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Tendencies in Mining Finance

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Relevant legislation in aspects of financing, as well as a number of challenges to be dealt with in the future, as a precondition for increase in project finance and alternative financing models in Serbia’s mining sector.

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Tendencies in Mining Finance

  1. 1. karanovic/nikolic Selected Tendencies in Mining Finance 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  2. 2. karanovic/nikolic Local Regulatory Framework ▬ Law on Mining and Geological Explorations — ▬ Law on PPP and Concessions — 2 Novelties announced Investor/financier friendly solutions 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  3. 3. karanovic/nikolic Relevant loan collaterals BANKABILITY OF THE PROJECT The position of the Lenders 3 Reputational issues, other projects Anticipated cash flow margin 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  4. 4. karanovic/nikolic PROJECT FINANCE 4 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  5. 5. karanovic/nikolic Project Finance & PPP ▬ ▬ Questionable relations between the SPV, partners and the lenders? ▬ Securing the loan in PPP transactions ▬ 5 Possibilities under the Law on PPP and Concessions Limitations 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  6. 6. karanovic/nikolic Direct Agreements & PPP ▬ ▬ Law on PPP and Direct Agreements ▬ Prior approval of the authority ▬ 6 Concept of Direct Agreements Local practice 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  7. 7. karanovic/nikolic Comparison of Available Security ▬ ▬ Direct Agreements favored by financiers ▬ 7 Traditional collaterals vs. Direct Agreements Pledge over concession rights? 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  8. 8. karanovic/nikolic Other Finance Models ▬ ▬ Private Equity ▬ Mezzanine Finance ▬ 8 IFI Equity Commodity Streaming 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  9. 9. karanovic/nikolic The concept of MF MEZZANINE FINANCE Hybrid nature Higher rate of return 9 Local possibiliti es/issues 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  10. 10. karanovic/nikolic The concept of stream financing Features of commodity streaming COMMODITY STREAMING Global experiences + Commodity Forwards 10 Local possibilities 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  11. 11. karanovic/nikolic Contact Miloš Vučković SENIOR PARTNER milos.vuckovic@karanovicnikolic.com Resavska 23 11000 Belgrade Serbia T + 381 11 3094 200 F + 381 11 3094 223 11 3rd International Conference on Mineral Resources in the Republic of Serbia - Belgrade, 1 November 2013
  12. 12. karanovic/nikolic Thank you

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