Investor Days 2016

Investor Days 2016
MAKING MONEY FLOW – STRATEGIES TO
INCREASE ENERGY INVESTMENTS IN THE
EUROPEAN BUILDING SECTOR
FEBRUARY 22-23
REPRESENTATION OF THE STATE OF NORTH RHINE-WESTPHALIA
TO THE EU
PANEL 1 - PROJECT INVESTMENT – INVESTORS TELL US HOW
TO INCREASE DEAL FLOW
Moderation: Panama Bartholomy (ICP EU)
Lada Strelnikova (Deutsche Bank), Manuel Dueñas (European
Investment Bank), Jessica Stromback (Joule Assets), Sebastian
Carneiro (Director CFA, SUSI Partners), James Vaccaro ( Triodos
Bank)
James Vaccaro, Director of Corporate Strategy
Triodos Bank
Investor Days 2016
Brussels, February 23, 2016
Energy Efficiency for Buildings
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Social systems: how will it affect people/functionality of the space?
Tessellation of contributions/commitments
Banking or Investment?
Uncomplicated contracts. Standardised ‘elements’ (building blocks)
Default clauses <> Contingency plans.
Modular, referenced technology; Whole-systems assessments - cover more
than the parts.
About Triodos
• An independent values-based bank with a mission to make money work for
positive social and environmental change.
• Active in Netherlands, Belgium, UK & Ireland, Spain, Germany and France
• Total Assets under management > €12bn (Bank > €8bn, Funds > €4bn)
• 100% of our activities are in positive impact; around 1/3 in Energy & Climate
• We are 100% transparent about where we invest
• Energy efficiency included within our energy and sustainable real estate
teams.
About Triodos
• Bank and Investment Manager:
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Project Finance
Senior Debt
Mezzanine
Equity
Fund Management
Corporate Finance Advice
Relevant funding:
• Triodos Bank
• Triodos sustainable real estate funds
• Triodos Renewable (Europe) Fund, Triodos Groenfonds
Project types
• Customised facilities:
• Lending from around €100,000 to c.€30m, sometimes more in combination with
funds/syndicates
• Investments from around €500,000 to €15m.
• Examples:
• Health care, offices, sports & recreation, monument & heritage building,
hotels/B&B retrofit (across Europe, mostly in known sectors)
• ESCO finance: hotel chain retrofit in Spain, senior debt behind
promoter/operator equity
• Power storage units (France), Aquifer Thermal Energy Storage (NL)
• Eco-mortgages with discounts for improved energy-labels.
• Construction finance for modular eco-housing, cohousing, community land
trusts.
Impact Strategy: Sustainable Real Estate
The first European sustainable real estate fund
Our involvement in the real estate sector is built upon our unique vision on sustainable real estate, which is based on
an assessment tool called the Triodos Test for Sustainable Real Estate. This test encompasses the four Ps: People,
Planet, Profit and Project. Our aim is to contribute to sustainably sound office space that
provides an optimal working environment, fits well with its surroundings and operates profitably.
Triodos Sustainable Real Estate Fund is the
first European sustainable real estate fund,
with currently 17 innovative office properties in
portfolio.
By combining low vacancy, steady yields and a zeroemission portfolio, it has become a model of sustainable
success in the Dutch real estate sector.
Our exceptional expertise in sustainable office renovation
is also playing a key role in the move towards zero-energy
buildings.
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EXAMPLE: Contract Structure (ESCO)
• Two main contracts:
• Energy Services Contract:
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Term
Signed with the Hotel
Variable and fixed price
Full guarantee contract
• O&M Contract:
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Term
Signed with ESCO (parent company)
Variable and fixed price
Full guarantee contract
Mitigates the risk of the SPV
• For the financing of several similar energy efficiency projects, the loan agreement was negotiated:
• Loan amount, term, Fixed interest rate
• Guarantees:
• Pledge of main contracts
• Personal guarantee of ESCO (parent company)
• Coverage Fund (6 months debt service)
EXAMPLE: Contract Structure (ESCO)
• Financial issues:
• Controlled level of risk: well-known and solvent client, parent company’s personal guarantees, several small projects that could
compensate potential problems in some hotels.
• Check main financial and economic figures (present and future) of the final payer. Main problem in hotels: important mortgages
• Legal and technical issues:
• Models of the main contracts (EPC, O&M, Power Purchase Agreement/Energy Services contract)
• Legal Due Diligence.
• Check if ESCO client is the hotel’s owner. Otherwise, lease agreement landlord – tenant.
