Invited by KPMG of Taiwan to give a almost 4-hour training course, the attached business development manual of how to structure a project finance transaction and financial modelling had been developed.
A project financing structure should includes, at least, project evaluation, security arrangement, investment structrcure, and capital structure. This 225-page business development manual, especially for offshore win farm project and BOO/BOT waste-to-energy project, focus on project evaluation and security arrangement you need to know if you want to be an infrastructure investor and manage an infrastructure equity fund.
This document provides an overview of venture capital and the venture capital process. It begins with definitions of venture capital and venture capitalists. It then covers the typical stages of a venture capital fund and business model. It also describes common venture capital investment instruments and exit mechanisms. The rest of the document details various aspects of the venture capital process, including screening ventures, valuation methods, financing over a venture's lifecycle, and term sheet components.
The document discusses value chains and sales models. A value chain outlines how independent entities work together to deliver a product to end users, with each entity adding value and receiving compensation. A sales model defines who buys the product, what steps are involved in the sales process, when and where sales occur, and how much revenue is generated at each step. The document provides examples of different types of value chains and sales approaches a company could take, from direct sales to licensing intellectual property.
Debt or Equity Financing : Stephenson Real Estate Recapitalization Case StudyUun Ainurrofiq (Fiq)
Stephenson Real Estate is considering purchasing a tract of land for $60 million. It currently has no debt and is fully equity financed. The company's market value is $710 million with 20 million shares outstanding trading at $35.50 per share. Financing the purchase with debt would maximize the company's total market value compared to equity financing due to the tax shield benefits of interest payments.
This document provides an overview of different forms of private equity funding. It discusses why companies need funds and when equity financing is preferred over debt. It then describes various forms of private equity including angel investors, venture capital, growth-stage private equity, buyout funds, and mezzanine debt. The document reviews recent trends in private equity deals and sectors. It also outlines the general private equity investment process, valuation methods, deal structures, exit options, and considerations for private equity funding. In the conclusion, it notes that private equity is operating in a challenging environment with a large pipeline of future exits.
Mutual funds pool money from small investors to purchase a variety of securities. They have grown tremendously over the past few decades, with over $14 trillion in assets currently held in mutual funds. Mutual funds provide benefits like diversification, liquidity, and lower costs compared to individual investing. They are organized with shareholders as owners, a board of directors to oversee operations, and an investment advisor to manage the fund's day-to-day activities. Funds are classified based on their investment objectives such as holding stocks, bonds, or a mix of both.
This chapter analyzes the economic functions of the financial system. It identifies several key facts about financial structure: 1) banks are the primary source of external financing for businesses; 2) debt contracts are more common than equity; 3) financial intermediation reduces transaction costs. The chapter also discusses how asymmetric information between lenders and borrowers/shareholders and managers can lead to adverse selection and moral hazard problems. It analyzes various tools used to mitigate these issues, such as collateral, monitoring, and financial intermediation.
This document provides an overview of venture capital and the venture capital process. It begins with definitions of venture capital and venture capitalists. It then covers the typical stages of a venture capital fund and business model. It also describes common venture capital investment instruments and exit mechanisms. The rest of the document details various aspects of the venture capital process, including screening ventures, valuation methods, financing over a venture's lifecycle, and term sheet components.
The document discusses value chains and sales models. A value chain outlines how independent entities work together to deliver a product to end users, with each entity adding value and receiving compensation. A sales model defines who buys the product, what steps are involved in the sales process, when and where sales occur, and how much revenue is generated at each step. The document provides examples of different types of value chains and sales approaches a company could take, from direct sales to licensing intellectual property.
Debt or Equity Financing : Stephenson Real Estate Recapitalization Case StudyUun Ainurrofiq (Fiq)
Stephenson Real Estate is considering purchasing a tract of land for $60 million. It currently has no debt and is fully equity financed. The company's market value is $710 million with 20 million shares outstanding trading at $35.50 per share. Financing the purchase with debt would maximize the company's total market value compared to equity financing due to the tax shield benefits of interest payments.
This document provides an overview of different forms of private equity funding. It discusses why companies need funds and when equity financing is preferred over debt. It then describes various forms of private equity including angel investors, venture capital, growth-stage private equity, buyout funds, and mezzanine debt. The document reviews recent trends in private equity deals and sectors. It also outlines the general private equity investment process, valuation methods, deal structures, exit options, and considerations for private equity funding. In the conclusion, it notes that private equity is operating in a challenging environment with a large pipeline of future exits.
