DOCSLIB.ORG

Project Finance Structuring a Deal

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Project Finance Structuring a Deal PROJECT FINANCE STRUCTURING A DEAL Private and Confidential: For Limited Circulation Only DISCLAIMER • This presentation (“Presentation”) has been prepared by Synergy Consulting Infrastructure and Financial Advisory Services Inc. (“Synergy”) to provide helpful information on the subjects discussed for educational purpose only. • Synergy will not regard any person (whether a recipient of this Presentation or not) as a Client and will not be responsible for providing any advice or protections to any such person. • No representation or warranty, express or implied, is or will be given by Synergy or their respective directors, affiliates, partners, employees or advisors or any other person as to the accuracy, completeness or fairness of this Presentation and no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. • Synergy does not undertake, and is under no obligation, to provide any additional information, to update this file, to correct any inaccuracies or to remedy any errors or omissions in this Presentation. • The Presentation should not be regarded as constituting an opinion on the situations discussed in the Presentation, nor relied upon as a basis to proceed, or not to proceed, with any specific action or remedy. 2 CONTENTS 1 DEAL STRUCTURE OVERVIEW 4 DEBT FINANCING FINANCING OF PROJECT: 2 OVERVIEW 3 EQUITY FINANCING Private and Confidential: For Limited Circulation Only 1.1 DEAL STRUCTURE OVERVIEW DEAL 1 STRUCTURING 1.2 FINANCING STRUCTURE OVERVIEW OVERVIEW 1.1 DEAL STRUCTURING OVERVIEW KEY ASPECTS • Contractual structure •Minimum functional requirements •Risk Allocation •Design limits •Risk mitigation (Back to back risk transfer and insurance) •Plant efficiency guarantees / KPI regime Legal Technical Structure Structure Commercial Financing Structure Structure •Commercial framework (BOO/BOOT, Concession term etc.) •Senior debt financing •Tariff structure including •Equity, EBL, SHL deductions / deemed payments •Payment guarantees, LCs •Government guarantees 5 5 1.2 FINANCING STRUCTURE OVERVIEW TYPICAL REQUIREMENTS Deal Type Bid Bid Negotiated Deal (with Lender Commitment) (without Lender Commitment) • Senior Debt Financing • Senior Debt Financing • Senior Debt Financing • Several bids require lender • Some bids in the region do not • No senior debt commitments are commitments ranging from a require lender commitment at bid typically sought at proposal stage minority up to 100% of debt stage. However, sponsors may be requirement required to submit bank LoIs to • Sponsors typically finalize the demonstrate lender interest and commitment from senior lenders • LoI from ECAs/DFIs may also be also to correctly incorporate likely before the commercial close submitted (though this is typically financing terms in their bid not considered as part of • Depending upon overall deal committed funding) • While some initial lender structure and negotiations, lender comments may be provided at requirements may need to be • Lender sign-off on project pre-bid stage (especially by DFIs) anticipated and included within documents is required pre-bid (i.e Detailed DD is commenced only project documents at significant lender legal DD is after the appointment of negotiations stage performed pre-bid) preferred bidder • Equity Financing • Equity Financing • Equity Financing • Procurer may seek an equity • EBL – typically LoIs are • Sponsor may submit EBL LoIs / commitment letter as a part of considered to be sufficient equity commitment letters to aforementioned short form demonstrate their level of proposal • Equity commitment letters commitment to the procurer 6 2.1 SOURCES OF FINANCING FINANCING OF 2 PROJECT: 2.2 KEY FINANCING CONSIDERATIONS OVERVIEW 2.1 SOURCES OF FINANCING INTRODUCTION In order to meet the project’s funds requirement, cash is infused either in form of Equity or Debt EQUITY PROJECT COST DEBT 1. OPTIONS FOR EQUITY FINANCING 2. OPTIONS FOR DEBT FINANCING • Equity Bridge Loan • Loans from lenders including : • Cash Equity Infusion • Commercial Banks/Fis • Shareholders Loan • Multilateral Agencies/ DFIs • ECAs • Bonds 3. LOAN CLASSIFICATION: ON THE BASIS OF 4. LOAN CLASSIFICATION: ON THE BASIS OF DOCUMENTATION STRUCTURE • Conventional Lending • Long Term