FINANCIAL CLOSE OF TARALGA WIND FARM

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1 ASX ANNOUNCEMENT FINANCIAL CLOSE OF TARALGA WIND FARM TOTAL DEBT $175,000,000 FEDERAL GOVERNMENT S CLEAN ENERGY FINANCE CORPORATION TO PROVIDE $37.5M CO-LENDERS ANZ & EKF CBD Energy Limited (CBD) is pleased to announce the Taralga Wind Farm project has reach financial close. CBD Executive Chairman Gerry McGowan said This is the culmination of our vision to be a diversified renewable energy company. Being involved in wind generation, as well as solar, is an important component of this strategy. Developing a project of this size and scale demonstrates the capabilities of CBD and its people McGowan said. CBD owns 10% of the project and has been leading the commercialisation of the project over the past eighteen months. CBD will retain an on-going role and act as the Owners Project Manager with an ongoing Owners Facility Management role. CBD has previously announced that: Banco Santander has purchased 90% of the project and will provide the equivalent equity. Vestas has been selected as turbine supplier and EPC contractor. Downer EDI will construct the transmission line to connect the wind farm to the grid. Energy Australia will purchase the energy and associated Renewable Energy Certificates generated from the wind farm. Debt to the project is being provided by: EFK (Eksport Kredit Fonden) $100,000,000, ANZ Banking Group $37,500,000 Clean Energy Finance Corporation $37,500,000

2 Importantly, the debt provided by EKF is for 18 years which reduces refinancing risk for the project. The Clean Energy Finance Corporation (CEFC) investment is facilitating the use of Australian engineered and built towers aiding the further development of local market manufacturing capability. CEFC CEO Oliver Yates said The CEFC is delighted to participate in this transaction with CBD Energy by providing senior debt finance and helping involve and demonstrate Australia s capability across the whole value chain of the clean energy sector. Our involvement has helped facilitate the project s use of Australian engineered and sourced wind towers from Keppel Prince Engineering, based in Portland, Victoria. Keppel Prince Australia Managing Director Steve Garner said We have been working closely with CBD over the past year as we both wanted to ensure Australian manufactured towers were utilised in this important project. CEFC have played a pivotal role in ensuring this goal was realised. EKF is Denmark s official export credit agency. EKF helps Danish companies to attract customers from abroad to buy goods and services originating in Denmark. The long-term debt provided by EKF adds significant value to the project. EKF Senior Underwriter Pia Bastrup said EKF has provided a guaranteed loan through its ELO program. EKF is Denmark s official export credit agency and globally recognized for its expertise in wind farm financing. EKF helps Danish companies to attract customers from abroad to buy goods and services from Denmark by providing innovative financing. Project equity of approximately $105,000,000, is being provided by Banco Santander and CBD. CBD s Gerry McGowan said Santander is the largest bank in Europe and is a major investor in the clean energy sector. We have established a close working relationship with them which has resulted in such a good result for the project. The $280,000,000 Taralga wind farm is located in South Western New South Wales and is megawatts in size. The wind farm, when complete will supply power to approximately 45,000 homes and is estimated to avoid Australian carbon emissions of 250,000 tonnes a year. The project will take 18 months to construct and is planned for commissioning in the first 4 th quarter 2014.

3 Key Facts: Taralga wind farm Location: Approximately 235km SW of Sydney Total construction cost: Approximately $280,000,000 Contractors: Vestas / Downer EDI Turbines: 51 Total: 21 V MW 21 V90 1.8MW 9 V90 3.0MW Capacity: megawatts Average wind speed: 7.4 m/s Capacity factor: approximately 31% Construction schedule: 18 months Grid connections: 132kV at Marulan (Transgrid) Land holders: 9 Employment: 10 full time About CBD Energy (ASX:CBD) CBD is Australia's emerging leader in renewable energy, enabling the efficient use of renewable energy for utilities, businesses and households through operations in wind, solar and engineering. It has become one of the largest non-utility suppliers and installers of solar energy generation equipment for both large- and domestic-scale operation in Australia. Utilising its globally-competitive supply chain, CBD has also developed and installed solar projects in Europe, the United States and Southeast Asia. About Clean Energy Finance Corporation (CEFC): The Clean Energy Finance Corporation (CEFC) has been established by the Australian Government to mobilise capital investment in renewable energy, low-emissions technology and energy efficiency in Australia. The CEFC s flexible mandate and commercial approach provide an opportunity to achieve genuine market-based change by helping overcome the financial barriers that have previously prevented clean energy investment at scale. About Eksport Kredit Fonden (EKF): EKF is Denmark s official export credit agency. We help Danish companies to make it possible and attractive for customers abroad to buy products and services from Denmark. We do this by insuring Danish exporters against the potential financial and political risks of trading with other countries. With EKF to bear the risks, companies enjoy far better prospects for securing financing for their business transactions on competitive terms and for selling their products and services on credit, which is often a critical success factor in international trade. A guarantee from EKF may therefore be what decides whether or not a Danish company wins or retains an order abroad. We are the only organisation in the Danish market to offer insurance against the risks that are not covered by the private sector. EKF was established in 1922 as just the third export credit agency in the world. Our full name is Eksport Kredit Fonden (EKF), but for convenience we call ourselves EKF. About ANZ Banking Group: Our history dates back over 175 years. We are committed to building lasting partnerships with our customers, shareholders and communities in 32 countries in Australia, New Zealand, throughout Asia and the Pacific, and in the Middle East, Europe and America. We provide a range of banking and financial products and services to around 8 million customers. We employ 48,000 people worldwide.