Mutual funds pool money from small investors to purchase a variety of securities. They have grown tremendously over the past few decades, with over $14 trillion in assets currently held in mutual funds. Mutual funds provide benefits like diversification, liquidity, and lower costs compared to individual investing. They are organized with shareholders as owners, a board of directors to oversee operations, and an investment advisor to manage the fund's day-to-day activities. Funds are classified based on their investment objectives such as holding stocks, bonds, or a mix of both.
This chapter analyzes the economic functions of the financial system. It identifies several key facts about financial structure: 1) banks are the primary source of external financing for businesses; 2) debt contracts are more common than equity; 3) financial intermediation reduces transaction costs. The chapter also discusses how asymmetric information between lenders and borrowers/shareholders and managers can lead to adverse selection and moral hazard problems. It analyzes various tools used to mitigate these issues, such as collateral, monitoring, and financial intermediation.
This chapter discusses the time value of money, which is the principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. It covers compound interest, future and present value, annuities, perpetuities, and applications such as loans. Key concepts are future value, which calculates how much an investment will be worth over time, and present value, which determines the current worth of future cash flows. Various time value of money formulas are presented along with examples of their use.
This document provides an overview of different sources of capital for businesses at various stages. It discusses that capital is needed to pay expenses for new and established businesses. There are different stages of financing including seed/start-up capital, expansion capital, and acquisition capital. Seed capital for start-ups comes mostly from personal resources, friends/family, angel investors, customers/vendors, and matching services. Established businesses can get expansion capital through commercial loans, SBA loans, private equity offerings, and venture capital. Mature businesses looking to be acquired can do so through investment banks in mergers, acquisitions, or initial public offerings.
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
This document discusses the potential value that venture capital firms (VCs) can provide to entrepreneurs beyond just funding. It argues that while VCs are primarily financial investors, the best ones can significantly help startups through advice, connections, experience and other support. However, the level and type of support varies greatly between VCs and depends on factors like the individual VC's skills and the firm's resources and approach. The document also notes some potential misalignments between VCs and entrepreneurs.
Private equity funds are investment vehicles comprised of limited partners who invest capital and general partners who manage the funds. They have a limited lifetime of typically 10 years to make investments and then another 2 years to sell investments and return profits to investors. General partners receive management fees of around 1-2% of assets under management as well as carried interest, usually 20% of profits above an 8% hurdle rate. This structure allows for investors and managers to benefit from private equity returns without incurring multiple layers of taxation.
A presentation by Andreas Schulze of Marsa Corporate finance to the DayOne Accelerator discussing valuation of early stage companies.
If you would like a copy for download, please contact andreas.schulze@marsaco.com
This document summarizes key aspects of index models from the textbook "Investments" by Bodie, Kane, and Marcus. It discusses the advantages of index models over the Markowitz model, including requiring fewer estimates and enhancing security risk analysis. The single-index model relates security return to market return through sensitivity coefficients. While the full Markowitz model is theoretically superior, the index model is more practical and reduces estimation risk.
This chapter provides an overview of the topics that will be covered in the course, including money, banking, financial institutions, financial instruments, financial markets, and central banks. It describes the five core components of the financial system as money, financial institutions, financial instruments, financial markets, and central banks. It provides brief definitions and discussions of these components, as well as concepts like monetary policy, fiscal policy, and the roles of central banks.
Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from Early Growth Financial Services (www.egfs.co).
This presentation explores how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!
NayaOne is excited to release the first of our monthly industry insights reports, ‘NayaOne Insights' - designed to share actionable intelligence on industry collaboration, business transformation, and corporate innovation themes.
NayaOne Insights explores the strategic alliances and technology partnerships financial institutions and fintechs are embracing to launch and scale new products and reimagine traditional business models.
The documentary "Inside Job" examines the 2008 global financial crisis over five parts: (1) how the crisis began through deregulation and risky financial practices, (2) the housing bubble, (3) the crisis and collapse, (4) lack of accountability as executives were paid bonuses, and (5) ongoing economic weaknesses. Directed by Charles Ferguson, it won the 2011 Oscar for best documentary and critiques the roles of banks, credit agencies, government officials, and economists in igniting and failing to prevent the crisis.