Facility (Covered / Uncovered) • Islamic Financing • Mini Perm Facility Private and Confidential: For Limited Circulation Only 8 2.2 KEY FINANCING CONSIDERATIONS • The risk allocation structure under project documents needs to be acceptable to the developer, lenders Acceptable Risk Allocation and other stakeholders, for the project to be successfully financed by local / international lender community • Lenders would also take into account the requirement of the project to the Offtaker on a long-term basis • Strategic nature of the project to the Offtaker would instill confidence and generate ample interest in Strategic Nature of Project the lender community & Project Need • Analyze the economic feasibility and viability of the project, vis-à-vis the region / country • Lenders are expected to review the need for the project based on the increase in demand of the produce in the market • Environmental concerns and technology utilized will be key considerations for most development Environmental Concerns financial institutions and some international commercial lenders for providing funding to certain projects like coal fired power project Credit Strength Of The • Credit strength of the Offtaker and sufficient credit support mechanism would be key to generate Offtaker sufficient interest from the lender community • Mature technology in utility space which has proven its bankability through several successful Established Utility transactions in the region is generally preferred by the lenders Technology • Lenders are expected to be comfortable with such well established technologies in the utility space Private and Confidential: For Limited Circulation Only 9 3.1 EQUITY CONTRIBUTION 3.2 BASE EQUITY SOURCES OF 3.3 EQUITY BRIDGE LOAN 3 EQUITY 3.4 SHAREHOLDER’S LOAN FINANCING 3.5 PREFERRED EQUITY 3.6 LETTER OF CREDIT 3.1 EQUITY CONTRIBUTION OVERVIEW Equity Bridge Loan Shareholder’s Loan Base Equity Equity Commitment Letter of Credit Private and Confidential: For Limited Circulation Only 11 3.2 EQUITY BRIDGE LOAN KEY FEATURES • Short term facility raised to bridge Sponsors’ equity investment in a project • Stop-gap measure until medium or long-term funding can be arranged. Also called swing loan or Definition gap loan (also delays the infusion of more expensive cash equity, into the Project) • Sponsors typically fund a portion / entire equity investment in a Project by way of an Equity Bridge Loan (increasingly being accepted as a bid optimization measure to boost IRRs) • Provided for a short period of time (though the tenors have been increasing with the increased acceptance among the lenders, in the region with EBL tenors now ranging to up to 9 years) Features • Typically attracts higher interest rate as compared to other forms of debt • Bridge loans can be approved and disbursed quickly • Funds can be arranged through bridge loans within a short span of time with comparatively less Advantages documentation (as opposed to, say, raising bonds) Disadvantages • Expensive source of funding since the interest rates are higher as compared to other type of loans Private and Confidential: For Limited Circulation Only 12 3.2 EQUITY BRIDGE LOAN CONTRACTUAL FRAMEWORK EBL STRUCTURE Senior Lenders Sponsors Senior Debt Equity Investment Security Documents EBL Agreements / Security Documents Project Company EBL Lenders Equity Bridge Loan Subordination Agreement CONTRACTUAL FRAMEWORK Contracts Participants Purpose Facility Agreement • Project Company and EBL Lenders • Terms and conditions of EBL Subordination • Subordinating rights of EBL Lenders to those of Senior Lenders in • Senior Lenders and EBL Lenders Agreement respect of Project asset and cash flows • Project Company, Sponsors and EBL • Security provided to EBL Lenders along with terms and conditions Security Agreements Lenders for exercise of the same Legend Cash Contract Private and Confidential: For Limited Circulation Only 13 3.3 BASE EQUITY KEY FEATURES Definition • Contribution by shareholders to fund the cost of development and construction phase of the project Drawdown • Can be upfront, pro-rata, partial pro-rata or back-ended as agreed in the financing documents • No fixed repayments Repayment • Cash available after operating and financing activities are distributed to the shareholders, subject to restrictions on distribution in financing agreements • Equity can be raised through a market equity sale process, a private placement to shortlisted Features & Advantages parties or through corporate debt • No covenants or obligations for Project Company associated with this funding Disadvantages • Most expensive source of funding Private and Confidential: For Limited Circulation Only 14 3.4 SHAREHOLDER’S LOAN KEY FEATURES • Shareholder’s Loan is a subordinated and unsecured loan Definition • Generally provided for a fixed duration but some flexibility in terms of tenor if SHL is provided by providers of base equity Drawdown • Post base equity drawdown or pro- rata with base equity, as agreed in financing documents • Fixed repayments decided by shareholders but with an option of deferral in case if needed Repayment • Senior to base equity and junior to commercial bank debt and government tax authorities • Interest
Load more

Recommended publications
  • Financing Options in the Oil and Gas Industry, Practical Law UK Practice Note
    Financing options in the oil and gas industry, Practical Law UK Practice Note... Financing options in the oil and gas industry by Suzanne Szczetnikowicz and John Dewar, Milbank, Tweed, Hadley & McCloy LLP and Practical Law Finance. Practice notes | Maintained | United Kingdom Scope of this note Industry overview Upstream What is an upstream oil and gas project? Typical equity structure Relationship with the state Key commercial contracts in an upstream project Specific risks in financing an upstream project Sources of financing in the upstream sector Midstream, downstream and integrated projects Typical equity structures What is a midstream oil and gas project? Specific risks in financing a midstream project What is a downstream oil and gas project? Specific risks in financing a downstream project Integrated projects Sources of financing in midstream, downstream and integrated projects Multi-sourced project finance Shareholder funding Equity bridge financing Additional sources of financing Other financing considerations for the oil and gas sectors Expansion financings Hedging Refinancing Current market trends A note on the structures and financing options and risks typically associated with the oil and gas industry. © 2018 Thomson Reuters. All rights reserved. 1 Financing options in the oil and gas industry, Practical Law UK Practice Note... Scope of this note This note considers the structures, financing options and risks typically associated with the oil and gas industry. It is written from the perspective of a lawyer seeking to structure a project that is capable of being financed and also addresses the aspects of funding various components of the industry from exploration and extraction to refining, processing, storage and transportation.
    [Show full text]
  • Proposed Shareholder Loan Conversion & Proposed
    PROPOSED SHAREHOLDER LOAN CONVERSION & PROPOSED CONVERSION SHARE ISSUANCE 23 February 2021 1 Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. Unless otherwise defined, capitalised terms used in this presentation shall have the same meaning ascribed to it in the announcement dated 23 February 2021 (the “Announcement”) made by OUE Lippo Healthcare Limited (“OUELH” or the “Company” and together with its subsidiaries, the “Group”) in relation to the Proposed Shareholder Loan Conversion and the Proposed Conversion Share Issuance (the “Proposed Transactions”). This presentation is qualified in its entirety by, and should be read in conjunction with, the full text of the Announcement. This presentation is for information purposes only and is not intended to form the basis of any contract. By accessing this presentation, you agree that you will not rely on any representation or warranty implied herein or the information contained herein in any action or decision you may take or make. Nothing in this presentation constitutes or forms part of any offer to sell or solicitation of any offer to purchase or subscribe for securities in any jurisdiction, including in the United States or elsewhere. This presentation may contain forward-looking statements that involve risks, uncertainties and assumptions. All statements regarding future financial position, operating results, business strategies, plans and future prospects of the Company are forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions.
