Stena Atlantic has closed a $574 GIEK/K-sure/Kexim-backed facility to finance the purchase of a semi-submersible drilling rig. MLAs on the ECA tranches are Citi and Kexim, with AB Svensk Exportkredit, Bank of America, DNB Bank, Nordea, Citi, Skandinaviska Enskilda Banken and Handelsbanken Capital Markets and Svensk Handelsbanken as MLAs for the commercial facility. Watson, Farley and Williams acted as legal counsel to the lenders.
Gold miner Petropavlovsk has loaned $29.75 million to IRC Ltd to help an IRC subsidiary meet a payment due under an ICBC project loan. Petropavlovsk, which owns 31% of IRC, says the bridge loan will be repaid as soon as refinancing of the ICBC facility is completed.
The $340 million ICBC loan, for which Petropavlovsk is a guarantor, was granted to IRC's unit Kimkano-Sutarsky Mining and Beneficiation Plant LLC. The payment due on June 20 is $35.2 million. Negotiations to refinance the facility are at an advanced stage with a major Russian bank.
Power distribution companies in Massachusetts have signed 20-year power contracts to receive electricity from Canadian public utility Hydro-Quebec, subject to approval by the Massachusetts Department of Public Utilities. Central Maine Power Co is developing the $950 million New England Clean Energy Connect (NECEC) transmission project that will construct the new 145-mile transmission corridor.
Japanese public broadcaster NHK has reported that SoftBank Group Corp and the Indian government are finalising an agreement for a $60-100 billion investment in Indian solar. Investment is likely through a fund backed by the Saudi Arabian government that joined on SoftBank’s Vision Fund which raised $93 billion for solar projects.
Financial returns at UK development finance institution CDC will decline over the next five years, as part of a strategy to take on more risk after almost a decade of above-average return on investment, according to CDC’s chairman Graham Wrigley. HM Treasury requires that CDC provide an average 3.5% return on investment across its portfolio, as agreed in the 2012 Investment Strategy. Since then, CDC has averaged a 7% return, with a 10.3% average between 2012-2016.
As part of the new five-year strategy agreed last year, CDC has committed to investing in new, higher-risk ways to “tackle specific market failures that hold back development.” It has expanded its metrics for measuring impact beyond job creation, and is committed to looking for new ways to use its financing to mobilize other sources of capital and improve transparency and accountability. Since 2015, CDC has also shifted its portfolio to investments exclusively based in Africa and South Asia, with a higher potential development impact that Wrigley says is a worthwhile trade-off for higher risk and lower financial returns.
Fortum has been awarded 110 MW out of 150MW of available solar capacity at the Russian Capacity Supply Agreement (CSA) auction. The projects will be commissioned in the 2021-2022 period and are guaranteed a tariff of €150 per MWh over 15 years. The Fortum-Rusnano wind investment fund was selected to build 823MW out of the available 830MW of wind capacity at the CSA auction and will commission the projects during the 2019-2023 period. Tariffs were awarded at between €60 and €90MW per mWh on 15-year contracts. Fortum has made an equity commitment of €215 million to cover the recent awards and a 2017 award of 1GW of wind capacity.
KazakhExport and VTB Bank (Kazakhstan) have signed an agreement on conditional bank deposits that will open up new opportunities for Kazakh exporters. KazakhExport will be able to place conditional deposits with VTB for further provision by the bank of pre-export financing. “Now exporters can replenish their current capital on the most favorable terms, and along with that insure risks when conducting export transactions,” says Dmitry Zabello, chairperson of VTB Bank (Kazakhstan).
Chicago has selected the Boring Company to develop a 17-mile link between an unfinished underground train station in the Loop district of the city and O’Hare International Airport. Work on the $1 billion project could start within four months pending regulatory and environmental approvals and take up to two years to complete.
Paul Brewer is due to take over the role of Chair of the Board from Jo Elliot at Hub South East Scotland at the end of the month. Brewer recently retired from PricewaterhouseCoopers (PwC) where he was a Corporate Finance Partner specialising in infrastructure and energy.
