Transcript Slide 1

PTC India Financial Services Limited
Corporate Presentation
July 2009
Visit us at www.ptcfinancial.com for more information
PFS - It’s Genesis & Growth
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PTC India Ltd (PTC) was setup in 1999 as an initiative of Government of India (GoI), to
establish power market in India and as well as to act as a credit mitigating agency for
Indian power projects from the private sector.
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PTC conceptualized and developed the trading of short term power market in India.
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After having established itself in the short term market, PTC started entering into long
term Power Purchase Agreements (PPAs) with IPPs and to sell electricity being
generated to various utilities through long term back to back Power Sale Agreements
(PSAs) leaving some capacity merchant for sale in short term.
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PTC’s portfolio size has grown more than 12000 MW of PPAs and about 33,000MW of
MoUs for power purchase. With changes in the dynamics of the energy sector, there
are huge investment opportunities for PTC to act as a integrated energy player.
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Accordingly, PTC formed financial services subsidiary, as an investment special
purpose vehicle with the mandate to provide financial services in the entire energy
value chain.
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PFS - It’s Genesis & Growth……contd.
 PTC India Financial Services Ltd (PFS), was incorporated under the Companies Act
1956 and registered with Reserve Bank of India as a non deposit taking Non
Banking Financial Company.
 Authorized share capital of PFS is USD125 Million with the paid up capital of USD
90 Million.
 PTC holds 77.60% of the equity stake and Goldman Sachs and Macquarie Group
holds 11.20% equity stake each.
 In about a years time, PFS has gross equity sanction upto USD 149 Million with
disbursement of USD 44 Million. PFS has also committed gross debt assistance to
projects to tune of approx USD 146 Million with disbursement of USD 7 Million.
 About 20 projects are currently in pipeline at various stages
*1USD=Rs 48
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PFS – Its Vision and Mission
 Vision: Be the most preferred financial services partner in the
entire energy value chain.
 Mission: To partner and forge strong relationships with credible
stakeholders to provide complete financial services for all links in
the energy value chain.
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Investments in Energy Value Chain: PFS
To provide Investment and Financing solutions for the broader Energy Value Chain
Scope of business activities
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Invest in Greenfield projects, Brownfield
projects and provide expansion capital on
an ongoing basis
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To the companies engaged in
identified target sectors
Investment in identified projects
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Power Exchange
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Tolling projects
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Biomass projects
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Wind project
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Coal Projects
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Investment in cross border
transmission link
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Term Financing
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Financial solutions and advisory
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Strategic financial partnership in PTC India Financial Services to bring
in:
 Fund management best practices
 Strong relationship with global investors
Stakeholders of PFS – Strong Lineage
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PTC India Limited:
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Goldman Sachs:
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PTC started as leading provider of power trading solutions in India. Its primary objective is to develop a
commercially vibrant power market in the country.
In its endeavor to provide holistic services that address the sustainability of the power market model,
PTC has diversified its operations by providing advisory services across the energy value chain, entering
into the long term PPA with the various power utilities and generators, providing equity support to the
projects in the energy value chain, entering and providing fuel linkages to power utilities and generators
participating in the power market and development of power projects through JVs.
GoI owned power sector undertakings NTPC, NHPC, PFC and POWERGRID collectively holds approx 16%
stake in PTC.
PTC has net worth of USD 309 Million and continuous to be leading power trader in the country with
market share of about 50%.
GS is a leading global investment banking, securities and investment management firm headquartered
in New York, United States with assets under management amounting to ~US$868 billion and total
assets of US$ 1,119 billion as on 31 March 2008.
Macquarie Group:
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The Macquarie group is a diversified international provider of banking, financial, advisory and
investment services, headquartered in Sydney, Australia. Macquarie is a global leader in infrastructure
investments and has been an established infrastructure owner and operator for over 13 years.
