Structured Finance Department
Who we are An excellent structured financier in the local market ▪ The Structured Finance Division consists of a team Transport of 15 seasoned project finance professionals active in the origination, structuring, and completion of non-recourse financing for the entire Alpha Bank group. ▪ The current structured finance portfolio is well Energy diversified geographically as well as across the three key sectors of infrastructure, energy and real estate ▪ Structured finance team currently manages a portfolio of > € 1bn in project finance transactions PPP, PFI Real Estate
Who we are An excellent structured financier in the local infrastructure market – selected recent milestone transactions Transport • This announcementappears as a matter of record only. • This announcementappears as a matter of record only. • • T T • • T T • RANSACTION • RANSACTION • A • S • A • S • DVISORY • DVISORY • Saudi • Aramco • Saudi • Aramco 14 Regional Airports • Joint Venture Funding • Joint Venture Funding € 965m • US$9.8bn • US$9.8bn Egnatia Odos Privatisation 2017 Exclusive Financial Advisor Financial Advisor – Mandated Lead • Saudi Aramco. • Saudi Aramco. Arranger & Co-ordinator PPP • This announcement appears as a matter of record only. • This announcement appears as a matter of record only. • • T T • RANSACTION • • T T • RANSACTION • A • S • DVISORY • • A DVISORY • S • Saudi • Aramco • Saudi • Aramco Ipirus 105ktn MBT Waste Peloponnese 200ktn MBT Waste • Joint Venture Funding Management PPP Management PPP • Joint Venture Funding • US$9.8bn • US$9.8bn €50m € 80m 2017 Ongoing Financial Advisor – Mandated Lead Financial Advisor – Mandated Lead • Saudi Aramco. • Saudi Aramco. Arranger Arranger
Who we are An excellent structured financier in the local infrastructure market – selected recent milestone transactions Energy • This announcementappears as a matter of record only. • This announcementappears as a matter of record only. • This announcementappears as a matter of record only. • • • T T RANSACTION • • • T T RANSACTION • • T T • RANSACTION • • A DVISORY • S • • A DVISORY • S • A • S • DVISORY • Saudi • Aramco • Saudi • Aramco • Saudi • Aramco St. George Wind Park • Joint Venture Funding • Joint Venture Funding • Joint Venture Funding • US$9.8bn • US$9.8bn • US$9.8bn Goritsa Aiolos 33MW Kafireas Wind Parks 154MW 73,2MW € 33m € 230m € 125m 2016 Ongoing 2016 • Saudi Aramco. • Saudi Aramco. • Saudi Aramco. Mandated Lead Arranger Mandated Lead Arranger Mandated Lead Arranger • This announcementappears as a matter of record only. • • T T • This announcementappears as a matter of record only. • RANSACTION • This announcementappears as a matter of record only. • • T T • • T T • A • S • RANSACTION • RANSACTION • DVISORY • A • S • A • S • DVISORY • DVISORY • Saudi • Aramco • Saudi • Aramco • Saudi • Aramco • Joint Venture Funding • Joint Venture Funding • Joint Venture Funding Vermio Wind Park 44 MW Trikorfo Wind Parks 19MW • US$9.8bn DESFA Privatisation • US$9.8bn • US$9.8bn € 52m € 30m Ongoing 2018 2018 Financial Advisor • Saudi Aramco. • Saudi Aramco. • Saudi Aramco. Mandated Lead Arranger Mandated Lead Arranger
Our energy desk Experience Diversified direct sector experience having structured tailor made financings for: ◼ CCGT ◼ Lignite, ◼ Wind, ◼ Cogen ◼ Solar, ◼ Hydro projects Dedicated very experienced team of 4 professionals We have arranged and/or participated in syndicated/bilateral energy project finance transactions of more than total € 3billion value / 5 GW capacity Maintain strong long term relationships with key players • Currently (2018) we are arranging new >500 MW transactions for Enel, Terna, Eren and other key market participants • This announcementappears as a matter of record only. • • • T RANSACTION T • • A DVISORY • S • Excellent relationships with all development banks • Saudi • Aramco • Joint Venture Funding • US$9.8bn active in the country (EIB, EBRD, IFC) • Saudi Aramco.