The European Commission has approved the plan for the Croatian Istrian Y motorway concession agreement that runs until 2027 to be extended until 2032 to cover the €165 million cost of additional 28 km second carriageway on the north-eastern side of the motorway. The Commission found that concession extension complies with its public procurement rules and is proportionate to the time required for the developer Bina-Istra to recover its debt.
Alliant Energy Corporation’s Iowa utility subsidiary Interstate Power and Light Company (IPL) has signed an agreement with EDF Renewables to buy the 200MW Golden Plains Wind Project upon completion. The project is located in Winnebago and Kossuth counties, Iowa, and is expected to be completed by early 2020.
OPIC has approved $1.8 billion in financing and political risk insurance for multiple projects in Latin America, Eastern Europe, Asia and Africa. The projects include:
$250 million in financing to support the $932 million Pasto-Rumichaca toll road 29-year PPP concession in Colombia which is sponsored by Concesionaria Vial Union del Sur’s (a joint venture between Sacyr Concesiones and Herdoiza Crespo Construcciones).
$250 million in political risk insurance related to the Naftogaz Purchase Facility which helps Naftogaz build up gas reserves during the summer months to maintain a reliable supply and affordable prices.
$100 million in financing to IndusInd Bank to support microfinance lending to women.
$100 million to Africell to support the upgrade and expansion of mobile telecommunications networks in Gambia, Sierra Leone, Uganda and Democratic Republic of the Congo.
$225 million in financing to Mytrah Vayu (Sabarmati) Private Ltd. to support the development of a 252MW wind farm in Tamil Nadu, India.
Up to $250 million in financing to Azul Linhas Aereas Brasileiras for engine maintenance on its short-haul fleet serving these markets.
$100 million in financing to support the expansion of SME, consumer and housing lending in El Salvador, Guatemala, Honduras, Costa Rica, Nicaragua and Panama.
$142.5 million in financing to CrediQ to support the expansion of vehicle finance programs for small and medium enterprises in sectors such as construction, agriculture and transportation.
The National Mission for Clean Ganga (NMCG), Uttar Pradesh state water company UP Jal Nigam and Triveni Engineering & Industries Ltd have signed an agreement to develop integrated sewage infrastructure for Mathura as a hybrid annuity-based PPP. Triveni will develop and rehabilitate the Masani sewerage infrastructure and treatment plants at an estimated cost of Rs437.95 crore.
NMCG has also signed an agreement with Indian Oil Corporation Limited (IOCL) for the reuse of 20 million litres per day of treated sewage water at its Mathura refinery. IOCL will bear the entire operations and maintenance cost of the treatment plant amounting to Rs. 82.38 crore for a period of 15 years. IOCL will also pay Rs8.70 per kilo litre towards the partial capital cost for the development of the plant TTP.
Following a request for proposals for clean energy, Connecticut's Department of Energy and Environmental Protection has announced the selection of six companies to provide over 250MW from renewable energy. Deepwater Wind's 600-MW Revolution Wind offshore project, scheduled to be completed by the end of 2023, will supply 200MW of capacity to add to the 400MW awarded in Rhode Island's offshore wind RfP. Doosan Heavy Industries, Bloom Energy and FuelCell Energy were amongst the winners of the 52MW of capacity awarded of fuel cell projects. A 1.6-MW anaerobic digestion facility was also selected. Project developers will now start negotiations for 20-year PPAs with utilities Eversource Energy and United Illuminating.
Integrated solar firm Cypress Creek Renewables and NRG Energy, Inc. have announced a joint project to develop and operate 25MW of solar projects. Cypress Creek will own and operate the facilities and deliver the output under PPAs to NRG's commercial and industrial customers in Texas.
State-owned Swaziland Electricity Company (SEC) has issued its first solar tender and is looking to procure the services of an EPC contractor to design, construct and commission a 10MW solar park and associated grid infrastructure to be located in the southeastern region of Lavumisa. The project will be developed in two 5MW phases under the framework of the Ministry of Natural Resources and Energy's (MNRE) Swaziland Independent Power Producers Policy (SIPPP). The deadline for submissions is June 27.