Macquarie manages 31 infrastructure funds world-wide that hold over 100 infrastructure assets. As on
31 March 2008, the Macquarie Group had total assets of ~US $ 167 billion with a further US $ 232 billion
in assets under management.
Board of Directors
Name
7
Years of
Experience
1.
Mr. T. N. Thakur - CMD
31
2.
Dr. Ashok Haldia
27
3.
Mr. Deepak Amitabh
23
4.
Mr. Shashi Shekhar
27
5.
Mr. P. Abraham
31
6.
Mrs. Rama Murali
35
7.
Mr. Neil Kant Arora
10
8.
Mr. L. B. Naidu
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Portfolio Investment of PFS
PFS since its inception in 2007, has committed investments in equity of various projects in
the energy value chain, some of these projects are:
Renewable Energy Investments
 26% equity in a 10 MW biomass power project in Maharashtra. The project will primarily
use rice husk as raw material and was commissioned on 17th Feb 2009.
 37% equity in a wind cum bio diesel 100 MW project in Maharashtra- The project is
presently the largest wind farm in the country to be set up in single location. The entire land
for the project is acquired and financing is in place. The first phase of 41.25 MW is expected to
be commissioned by Sep 2009 and remaining 58.75 MW is by Mar 2010.
 Upto 26% equity in an SPV, which will undertake around 500 MW of biomass and renewable
energy projects. This SPV will scout for investment opportunities across the country and
around 50 projects are already identified and out of these permissions for 25 projects has
been received from state govt.. One project is in the process of acquisition.
 37% equity stake in 3 MW solar power project in Haryana. The entire land of the project has
been identified and MoU has been signed with HAREDA. Order for equipment has been placed
and likely to be commissioned by 2009 end.
 26% equity in a 12 MW biomass power project in Haryana. The project will primarily use
crop residue as raw material and is expected to be commissioned by 2010. ESA is going to sign
by 2nd week of June 2009. Financial closure expected by end of July 2009.
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Portfolio Investment of PFS…..contd.
Conventional Sector Investments
 26% equity in 189 MW imported coal based power project in Tamilnadu - The project is a merchant power plant
and has three units of 63 MW each. The first phase of 2x 63 MW is expected to be commissioned by August 2009.
The second phase of another 63 MW is expected to be commissioned by December 2009.
 26% equity in the first phase of 270 MW imported coal based power project in Andhra Pradesh. This is the first of
its kind of tolling project in the country in which PTC India Ltd will be supplying coal to the project and will
purchase the power by paying conversion charges. Financial tie up has been achieved. The project is expected to
be commissioned by 2011.
 Equity in stage I of 2*660 MW thermal power project in Andhra Pradesh. 70% of coal required for the project has
got the linkage by Ministry of Coal, GOI. Required land for the project has been already acquired. The project is
expected to be commissioned in 2012. The project was sanctioned in Feb 2009.
 Equity in 2*350 MW thermal power project in Orissa. It is a domestic pit-head coal project, for which the coal
linkage has already been obtained. The first unit of IBEUL has already achieved the financial closure and financial
closure for the second unit is in advanced stages. The first unit of the project is expected to be commissioned by
December 2011 and second unit by March 2012.
India’s First Power Exchange – PFS is one of the promoters of the India’s first power exchange viz. Indian Energy
Exchange and holds 26% equity in it. The exchange is operational.
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Portfolio Investment of PFS…..contd.
Debt Assistance
 to 350 MW Coal based power plant in Chhattisgarh.
• Disbursal of Rs. 6.51Crore has already been made. Likely commission as per schedule.
 to 54 MW Captive power plant of Cement Company in Orissa.
• Disbursal of Rs. 20 Crore has already been made. Likely commission as per schedule.
 to 10 MW Biomass based power plant in Maharashtra.
• Disbursal of Rs. 6 Crore has already been made. Likely commission as per schedule.
 to 12 MW Biomass based power plant in Haryana.
• This was sanctioned in Feb 2009 and the financial Closure is expected to complete by August 2009
 to 10 MW Biomass based power plant in Maharashtra.