    [Show full text]
  • Vantage Towers AG
    Prospectus dated March 8, 2021 Prospectus for the public offering in the Federal Republic of Germany of 88,888,889 existing ordinary registered shares with no par value (Namensaktien ohne Nennbetrag) from the holdings of the Existing Shareholder, of 22,222,222 existing ordinary registered shares with no par value (Namensaktien ohne Nennbetrag) from the holdings of the Existing Shareholder, with the number of shares to be actually placed with investors subject to the exercise of an Upsize Option upon the decision of the Existing Shareholder, in agreement with the Joint Global Coordinators, on the date of pricing, and of 13,333,333 existing ordinary registered shares with no par value (Namensaktien ohne Nennbetrag) from the holdings of the Existing Shareholder in connection with a possible over-allotment, and at the same time for the admission to trading on the regulated market (regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with simultaneous admission to the sub- segment of the regulated market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) of 505,782,265 existing ordinary registered shares with no par value (Namensaktien ohne Nennbetrag) (existing share capital), each such share with a notional value of EUR 1.00 in the Company’s share capital and full dividend rights as of April 1, 2020 of Vantage Towers AG Düsseldorf, Germany Price Range: EUR 22.50 – EUR 29.00 International Securities Identification Number (ISIN): DE000A3H3LL2 German Securities Code (Wertpapierkennnummer, WKN): A3H 3LL Common Code: 230832161 Ticker Symbol: VTWR Joint Global Coordinators BofA Securities Morgan Stanley UBS Joint Bookrunners Barclays Berenberg BNP PARIBAS Deutsche Bank Goldman Sachs Jefferies TABLE OF CONTENTS Page I.
    [Show full text]
  • Italy Modernizes Tax Treatment of LBO Transactions
    ITALY MODERNIZES TAX TREATMENT OF L.B.O. TRANSACTIONS On March 30 2016, the Italian Revenue Agency issued the Circular Letter No. 6/E Authors (the “Circular Letter”), which confirms the characterization of a Leveraged Buyout Luca Rossi (“L.B.O.”) from a tax perspective and addresses certain tax issues that typically Marina Ampolilla arise from this type of transaction. The Circular Letter was designed to create a fa- vorable environment for foreign investment in Italy and to reverse negative publicity Tags arising from interpretative uncertainty over tax consequences. Investment Banking Fees Italy In this respect, the Circular Letter provides important clarifications concerning Leveraged Buyout Management Buyout • the deductibility, for corporate income tax (“C.I.T.”) purposes, of interest ex- Shareholder Loans pense incurred in connection with acquisition loans and shareholder loans; • the appropriate tax treatment, for C.I.T. and V.A.T. purposes, of transaction costs and other fees charged by private equity firms to a target company (“Target”) and/or acquisition company (“Bidco”); and • the taxation of capital gains realized at exit and the reduction of withhold- ing tax on outbound dividends under an applicable Double Tax Convention (“D.T.C.”), E.U. directive, or provision of domestic law. INTEREST DEDUCTIBILITY Over the past few years, the deductibility of interest incurred in connection with Luca Rossi is the founder of Studio mergers of L.B.O. acquisitions has been challenged by the Italian tax authorities. Tributario Associato Facchini The typical argument in these matters may be summarized as follows: Rossi & Soci, a dynamic team based in Milan and Rome.
