1. Renewable Energy Project Financing
North American Development Bank (NADB)
Esaúl Ramírez
Analysis and Structuring Officer
October 19, 2012

2. Background
NADB Structure
1. The NADB was established in 1994 NADB is capitalized and governed equally
under the auspices of the North by the governments of both the United
American Free Trade Agreement States and Mexico.
(NAFTA) between the United States
and Mexico. USA MEXICO
2. One of NADB’s objectives is to 50% 50%
facilitate financing for
environmental projects along the
North American Development Bank
US-MEX border region.
NADB has a Aaa/ AA+ credit rating
3. NADB also promotes sustainable
development among the
communities throughout the region.

3. NADB Board of Directors
• Secretary of the Treasury
• Secretary of State
• Administrator, Environmental Protection Agency
• U.S. Border State Representative
• U.S. Border Public Representative
U.S.A.
• Secretary of Finance and Public Credit
• Secretary of Foreign Affairs
• Secretary of the Environment and Natural Resources
• Mexican Border State Representative
• Mexican Border Public Representative
Mexico

4. NADB Jurisdiction

5. Programs & Eligible Sectors
NADB PROGRAMS
Loan Technical Assistance
• Competitive fixed or floating rates • Support project development with regards to
Support project development with regards
the closing of financing, project design, related
to the closing of financing, project design,
• Focuses on the financial viability of projects
development studies, and project bidding
related development studies, and project
(credit risk analysis, source of repayment,
collateral and guarantee structure) bidding
Eligible Sectors
Residential, industrial and Renewable Energy Efficiency
Water and Sewage Air Quality
hazardous waste Energy
 Potable water  Landfills  Street paving  Wind  Public lighting
treatment plants  Recycling  Pavement  Solar  Equipment
 Sewage and  Equipment rehabilitation  Hydroelectric replacement
wastewater  Toxic waste
 Road bypasses  Geothermal  Water
treatment disposal  Urban mass transit efficiency
 Bio-fuels
 Water conservation systems programs
 Biomass
 Storm drainage  Border crossings  Methane
capture

6. Renewable Energy Potential in the US-Mexico Border Region
● A region with world class renewable energy resources
Source: National Renewable Energy Laboratory

7. Renewable Energy Financing
NADB’s advantages for financing renewable energy projects include:
●Loan terms of up to 25 years:
 Usually 2 - 3 years shorter than the term of the PPA
●Competitive financing:
 Attractive fees/commissions and competitive rates
●Fixed and variable rates; both in USD and MXN
●NADB’s extensive experience in the RE sector allows the Bank to provide guidance
throughout the project in subjects related to legal, financial, technical, etc.
●NADB works together with some of the most experienced companies in the sector,
including:
 Garrad Hassan  BEW Engineering
 Chadbourne and Parke  Navigant
 Black & Veatch  Large and small sponsors (i.e. utilities)

8. Renewable Energy Financing (cont’d)
● NADB’s maximum loan amount is the lesser of the following:
 85% of the total project cost
 $110M for private sector projects and USD$180M for public sector projects.
● NADB sizes and amortizes debt based on the project’s expected cash flows.
 Solar: DSCR of 1.30x at the P50 production level or 1.0x at the P99
 Wind: DSCR of 1.40x at the P50 production level or 1.0x at the P99
● Key drivers of bankable renewable energy projects include:
 Strong sponsor/developer
 Long-term PPA with a strong off-taker
 Secured interconnection/transmission
 Proven technology
 Secured land rights (leased or owned)
 Independently validated renewable energy resource

9. Recent Renewable Energy Financings
● NADB has financed nearly 400 MW of renewable energy projects since 2011.
 4 solar projects, 2 wind projects
 5 projects in the U.S., one in Mexico
Solar Project Solar Project Wind Project Wind Project
23MW 5 MW 265 MW 54 MW
CETSA
Loan: USD 77.4 M Loan: USD 13.1 M Loan: USD 110 M Loan: USD 51 M
Niland, California • 2011 Tucson, Arizona • 2012 Ocotillo, California • 2012 Reynosa, Tamps. • 2012
● NADB is currently working on a pipeline of over 500 MW, expected to close within
the next year.
● NADB has experience in project financing both as the sole lender or as part of a club
with other Banks.

10. Recent Renewable Energy Financings (cont’d)
SunPeak 23 MW
Project Summary:
•Commercial operation date • Off-taker: Imperial Irrigation District
Aug 1st, 2012 • 30 year PPA
•60 km North from the Mexican border • Over 20 thousand metric tons of
•USD$77M loan CO2/ year will be displaced
•+99 thousand polycrystalline panels
Niland,
California

11. Recent Renewable Energy Financings (cont’d)
Astronergy 5 MW
Project Summary:
•Loan USD$13M
•40 acres
•PPA 20 years
•Off-taker: Tucson Electric
Power
•Amorphous silicon (thin film)
solar panels
•Over 7 thousand metric tons
of CO2/ year will be displaced
•Commenced operations May
11th, 2012
Tucson, Arizona

12. Recent Renewable Energy Financings (cont’d)
Ocotillo 265 MW
Project Summary:
•Loan USD$110M
•PPA 20 years
•Off-taker: San Diego Gas and
Electric
•Siemens Turbines
•End of construction
December 2012.
•Over 175 thousand metric
tons of CO2/ year will be
displaced on its first
operational year.
Ocotillo, California

13. Recent Renewable Energy Financings (cont’d)
El Porvenir 54 MW
Project Summary:
•Loan USD$51M
•PPA 15 years
•Off-taker: Soriana
•Vestas Turbines
•Over 90 thousand metric
tons of CO2/ year will be
displaced on its first
operational year.
•Construction to begin
December 2012.
Reynosa, Tamaulipas

14. Contact
Esaúl Ramírez
Analysis and Structuring Officer
ERamirez@nadb.org
North American Development Bank
203 South Saint Mary’s Street
San Antonio, Texas 78209
Tel: (+1) 210-231-8000
Fax: (+1)210-231-6232
www.nadb.org