an insight into aspects of the relevant · pdf file– conception and implementation of...

Geneva June 2005FIDEMEFIDEME®®

AN INSIGHT INTO ASPECTS OF THE RELEVANT EXPERIENCE OF AN INSIGHT INTO ASPECTS OF THE RELEVANT EXPERIENCE OF IXISIXIS--CIBCIB

IN THE CONTEXT OF THE PROPOSAL IN THE CONTEXT OF THE PROPOSAL forfor

a Public Private Partnership vehicle to be set up with UNECE a Public Private Partnership vehicle to be set up with UNECE dedicated to financing energy, energy efficiency dedicated to financing energy, energy efficiency

and renewable energy projectsand renewable energy projectsin Central and Eastern Europe under the aegis ofin Central and Eastern Europe under the aegis of

Heneage LEGGE - BOURKE - +33.1.58.55.66.12

Pascale P. THEVENOUX - +33.1.58.55.68.18

Implementation of the Kyoto Protocol, Energy Efficiency and Climate Change MitigationGeneva, 29 June 2005

June 2005 Geneva FIDEMEFIDEME®®

Disclaimer

• This presentation has been prepared by IXIS Environnement & Infrastructures (IXIS E & I) and IXIS Corporate & Investment Bank (IXIS-CIB) based on material and information provided by the sponsorsCaisse des dépôts et consignations (CDC) and Fortis for information purposes only about the Luxembourg SICAV – European Carbon Fund (ECF). IXIS-CIB has provided the information on the FIDEME fund.

• This presentation is provided to attendees of the UNECE Committee on Sustainable Energy, Energy Efficiency 21 Steering Committee and Related Meetings 27th June-1 July 2005 and does not constitute an invitation or a recommendation to these attendees (or to any other person) to subscribe for shares in ECF nor in the FIDEME and is provided for information purposes only. The term “institutional investors” refers in the presentation to well-informed legal entities (either corporate or financial institutions) having sufficient knowledge and experience in the field of financial investments.

• The information contained in the present draft documentation does not constitute any contractual involvement by IXIS E & I or CDC or Fortis or by IXIS-CIB.

• While the information contained in the presentation is believed to be accurate, IXIS E & I, IXIS-CIB, CDC and Fortis shall have no liability for any representations, expressed or implied, with respect to this document or any other written or oral communication in the course of this presentation.

• No person has been authorized by either IXIS E & I or CDC or Fortis or IXIS-CIB to give any information or to make any representation not contained in the presentation and, if given or made, any such information or representation may not be relied upon as having been authorized by CDC or Fortis or IXIS E & I, or IXIS-CIB.


TABLE OF CONTENTSTABLE OF CONTENTS

I. GROUPE CNCE and IXIS-CIB

II. GROUPE CNCE’S EXPERTISE IN PPP, PPP FUNDS, ENERGY, EE, CO2, MUNICIPALITIES FINANCING

III. LEAGUE TABLES

IV. A PPP VEHICLE: AN ATTRACTIVE SOLUTION TOWARDS THE CORE OBJECTIVES OF UNECE - EE21

V. DEVELOPPING THE CONCEPT IN PARTNERSHIP WITH UNECE-EE21

VI. STRENGTHS OF THE IXIS-CIB AND CONSORTIUM ADVISORY OFFER

VII. CONCLUSION

VIII. APPENDICES – Case Studies FIDEME® , ECF


I. GROUPE CNCE and IXISI. GROUPE CNCE and IXIS--CIBCIB


Figures of Groupe CNCE at 31.12.04

:

2003 2002

Total assets 381 Md€ 357 Md€

Net Banking Income 7,2 Md€ 6,6 Md€

Net income, group share 1 116 M€ 952 M€

ROE 11,3% 10,1%

Rating AA/Aa/AA AA/Aa/AA

Employees 44 900 44 900


Groupe CNCE Organigramme

Filiales spécialisées et participations banque de détail

et assurance

450sociétés locales d'épargne

Caisses d'Epargne

Caisse Nationale des Caisses d'Epargne

Crédit Foncier

100%

65 %

35 % Caisse des dépôtset consignations

IXIS FinancialGuaranty

FinancièreOcéor

EntenialPerexiaCicobail

IXIS Corporate

& Investment Bank

Banque Sanpaoloen France

IXIS Asset

Management

IXIS InvestorServices

20 % - CCI

CEFICNP (2)EcureuilAssurances IARDEcureuil VieEulia Caution SaccefGestitres

Filiales spécialisées et participations banque de détail

et assurance

450sociétés locales d'épargne

Caisses d'Epargne

Caisse Nationale des Caisses d'Epargne

Crédit Foncier

100%

65 %

35 % Caisse des dépôtset consignations

IXIS FinancialGuaranty

FinancièreOcéor

EntenialPerexiaCicobail

IXIS Corporate

& Investment Bank

Banque Sanpaoloen France

IXIS Asset

Management

IXIS InvestorServices

20 % - CCI

CEFICNP (2)EcureuilAssurances IARDEcureuil VieEulia Caution SaccefGestitres


IXIS-CIB Organigramme


IXIS-CIB figures

2003 2002 Total assets 255,62 Md€ 250,70 Md€ Equity 6,309 Md€ 6,183 Md€ Consolidated Net Banking Income 2,5 Md€ 2,0 Md€ Net income, group share 457 M€ 101 M€ Assets under Management 315 Md€ 298 Md€

Employees 5482 5276


IXIS-CIB in Europe


II. GROUPE CNCEII. GROUPE CNCE’’s expertises expertiseinin

PPP, PPP funds, energy, EE,PPP, PPP funds, energy, EE,COCO22, municipality financing, municipality financing


IXISIXIS--CIB FINANCIAL ENGINEERING: CIB FINANCIAL ENGINEERING: FIELDS OF EXPERTISE IN ENERGY, PPP, FUNDS, COFIELDS OF EXPERTISE IN ENERGY, PPP, FUNDS, CO22

• IXIS-CIB Financial Engineering team specialised in environmental issues

� Project financing (water, waste treatment, wind farms, …)

• IXIS-CIB Financial Engineering structured and manages a dedicated PPP fund

– FIDEME®: €45M fund bringing together public funds provided by ADEME (French Environmental Agency) and private sector investors. Approved by the EU as an authorised public funder of the sector

– 2 PPP funds in final stages of inception – 1 greenfield and 1 brownfield

• Implementation of Kyoto Protocol flexible mechanisms and the European Trading System (mandated by the French Government and the EU Commission)

– Conception and implementation of the French National GHG Registry

– Created the first non-governmental sector Carbon Fund - ECF

– Advised the EU on the EU ETS CO2 trading scheme registry legislation


IXISIXIS--CIB FINANCIAL ENGINEERING: CIB FINANCIAL ENGINEERING: A PROVEN EXPERIENCE IN PPP/CONCESSIONSA PROVEN EXPERIENCE IN PPP/CONCESSIONS

• CDC IXIS has strong expertise in environment, energy and transportation infrastructure

• A team of 40 professionals, providing international know-how, based in Paris and London

• In-depth knowledge of the financial markets (banks, capital markets, investors). Leading PPP initiative in France with global offers –structuring, provision of equity and of debt


IXIS IXIS –– GROUPE CNCE : GROUPE CNCE : FIELDS OF EXPERTISE IN ENERGY, EE, PPP, FUND FIELDS OF EXPERTISE IN ENERGY, EE, PPP, FUND MANAGEMENT, MUNICIPALITY FINANCINGMANAGEMENT, MUNICIPALITY FINANCING

• IXIS-CIB structured the Central & Eastern European Environmental Investment

Fund with EBRD and the FOGIME Fund with ADEME:

– EIF: a €22M venture capital fund investing in companies selling environmental

goods and services operating in Bulgaria, Czech Republic, Hungary, Poland,

Romania and Slovakia

– FOGIME: a guarantee fund of energy and development of renewable energy to

foster SMEs’ investment for the improvement of energy efficiency, construction,

transport and local authorities, etc.

• IXIS Private Equity in Europe: over €15Bn of assets managed

• IXIS Financial Guaranty: one of the most active credit enhancers of American local

governments

• Groupe CNCE : €20.4Bn lent to French municipalities in 2002, N°2 market share


III. LEAGUE III. LEAGUE TABLESTABLES


FINANCIAL ADVISORY LEAGUE TABLESFINANCIAL ADVISORY LEAGUE TABLES

FINANCIAL ADVISORY LEAGUE TABLES

1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 1 - PWC 1 - PWC 1 - PWC 1 - Ernst&Young 1 - Ernst&Young 1 - Ernst&Young 1 - Ernst&Young