    [Show full text]
  • Treatment of Junior Corporate Debt in Europe April 2011 2 Corporates
    Corporates Corporates EMEA Treatment of Junior Corporate Special Report Debt in Europe European HoldCo PIK and Shareholder Loans Analysts Executive Summary Cecile Durand‐Agbo This report identifies characteristics which allow Fitch Ratings to exclude HoldCo +44 20 3530 1220 [email protected] PIK (payment‐in‐kind) loans or notes and Shareholder Loans when determining a group’s IDR. Fitch assesses if these types of debt instruments increase the Matthias Volkmer probability of the default of the wider corporate group, as reflected in the relevant +44 20 3530 1337 [email protected] IDR. Edward Eyerman Features which support exclusion of these debt instruments in the Restricted +44 20 3530 1359 Group’s IDR (see page 2 for definition) perimeter include: [email protected] • the loans are unsecured and contractually subordinated, or more frequently Related Research structurally subordinated when issued by an entity outside the Restricted • Definitions of Rating and Other Rating Group; Opinions (August 2010) • the loans are PIK‐for‐life (without cash‐pay obligations or options) during the • European Leveraged Credit Review ‐ Stabilisation in Performance as Refinancing life‐time of the transaction; Approaches (January 2011) • the loans’ effective final maturities are longer dated than any of the more • Rating Approach to PIK Loans in Restructurings (June 2009) senior ranking debt elements in the group’s capital structure, and lenders do • European Holdco PIK ‐ Evolution and not possess independent
    [Show full text]
  • Loan Syndications Page on Bloomberg Terminal: “ANZ” + “Go” Button + Option 20
    Please visit ANZ Loan Syndications page on Bloomberg Terminal: “ANZ” + “Go” Button + Option 20 LOAN SYNDICATIONS Asian Exim Banks Forum John Corrin Global Head of Loan Syndications June 2014 Syndicated Loan Australia & NZ Asia Pacific Loan House of Syndicated Syndicated Best Loan House Best Loan House Australia & Loan House Loan House Year 2012 Corporate Loan Acquisition Finance 2012 House-2012 NZ 2013 2013 2012 House 2012 Loan House 2012 Executive Summary – Project Finance Leads Record Issuances In The Syndicated Loan Market 2 9 Strong liquidity, improved political / macro-economic situation and increasing risk appetite Overview has led to record loan activity in 2013, including record volumes for Project Finance* /Background • 2013 syndicated loan volumes in Asia Pacific (ex-Japan) closed at record USD462B, an increase of 50% over 2012 • 2013 syndicated project finance volume was at USD112.4B, across Asia Pacific (ex-Japan), an increase of 40% over 2012. • Specialised Financing saw record volumes in 2013 on back on successful closing of mega transactions 9 Infrastructure financing across Asia will continue to drive demand especially across Current Themes emerging Asian economies of China, India, Indonesia, Philippines and Vietnam • Demand across infrastructure projects has replaced the slowdown in the commodities sector • Aircraft and shipping deals continue to populate the forward pipeline as demand returns in these cyclical sectors • Larger transactions in the Oil & Gas and Energy sectors will continue to dominate deal volumes • With
    [Show full text]
  • Navigating Debt Repurchases in Europe: What You Need to Know
    Latham & Watkins Capital Markets, Banking, and Private Equity April 22, 2020 | Number 2713 Finance Practices Navigating Debt Repurchases in Europe: What You Need to Know Key Points: • Market shifts often lead companies and their affiliates to actively consider debt repurchases. • Important legal considerations to factor into that analysis include: – Potential disclosure obligations – The impact of tender offer rules – Contractual limitations or restrictions – Consequences of debt purchase transactions – How debt purchase transactions can be structured – Potential tax consequences for debt repurchased at a discount – Jurisdictional-specific considerations This Client Alert examines the key issues that typically arise in connection with debt repurchase programs. It also looks at issues applicable to both bond and loan repurchases, as well as jurisdictional issues raised by the United Kingdom, France, Germany, Italy, and Spain. This discussion is intended to provide general answers that may be useful in planning a debt repurchase program. However, companies and their affiliates and financial institutions should consult with counsel about the facts specific to their circumstances before commencing any such program. Reasons for Conducting Debt Repurchases The potential benefits of a debt repurchase, whether of bonds or loans, largely depend on the contemplated strategy. Some key benefits from the perspective of issuers/borrowers and their affiliates are as follows: • A debt repurchase can allow a group to reduce its overall leverage and reduce its future refinancing risk more economically than by making a voluntary prepayment.1 This de-leveraging can, in turn, increase capacity for other activities, such as making restricted payments or debt incurrence, and may create headroom under applicable leverage-based financial covenants (which may be particularly relevant if borrowers seek to utilize available capacity under revolving credit facilities to meet any ongoing liquidity/cash flow needs).