Introduction to Venture Capital and Private Equityguest89b446
I was invited to speak at the HR College of Commerce in Mumbai today as part of their "Corporate Dialogue" lecture series. This deck introduces freshman and sophomore students in commerce, economics and finance to venture capital, private equity and entrepreneurship. It also presents a primer on career options in finance for college graduates in India.
This document discusses personal finance planning and management. It begins by defining personal finance planning and outlining its objectives. It then describes the key steps in personal finance planning, which include assessing one's current financial position, determining goals, establishing sources of income and expenditures, and developing strategies. The document emphasizes the importance of planning and the consequences of not planning one's finances. It provides examples of assets, liabilities, income sources and expenditures to consider.
We are big advocates of transparency at Seedcamp and understand first hand just how tough the fundraising process can be. It's not just startups who go through this but funds too. In the spirit of openness, we're sharing the deck we used to go out to investors for Seedcamp Fund IV.
Read more about our plans to invest in 100 new European startups with our biggest and boldest fund yet over on our blog: http://seedcamp.com/seedcamp-fund-iv-announcement/
This chapter discusses the time value of money, which is the principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. It covers compound interest, future and present value, annuities, perpetuities, and applications such as loans. Key concepts are future value, which calculates how much an investment will be worth over time, and present value, which determines the current worth of future cash flows. Various time value of money formulas are presented along with examples of their use.
This document provides an overview of different sources of capital for businesses at various stages. It discusses that capital is needed to pay expenses for new and established businesses. There are different stages of financing including seed/start-up capital, expansion capital, and acquisition capital. Seed capital for start-ups comes mostly from personal resources, friends/family, angel investors, customers/vendors, and matching services. Established businesses can get expansion capital through commercial loans, SBA loans, private equity offerings, and venture capital. Mature businesses looking to be acquired can do so through investment banks in mergers, acquisitions, or initial public offerings.
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
Summary research from interviews with 13 CVCs to identify best practices in creating a corporate venture capital (CVC) unit or a corporate accelerator.
Key takeaways include having clear objectives, clear processes and structure, easy to measure metrics, having patience and board or executive support, and making contributions to select startups that go well beyond capital.
I hope you find it useful. Feel free to distribute further to others who might find value in it.
You can reach me at https://www.linkedin.com/in/markbrooks
This document discusses the potential value that venture capital firms (VCs) can provide to entrepreneurs beyond just funding. It argues that while VCs are primarily financial investors, the best ones can significantly help startups through advice, connections, experience and other support. However, the level and type of support varies greatly between VCs and depends on factors like the individual VC's skills and the firm's resources and approach. The document also notes some potential misalignments between VCs and entrepreneurs.
Private equity funds are investment vehicles comprised of limited partners who invest capital and general partners who manage the funds. They have a limited lifetime of typically 10 years to make investments and then another 2 years to sell investments and return profits to investors. General partners receive management fees of around 1-2% of assets under management as well as carried interest, usually 20% of profits above an 8% hurdle rate. This structure allows for investors and managers to benefit from private equity returns without incurring multiple layers of taxation.
A presentation by Andreas Schulze of Marsa Corporate finance to the DayOne Accelerator discussing valuation of early stage companies.
If you would like a copy for download, please contact andreas.schulze@marsaco.com
This document summarizes key aspects of index models from the textbook "Investments" by Bodie, Kane, and Marcus. It discusses the advantages of index models over the Markowitz model, including requiring fewer estimates and enhancing security risk analysis. The single-index model relates security return to market return through sensitivity coefficients. While the full Markowitz model is theoretically superior, the index model is more practical and reduces estimation risk.
This chapter provides an overview of the topics that will be covered in the course, including money, banking, financial institutions, financial instruments, financial markets, and central banks. It describes the five core components of the financial system as money, financial institutions, financial instruments, financial markets, and central banks. It provides brief definitions and discussions of these components, as well as concepts like monetary policy, fiscal policy, and the roles of central banks.
Convertible notes are one of the most common ways investors invest in early-stage startups. And yet, even with their popularity, they are still quite confusing to many founders.
If you've looking for a greater understanding of convertible notes, check out this presentation from Kevin Smith from SEEDCHANGE (www.seedchange.com) and Gadiel Morantes from Early Growth Financial Services (www.egfs.co).
