How to finance a renewable
infrastructure project in Belgium
François Van Leeuw
CFO Northwind NV
Partners
Legal
Financial
Insurance
Legal
Legal
Legal
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Non recourse project financing
Non recourse:
A loan where the lending bank is only entitled to repayment from the profits of the project , which the loan is
funding, not from other assets of the borrower.
These types of projects are characterized by high capital expenditures, long loan periods, and uncertain
revenue streams. Analyzing them requires a sound knowledge of the underlying technical domain as well as
financial modeling skills.
Project financing:
The financing of long-term infrastructure, industrial projects and public services based upon a non-recourse
financial structure where project debt and equity used to finance the project are paid back from the cashflow
generated by the project.
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CAPEX and Financing
Capital Expenditure: EUR 850 M
Financing:
Equity and Quasi Equity: EUR 255 M
Equity: EUR 80,6 M
Debt Financing:
EUR 595 M
Quasi Equity: EUR 174,4 M
Provided by:
Provided by the Shareholders:
• Parkwind
• Aspiravi Offshore
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Initial Shareholders
PMV/PMF
DG Infra/Inframan/GIMV
Korys/DHAM
Autofinancing
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Debt Financing Partners
(€595 M)
Funding
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ASN Bank
Belfius
BNP Paribas Fortis
European Investment Bank (EIB)
ING
KfW Ipex
MTI
Pension Danmark
Rabo Bank
Garantors
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EIB
EKF
GIEK
Office National Du Ducroire (ONDD) - Delcredere
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Loan Maturity
17 Years
Liquidity for Long Term funding
↓
Basel III makes LT Loan more difficult to get and more expensive
As LT money needs to be backed up by equity
Long Term money is getting more and more expensive!
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Conclusion
Strong Financing
Strong Project & Team
Strong Contractors
Strong Economics
Stable Support Mechanism
Stable Shareholders
However, Pricing ?
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Our Northwind project proves that when you have
dedicated shareholders, bankers, credit institutions
and a solid team,
it is possible to finance a project of this magnitude
even during financial crisis.
Thank you everybody
for your dedication and hard work
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