    [Show full text]
  • Loans & Security
    Loans & Security Secondary Market Receivables Structured Trade & Export Credit Trade Based Contents Trade Finance Loans & Security Trade Finance Finance Commodities Finance Agency Finance Money Laundering Loans & Security Trade Finance Facility Mechanics 1 Trade Facility Letter signed between Bank and Borrower, a Buyer for example, that will pay for imports via Letters of Credit or other trade finance instruments. 2 Borrower utilises by requesting Bank to provide specific trade finance product(s). For example, as applicant under a Letter of Credit, it applies for its Bank to issue a Seller Buyer Letter of Credit or SBLC or Bank Guarantees. 3 Bank provides trade finance products as a utilisation of the credit line agreed in the Trade Facility Letter. 4 Repayment made by Borrower to Bank under terms of the Facility Letter. 2 1 4 Trade Finance 3 Bank Products Secondary Market Receivables Structured Trade & Export Credit Trade Based Contents Trade Finance Loans & Security Trade Finance Finance Commodities Finance Agency Finance Money Laundering Loans & Security Trade Finance Facility What is it? A consolidated working capital facility, and usually on demand, provided by Bank to Borrower with an aggregate credit limit allocated among a variety of trade finance products. Core features 1. Typical trade finance products available under a Trade Finance Facility include the following: ––Issuance of import L/C ––Issuance of back-to-back L/C ––Issuance of standby L/C ––Import loans under L/C ––Shipping guarantee ––Import loans under collection ––Export loans under collection ––Export L/C negotiation or financing 2. Advantage to Borrower is it provides Borrower with a variety of trade finance solutions (e.g.
    [Show full text]
  • JARGON® Global Mergers & Acquisitions
    The BOOK of JARGON® Global Mergers & Acquisitions The Latham & Watkins Glossary of Global M&A Slang and Terminology First Edition Latham & Watkins operates worldwide as a limited liability partnership organized under the laws of the State of Delaware (USA) with affiliated limited liability partnerships conducting the practice in the United Kingdom, France, Italy and Singapore and as affiliated partnerships conducting the practice in Hong Kong and Japan. The Law Office of Salman M. Al-Sudairi is Latham & Watkins associated office in the Kingdom of Saudi Arabia. In Qatar, Latham & Watkins LLP is licensed by the Qatar Financial Centre Authority. Under New York’s Code of Professional Responsibility, portions of this communication contain attorney advertising. Prior results do not guarantee a similar outcome. Results depend upon a variety of factors unique to each representation. Please direct all inquiries regarding our conduct under New York’s Disciplinary Rules to Latham & Watkins LLP, 885 Third Avenue, New York, NY 10022-4834, Phone: +1.212.906.1200. © Copyright 2013 Latham & Watkins. All Rights Reserved. Welcome to the Book of Jargon® – Global Mergers & Acquisitions. For readers who are lawyers, bankers, or studying to be one, this book can serve as an introduction to the legal and business terms — including corporate and private equity sponsor terminology — often encountered in the structuring, negotiation and execution of mergers, acquisitions and dispositions in many countries around the globe. From statutory terms and nomenclature to sometimes colorful slang, this book includes the words that comprise both home country law and the lingua franca of the M&A world — which has become truly global.
