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Clean Energy Project Financing
March 5, 2012
This presentation is solely for discussion purposes. In preparing this presentation, we, KASIKORNBANK PLC. (“KBank”) have made crucial assumptions and relied heavily on the financial and other information made available by general public sources. KBank assumes no responsibility and no representations with respect to the accuracy and/or completeness of the information presented herein. No responsibility is accepted by KBank and/or any employee of KBank for any losses which might result from use (directly or indirectly) of this presentation by any third parties. This document and its contents are confidential and the proprietary information and product of KBank and may not be reproduced or otherwise disseminated in whole or in part without our prior written consent.
Disclaimer
Established on June 8, 1945 with registered capital of Bt5mn (USD0.16mn)
Listed on the Stock Exchange of Thailand (SET) since 1976
Consolidated (as of December 2011)
Assets Bt 1 , 723 bn ( USD 54.3bn) Ranked # 4 in Thai banking industry
Loans Bt 1,211 bn ( USD Ranked # 4 with 15 . 5 % market share *
Deposits Bt 1,242 bn ( USD Ranked # 3 with 17 . 2 % market share *
CAR ** 13 . 8 %
ROE 16 . 7 %
ROA*** 1 . 5 %
Number of Branches 816
Number of ATMs 7 , 366
Number of Employees 16 , 580
Share Information
SET Symbol
Share Capital:
Authorized Bt 30 . 5 bn ( USD 1 . 0 bn )
Issued and Paid-up Bt 23 . 9 bn ( USD 0 . 8 bn )
Number of Shares 2 . 4 bn shares
Market Capitalization Bt 292 bn ( USD 9 . 2 bn ) Ranked # 3 in Thai banking sector
4 Q 11 Avg . Share Price :
KBANK Bt118.33 (USD3.73) .
KBANK-F
EPS Bt10.12 (USD0.32)
KBANK, KBANK-F
Bt119.56 (USD3.77)
KASIKORNBANKGROUP at a Glance
38.2bn)
39.2bn)
BVPS Bt64.68 (USD2.04)
KBank’s Vision for Green Strategy
KBank’s Green Vision Statement
“As an old saying goes, nothing is as
powerful as an idea of whose time has come.
And why the idea of whose time has come is
for human kind to be able to produce energy,
the way that is low carbon energy, less
damaging to the environment and yet be able
to help propel the economic development in a
sustainable manner..” Banthoon Lamsam
President & CEO
Environmental - Business • Renewable Energy Financing (Solar
Energy, Wind Power, Biomass) • Energy Efficiency Financing (Chiller
replacement, Boiler , Lighting control)
Environmental-Social • Environmental Regulation
Business – Social • Business Ethics • Fair’s Trade • Worker’s rights
Social Business
KBank Green Strategy – The 3 Pillars
Environmental
Sustainability
Structuring a Bankable Clean Energy Project
Project
Sponsors
Financiers
EPC / Operator • Financial soundness
• Relationship with communities
• Experience in renewable projects
How Stakeholders Enhance the Project Structure
Sponsors Undertaking
Credit Facility Agreement
Raw Material Supplier
EPC/ O&M Contract
Supply Purchase Agreement
Offtake Agreement
• Contract terms
• Pricing mechanism
• Reliable customers
Main Product Offtakers
CERs Offtakers
• CERs pricing stability
• Terms of contracts
• Credit worthiness of offtakers
• Experience / Technology / Financial strength
• Contract terms/ Liquidated damages
• Insurance and Warranty (performance guarantee)
• Independent engineer required
• Secure and reliable feedstock
• Alternative source / Reserve supply
• Operating track record
• Industry knowledge
• Dedicated team
• Total comprehensive
financial solution
Understanding Key Risks & Mitigations on Thailand Renewable Industry
Construction
Risk
Risk Magnitude Mitigation
Fixed price, turn key construction
contract
Guarantee completion date
Experienced EPC contractor
Equity commitment
High Moderate Low
Party Involvement
Contractor
Sponsors
Independent engineer
supervision
PPA
Contractual
Risk
(non-firm PPA)
Automatic extension of PPA every 5
years
Long-term government’s strategic
support
High Moderate Low PEA
Government
Operational
Risk
Proven technology
Performance evaluation / testing
Performance guarantee / insurance
Maintenance program
Experienced operator of the plant
Reputable equipment
supplier
Independent engineer
supervision
Plant operator
High Moderate Low
Understanding Key Risks & Mitigations on Thailand Renewable Industry
Risk Magnitude Mitigation
High Moderate Low
Party Involvement
High Moderate Low
High Moderate Low Solar Supply
Risk
Wind Supply
Risk
Biomass
Supply Risk
Historical data review
Site Selection
On site survey and verification
Technology suitability test
Sponsors to select
appropriate location
Independent engineer
supervision
Guarantee (quantity / price) from
