Il Project Finance allestero e la nuova operatività di Sace. Un caso studio

Il portafoglio in essere Volume di attività: circa 1,5 -2 miliardi di euro lanno Settori principali: –Oil & Gas –Metallurgico –Energia Zone geografiche –Medio Oriente –Russia –America Latina

1)Sviluppo delle operazioni insieme agli sponsors fin dalle fasi iniziali ed intervento da consulente a favore delle imprese in fase iniziale. 2)Innovazione prodotti esistenti (copertura 100%, flessibilità su termini e condizioni, tempi di istruttoria, etc.). 3)Sviluppo nuovi prodotti (garanzia autonoma su loans e project bonds, etc.). I principali cambiamenti

I principali cambiamenti: lo sviluppo dei progetti Analisi dettagliata delle proiezioni economiche e della viabilità finanziaria; Verifica della fattibilità tecnica; Valutazione delle controparti e dei partecipanti; Negoziazione diretta della documentazione finanziaria e delle garanzie; Ricorso a consulenti esterni per determinati aspetti specialistici.

1)Dal Made in Italy al Made by Italy 2)Ampliamento accordi di riassicurazione 3)Dalle polizze assicurative alle garanzie finanziarie 4)Copertura 100% (effetti: riduzione dei costi totali, effetto moltiplicatore) 4) Flessibilità su termini e condizioni (durate fino a 14 anni, strutture finanziarie, schemi contrattuali) 5) Tempi di istruttoria I principali cambiamenti: innovazione prodotti esistenti

1)Nuova Polizza Investimenti 2)Polizza Fideiussioni 1)Finanziamenti al capitale circolante 2)Internazionalizzazione PMI 3)Emissioni Obbligazionarie Principali Cambiamenti : Nuovi Prodotti

A Case Study: Qatargas II

Some figures Project financings in GCC countries in the last 8 years: $1.4 billion SACE loans ($16.4 billion project value); 2004 projects in GCC: 25% of total; Structured finance in Middle East: $4.3 billion loans in portfolio; Projects in Middle East: 43% of total portfolio.

The Project Two 7.78 MMTA LNG production facilities designed to supply gas to the UK (1 train) from natural gas reserves in Qatars North Field. Sponsored by Qatar Petroleum and Exxon Mobil (& Total). The projects includes offshore production facilities, onshore liquefaction facilities, construction and chartering of several new 200 MT LNG tankers as well as the construction of regasification facilities and a new national gas transmission line in the UK and a variety of shared facilities in Qatar. Capital cost (both trains): $9 million approximately. The biggest integrated energy project ever; One of the largest limited recourse financing to date ; The largest liquefaction trains in the world (7.78 MMTA each). The largest LNG tankers in the world (200 MT vs )

Project Rationale

Some trends Consumption growth 2,5-3% p.a (x 2, from m 3 in 2001 to m 3 in 2030) 28% of world energy consumption in 2030 vs 23% today North America, Western Europe & former USSR will remain the main consumption areas but with a decreased % Asia will build up in % terms Power generation main source of consumption increase (progressive substitution of coal - & nuclear ?- )

Consumption breakdown per source of energy

Reserves 2/2

Polarization of the market Two regional blocks within which the majority of exchanges take place: an Atlantic Basin market and one involving the countries of the Pacific. In this context, the Middle Eastern countries are well-positioned to supply both areas, though with different intensities.

Gas trade : pipeline vs LNG

SACE new Approach in Qatargas II

The new approach 1) Eligibility constraints; 2) New and higher risks that ECAs/banks were not used to take; 3) ECAs involvement at early stage in the process to negotiate the essential terms of the deal; 4) High level of flexibility as to contractual schemes; 5) Maximum flexibility as to final financial plan and final financial terms and conditions; 6) 100% insurance coverage.

Priority objective: Competitiveness in terms of costs and prices; Nature of counterparties: Many final purchasers. Sales to quasi-SPC acting as canalizing agent to fragmented group of buyers Duration of contracts: Sometimes still 25 y. More often medium term (5-15 y); Spot; Take-or-Pay clauses: Present, but with greater flexibility as to: volumes to be lifted deferring deliveries to succeeding years, final customer risk, LPG sales, etc.; Prices: Netback mechanism based on end-prices. Spot market prices, influenced by exogenous factors (ex: kWh price) Risks: Full market risk (volume & price). Moreover production projects exposed to risks of downstream projects (re-gas terminal, trading co, distribution networks); Securities: Financial securities & covenants heavily downsized (reduced ratios – including debt/equity -, collaterals to downstream financiers, senior shareholders loans) The new approach: contractual schemes

The new approach : eligibility constraints Two sub-supply contracts - Italy: 43,57%; - UE: 36,50%; - Extra UE: 19,93%;

No pledge on QGII shares; No mortgage on the facilities (Qatar law issue); Assignment of Trade Cos rights under Material Third Party Contracts (Terminal Capacity Agreement; GSPA; Esso UK guarantee); Completion Guarantee; Pledge on trust account receiving third party payments under Material Third Party Contracts; In case of enforcement, QGII must share proceeds with Terminal Co; Terminal Co & its lenders will be the sole beneficiaries of: i.a re-gas fees payment reserve account (TCA Reserve Account); ii.the assignment of the re-gas contract rights (Terminal Capacity Agreement) between Trade Co & Terminal Co; iii.the re-gas cost reimbursement agreement between Trade Co & QGII. The new approach: specifics of securities

Several sourcing options trigger search for maximum flexibility as to final financing plan and financial terms and conditions; Flexible financial plan: US Exim Exxon Mobil / US Exim SACE Exxon Mobil / SACE Islamic Exxon Mobil / islamic Commercial Exxon Mobil / Commercial Flexible repayment schedule: deferral mechanism. The new approach: flexible financial structure

100% both for commercial and political risks; Conditions: Early involvement in the negotiation of essential terms of the deal (technical, economic, financial due diligence and long form term sheet); Risk profile; Risk sharing (multi-sourced structure). all-in cost reduction The new approach: full coverage

Involve a limited group of institutions as early as possible in the process, to negotiate the essential terms of the deal (technical, economic, financial due diligence & long-form Term Sheet at least); Proceed with re-insurance or fast-track for smaller risk takers in the end, if needed; Sponsors to guarantee minimum amount of financing or drop-dead fee to parties involved early that ECAs/banks were not used to take; Elements of good practice…