reduction of CO2 emissions 88t p.a. approx. 11.6% compared to baseline Guaranteed energy savings 118,860 p.a. (41.7%) Financing structure Investment characteristics (Purchaser) 2 Forfaiting agreement: purchase of 70% of receivables / energy savings ESCO (Seller) 1 3 Implementation of EE measures acc. to energy performance contract (EPC) Savings guarantee Pays receivables/ energy savings UoM (Employer) Key data: Financing volume: approx. 0.6m Duration of financing: 10 years Highlights: Second project with the innovative forfeiting structure EE measure including a CHP plant (decentralized energy production) Role model for further energy efficiency investments in schools, universities etc. 18

19 Green lending cooperation with Banca Transilvania- Cluj-Napoca, Romania Project description Location Partners: Banca Transilvania S.A. ( BT ) Measures: EEEF and BT, one of the leading banks in Romania signed a letter of intent regarding green lending to support energy efficiency and renewable energy investments Provision of financing to public and private building owners, homeowner associations and municipalities, public sector entities and private sector companies acting on behalf of the public sector Cluj-Napoca, Romania Results: Average CO2 emission reduction of at least 20% for projects financed via BT Financing structure (Lender) Investment characteristics Key data: Financing volume: approx. 25m Duration of financing: 10 years (Borrower) Loan Agreement Sub-loans for EE and RE projects (Subborrowers) Highlights: First cooperation of the EEEF with a financial institution and also EEEF s first project in Eastern Europe Strong local partner with credentials in financing several energy efficiency projects Role model for further Financial Institutions investments 19

20 Street lighting upgrade of the City of Venlo - Venlo, Netherlands Project description Location Partners: City of Venlo (Borrower) Measures: Energy efficiency Street lighting The City of Venlo upgrades of the existing street lighting network of the city with energy efficient LED lamps The existing O&M contract for the street lighting network with a private service company stays in place and includes the upgraded lighting points Venlo, Netherlands Results: Achievement of primary energy savings of around 62% p.a. compared to baseline Project structure Investment characteristics Key data: Total project volume: 8.5m Loan Agreement eeef funded volume: 8.5m via a senior debt loan covered by the City of Venlo Duration of financing: 15 years Highlights: (Lender) Obligation to invest into energy efficiency projects (Borrower) First direct lending to a municipality by eeef. The street lighting upgrade is part of an overall green development plan of the city Reference project for European public authorities demonstrating efficient financing solutions for energy efficiency and renewable energy projects via eeef 20

21 Car-sharing programme for electric cars- Cities of Paris, Lyon and Bordeaux, France Project description Location Partner: Bolloré S.A. Measures: Public urban transportation Bolloré SA won the concession for the first large scale electric vehicle renting scheme in the greater Paris region (Ile-de-France) expansion of Bolloré s core infrastructure (e.g. cars, charging stations, rental kiosks) Paris, Lyon and Bordeaux, France Results: Reduction of CO2 emissions of min. 50% compared to baseline Project structure Investment characteristics Paris Bordeaux Lyon Key data: Bond issue (private placement): 30m Obligation to expand core infrastructure Bond purchase Duration of financing: 5 years Repayment: Bullet structure 100% 12 year concession for the Paris/ Île-de-France region; Lyon and Bordeaux to come Highlights: First eeef transaction for clean urban transport in Europe 51 municipalities in the Paris/ Île-de-France region participating, accessible to more than 4 out of 7 million inhabitants 21

22 New heating infrastructure for the Universidad Politécnica de Madrid, Spain Project description Location Partner: Universidad Politécnica de Madrid (UPM) Measures: Energy efficiency Building retrofit Energy efficiency measures in 32 buildings of the University Substitution of the 63 oil based with the gas based boilers Installation of 6,800 thermal valves in the heating system an solar panels Installation of a global energy management service Madrid, Spain Results: Project structure Targeted primary energy savings of 27% and CO2 savings of 45% compared to baseline Investment characteristics Key data: (Purchaser) 2 Purchase of of receivables 3 Pledge of equipment 4 Monthly payment of the relevant share based on issued invoices Forfaiting structure to purchase receivables obligations related to installation works: 2.5m Duration of financing: 9 years Repayment: monthly ESCO (Seller) 1 Implementation of EE measures acc. to Energy Management Contract UPM (Employer) Highlights: Transaction completed in three months after signing of the Energy Management Contract by the UPM and Enertika, demonstrating the ability of the private and public sectors to align efforts to implement projects in the energy efficiency sector 22

23 Energy efficiency upgrade of social housing homes and construction of small size wind plants Cardenden, UK Project description Location Partner: Cardenden Heat & Power Ltd Renewable Energy Infrastructure Fund (REIF) Cardenden, UK Measures: Energy efficiency Wind Gas boiler upgrade of more than 200 homes owned by the local housing association Construction of small size onshore wind-farms (each 0.5MWe) in the Fife Region Results: Reduction of CO 2 emissions of 1,732t p.a., 96% compared to baseline Project structure Ore Valley Housing Association Equity funding Investment characteristics Key data: Total project volume: 5.4m eeef funded volume: 4.2m via a senior loan Duration of financing: 15 years Senior loan Cardenden Heat & Power REIF Subordinated loan EPC and O&M EPC and O&M partners Highlights: First small scale wind power project development financed by the eeef eeef collaborated with the Scottish community to address the technical and financial aspects to plan and implement climate change related project 23

24 Contacts European Energy Efficiency Fund (eeef) Lada Strelnikova +49 (69) Iñigo Prior +49 (69) Paola Rusconi +49 (69) Matthias Benz +49 (69) Zarpana Signor +49 (69)

25 Copyright European Energy Efficiency Fund, SICAV-SIF, 31 Z.A. Bourmicht, L-8070 Bertrange, Luxembourg. All rights reserved. This presentation (the Document ) has been prepared by European Energy Efficiency Fund, SICAV-SIF ( European Energy Efficiency Fund ) exclusively for the benefit and internal use of the potential client ( Client ) in order to indicate, on a preliminary basis, the feasibility of a possible transaction or transactions. The Document may only be used for these purposes. The Client is not permitted to duplicate the information provided in this Document and to communicate the received information of this Document to any third party without the prior written consent of European Energy Efficiency Fund. The Document is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by European Energy Efficiency Fund. The Document is neither intended to serve as legal or tax advice nor should it replace it. The information in the Document reflects prevailing conditions and European Energy Efficiency Fund's views as of this date, all of which are subject to change. Neither the European Energy Efficiency Fund nor their directors, officers, agents or employees, customers or professional advisers make any representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the Document. The aforementioned persons will be under no duty to provide access to any additional information or to update or correct (if required) any Information. Accordingly, neither the European Energy Efficiency Fund nor the aforementioned persons will be liable for the accuracy, reliability, completeness or reasonableness of the Document.