2 - KPMG 2 - Ernst 2 - Deutsche 2 - PWC 2 - PWC 2 - PWC 2 - PWC

3 - Deutsche 3 - KPMG 3 - Ernst&Young 3 - KPMG 3 - David Wylde 3 - KPMG 3 - KPMG

4 - SG 4 - Deutsche 4 - European Cap. 4 - Investec 4 - Grant Thomson 4 - Grant Thornton 4 - Macquarie

5 - Fieldstone 5 - Taylor de Jongh 5 - Citigroup 5 - SG 5 - KPMG 5 - David Wylde 5 - IXIS 6 - Macquarie 6 - Schroders 6 - KPMG 6 - Babcock&Brown 6 - Macquarie 6 - Macquarie 6 - Royal Bank of Canada

7 - European Capital 7 - Fieldstone 7 - SG 7 - Macquarie 7 - Fieldstone 7 - IXIS 6 - Grant Thomton

8 - HSBC 8 - SG 8 - ABN AMRO 8 - Taylor de Jongh 8 - IXIS 8 - Espirito Santo Investment 8 - HSBC

9 - Charterhouse 9 - Arthur Andersen 9 - Taylor de Jongh 9 - Andersen 9 - SG 9 - Royal Bank of Scotland 9 - SG

10 - Banco Espirito 10 - European Capital 10 - Babcock&Brown 10 - Royal Bank of Scotland 10 - ABN AMRO 10 - Investec 10 - Taylor de Jongh 11 - Taylor Dejongh 11 - Bank of America 11 - Macquarie 11 - BES 11 - Citigroup 11 - Dexia 11 - BNL

12 - ABN 12 - Deloitte&Touch 12 - Bank of America 12 - BNPP 12 - Investec 12 - Caja Madrid 12 - Investec

13 - Greenwich Nat West 13 - Dresdner Kleinwort 13 - Dresdner Kleinwort 13 - IXIS 13 - Taylor de Jongh 13 - BNPP 13 - Royal Bank of Scotland

14 - Dresdner Kleinwort 14 - Macquarie 14 - Fieldstone 14 - Fieldstone 14 - Dexia 14 - UBS 14 - Dexia

15 - Bank of America 15 - Barclays Capital 15 - Standard Bank 15 - Bank of America 15 - BES 15 - Taylor de Jongh 15 - ING

16 - Babcock&Brown 16 - Charterhouse 16 - David Wylde 16 - Deutsche 16 - Deutsche 16 - HSBC 16 - TASC

17 - Merrill Lynch 17 - HSBC 17 - BNPP 17 - Citigroup 17 - Babcock&Brown 17 - ING 17 - ABN AMRO

18 - Warburg Dillon Read 18 - Dexia 18 - InG Barings 18 - UBS 18 - Caja Madrid 18 - Deutsche 18 - Depfa

19 - Sumitomo 19 - BNPP 19 - Arthur Andersen 19 - CAI 19 - BNPP 19 - BNL 19 - BNP Paribas

20 - Dexia 20 - Citigroup 20 - CAI 20 - ING 20 - BNL 20 - Crédit Agricole 20 - Calyon

21 - CAI 21 - Banco Espirito Santo 21 - HSBC 21 - Barclays Capital 21 - ANZ 21 - ABN AMRO 21 - Caixa Banco de Investimento

22 - CIBC Wood Gundy 22 - ABN AMRO 22 - IXIS 22 - Lazards 22 - Dresdner Kleinwort 22 - BCP 22 - International Advisory&Finance

23 - CL 23 - David Wylde 23 - CIBC Wood Gundy 23 - ABN AMRO 23 - Sumitomo Mitsui 23 - SG 23 - MCC

24 - Investec 24 - Chase 24 - Bankgesellchaft Berlin 24 - Bankgesellchaft Berlin 24 - Mizuho 24 - Lazard 24 - Sumitomo Mitsui

25 - BNP 25 - Babcock&Brown 25 - Dexia 25 - Mizuho 25 - CSFB 25 - Mizuho 25 - National Bank of Greece

26 - Santander 26 - CSFB 26 - ANZ Investment Bank 26 - Abbey National 26 - BCP 26 - Depfa 26 - CSFB 7 - Schroders 27 - CIBC 27 - IBJ 27 - Bank of Tokyo Mitsubishi 27 - Apicorp 27 - CSFB 27 - UBS

