| Year |
Project |
PPA/Merchant |
Project finance raised
(US$m) |
| 2001 |
ANP Funding
1 |
Merchant |
1,376 |
| 2001 |
Al Kamil |
PPA |
99 |
| 2001 |
Shuweihat |
PPA |
1,636 |
| 2002 |
Hazelwood |
Merchant |
993 |
| 2002 |
SEAgas |
Contracted |
355 |
| 2003 |
Umm al
Nar |
PPA |
1,777 |
| 2004 |
EME
Portfolio |
PPA/Merchant |
865 |
| 2005 |
TNP |
PPA |
70 |
| 2005 |
Ras Laffan
B |
PPA |
697 |
| 2005 |
Saltend |
Merchant |
495 |
| 2006 |
Pego |
PPA |
930 |
| 2006 |
Rugeley |
Merchant |
262 |
| 2006 |
Hidd |
PPA |
1,204 |
| 2006 |
Coleto
Creek |
Merchant |
1,165 |
| 2007 |
Tihama |
PPA |
550 |
| 2007 |
Maestrale |
Renewable |
1,920 |
| 2007 |
Fujairah
F2 |
PPA |
2,140 |
| 2008 |
Pelican
Point |
Merchant |
160 |
| 2008 |
Elecgas |
PPA |
730 |
| 2008 |
US Peaking
plants |
Merchant |
400 |
| 2008 |
T-Power |
PPA |
558 |
* Original term loan financing amounts at the 100% asset level
We have achieved this in different parts of the world, under different circumstances and through the combined use of local and international capital. As examples, Shuweihat S1 and Umm Al Nar in the Middle East were both financed in a challenging geopolitical environment, and Saltend was the first merchant plant in the UK to be project-financed using non-recourse debt in over five years.
Non-recourse debt
Non-recourse project finance is at the core of International Power plc's financing strategy and capital structure – this provides the most appropriate funding for each asset and also represents excellent risk mitigation for the Group. Non-recourse debt is secured against the cash flows of the project, with typically no support from the sponsor(s) other than for contractual equity contributions.
Key benefits:
- Ring-fencing isolates individual project risks and thus affords protection for the credit quality of the parent
- Funding costs are lower and tenors much longer than would be obtainable on a corporate basis
- A larger amount of capital can be raised in aggregate, improving IPR's scale and diversification
Net debt structure as at 30 June 2010
Please note that projects are levered on the basis of security and visibility of cash flow.
| | Cash/(debt) | | | | |
|---|
As at 30 June 2010
£m | Project | IPR Corporate | Total
| Maturity | JVs /
Associates
off-balance
sheet | Maturity |
|---|
| Cash and cash equivalents |
709 |
737 |
1,446 |
|
355 |
|
|---|
| Recourse debt |
|
|
|
|
|
|
|---|
| Convertible bond (2023) |
- |
(152) |
(152) |
-2023 |
|
|
|---|
| Senior Unsecured Notes (2017) |
- |
(198) |
(198) |
2017 |
|
|
|---|
| Convertible bond (2015) |
- |
(493) |
(493) |
-2015 |
|
|
|---|
| Convertible bond (2013) |
- |
(170) |
(170) |
-2013 |
|
|
|---|
|
- |
(1,013) |
(1,013) |
|
|
|
|---|
| Non recourse debt |
|
|
|
|
|
|
|---|
| IPM – acquisition debt |
(276) |
- |
(276) |
2012 - |
- |
|
|---|
| North America |
(877) |
- |
(877) |
2013-2029 |
(166) |
- 2019 |
|---|
| Europe |
(2,528) |
- |
(2,528) |
2013-2026 |
(491) |
- 2035 |
|---|
| Middle East |
(362) |
- |
(362) |
- 2025 |
(1,013) |
- 2030 |
|---|
| Australia |
(1,182) |
- |
(1,182) |
2012-2019 |
(78) |
2012 - |
|---|
| Asia |
(43) |
- |
(43) |
- 2025 |
(526) |
- 2018 |
|---|
|
(5,268) |
- |
(5,268) |
|
(2,274) |
|
|---|
| |
|
|
|
|
|
|
| Total net debt |
(4,559) |
(276) |
(4,835) |
|
(1,919) |
|
|---|
Project debt is secured solely on the assets and cash flow of the project company concerned (non-recourse).
The convertible bonds are shown at their final maturity date although they can be converted earlier.
Maturity indicates the first bullet and the last year of project debt amortisation within each region.