4 FACT SHEET CEFC supports Taralga Wind Farm Financing $37.5 million senior debt finance from CEFC (project cost approximately $280 million) SUMMARY The Clean Energy Finance Corporation (CEFC) is providing $37.5 million in senior debt finance of approximately $280 million financing package for the construction and operation of the Taralga Wind Farm, 45 km north of Goulburn, NSW. The project involves construction for 51 Vestas wind turbines, with a 10-year Power Purchase Agreement (PPA) with Energy Australia to supply the grid. The CEFC is a co-lender as part of an international consortium of Australian and overseas financiers. The other parties are ANZ, with EKF, the official export credit agency of Denmark, and the primary equity sponsor for the project, Banco Santander, a major international retail and commercial bank based in Spain, along with CBD Energy. The project is fully permitted and construction is now getting underway. PROJECT IMPACT The Taralga Wind Farm will have the capacity to generate 106.8MW of wind power and supply power to approximately 45,000 homes. It is estimated to avoid Australian carbon emissions by 250,000 tonnes a year. Transitioning to a low carbon economy will require a significant transformation of the electricity sector. Renewable energy sources such as wind as well as solar, geothermal heat and wave power will have a key role in moving Australia to the clean economy of the future. Australia has some of the world s best wind resources and CEFC is playing its part in helping drive innovation and investment in this sector. One typical (2 MW) wind turbine in Australia can be expected to produce over 6000 megawatt hours of electricity each year. If this replaces coal-fired power, then the CO2 released to the atmosphere will be reduced by 6000 tonnes each year, if it replaces oil or gas-fired power, CO2 released each year is reduced by about 3000 tonnes....continued 1

5 FACT SHEET Project Impact continued... CEFC s financing was important in helping enable the transaction to proceed, bringing in new investors, ensuring efficient market pricing and participation of other financiers. CEFC investment is facilitating use of Australian-engineered and built towers aiding the further development of local market manufacturing capability and supply chain scale, helping its competitiveness and to position the sector for long term growth. FINANCE Santander and CBD Energy are the project sponsors and are providing equity finance. Santander and CBD Energy will fund 35% of the capital costs. ANZ and EKF are co-lenders along with the CEFC. The CEFC will be providing senior debt finance of $37.5 million towards the total project cost of approximately $280 million. The Taralga Wind Farm will have the capacity to generate 106.8MW of wind power and supply power to approximately 45,000 homes. The joint venture between CBD Energy and Banco Santander combines the considerable experience of Banco Santander, one of the world s leading developers and financiers of renewable energy, and CBD, an entrepreneurial Australian developer of wind and solar assets both in Australia and internationally. This is an important project which demonstrates the role the CEFC can play along with private sector financiers in maturing renewable energy investment in Australia. The project will utilise Australian manufactured towers made in Portland from BlueScope steel. The integrated Australian supply of inputs enabling this project- from materials, through to finished goods, know-how and finance - demonstrates Australia s capability across the whole value chain for the clean energy sector. Oliver Yates CEO, Clean Energy Finance Corporation Gerry McGowan CEO and Executive Chairman, CBD Energy Transitioning to a low carbon economy will require a significant transformation of the electricity sector. Renewable energy sources such as wind as well as solar, geothermal heat and wave power will have a key role in moving Australia to the clean economy of the future. 2

6 FACT SHEET Banco Santander is the primary equity sponsor. It is a retail and commercial bank based in Spain and a major international bank, the largest in the Eurozone. Banco Santander is a major investor in the clean energy sector globally. It is currently recruiting to establish a permanent presence in Australia. Banco Santander was named Best Bank in the World in 2012 and has about Euro 1.39 trillion of total assets. EKF is a co-lender. It is Denmark s official export credit agency. EKF helps Danish companies to attract customers from abroad to buy goods and services from Denmark by helping to get financing and insuring against the potential financial and political risks of trading with other countries. The Clean Energy Finance Corporation (CEFC) has been established by the Australian Government to mobilise capital investment in renewable energy, low-emissions technology and energy efficiency in Australia. The Taralga wind farm project s decision to use Australian engineered and built towers is major boost for the Australian wind engineering sector. This project comes at a critical juncture for the development of the Australian wind tower industry, helping it to maintain competitiveness and assisting it position for potential for growth in the coming years. Stephen Garner General Manager, Keppel Prince Engineering The CEFC s flexible mandate and commercial approach provide an opportunity to achieve genuine market-based change by helping overcome the financial barriers that have previously prevented clean energy investment at scale. Learn more at Clean Energy Finance Corporation Suite 1702, 1 Bligh Street Sydney, NSW 2000 Australia ABN: e info@ t i