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With the continuous expansion of the domestic renewable dynamic market and the competition is becoming increasingly popular, enterprises are focusing on the international market to expand new market growth points. In the process of “going out”, one of the biggest problems is financing. Tong Jiangqiao, a middle-level special contract researcher at the Qinghai University Green Finance Development Research Institute, suggested that renewable dynamic enterprises expand financing channels by strengthening cooperation with international long-term investment funds, exploring mixed financing with multi-sided institutions, applying financing and wind control capabilities of foreign-invested commercial financial institutions, promoting investment and reducing financing capital.
(Source: WeChat public number “Sugar daddyFeng Energy Special Committee CWEA” ID: gh_d49e90990fd4)
InterviewedSugar babyPeople: Tong Jiangqiao Tsinghua University Green Finance Development Research Institute Intermediate Special ConventionSugar daddy : Please introduce the current status of the international renewable dynamic project of Chinese enterprises investing in.
A: According to statistics, the capacity of the regenerative power green projects of the Chinese enterprises as the “one belt, one road” that mainly participates in investment in countries and regions is about 3 million kilowatts, which is relatively short and often small. It can be said that Chinese enterprises’ equity investment in foreign renewable projects is still in the late stage. Judging from the projects that have already invested and started operating, China Capital Financial Institutions is an important source of financing for renewable power projects, and the main investment entities include domestic power enterprises, engineering contracting and construction enterprises, and wind and photovoltaic equipment manufacturers. Green already-operated wind projects invested by Chinese enterprises are mainly located in South Africa, Kazakhstan, Pakistan, Vietnam and the Balkan countries, etc. More wind projects along the “one belt, one road” are still in the later stage of development. The intra-sea investment of photovoltaic projects is relatively scattered and is distributed in Latin America, Southeast Asia, North Africa and Central East.
In addition to green projects, Chinese companies are actively purchasing and building wind and photovoltaic projects in Europe, America and Australia and other regions and countries. In the future, domestic enterprises will still have great potential in participating in the development of larger-scale renewable dynamics.
Q: What investment and financing forms do Chinese enterprises today adopt in international renewable dynamic projects? Which form do you think will become mainstream?
A: Due to the differences in countries, project types, risk distribution mechanisms, and project owners, Chen Jubai, who is selected and suitable for the project, does not quite meet the standards of Song Wei. The forms of financing also vary. Taking the renewable dynamic projects of countries along the “one belt, one road” as an example, it is divided into three categories: company financing, project financing and mixed financing.
Company financing is important for the guarantee and asset quality provided by the shareholders of the lender or third parties. The financial institution is important for the issuance of loans for the project based on the credit of the lender and the guarantee party, rather than considering the project’s own income and assets. This is what we say is classic or guaranteed form of financing. Sugar babyIn the event of a loan agreement, the financial institution has the right to pursue the project originator.
The representative project of this form is the China Electric Power Construction Pakistani fertile wind project. This project is one of the 14 leading development projects in the “China-Pakistan Economic Corridor Construction Plan”. The project’s installed capacity is 49,500 kW, with a total investment of approximately US$115 million (about RMB 820 million), and China Power Construction holds 93.3% of the project’s shares. China Industrial and Commercial Bank provides loan loan support for export buyers, with the loan principal of US$78.82 million, and Pinay escortCITIC Insurance provides insurance for the project loan principal and profits. The project adopts the form of BOO (Building-Owning-Operation), which is a 20-year purchase agreement with the National Power Transfer Corporation of Pakistan (NTDC). The annual application hours are 2,800 hours. The principle of determining the price is the “cost + return” method, with the expected internal rate of return of the principal of 15% to 17%.
Project financing is an important loan established for the purpose of operating projects. It uses the assets of the company to which the project is affiliated and operates the project.The cash flow generated is used as a source of repayment and is divided between relevant parties such as owners, contractors, and operators.
The more typical projects are the Sanshi Group Pakistan Sindh Wind Project and the Longyuan Power South Africa De A Wind Project. The Sanshi Sindh Wind Project is located in Sindh Province in southern Pakistan. The capacity of the first phase of the project is 49,500 kW, with a total investment of about US$130 million and an annual power generation capacity of about 140 million kW. The second phase capacity is 99,000 kW, with a total investment of about US$230 million and an annual power generation capacity of about 30,000 kW. The project adopts an unlimited recourse financing structure, and the national banking bank loans are organized by the bank. Longyuan Power Death Afrigeration Project is China’s first venture project in Africa to integrate investment, construction and operation. Longyuan Power holds 60% of the project, Song Weitong stayed in his footsteps, hesitated for half a minute, put down his suitcase, and followed the sound of searching. When she entered school, it was the luggage he helped to move. He also had to hold 20% of the shares in her joint venture. The project is divided into two phases, with the machine capacity of 100,500 kW and 144,000 kW respectively, with a total investment of about 2.5 billion yuan. The project is in the form of no recourse financing, and all loans are provided by a bank group composed of local commercial bank Nedbank and local policy bank IDC. The project has signed a 20-year fixed-price sales agreement, and the power-limited power is replaced with a compensation mechanism, and local authorities provide insurance.
In addition, many projects along the “One Trail and One Road” have higher political and business risks, lower credibility and evaluation levels, which makes it difficult to achieve complete project financing, so the mixed financing method is mostly adopted. There are two situations in detail: one is a mixture of company financing and project financing under different stages, such as the construction contractor financing combined with project financing during operation or Sugar baby company financing; the other is a financing form in which multi-sided institutions and business institutions cooperate to participate. The important participation of multi-sided institutions is to increase trust and attract more business institutions. International capital participation and investment projects are widely used in this form. It is like the Bangladesh renewable dynamics project that the world bank provides financing, and the Sugar daddy Ukrainland Syvash project that is invested by NBT and Total Eren, which is invested in cooperation with NBT and Total Eren.
The differences have their own lengths, no matterProject financing, company financing, or mixed financing, cannot be completely replaced. But in the future, as the market gradually becomes more perfect, I think the proportion of project financing will increase. There are two types of things: first, the risk and photovoltaic technologies are changing rapidly, and the power generation costs have dropped, reducing the dependence on supplementary funds, and the cash flow is predictable. Second, there are more and more renewable dynamic projects, and financial institutions will make significant progress in receiving risks after they have accumulated enough cases and data to track them clearly.
Q: What are the differences between China Capital and international capital? Sugar baby
A: Due to differences in land status, civilization, investment targets, etc., there is a big difference between Chinese capital projects and international capital projects. Affected by regional reasons, there are differences in important markets. China’s projects involved in green investment are important in financial markets such as Southeast Asia and areas where economically underdeveloped areas are relatively underdeveloped. This is the first step for Chinese enterprises to “go out”. Of course, Chinese companies are also gradually expanding to more developed countries and regions such as Australia, Central East, Europe and Latin America.
Search keywords: Protagonist: Ye Qiuguan | Supporting role: Xie Xi
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