How to finance a renewable infrastructure project in Belgium

François Van LeeuwCFO Northwind NV

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Partners

Legal Financial Insurance

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Parkwind

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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

Debt Financing:EUR 595 M

Equity and Quasi Equity: EUR 255 M

Equity: EUR 80,6 M Quasi Equity: EUR 174,4 M

Provided by the Shareholders:• Parkwind• Aspiravi Offshore

Provided by:• Initial Shareholders• PMV/PMF• DG Infra/Inframan/GIMV• Korys/DHAM• Autofinancing

Financing:

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Debt Financing Partners (€595 M)

Funding

• ASN Bank• Belfius• BNP Paribas Fortis• European Investment Bank (EIB)• ING• KfW Ipex• MTI• Pension Danmark• Rabo Bank

Garantors• EIB• EKF• GIEK• Office National Du Ducroire (ONDD) - Delcredere

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Loan Maturity

Liquidity for Long Term funding↓

Basel III makes LT Loan more difficult to get and more expensiveAs LT money needs to be backed up by equity

17 Years

Long Term money is getting more and more expensive!

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Conclusion

Strong Financing Strong Project & Team

Strong Contractors

Stable ShareholdersStable Support Mechanism

Strong Economics

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