North American Development Bank North American Development Bank 1 - PowerPoint PPT Presentation

North American Development Bank North American Development Bank 1

The North American Development Bank Structure NADB was established in 1994 under  the auspices of the North American USA MEXICO Free Trade Agreement (NAFTA) between the United States and Mexico to address environmental issues. 50% 50% One of NADB’s objectives is to facilitate  North American Development Bank financing for environmental projects along the US-Mexico border region Geographic Jurisdiction within its jurisdiction. NADB also provides technical assistance  for project development. Its headquarters is located in San  Antonio, Texas. NADB is rated Aa1 by Moodys and AA  by Fitch Ratings 2

Board of Directors NADB has a ten-member Board of Directors, with an equal number of  representatives from the U.S. and Mexico. U.S. Members Mexico Members Secretary of Finance and Public Credit Secretary of the Treasury (SHCP) Secretary of State Secretary of Foreign Affairs (SRE) Administrator of the Environmental Secretary of the Environment and Natural Protection Agency Resources (SEMARNAT) U.S. Border State Representative Mexican Border State Representative U.S. Border Public Representative Mexican Border Public Representative 3

Programs & Eligible Sectors NADB PROGRAMS Roles Loan Support project development with  Senior lenders.  Competitive fixed or floating rates. regards to the closing of financing,  Financial/Technical advisor.  Up to 85% of total project cost. project design, related development  Lead arranger.  Tenors of up to 25 years. studies, and project bidding  Currency: in dollars and pesos. Eligible Sectors Energy Residential, industrial Renewable Water and Sewage Air Quality and hazardous waste Energy Efficiency  Street paving  Potable water treatment  Wind  Public lighting  Landfills  Pavement rehabilitation  Solar plants  Equipment  Recycling  Road bypasses  Hydroelectric  Sewage and wastewater replacement  Equipment  Urban mass transit  Geothermal treatment  Water efficiency  Toxic waste disposal systems  Water conservation  Bio-fuels programs  Border crossings  Storm drainage  Biomass  Methane capture 4

Renewable Energy Projects Ventika I&II Ocotillo (Financing Deal Los Vientos 1A El Porvenir Picture Rocks Solar 2014 of the Year) 2012 2012 2012 2012 Wind Project Wind Project Solar Project Wind Project Wind Projects Imperial Valley Co, Cameron Co, TX Picture Rocks, AZ Reynosa, General Bravo, Nuevo CA Tamaulipas León CETSA 265 MW 200 MW 20 MW 54 MW 252 MW NADB as Lead Arranger and NADB as Lender NADB as Mandated Lead NADB as Mandated Lead NADB as Collateral Agent and Lender Lender Arranger and Lender Arranger and Lender NADB Loan: $65 M NADB Loan: $51 M NADB Loans: $140 M NADB Loan: $110 M NADB Loan: $110 M Los Vientos 1B Eolica de Coahuila Energía Sierra Juarez Tres Mesas I & 2 La Mesa and Cd. 2012 2016 2014 2015 Victoria 2015 Wind Project Wind Project Wind Project Twin Wind Projects Wind Project Willacy Co, TX Tecate, BC and San Diego, CA Llera de Canales, Tamaulipas Güémez, Tamaulipas General Cepeda, Coah. 199 MW 148.5 MW 155.1 MW 202 MW 99 MW NADB as Lender NADB as Technical and NADB as Technical Advisor NADB as Co-Lead and Lender NADB as Mandated Lead Modeling Bank and Lender and Lender NADB Loan: $40 M per Arranger and Lender NADB Loan: $90 M NADB Loan: $39.1 M NADB Loan: $55 M project NADB Loan: $110 M El Centro Solar Sunpeak Solar Park Picture Rocks Solar Los Santos Solar Alamo IV Solar Park 2013 2011 2012 2015 2014 Solar Project Solar Project Solar Project Solar Project Solar Project El Centro, CA Niland, CA Picture Rocks, AZ Ahumada, Chihuahua Brackettville, TX 23 MW 20 MW 20 MW 40 MW 20 MW NADB as Collateral Agent and NADB as Collateral Agent and NADB as Collateral Agent and NADB as Collateral Agent and NADB as Collateral Agent Lender Lender Lender Lender and Lender NADB Loan: $77.4 M NADB Loan: $65 M NADB Loan: $40 M NADB Loan: $65 M NADB Loan: $35 M 6

2 nd and 3 rd Auction NADB actively participating as lead arranger and senior lender for several projects that were awarded  contracts on the 2 nd Auction. 18 year + Construction term loans.  Projects include additional risk mitigating measures, including:  Limited outstanding principal after year 15  Penalties are included in financial model at the different production scenarios  Cash sweeps halfway through the project if certain metrics are not achieved  Limited exposure to merchant risk and higher DSCRs for those revenues  Limited consideration of capacity ( potencia )  NADB has been approached by several projects that intend to submit bids for the 3 rd auction.  Development banks have covered a large portion of the financing for projects that were awarded  contracts on the second auction. Further work is needed to find a structure that allow the inclusion of commercial banks. The risk mitigating measures implemented in the second auction projects are expected to remain in  place. It will be interesting to see how the settlement chamber will play out in terms of the overall risk assessment. 6

Contact: José Tellechea Senior Financial Analyst E-mail: JMTellechea@nadb.org Phone: +1 (210) 231-8000 North American Development Bank 7