This presentation explores how convertible notes really work, including:
- Why convertible notes vs. shares of common or preferred stock
- Convertible note terms - and the terms that REALLY matter
- Conversion mechanics
- Valuation cap
- Safe alternatives to convertible notes
- and more....!
NayaOne is excited to release the first of our monthly industry insights reports, ‘NayaOne Insights' - designed to share actionable intelligence on industry collaboration, business transformation, and corporate innovation themes.
NayaOne Insights explores the strategic alliances and technology partnerships financial institutions and fintechs are embracing to launch and scale new products and reimagine traditional business models.
The documentary "Inside Job" examines the 2008 global financial crisis over five parts: (1) how the crisis began through deregulation and risky financial practices, (2) the housing bubble, (3) the crisis and collapse, (4) lack of accountability as executives were paid bonuses, and (5) ongoing economic weaknesses. Directed by Charles Ferguson, it won the 2011 Oscar for best documentary and critiques the roles of banks, credit agencies, government officials, and economists in igniting and failing to prevent the crisis.
Introduction to Venture Capital and Private Equityguest89b446
I was invited to speak at the HR College of Commerce in Mumbai today as part of their "Corporate Dialogue" lecture series. This deck introduces freshman and sophomore students in commerce, economics and finance to venture capital, private equity and entrepreneurship. It also presents a primer on career options in finance for college graduates in India.
This document discusses personal finance planning and management. It begins by defining personal finance planning and outlining its objectives. It then describes the key steps in personal finance planning, which include assessing one's current financial position, determining goals, establishing sources of income and expenditures, and developing strategies. The document emphasizes the importance of planning and the consequences of not planning one's finances. It provides examples of assets, liabilities, income sources and expenditures to consider.
We are big advocates of transparency at Seedcamp and understand first hand just how tough the fundraising process can be. It's not just startups who go through this but funds too. In the spirit of openness, we're sharing the deck we used to go out to investors for Seedcamp Fund IV.
Read more about our plans to invest in 100 new European startups with our biggest and boldest fund yet over on our blog: http://seedcamp.com/seedcamp-fund-iv-announcement/
40. Construction Contract Structure
- Why Completion Guarantee Matters
SPV Sponsors
Turbine Supply
Contract
Foundation
Design Contract
Foundation
Installation
Array Cable
Supply Contract
Array Cable
Installation
Export Cable
Supply Contract
Export Cable
Installation
Grid Connection
Installation
Vessel
others
Sponsors = EPC ?
Who issues Completion Guarantee ?
Cost overrun、Project delay、
Performance ?
Who is Responsible for Construction ?
What is the role of Sponsors ?
Cost and Profit ?
Scope of Work ?
Banks assume construction risks?
Jen Wu's Proprietary Information19/7/4 40
63. 發電量比較表
廠名
商轉年
焚化量
(噸 / 天)
蒸汽壓力
(psig/bar)
蒸汽溫度
(OF/OC)
發電量(MW)
North Andover 1985
1500
600/40
750/400
42.2
Millbury 1987
1500
850/60
850/450
45.6
Falls 1994
1500
1300/90
930/500
53.1
19/7/4 Jen Wu's Proprietary Information 63 of 28
64. Solid Waste
19/7/4 Jen Wu's Proprietary Information
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
5500000
6000000
6500000
7000000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tonnes
Year
Solid Waste
Total Waste Received
MSW
ISW
Total Waste Incinerated
64
65. Ash
19/7/4 Jen Wu's Proprietary Information
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tonnes
Year
Ash
Total Ash Generated