Despite the fast global growth in the international green bond market, Latin America has only recently started to adopt the trend. The region’s infrastructure and investment needs present a major opportunity for green bond growth, but a lot of groundwork is still needed to gets investors comfortable.
Trina Solar Limited and China Singyes Solar Technologies Holdings Limited have been awarded the 250 MW Tongchuan Photovoltaic Power Generation Technology Top-runner Base Project located in Shaanxi province. Commercial operations are scheduled for June 2019. The award was made under China’s Top Runner program that offers a feed-in tariff for projects able to set higher standards of PV conversion efficiencies through the use of Mono-Si and bifacial products. The Top Runner program is unaffected by the recent change in government policy towards conventional solar. National Energy Administration (NEA) intends for 5GW of solar capacity meeting the Application Top Runner Program standards to be installed by the end of the year and a further 1.5GW to be installed by mid-2019 under its Technology Top Runner Program.
Residential PV provider Vivint Solar has raised $811 million through a capital markets issuance by subsidiary Vivint Solar Financing for $466 million and a private placement worth $345 million issued by Vivint Solar Financing IV. The transactions will lower total credit spreads by approximately 160 basis points while providing back-leverage financing for a portfolio of 16 tax equity funds and a 575MW PV portfolio owned by a subsidiary.
Germany's Federal Network Agency (Bundesnetzagentur - BNetzA) has made awards in its two combined heat and power tenders. Awards were made to 14 conventional CHP projects with a combined capacity of 91MW at an average price of €0.0431 per kWh. Prices ranged from €0.0299 per kWh to €0.052 per kWh. In the first tender for innovative CHP systems that were required to incorporate a renewable heat source, five projects totaling 23MW were awarded at an average price of €0.127/kWh. The next CHP procurement will be in December for 77MW of capacity
Germany’s Federal Network Agency has awarded 183MW of capacity from 28 bids in its second solar auction of the year. Projects were won with bids ranging from €0.0389 per kWh to €0.0496 per kWh The average bid price of €0.0459 per kWh was marginally higher than the €0.0433 per kWh achieved in the February tender. Roughly half the awards were made to PV projects on farm land and Enerparc was the most successful developer, securing 15 bids. A total of 59 bids were made for 360MW of capacity
A 1GW capacity solar tender issued by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has received 1.87GW of technical bids following modifications to the competitive bidding guidelines issued by Ministry of New and Renewable Energy (MNRE). ACME Solar and ReNew Power each submitted six bids to develop 300 MW and 280 MW respectively while Azure Power, Adani and Essel Group each submitted five bids for 300 MW, 250 MW, and 250 MW of capacity. Other bidders were Canadian Solar (100MW); Hero Future Energies (100MW); MMEPL (20MW); Sukhbir (50MW); Refex (50MW); Fortune Credit Capital (70MW); EDEN Renewable (50MW); and Ray Power Infra (50MW). UPNEDA is expected to complete the process by the end of July.
Mexico aims to tackle the persistent blackouts and natural gas shortages on the southeast of its Yucatan Peninsula with two projects that will double transport capacity.
The state-run operator Centro Nacional de Control del Gas Natural (Cenagas), through its Sistrangas subsidiary, is tendering a $36 million project to reconfigure the Cempoala compressor station to allow expected east coast gas imports to reach farther south on the network. Bids are due July 12 with contracts expected to be signed in August.
A second project would see Engie's privately owned Mayakan pipeline connecting to the Sistrangas system near the Cactus processing plant in Tabasco. Investment in the 16km interconnection is estimated at $49 million.
A planned tender for a FSRU at the port of Pajaritos in Veracruz recently lost the federal power utility Comision Federal de Electricidad (CFE) as a sponsor although a Pemex subsidiary remains with the project and is still preparing the bidding documents.