Our Approach Simplified contractual arrangement Structuring Due Diligence Offtaker Sponsors Negotiation Finance BoP Documentation SPV Conditions O&M Precedent WTG Suppliers Lenders Consumers
Energy Market Penetrations Total Production and Net Imports in the Interconnected System Interconnected System - Installed Capacity Breakdown Installed Capacity in MW (Int'cted System 2017) Production & Int'ctions 2017 (in GWh) MV/LV Grid RES/Cogen; Imports; Large Hydro; (mostly RES); 5.266; 30% 6.237; 12% 3.169; 18% 4.730; 9% RES HV; Lignite; 5.835; 11% 16.387; 31% Other; 1; 0% Large Hydro (>15MW); 3.457; 7% Gas ; 5.245; Natural Gas; Lignite; 30% 15.397; 30% 3.912; 22% 10-year trend (since 2008) • Since 2008 lignite participation dropped from • Installed capacity of RES technologies’ is increasing >52% to 31% • Gas participation slightly increased from 23% to 30% • Relatively stable large hydros participation • RES penetration from 4% to 20%
Our focus in energy financing for 2018 – 2019 (1) Although we are closely monitoring all technologies, we are focusing on wind energy: • Mature technology (wind) • Experienced market players (sponsors, BoP, banks, state) • “Fair” IRR returns • Installed capacity still lagging targets hence expansion support is expected to continue • RES Market conditions have improved dramatically during the past 18 months; RES / auctions should promote efficiency and sustainability further Wind Energy Installed Capacity Targets Deviation Dec. 2017 in MWs 2014 Target 2020 Target Achievement Hydros 3.399 3.700 4.650 Small (0-15MW) 230 300 350 Large (>15MW) 3.169 3.400 4.300 PVs 2.229 1.500 2.200 agri-PVs 287 500 750 Other 1.942 1.000 1.450 Solar Thermal 0 120 250 Wind 2.625 4.000 7.500 Biomass/Biogas 61 200 350
Our focus in energy financing for 2018 – 2019 (2) • Renewables and especially Wind has proven an extremely resilient sector • Close to zero NPL in local banking market for wind projects RAE's Opinion (Feb. 2018) Year Technology Max Tendered Capacity (MW) Max Ref. Price 300 80€/MWh if >1MW // 85€/MWh if <1MW PVs 90 €/MWh 2018 Wind (>3MW but <50MW) 300 Pilot Common Tech.* 400 PVs 300 + previous remaining RES / 2019 Wind (>3MW but <50MW) 300 + previous remaining weighted average of previous bid(s) Wind Energy Pilot Common Tech.* 400 + previous remaining PVs 300 + previous remaining 2020 Wind (>3MW but <50MW) 300 + previous remaining weighted average of previous bid(s) Pilot Common Tech.* 400 + previous remaining *PV>10MW/Wind >50MW We have identified a strong international interest in the wind sector in Greece
Our Concerns - Market Viability & Sustainability RES Account Electricity Power RES Producers Suppliers • RES Levy • Electricity Market ( special Operator (LAGIE) • Pass-through • Settlement account ) • Transmission payment • Energy Market Operator (ADMIE) Rate Clearing Houses Consumers • Market Operator (Offtaker / HTSO / LAGIE) payment • The Special RES Account funding sources mainly delays reduced in 2017 mainly as a result of (ADMIE) are: sale - RES Levy (42%) - Suppliers Levy (19%) - SMP (23%) - Other (16%) PPC ▪ PPC’s liquidity condition
Our Concerns - Market Viability & Sustainability 0.120 0.100 0.080 ΟΤΣ 0.060 0.040 0.020 0.000 ▪ Limit price subsidies ensures long term viability ▪ Auctions should promote efficiency and sustainability through lower (but fair and sustainable) prices
Our Concerns - Market Viability & Sustainability ▪ Heavily regulated under the scrutiny of SSM / ECB ▪ Satisfactory (but expansive) liquidity of Greek banks Appetite for providing long term project financing for the development of new wind parks Local but Banking Market ▪ Market participants and the regulator should work towards a smooth market operation ▪ RES account deficit and payment delays have been improved but still producers from the (PV) pilot programme have not been paid yet!!!! ▪ Avoid cannibalization of the market – financial structures will be pushed to riskier profiles
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