reputable and sizable source of
feedstock supply
Acceptable heat value to the plant
Economically proven of logistic for
biomass supply
Alternative sources of supply
Owner of biomass supply
Sponsors
Independent engineer
supervision
Ensure data quality and properly
assessment
At least 2-year wind data to confirm
seasonality effect
Energy Yield calculation at different
confident level
Wind farm consultant
Sponsors
Independent engineer
supervision
Understanding Key Risks & Mitigations on Thailand Renewable Industry
Risk Magnitude Mitigation Party Involvement
High Moderate Low
Environmental
Risk
(Biomass)
Installment of DeNOx and other
equipments to filter the pollution
Potential environment pollutions
assessments
Community management program
Sponsors
EPC contractor / designer
Local community
High Moderate Low
No potential environment pollutions to
the neighborhoods
Noise warranty (for wind farm)
Local people employment
Community management program
Sponsors
Wind turbine supplier
Local community
Environmental
Risk
(Solar & Wind)
Indicative Project Financing Terms of Typical Clean Energy Project
Facility Types
Tranche A: Long Term Facility
Tranche B: Working Capital and/or Trade Finance Facility
Tranche C: Hedging Facility
Purpose Financial Facility to support development and construction of a clean energy project
Interest Rate MLR / THBFIX / Fixed Rate (Limited)
Tenor Not exceeding the tenor of government support (Adder)
Key Security
i) Conditional assignments of all related contracts and Project’s proceeds
ii) Mortgage of Project’s security
iii) Pledge of Reserves and waterfall accounts
iv) Sponsor Supports
Key Financial
covenant and other
key covenants
i) Debt service ratios -- ie. Debt Service Coverage Ratio (DSCR)
ii) Leverage ratios – ie. Debt to Equity (D/E Ratio)
iii) Minimum cash position
iv) Sponsor’s undertaking in project ownership
KBank’s Credentials
2010
Best Bond House (2008, 2009, 2010)
Best Investment Bank
Best Project Financing Deal of the Year in Southeast Asia (NED)
Best Project Finance Deal of the Year for 2 consecutive years (2009, 2010)
2010
Best Debt House
Best Debt House for 3 consecutive years (2008, 2009, 2010)
Highlights of KBank’s Recent Achievements in Debt Capital Market (DCM)
2010
Best Project Finance Deal of the Year (NED)
2010
First rank in Thailand loans mandated arrangers league table
First rank in Thailand loans book runners league table
2010
Best Bond House for 4 consecutive years (2007, 2008, 2009, 2010)
Deal of the Year – THB 100,000 million PTT PCL. Straight Bond under Loyalty Program (won for 4 consecutive years – 2007, 2008, 2009, 2010)
Most Creative Issue – THB 4,000 million PTT PCL. Century Straight Bond
2011
Corporate Bond (Asia) Deal of the Year (PTT century bond)
2011
Best Domestic Bank in Thailand
Best Domestic Bond House in Thailand
2009
Best Debt House
Best Domestic Providers for Local Currency Products and Interest Rate Products
2006 & 2007
Best Domestic Debt House
2009
Best Bond House
Best Cash Management Bank
Best Trade Finance Bank
2008
Country Awards for Achievement 2551 -Best Investment Bank
2007
Thailand’s Best Deal
PTT Exploration & Production PCL
2008
1st Ranked in Thailand Loans Mandated Arranger League Tables
2007
1st Ranked in Thailand Domestic Bonds Underwriter League Tables
1st Ranked in Thailand Loans Mandated Arranger League Tables
2009
Top Bookrunners of Thailand Syndicated Loans
2010
Best Bond House
Best Investment Bank
Best Project Financing Deal of the Year in Southeast Asia (NED)
2009
Best Bond House
Best Cash & Liquidity Management Bank
Best Private Wealth Management House
2008
Best Bond House
Best REIT Deal of the Year in Southeast Asia
Centara Hotels & Resorts Leasehold Property Fund – CTARAF
Best Local Currency Bond Deal of the Year in Southeast Asia PTT PCL
2010
Best Debt House
2009
Best Debt House
2008
Top Bookrunners of Thailand Syndicated Loans
2009
Best Bond House
Deal of the Year
Dealer of the Year
Best Market Contributor
2007- 2008
Best Bond House
Deal of the Year
Dealer of the Year
Top Underwriter
KBank’s Performance in DCM Recognized Domestically and Internationally
2008
Best Debt House
Best Domestic Investment Bank
2007
# 1 Sellside for Thai Baht Government Bonds
2009
Project Finance Deal of the Year (Theun-Hinboun Expansion)
2011
Best Domestic Bank in Thailand
Best Domestic Debt House in Thailand
KBank has been consistently introducing initiative financing structures to the power industry including derivative products,
THBFIX structure, new development of Engineering Procurement Construction Management etc. to help enhance value for our clients.