AGL Energy Limited has entered into two sets of agreements for its LNG import jetty project at Crib Point in the Australian state of Victoria. It has entered into agreements with APA Group to develop the Crib Point Pakenham Pipeline to transport the imported gas to the domestic market and has signed agreements with the Port of Hastings Development Authority for the long-term use of Crib Point Jetty Berth 2. AGL's total financial exposure should it not proceed with the project is $65 million in addition to committed capital expenditure of about $37 million.
Climate financing by the world’s six largest multilateral development banks (MDBs) – the World Bank group, African Development Bank, Asian Development Bank, EBRD, EIB and the Inter-American Development Bank group – rose to a seven-year high of $35.2 billion in 2017, up 28% from the previous year.
The MDBs’ latest joint report on climate financing says $27.9 billion, or 79% of the 2017 total, was devoted to climate mitigation projects that aim to reduce harmful emissions and slow down global warming. The remaining 21%, or $7.4 billion, of financing for emerging and developing nations was invested in climate adaptation projects that help economies deal with the effects of climate change such as unusual levels of rain, worsening droughts, and extreme weather events.
From modernising the OECD consensus, creating an international exporters' forum to linking deal margin grids to borrowers sustainable development goals, there were a number of exciting takeaways from two days of forward thinking debate at TXF Global in Prague last week.
A consortium led by CIMIC Group companies Pacific Partnerships and CPB Contractors has been named as the preferred proponent by the New Zealand government to deliver the Waikeria Corrections and Treatment Facility PPP project. The NZ$750 million, 25-year concession will provide accommodation for 500 prisoners in addition to a secure mental health unit at the existing Waikeria Prison in the Waikato region on New Zealand's North Island.
CPB Contractors will design and construct the new facility. Pacific Partnerships and HRL Morrison & Co will provide financing and management. Asset management and facilities maintenance is to be performed by Cushman & Wakefield. Honeywell will provide the electronic security services for the facility.
Following a final investment decision, Eni and GE will implement the 50MW Badamsha wind project located in northwestern Aktobe Oblast, Kazakhstan, under an Memorandum of Understanding. Construction is due to start soon with commercial operations to start by the end of 2019.
VivoPower International has announced the completion of all permitting together with the interconnection, landlease and PPA agreements for its 28MW solar project in Allendale County, South Carolina. The development is part of its 1.8 GW joint venture with Innovative Solar Systems (ISS). VivoPower is currently evaluating the financing for current and future funding of projects.
PPC Renewables has received two binding bids in the second round of its geothermal tender to select a strategic partner for an 8MW installation planned for the island of Lesbos and three further 5MW plants at other locations. The second-round bidders are Greek waste-to-energy producer Helector and a consortium of Greek renewables firm Terna Energy with its sister company Terna Aioliki Xerovouniou. First round binding bids were submitted by Enel Green Power Hellas, Storengy, KS Orka, and Turkish-Italian joint venture Zorlu-Turboden.
The value of bids, although not the bidders, have been released for Russia's wind procurement initiative, the Capacity Competitive Selection – 2018. A total of 830MW was sought through the auction with commissioning scheduled for 2019, 2021 and 2023. The maximum price was set at RUB130,927 per kW of installed capacity. The lowest bid came for a 226.8MW project to be commissioned in 2021 that bid RUB59,339 per kW. The combined capacity of the bids was just over 2.2GW with a largest single submission of 799MW.
German conglomerate Siemens has entered into more than ten agreements with Chinese companies to cooperate on opportunities in power generation, energy management, building technology and intelligent manufacturing arising from the Belt and Road Initiative. Companies include China Gezhouba Group Corporation International Engineering Co., Ltd., Guangdong Yuedian Group Co., Ltd., China National Chemical Engineering Group Corporation Ltd. (CNCEC), China Railway Construction Corporation (International) Ltd., China Civil Engineering Construction Corporation (CCECC) and China Resources Cement Holdings Ltd.