Bottom Ash
Fly Ash with Reaction Product
Fly Ash Delivered to Landfill
65
66. Power
19/7/4 Jen Wu's Proprietary Information
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year
Power
Power Gen (MWh)
Power Sold (MWh)
Power Revenue ('000)
66
80. European NCF v. Taiwan NCF
• May have different measuring point
• Measuring point
• European : Offshore Substation
• Taiwan : Onshore Substation
• Euro NCF TW NCF
• Euro NCF may be similar to TW GCF (Gross Net Capacity Factor)
• TW NCF / TW GCF = 82 ~ 83% derived from Taipower’s
feasibility study of the phase 2 OWF project
• Please refer to the following for more detailed information:
「台電的離岸風電發電量與售電量的估算公式」
https://www.facebook.com/jenwu.projectfinance/posts/1364982076938359
Jen Wu's Proprietary Information19/7/4 80
107. Equity IRR、NPV
• Equity IRR
• Unleveraged equity IRR
• Leveraged equity IRR – 一般unleveraged equity IRR + 2 ~3%
• NPV @ discount rate
• Discount rate、hurdle rate、minimum acceptable rate of
return(MARR)
• Cost of Equity - if the exact debt-financing such as interest rate、loan
term、debt/equity ratio and repayment schedules is KNOWN
• WACC - if the exact debt-financing such as interest rate、loan term
except given debt/equity ratio and repayment schedules is UNKNOWN
Jen Wu's Proprietary Information19/7/4 107
108. Equity IRR、NPV
• Equity IRR MARR à GO
• NPV @ discount rate 0 à GO
• DSCR
• Payback period
• 最重要的一點 – 從第一年operation開始,到特許權期限結
束,net cash flow就必須「 0」
• 除非是不可抗力因素發生,在operation period,每一年都產生正的現
金流量,代表項目可以完全靠自己產生的現金流量存活、正常運轉
• 項目在特許權期限內,不用再依賴開發商繼續注入Equity或是國內銀
行貸款情境下,項目完全可以自己靠自己而存活
• 同時開發商跟國內銀行的權益都會獲得保障
Jen Wu's Proprietary Information19/7/4 108
109. 資金成本或報酬率
• QE以前(正常利率下)的評估:
• 投資開發商評估角度:Equity Return
• 銀行評估角度:Project IRR, Project NPV
• 為追求更高Equity Return,投資開發商通常要求:
• 更少的自有資金
• 更長的貸款年限
• 更低的debt service coverage ratio (DSCR)
• annuity repayment schedule
• 高風險項目 v. 低風險項目
• 高自有資金 v. 低自有資金 (Low D/E ratio v. High D/E ratio)
• 貸款年限短 v. 貸款年限長
• 本金定額攤還 v. 本息定額攤還
• 高DSCR v. 低DSCR
• 離岸風電 v. 燃煤、燃氣IPP à 何者是相對高風險 ?
19/7/4 Jen Wu's Proprietary Information 109
117. Project Assumptions Structure
1. Total Project Cost
2. Total Operation and Maintenance Expenses
3. Operation Data such as power gen, power sold, waste
tonnage
4. Tipping Fee、Tariff、 Steam Price – Known or Unknown
• KNOWN – e.g. Feed-in-Tariff for OWF project
• Selection, Financial model is much easier to build
• UNKNOWN – Calculated through financial model
• Bidding, Financial model is much more complicated to build
5. Financing
6. Equity Participants
7. Tax and Depreciation
8. Risk and Return – Discount Rate
19/7/4 Jen Wu's Proprietary Information 117
129. I. 融資成本(Financing Costs)
A. 貸款比例(Component of debt, Debt/Equity ratio)
B. 貸款種類與所佔比例(Size and tenure of debts)
C. 利率與融資服務、管理費(Interest rate and arrangement fees)
D. 本金利息攤還期程(Repayment schedule)
E. 自有資金的承諾(Equity commitment)
F. 外匯兌換與匯率(Currency exchange)
II. 稅務與折舊(Tax and depreciation)
A. 稅率包含投資地區與投資商本國稅率(Tax rate)
B. 稅務優惠(Tax holiday)
C. 折舊規定(depreciation schedule)
D. 通貨膨膨率(Inflation rate)
E. 保險(Insurance)
F. 關稅/加值型營業稅(Import duties / value added taxes)
商業議題
– Plant Size、Total Investment Cost、OM Cost etc
Jen Wu's Proprietary Information19/7/4 129
130. 商業議題
– Plant Size、Total Investment Cost、OM Cost etc
III. 投資總額(Total project cost)
A. 建廠費用(EPC Contract)
B. 計畫開發費(Development cost)
C. 建廠期間之利息(Interest During Construction,簡稱I DC)
D. 土地成本(Land Cost)
E. 專⼾戶存款利利息(Interest Earnings)
F. 貸款手續費(Debt Issuence Expense)
G. 還款(含本金與利息)準備金(Debt Reserve)
H. 試運轉期間之收入(Startup Revenue)
I. 試運轉期間之費用(Startup Cost)(含training及Salary)
J. 操作營運準備金(Work Capital)
K. 建造管理費(Construction Management Fee)
IV. 期程(Schedule)
A. 自有資金與貸款到位日期(Financial closing date)
B. 建廠期程(Construction Schedule)
C. 用款期程(Draw down schedule)
Jen Wu's Proprietary Information19/7/4 130
145. Decommissioning
• Removal or making safe of offshore infrastructure at the
end of its useful life, plus disposal of equipment.