• Technical issues:
• Technical Due Diligence.
• Main equipment with technical guarantees and references
• Mostly modular equipment. Adaptable to other buildings, just in case.
• Energy efficiency audit
• Conclusions:
• Good option to finance small EE projects in a simple way with limited risk.
• Import potential market with current clients (schools, old people's homes,...)
Projects
Contact
• See www.triodos.com
for all our projects:
Local websites:
www.triodos.nl
www.triodos.be
www.triodos.de
www.triodos.co.uk
www.triodos.fr
www.triodos.es
SUSI Energy Efficiency Fund
SUSI Energy Efficiency Fund
“Project investment – Investors tell us how to increase deal flow”
Sebastian Carneiro, Director
February 2016
SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund
SUSI Energy Efficiency Fund as financing partner
The SUSI Energy Efficiency Fund is the largest private sector energy efficiency fund in Europe. The fund is capable of investing approximately
EUR 240 m of equity in energy efficiency projects across the Eurozone.
Founders:
Dr. Tobias Reichmuth,
Otto von Troschke
Board ofVerwaltungsrat:
Directors:
Kai-Uwe Jürg
Ricke
(President),
Bajan,
Dr.Uwe
UweKrüger,
Krüger,
Moritz
Leuenberger
(former President of
Bucher
(Präsident),Björn
Kai-Uwe
Ricke,Prof.
Prof. Dr.
Stephanie
Schoss,
RA Björn Bajan
Switzerland and Swiss Minister of Energy and Transport), Stephanie Schoss, Jürg Bucher, Florian
Seubert
Renewable Energy
Energy Efficiency
Energy Storage
SUSI Energy Efficiency Fund
SUSI Energy Storage Fund (planned)
Financing of energy efficiency measures
Investing in storage capacity
SUSI Renewable Energy Fund I
SUSI Renewable Energy Fund II
The fund is financing projects, among others, in the following areas:
Buildings
Public Infrastructure
Lighting (LED)
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Electric motors
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Street lighting (LED)
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HVAC
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Pumps
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Water treatment
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Building management systems
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Waste heat recovery
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Hospitals
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CHP
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Schools
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SUSI Energy Efficiency Fund
Industry
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SUSI Energy Efficiency Fund
Established financing solutions
Single project financing
 Large industrial assets
(CHP, Waste-heatrecovery, etc.)
Refinancing
 Existing contracting
projects
 Contracting portfolios
 Bundling of small,
standardized projects
Private households
 Assets based contracting
models with private
households
 Solar-Storage systems,
Smart-Metering-Systems,
Mini-CHPs, etc.
Street lighting
 LED Retrofit of street
lighting systems
SUSI Energy Efficiency Fund offers:
 Off-balance sheet financing under IFRS and local GAAP
 No equity requirement per se. Up to 100% financing incl. development, installation and margin
 Credit default risk is assumed by the SUSI Energy Efficiency Fund
 Substantial structuring know-how and tailor-made financing solutions
 Customers can be industrial companies, public sector entities or private households
SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund
Selected transaction: refinancing of a large portfolio of light service contracts
Project Overview
Key Facts
Country
 Italy
Receivables
Volume
 EUR 33 million
CO2-Savings
 17,700 Tons of CO2 p.a.
Contract Type
 Energy Saving Contract
ESCO
 Italian company with international presence in development,
production and distribution of LED-Lighting.
 A total of 300+ customers from an ESCO’s contracting portfolio that
End Customer
Measures
Financing
Structure
meets the investment criteria of SUSI Energy Efficiency Fund. The
portfolio consists of public and private end customers.
 Existing lighting is replaced by energy-saving equipment; enabling
remote monitoring and smart maintenance.
 “True Sale of Receivables” structure allows SUSI to purchase a
portfolio of receivables that is off-balance sheet for the ESCO.
 SUSI assumes the credit risk of the portfolio, whereby initial losses
Credit
Enhancement
are covered via a “First Loss Piece Mechanism”
 The transaction was successfully structured as off-balance for the
ESCO allowing a significant reduction of its net debt.
Bundling of projects and standardisation are key to finance energy
efficiency projects
SUSI Energy Efficiency Fund
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SUSI Energy Efficiency Fund
Many thanks for your attention
Sebastian Carneiro
Director
SUSI Energy Efficiency AG
Bellerivestrasse 36
CH-8008 Zürich
Tel: +41 44 386 98 27
Mob: +41 76 366 98 27
s.carneiro@susi-partners.ch
SUSI Energy Efficiency Fund
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