Asset manager Columbia Threadneedle Investments has made four hires as it builds an infrastructure investment capability. Heiko Schupp, a former senior portfolio manager at Hastings Fund Management has been appointed to the newly created role of Global Head of Infrastructure Investments. He is joined by Ash Kelso (Head of Asset Management), Antonio Botija (Head of Acquisitions) and Ingrid Weston (Senior Portfolio Manager).
Sembcorp Industries' recent acquisition, UK Power Reserve, has partnered with Fluence to deliver the first phase of its 120MW battery storage portfolio secured in the UK's 2016 Capacity Market auction. Fluence will supply three 20MW battery energy storage systems at sites in the Midlands and North West. The projects are expected to be connected to the grid by the coming winter and are contracted to run for 15 years.
Windlab Developments Tanzania Ltd has been granted an Environmental and Social Impact Assessment Certificate for the construction of the 300MW Miombo Hewani Wind Farm and Transmission line project located north of Makambako in Southern Central Tanzania. The 100MW first phase will require a $300 million investment over the 25-year life of the farm. The project has secured an Energy and Environment Partnership grant from Ministry for Foreign Affairs of Finland.
E.ON has signed a 20-year PPA for half the output from its 100MW West of the Pecos solar project in Reeves County, Texas with South Korean energy company SK E&S. The park is scheduled to commence commercial operations in 2020.
Sonnedix has refinanced a 30.3MWp portfolio of Spanish solar assets via a €140 million 19-year fixed rate senior secured bond issue. The majority of the issue has been taken by Macquarie Infrastructure Debt Investment Solutions (MIDIS) – its first solar debt investment in Spain. CaixaBank acted as global coordinator. The portfolio comprises 12 fully operational solar and is managed by Qualitas Energy.
CITIC Metal is acquiring 19.9% of Ivanhoe Mines for C$723 million ($556 million). Ivanhoe is issuing 196,602,037 common shares to CITIC through a private placement at a price of C$3.68 per share. Ivanhoe will use the proceeds to advance its projects in Southern Africa – Kamoa-Kakula, Platreef and Kipushi – and also for working capital and general corporate purposes.
China’s Zijin Mining Group, which acquired a 9.9% stake in Ivanhoe Mines in 2015 through a wholly-owned subsidiary, will be entitled to exercise its existing anti-dilution rights through a concurrent private placement, which could result in additional proceeds of $60 million if exercised in full. (In addition, Zijin and Ivanhoe each are equal 39.6% joint-venture partners in the ongoing development of Ivanhoe’s flagship Kamoa-Kakula copper project.)
Vale has signed separate streaming agreements with Wheaton Precious Metals Corp and Cobalt 27 Capital to fund its Voisey Bay underground nickel mine expansion project (VBME) in Canada.
Vale will receive an initial cash payment of $690 million - $390 million from Wheaton and $300 million from Cobalt 27. Cobalt 27 and Wheaton will make additional payments of 18% of the cobalt Metal Bulletin price for each pound of finished cobalt until the upfront payment has been fully depleted, after which the additional payments will increase to 22% of the cobalt reference market price. The additional payments will amount to approximately 20%, on average, of the cobalt Metal Bulletin price for each pound of finished cobalt delivered to Cobalt 27 and Wheaton under the agreements.
Consequently, from 1 January 2021 onwards, Wheaton will be entitled to receive finished cobalt equivalent to 42.4% of the future cobalt production from Voisey’s Bay and Cobalt 27 will be entitled to receive finished cobalt equivalent to 32.6% of the future cobalt production from Voisey’s Bay. The streamed percentages will be halved after the delivery of approximately 54.8 million pounds of cumulative cobalt to Cobalt 27 and Wheaton. Vale has granted a completion guarantee in relation to the VBME project, to be measured by the throughput rate from the underground mine in 2025.
Whether you’re an insurance buyer, provider or simply looking to learn more about political risk and trade credit insurance as a risk management tool, this event is a unique opportunity to network with senior decision makers and discuss the key issues impacting the private insurance industry.
A one-day event bringing together Italian exporters large and small, and the stakeholders that do business with them. Network with your peers and potential clients and uncover the latest trends and opportunities.