Especially, KBank has been very active in financing of SPP projects.
Thai National Power Co. Ltd.
Syndicated Loan USD 12,432,555
THB 5,841,847,500
Joint Lead Arranger February 2010
Natural Energy Development Co., Ltd.
Syndicated Loan THB 5,379,400,000
Lead Arranger
Financial Advisor June 2010
Theun-Hinboun Power Co., Ltd.
Syndicated Loan THB 13,940,000,000
Mandated Lead Arranger
October 2008
Amata B.Grimm Power 3 Ltd.
Syndicated Loan
USD 41,800,000
THB 2,704,000,000
Mandated Lead Arranger
& Financial Advisor
July 2010
Rojana Power
Company Limited
Refinancing, Expansion and New SPP Projects
Syndicated Loan Baht 9,944 m.
Joint Lead Arranger Security Agent
September 2010
Gulf JP
Company Limited
Seven SPP Projects Syndicated Loan Baht 22,588 m. USD 287.2 m.
Joint Lead Arranger Facility Agent October 2010
Hongsa Power Company Limited
Syndicated Loan
THB 63,000 m.
USD 930 m.
Joint Lead Arranger
August 2010
Extensive Experience in Fund Raising for Power Industry (1/2)
Bangpa-in
Cogeneration Limited
New SPP Project Syndicated Loan
Baht 4,110 m.
Joint Lead Arranger Security Agent
March 2011
Amata B.Grimm Power Rayong 1
Amata B.Grimm Power Rayong 2
Syndicated Loan USD 84,100,000
THB 5,290,000,000
Mandated Lead Arranger& Financial Advisor
April 2011
Solarta Company Limited
Syndicated Loan THB 3,300 m.
Mandated Lead Arranger Facility and Security Agents
June 2011
Solar Power (Korat2) Company
Limited
Syndicated Loan THB 385 m. and USD 2 m.
Mandated Lead Arranger
Facility and Security Agents July 2011
Solar Power (Loei1) Company
Limited
Syndicated Loan THB 385 m. and USD 2 m.
Mandated Lead Arranger
Facility and Security Agents July 2011
Nam Theun 2
Power Comany Limited
Syndicated Loan Baht 20,000 m.
USD 500 m.
Financial Advisor, Lead Arranger, Facility Agent March 2005
Ratchaburi Electricity
Generation Company Limited
Secured Debentures
Baht 10,000 m.
Joint Lead Arranger
July 2005
Amata-EGCO Power and Amata B.Grimm Power
(Bangpakong)
Syndicated Loan Baht 3,856 m.
USD 45 m.
Lead Arranger, Lender December 2006
Sahacogen (Chonburi)
Company Limited
Biomass Project Baht 800 m.
Financial Advisor March 2006
Rojana Power
Company Limited
Expansion Project Syndicated Loan Baht 2,100 m.
Joint Lead Arranger Security Agent October 2006
Amata B. Grimm Power (Bangpakong) Limited
Expansion Project
Baht 1,500 m.
Lender September 2005
Ratchaburi Electricity
Generation Company Limited
Syndicated Loan
Baht 24,262 m.
Joint Lead Arranger,
Lender
July 2005
Nong Khae and
Samutprakarn
Cogeneration
Syndicated Loan Baht 5,396 m.