• Decommissioning includes:
1. Turbine decommissioning
2. Foundation decommissioning
3. Cable decommissioning
4. Substation decommissioning
5. Decommissioning port
6. Reuse, recycling or disposal
7. Environmental surveys
Jen Wu's Proprietary Information19/7/4 145
147. Project Assumptions (1 pounds = 40 NTD)
• Capital cost
• Development and project management cost - 4,800 NTD/kw
• Wind turbine cost – 40,000 NTD/kw
• Balance of Plant – 24,000 NTD/kw
• Installation and commissioning cost – 26,000 NTD/kw
• Decommissioning cost (Taiwan) – 4,000 NTD/kw
• 漁業補償成本:1,210 NTD/kw
• 加強電力網成本:5,983 NTD/kw
• Total Capital Cost = 105,993 NTD/kw
• OM cost
• 3,000 NTD per year per kw, escalation 1.5% per year
Jen Wu's Proprietary Information19/7/4 147
148. Project Assumptions (1 pounds = 40 NTD)
• Financing
• Construction period: 36 months
• Construction financing interest rate: 2.5%
• Term loan interest rate: 2.5%
• Term of loan: 3 + 13 year (3 year for construction, 13 year for operation)
• Debt issuance cost: 2% of total debt
• Debt reserve fund: 6-month principal and interest (P + I)
• Working capital: 6-month OM cost
• Power sold
• Full load hours:4,200 hours
• Net capacity factor: 47.95%
• Reliable NCF
• 2022: 37.5%
• 2031: 37.5%
• 2041: 37.5%
Jen Wu's Proprietary Information19/7/4 148
162. Project Assumptions – Financing
• Debt/Equity Ratio = 75/25
• Construction period
• 30 months
• Construction financing interest rate: 2.5%
• ECA Debt
• 60% of Total Debt
• interest rate: 2.0%
• Term of loan: 3 + 13 year (3-year for construction, 13-year for operation)
• Commercial Bank Debt
• 40% of Total Debt
• interest rate: 2.5%
• Term of loan: 3 + 10 year (3-year for construction, 10-year for operation)
Jen Wu's Proprietary Information19/7/4 162
166. Summary of Project Results (Base Case)
• Equity IRR = 17.25%
• Average Debt Service Coverage Ratio = 1.88
• Pay Back Period = 3.9 years
• Net Present Value (NPV) at designate discount rate
• Projects are undertaken because they have a positive NPV.
• If a NPV is positive at the designated discount rate, this means the rate of
return is higher than the designated discount rate.
• NPV@ xx% - Please refer to the next page.
• Net Cash Flow Year 1 – 20 0
Jen Wu's Proprietary Information19/7/4 166
186. 20 Credit Enhancement Checklists
1. 風險分擔、責任分配與保
險,特別是不可抗力與法
律變更
2. Project guarantor for
performance guarantee
3. Equity First, NO pro rata
4. Debt/Equity ratio、working
capital、Debt service
reserve fund、Debt service
coverage ratio
5. Cost overrun and project
completion guarantee
6. Cash deficiency guarantee
(“CDG”) and cash waterfall
7. 發(售)電量 – P50、P90、P99、
1 year、20 year、Net Capacity
Factor
8. 利率風險 – 從低到高
9. 投資架構與提早出場
10. 技術風險
Jen Wu's Proprietary Information19/7/4 186
187. 20 Credit Enhancement Checklists
11. 智慧財產權的侵權
12. EPC或投資開發商當EPC
13. OM contractor
14. OM cost impact on the
project after wind turbine
warranty period
15. Curtailment
16. Interconnection to the
TPC’s grid
17. Risks and responsibilities
assumed by government
other than TPC
18. Corporate guarantee
19. 本末倒置的順序 – 海洋風
電的融資
20. Broker、Developer-like
Broker、developer only、
full service developer
Jen Wu's Proprietary Information19/7/4 187