514 michael hofer sam gmb h


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514 michael hofer sam gmb h

  1. 1. SAM Company Presentation SAM GmbH Franziskanerplatz 3 1010 Vienna, Austria www.s-a-management.com
  2. 2. SAM GmbH • An Austrian Consulting Company • Specialised in the development of sustainable, social repsonsible and feasible investments in emerging markets • provides comprehensive services covering – Technical and Engineering expertise – Financial Advisory – legal services and – project management support
  3. 3. Our Team • Management Team covering different aspects of Business – Gerhard Sabathiel: Strategy and Finance – Asu Ergueler: Technology and Sustainability – Andreas Weiler: Legal and Compliance • Business and Expert Teams in different countries supporting customers locally • International Experts Pool securing international expertise and standards
  4. 4. SAM supports Investors in • Hydro Power • Bio Energy/Biomass • Solar Energy • Geothermal Energy • Waste to Energy • Waste Management • Energy Efficiency
  5. 5. SAM works with • Private and Institutional investors • Commercial and Development Banks • Multinational Financial Institutions • Private Equity Firms • Technology Providers • Governmental Organisations
  6. 6. Agenda  Renewable Energy Key Drivers  Challenges of Expanding Renewables Investments in Emerging Markets  Project Financing  Renewable Energy Project Finance Structure  Renewable Energy Investment Case  Risk and its Mitigation in Renewable Energy Project Financing  Types of Financing  Forms of Financing  Contact Details
  7. 7. Renewale Energy Key Drivers Economic • Rising oil price makes Renewables more attractive • Utilizes domestic resources that can displace imports • Generates employment and new enterprises • By-product sales improve enterprise viability (i.e. solar) Environmental • Represents reduced air emissions • Helps combat climate change/global warming • Supports sustainability/eco-efficiency at enterprise level Social • Can help rural areas combat large scale migration to urban areas • Governments, industry, and local population recognize value • Individuals want to support “green energy”
  8. 8. Challenges of Expanding Renewables Investments in Emerging Markets • Developing bankable private infrastructure projects is a complex business • The nature of renewable energy projects often compounds these challenges: small sponsors, limited experience, high cost, lack of scale, regulatory barriers, etc) • Smaller Size and longer preparaion time lead to higher transaction cost • Funding for project preparation support • New technologies create higher operational risk and higher financing cost as they are often unknown to the financiers
  9. 9. Project Financing  … is the raising of funds to finance an economically separable capital investment in which the cash flow from the project itself is used as the source to service loans and provide return on equity, but …  … Capital investment by the sponsors of a project usually necessary and …  … is not a way to finance a project that is economically too weak to service debt and/or generate an acceptable return of investment for equity investors
  10. 10. Renewable Energy Project Finance Structure
  11. 11. Renewable Energy Investment Case Generally a renewable energy investment can be divided into 5 phases: Start up Phase Exploration Phase Feasibility Phase Design and Construction Phase Operating Phase
  12. 12. Risk and its Mitigation in Renewable Energy Project Financing  Sponsor Risk – financial strength, equity  Financing Risk – create bankable documents, financial consultants  Completion Risk – insurances, turn-key contracts  Operation Risk – third party O&M contractor, efficiency  Revenue/Sales Risk – business plan, PPA  Regulatory Risk – legal framework  Political Risk – currency, political risk insurance  Force Majeure Risk And …
  13. 13. Types of Financing Project Development • covering cost for : – preparation of pre- feasibility and feasibility studies – business plans • in form of loans or grants Project Finance • Finance arrangement focused more on projected revenue streams than on creditworthiness of the project sponsor Corporate Finance • Based on underlying assets of balance sheet used as collateral for projected revenues Trade Finance • Often in form of export credit to support export of goods • Arrangement with local bank needed to support Bank guarantees or L/C‘s Venture Capital • Used for start up companies, which do not have a track record or financial base to support conventional bank financing
  14. 14. Forms of Financing Equity – Provided by project sponsor – Provided by equity investors in return for an ownership interest in the project Debt – Loan being secured by assets of a company and/or a project Grants – Available from governmental organizations – Shall support project development and/or feasibility
  15. 15. Contact Details Gerhard Sabathiel Mobile +43 6991 612 61 76 General Manager & Member of the Board Tel: +43 1 205 108 5538 Franziskanerplatz 3/11 Fax: +43 1 205 108 5539 1010 Vienna, Austria sabathiel@s-a-management.com Dr. Ing. Michael Hofer SAM GmbH - Representation Partner Office Peru Jr. San Lorenzo No.300 - Surquillo Lima 34, Peru Tel: + 51 1 2414370 E-mail: m.hofer@s-a-management.com www.s-a-management.com