Leadership Profile Programme March 12, 2013 Securing Financial Close Rapdly and Cost Effectivley Luis Duran Energy and Clean Technologies Business Banking, May 2015

Process Overview

Phase 1 – Initial Proposal aa Bank: Meet us early on in the process. i.e. at least 6 months Understand what’s in scope and what isn’t Seek Indicative Term Sheet - what can the Bank do for you? Advisors: Appoint early on Seek credentials Seek compromise on payment terms Allow for seaonality – e.g. BES Turbine: Peace of mind is paramount Are you comparing apples with apples?

The term sheet is a non-binding document. It will give you a good indication of project terms. Remember it is subject to Credit Committee approval!! Phase 2 – Secure A Term Sheet  We stress test your projections in our own PF model  We prepare a brief project summary- Project is graded  Head of business unit sign off  Term sheet is issued  Includes Pricing, C.P.s, Security, events of default etc.  Process can take 2-3 weeks from first meeting

Securing a Term Sheet – Phase 2 How do we stress test a project? How much debt can the project withold? Stress testing – Some things we look at : Term: Construction plus 15 yrs Wind Resource Bank case - always P90 Leverage Driven by DSCR of 1.2 (can be sculpted) BES Repayment must be evident Supplier Lite Reserve Account required– REFIT Price Only Contingency At least 3% - Depending on level of advancement

Credit Approval and Drawdown – Phase 3 Creditt Committe: Independent body May seek clarifications Formal Approval Letter of Sanction Includes a long list of C.P.s Appoint Legal & Tech Advisors Initiate due diligence Process Review and prep key docs Due Diligence Complete All C.Ps met Project Docs Finalised Security docs in Place Drawdown 1 week 3-5 weeks1 week

Drawdwown: Securing a Satisfactory Outcome Completeness: Upoload everything on to data room ASAP- This is typically the biggest delay Timing: Allow time for Bank Lawyers and Technical Advisers to review and input into key documents early on in the process Quick Turnaround: Insist on weekly update calls same day turn around – all parties involved Cost Effciencies: Avoid dupplication - costs can be greatly reduced

Thank You! Any Questions?