    [Show full text]
  • Understanding Capital Structures for Companies in the Renewable
    8QGHUVWDQGLQJ&DSLWDO6WUXFWXUHVIRU&RPSDQLHVLQWKH5HQHZDEOH(QHUJ\ 0DUNHW /XtVGH6RXVD&RXWLQKR5LFFLDUGL 6XSHUYLVRU3URI5LFDUGR5HLV 'LVVHUWDWLRQ VXEPLWWHG LQ SDUWLDO IXOILOOPHQW RI UHTXLUHPHQWV IRU WKH GHJUHH RI 06F LQ %XVLQHVV$GPLQLVWUDWLRQDW8QLYHUVLGDGH&DWyOLFD3RUWXJXHVD-DQXDU\ (page left intentionally blank) 2 Understanding Capital Structures for Companies in the Renewable Energy Market Understanding Capital Structures for Companies in the Renewable Energy Market Luis Ricciardi Abstract In order to understand renewable energy companies’ financing decisions, we analyzed 33 E.U. and 17 U.S. renewable energy producers from 2007 to 2014 and later analyzed EDP Renováveis and some of its peers in order to identify any patterns concerning their financing decisions. Our results were inconclusive but possibly suggest that pecking order theory partially explains capital structure decisions. Moreover, we believe business risk is an important determinant of financial structures. It seems that leverage is influenced by the way firms sell energy to the market and the way governments support their activity. The longer is the regulatory guidance provided by governments, the greater is the certainty concerning future expected cash flows which will consequently translate into higher levels of leverage. Resumo Com a intenção de perceber de que forma as empresas produtoras de energias renováveis se financiam, analisámos 33 empresas da União Europeia e 17 empresas dos Estados Unidos. De seguida, analisámos a EDP Renováveis individualmente assim como três concorrentes da empresa para identificar algum padrão nas suas decisões de financiamento. Embora inconclusivos, os nossos resultados indicam que a teoria de pecking order explica parcialmente as suas estruturas de capital. Adicionalmente, a nossa pesquisa leva-nos a acreditar que o risco de negócio é um determinante importante das estruturas financeiras destas empresas.
    [Show full text]
  • Annual Report & Financial Statements
    Annual Report & Financial Statements 2018 ANNUAL REPORT & FINANCIAL STATEMENTS Delivering on its mandate NAMA was mandated to deal expeditiously with the assets acquired by it and to obtain the best achievable financial return for the Irish State Annual Report & Financial Statements DELEVERAGING PROGRESS 2010 – 2018 €m 43,970 44,000 40,698 40,000 38,138 36,000 32,739 32,000 27,951 28,000 25,607 23,646 24,000 22,776 19,598 20,000 15,084 16,000 13,360 12,000 10,604 7,816 8,000 6,099 3,935 3,194 4,000 1,925 1,014 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year End Loan Portfolio Value Cumulative Cash Generation The evolution of NAMA April 2009 – April 2019 2009 2010 2011 2012 The Government decision €30.2bn NAMA establishes a to establish NAMA is first The first repayment of special purpose vehicle announced on 7 April 2009 by - NARPS - to expedite The EU Commission gives the €30.2 billion government- the then Minister for Finance, the delivery of social its formal approval for guaranteed senior bonds is the late Mr. Brian Lenihan TD. housing. the NAMA scheme in made – €1.25 billion is February 2010. redeemed. 75% The North Lotts and €71bn Grand Canal Docks area Over €71 billion in loan assets After enactment of the NAMA of the Dublin Docklands is acquired by NAMA from legislation in November 2009, is designated a Strategic the five participating NAMA is formally established 500 Development Zone by institutions (an additional Debtor engagement in December 2009.
    [Show full text]
  • Shareholder Loans in Swedish Private Equity a Study of the Financial Implications of Shareholder Loans in Companies Owned by Private Equity
    STOCKHOLM SCHOOL OF ECONOMICS Shareholder loans in Swedish private equity A study of the financial implications of shareholder loans in companies owned by private equity Authors: Tomas Almgren 20621, William Svensson 20616 Tutor: Clas Bergström 2013-03-03 Abstract In recent years, shareholder loans have been a debated subject in Sweden. However, no independent research into the subject has been done. This paper analyses the presence of shareholder loans in companies owned by private equity funds in Sweden. We find that shareholder loans are common. 82 percent of all companies acquired by private equity funds in 2010 and 2011 used shareholder loans as part of their financial structure. The interest rate on shareholder loans is on average 10 percent in the analysed data sample. By combining the findings in our dataset with previous research on capital structure and returns from private equity funds we find that shareholder loans on average represent approximately 8 percent of total returns. Contents Contents .................................................................................................................................................. 1 1 Introduction ..................................................................................................................................... 3 1.1 Summary of findings ................................................................................................................ 3 2 Backgroud .......................................................................................................................................
    [Show full text]