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50 MW Wind Park

July 24th, 2009
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Description:

The proposed project concerns the construction and operation of a 50 MW wind park in China, which will generate and supply electricity to the grid. An initial 30MW (Stage I) of this project has already successfully been established, and an additional 20MW (Stage II) is to follow.

This project has an attractive expected equity IRR of around 17% (calculated over the total equity, after taxes). In addition, this project has the strong environmental advantages of being a clean energy project.

The equipment manufacturer and supplier, Xinjiang Goldwind Science and Technology Co. Ltd., is one of China’s leading wind turbine manufacturers, and also supplied the turbines for the 1st stage.

The project developer is seeking for investors to invest around 105 million in this 401 million RMB project. Investment would be in the established SPV, which includes also the earlier implemented 1st stage wind park.

This project developer has obtained the right for a number of projects in the same regions and is looking to initiate additional Wind farms projects.

Several investment opportunities exist and can be discussed with this project developer. We invite you to make inquiries regarding similar projects.

 

Timing:

Construction will begin once financing has been secured. The estimated timeline is the following:

  • Year 1: Construction period
  • Years 2 – 21: Operational period

 

Key Financial Parameters:

Total investment excluding rolledup interest (RMB)

381,763,600

Equity IRR (over total equity, after taxes)

17%

Project IRR (after taxes)

13%

Pay Back Period (yrs) including construction period

<8

Non-Convertible Debt provided by investor (RMB)

20,000,000

Subordinated Convertible Debt provided by investor (RMB)

49,500,000

Equity provided by investor (RMB)

35,700,000

 

Proposed Financial Structure:

The following proposed financial structure is subject to further negotiation:

  • 65% Chinese Bank debt (12 years, 7% annual interest)
  • 5% Non-convertible debt provided by investor (10 years, 8% annual interest rate
  • 12.35% Subordinated convertible debt provided by investor (10 years, 8% annual interest rate)
  • 17.65% Equity, of which 51% held by the project developer, and 49% held by the investor

The proposed financial structure includes the option to enhance the return by converting the subordinated convertible debt to equity.

The financing structure may be subject to requirements from the Chinese government, depending on the legal status of the investor.

More details and a tailored investment proposal can be discussed.

 

 

 

Author: Asiagreed Categories: Financing Tags:
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