Lender 2003
Sahacogen (Chonburi)
Company Limited
Expansion Project & USD-Bt refinancing
Baht 3,800 m.
Financial Arranger, Security Agent
2001
With extensive experience and achievement, KBank has been appointed to provide various services in power projects
including financial advisory service, lead arranger, underwriter, facility agent and security agent.
Extensive Experience in Fund Raising for Power Industry (2/2)
Glow Energy Public Company Limited
Guaranteed Debentures
Baht 2,000 m. (May 2007)
Baht 4,000 m. (June 2008)
Sole Lead Underwriter
Gheco-One Company Limited
Syndicated Loan Baht 9,960 m. / USD 460 m.
Financial Advisor,
Sole Lead Arranger
July 2008
Siam Power Generation PCL
Syndicated Loan THB 5,800,000,000
Sole Lead Arranger
July 2008
Solar Power (Loei1) Co. Ltd. and Solar Power (Korat2) Co. Ltd. develop
total the 12 MW photovoltaic solar power projects in Thailand with
amount of THB 770 Million Baht and USD 4 Million financing cost.
The PV and Inverter using in these projects are supplied by Kyocera
Corporation and SMA Solar Technology AG which are reputable and
leading manufacturer in solar industry
These projects are the first solar project in Thailand that were fund by
International Finance Corporation (IFC) which is one of the world bank
group and Clean Technology Fund (CTF), the global fund to promote
financing a low-carbon technology with significant potential for long-term
green house gas emission savings.
KBank’s Selected Fund Raising in Solar Industry
Solar Power (Loei1) Company
Limited
Syndicated Loan THB 385 m. and USD 2 m.
Mandated Lead Arranger
Facility and Security Agents July 2011
Solar Power (Korat2) Company
Limited
Syndicated Loan THB 385 m. and USD 2 m.
Mandated Lead Arranger
Facility and Security Agents July 2011
Natural Energy Development Co., Ltd.
Syndicated Loan THB 5,379,400,000
Financial Advisor,
Lead Arranger June 2010
Natural Energy Development Co., Ltd. (NED) develops the 73 MW photovoltaic solar power
project which is the largest solar farm in Thailand and one of the largest solar power projects
in the world with amount of THB 7,731,808 Million investment cost.
This project later earns KBank
“The Best Project Financing Deal of the Year in Southeast Asia” from Alpha Southeast
Asia; and
“The Best Project Finance Deal of the Year 2010” from Project Finance Magazine
Natural Energy Development Co., Ltd.
Syndicated Loan THB 5,379,400,000
Financial Advisor,
Lead Arranger June 2010
Natural Energy Development Co., Ltd. (NED) develops the 73 MW photovoltaic solar power
project which is the largest solar farm in Thailand and one of the largest solar power projects
in the world with amount of THB 7,731,808 Million investment cost.
As the financial advisor, KBank has contributed value to the successful fund raising in respect
of innovative financial structure and deliberate financial analysis. KBank also introduced the
structure leading the Project to achievement of low interest, long repayment tenor and risk
mitigation in foreign exchange and interest rate risk.
This project later earns KBank
“The Best Project Financing Deal of the Year in Southeast Asia” from Alpha Southeast
Asia; and
“The Best Project Finance Deal of the Year 2010” from Project Finance Magazine
Amata B.Grimm Power 3 Ltd.
Syndicated Loan USD 41,800,000
THB 2,704,000,000
Mandated Lead Arranger & Financial Advisor
July 2010
In 2007, Amata Power Limited appointed KBank to act as the financial advisor to the power
plant projects under the Small Power Producer (SPP) program in Thailand. KBank provided
advisory services that led the company to achieve lowest possible interest cost and maximum
possible equity return.
In 2010, as sole mandated lead arranger, Kbank successfully arranged the Baht 2,704 million
and USD 41.8 million to Amata B.Grimm Power 3 Limited to finance the construction of
132.5MW gas-fired combined cycle cogeneration and steam production capacity power plant.
KBank’s Selected Financial Advisory Services
Feel free to contact:
Kampol Taruneeteerakul
Vice President
Multi-Corporate Business Department
KASIKORNBANK PCL.
Tel: +66-2-470-2703
E-mail: [email protected]