28 - Chase 28 - Banco Espirito Santo 28 - Bank of Tokyo Mitsubishi 28 - International Advisory 28 - CAI 28 - International Advisory&Finance 28 - DVB

29 - ANZ Investment Bank 29 - IBJ 29 - International Finance 29 - LB Kiel 29 - ING 29 - Sumitomo Mitsui 29 - Lazard

30 - CSFB 30 - Mediocredito Centrale 30 - CL 30 - ABC 30 - UFJ

31 - Barclays Capital 31 - Flemings 31 - Barclays Capital 31 - Depfa

32 - Mouchal 32 - International Advisory 32 - Chase 32 - Lazards

33 - Citibank 33 - Greenwich Natwest 33 - Mediocrito Centrale

34 - Robert Fleming 34 - IXIS 34 - VerhehrsBank

NC - IXIS 35 - GIC 35 - BES Invesmento

Source: Project Finance International (Thomson Group), EMEA Region


IV. A PPP vehicle: IV. A PPP vehicle: anan

attractive solution answering theattractive solution answering thecore objectives of UNECE core objectives of UNECE –– EE21EE21


WHY A PPP SOLUTION (1)

• Main characteristics of energy and energy efficiency projects in Eastern European countries: smaller collective interests

– Economies in transition issues: difficulty attracting bank financing

– Energy and EE needs: in the public sectors of transport and infrastructure

– Financing provided by local commercial banks are not sufficient (short maturities)

– Large financial institutions focus on large projects vs. smaller size for E and EE needs

– Relatively inefficient and small equity market

– Access to subsidies issues


WHY A PPP SOLUTION (2)

• A PPP approach implicating the public sector throughout the financing process

– Evaluate and build a pipeline at early stage with the UNECE and UNECE Member States

– Member States could provide part of the public tranche of the PPP fund

– Political, legal, tax and technical support of the UNECE and theMember States

– UNECE and Member States could catalyze the financing process

– Provide an attractive rate to private sector investors and a lowlending or equity rate to the projects thanks to the public tranche in the vehicle


V. Setting up and search ofV. Setting up and search of

the financing forthe financing for

the UNECE PPP vehiclethe UNECE PPP vehicle


Description of the setting up and search for the financing for the UNECE PPP vehicle in 3 main phases

Following on two years of close co-operation conceiving, familiarising and developing the appropriateness of the PPP concept with the EE21 team in Geneva and extensive consultation with the French Authorities:

• Phase 1: Initial structuring and public fund identification

• Phase 2: Private fund raising

• Phase 3: Set up and launch of the investments of the fund, last steps in structuring


VI. STRENGTHS OF THEVI. STRENGTHS OF THE

IXISIXIS--CIB CONSORTIUMCIB CONSORTIUM


IXIS-CIB HAS BROUGHT TOGETHER A STRONG CONSORTIUM

The following consortium has agreed to work under the leadership of IXIS-CIB on an exclusive basis:

• The French public agency for the Environment answering to the Ministry of Industry. ADEME has the most important expertise of its kind in Europe including southern and eastern Europe

• Part of the powerful Italian SAN PAOLO IMI GROUP. SAN PAOLO IMI is used to teaming up with IXIS-CIB (energy and infrastructure project financing, FIDEME, CO2 fund, renewable energy) and has experience of Eastern Europe

• One of the major German Banking Groups used to working with IXIS-CIB (strong partnership at mother companies level, PPP structuring in Germany)

• The Portuguese savings bank group

• Other contacts include: French Ministry of Foreign Affairs, FFEM, KfW-DEG, Bank Austria, KBC, EBRD, EC


Conclusions and lessons learned

• A PPP vehicle is the most appropriate

• Links subordinated public debt and private senior funding

• Attracts otherwise unavailable private funding

• Enables public sector to receive returns absent from subsidies

• Permits leverage effect on public semi-equity to increase funding available for projects

• ECF experience pertinent

• Pan-European institutional back-up with relevant regional experience

• Importance of thorough initial structuring


Contacts

IXIS Coporate and Investment Bank47, quai d’Austerlitz

75648 Paris cedex 13

Sébastien Clerc Heneage Legge-BourkeHead Financial Engineering Senior Director& Project & Infra Finance Financial Engineering

tel: + 33 1 58 55 66 66 tel: + 33 1 58 55 66 12

fax: +33 1 58 55 66 99 fax:+ 33 1 58 55 66 99

e-mail: [email protected] e-mail: [email protected]

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