• Financial Closure has been achieved and borrower is in process to complete the pre-disbursement
condition.
 to 1320 MW Coal based power plant in Haryana
• This was sanctioned in Mar 2009 and the financial Closure is expected to achieve by Sep 2009
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Portfolio Investment of PFS…..contd.
Debt Assistance
 to 3*360 MW Coal based power plant in Chhattisgarh
• sanctioned in July 2009 and the financial Closure is expected to complete by October 2009
 to 2*60 MW coal based thermal power plant in Orissa
• sanctioned in July 2009 and the financial Closure is expected to complete by October 2009
 to 270 MW coal based thermal power plant in Jharkhand
• sanctioned in July 2009 and the financial Closure is expected to complete by October 2009
 to 10 MW biomass based thermal power plant in Gujarat
• sanctioned in July 2009 and the financial Closure is expected to complete by Sep 2009
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Investment Pipeline
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PFS has a strong pipeline of power projects. 15 debt proposals (other than the
projects at enquiry stage) in renewable and conventional sector aggregating to
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approx 4000 MW of total capacity.
The promoter of these projects include the well-known MNCs in power sector,
companies with strong sector & financial credentials, and developers with
proven track record in power sector.
The aforesaid pipeline is in addition to the potential pipeline of projects which
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have MoU/PPA with PTC India Ltd for sale of their power.
SPVs being set up through holding company structure where PFS is a JV partner
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PFS uniquely positioned in Energy Value chain
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Deep Understanding of Indian Power Sector:
– PFS leverages on PTC’s expertise in almost all parts of the energy value chain with
interests in fuel intermediation, power trading and trading with cross border
entities and evaluating technical and commercial feasibility of power projects and
experience in advising generation companies as well as distribution companies.
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One Stop Service:
– PFS is the entry to whole gamut of the entire services that would be required in
energy sector ranging for tying up for the marketing and selling arrangement of
the power to fuel intermediation and advisory services under PTC umbrella.
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Customer Focus Approach:
– PFS is able to structure the product/ services catering to specific needs of the
project developers depending upon the risk and reward profile at competitive
transaction
costs
and
least
response
time.
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Knowledge Driven Management Team:
– PFS’s management team comprises of the professionals from the power and
financial sector, who have in depth knowledge experience and knowledge of their
respective area.
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PFS uniquely positioned in Energy Value chain
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Enhancement of Project Profile:
– The investment made by PFS adds to the valuation of the project (investee
company) by bringing the core competency of its promoter i.e. PTC in off-take and
marketing of power, which also assists in tying up the balance funding for the
project.
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Long Standing and established Relationship:
– PFS has access to key stakeholders and emerging players in the Indian Power
Sector. PFS also has lineage of large available portfolio of PTC's long term power
projects with 12,000MW of signed/initiated PPAs and another 30,000MW in the
pipeline.
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Diversified Business Operations:
– PFS has its target sectors across energy value chain including power generation,
transmission and distribution assets, fuel sources, related infrastructure like gas
pipelines, ports, LNG terminals, and equipment manufacturers in power sectors.
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PFS: Resource Mobilization Plans
In order to meet the growth requirements, PFS is contemplating to mobilize
resources in short to medium term through:
 External Commercial Borrowings (ECBs)
 Launching of Energy Sector focused Equity & Debt Fund
 Initial Public Offer
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Disclaimer
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This presentation and the accompanying slides (the “Presentation”), which have been prepared by PTC India Financial Services
Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or
invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or
binding commitment whatsoever.
•
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the
Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive
and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission
from, this Presentation is expressly excluded.
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Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business
prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of
future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These
risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various
international markets, the performance of the power industry in India and world-wide, competition, the company’s ability to
successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes
and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks,
as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and
adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forwardlooking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in
this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and
projections.
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presentation comes should inform themselves about and observe any such restrictions.
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