Biobased workshop 2018

Alain Cracau Amsterdam, March 19 - 2018

Green growth and finance

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Rabobank at a glance

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What we do – some 2017 examples

• Total sustainable financing € 18,9 bn (SDG 12)

• Sustainable transactions arranged € 6,2 bn (SDG12)

• Total investments in renewables € 3,4 bn (SDG 7)

• Issued Green Bond € 500 mln for new projects

(SDG 7)

• Chair climate smart agriculture WBCSD (SDG 17)

• Sustainability performance of our larger corporate

clients measured (SDG 8)

• Partnership UN Environment (SDG 17)

Our contribution to the UN Sustainability Goals

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Evolution from risk to value

Environmental focus Sustainability focus Circular focus

Risk Compliance Cost reduction

Eco- efficiency

Systems level

innovation

Value Creation

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Shared long term view

1000 3000 2000

Oil c

onsu

mpti

on

Agribased Biobased A brief

moment

in history

Earth’s resources are finite , human ingenuity and solar energy are infinite

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Biorefinery for all purposes

Biorefinery

Proteins

Sugars

Oils &

Lipids

Ligno

cellulose

Packaging & disposables

Consumer goods Personal care

Automotive

Food additives

Building & construction

Textiles

Paints, lubricants, waxes

Plant constituents

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Cascading the value

Health

Biomaterials

Bulkchem

Energy

Food & Feed

Value

Volume

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Money goes “green” –rapid & steep growth

Total Market Green bond

$150Bn

Total Market Green bond

$0 BN

2012 5 years time 2017

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Access to finance issues……..

• Growth potential is appealing for

financial market participants, but high

perceived risks and growth is long term

• Information asymmetry and technology

risk limit investment which steers private

capital towards more mature projects.

• Risk-sharing financial instruments should

further be developed and more

awareness, which mobilize private capital.

• Regulation and market and demand

framework conditions are most

important drivers but also biggest risks

• Funding gaps exist in scaling up pilots

and flagships

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• A strong focus on (renewable) energy and infrastructure with a global portfolio of more than 100

projects

• Expertise in cashflow based financing with a limited recourse character

• Based on future contracted cash flows, we design and deliver innovative financing solutions

• We have in-depth knowledge of the industries we serve. Given the ‘technology heavy’

component in Project Finance, this understanding of the business is essential to

maximising the added value for our client

• In line with our core focus on Food and Agri and sustainability, valorisation of waste and

biofuels production are attractive markets for Rabobank

• Through our ‘Agri-meets-Chemicals’ platform, Rabobank has developed strong knowledge and a

wide network in this sector

Rabobank Project Finance offers financing and advisory for renewables and infrastructure projects

Sector focus

Who we are and what we do

Renew

able

s

• On&offshore

wind

• Solar (CSP and

PV)

• Biomass

• Geothermal

Oil &

gas

• Tank storage

• LNG

• Pipelines

Off

shore

serv

ices

• FPSOs

• Tugboats

• Specialised

vessels

Infr

astr

uctu

re &

U

tilities

• Roads and

bridges

• Buildings

• Telecom

• Power plants and

district heating

Food &

Agri

and B

iore

finin

g

• Primary

processing

• Energy solutions

• Biorefining

Senior debt (construction & term loans)

Mezzanine financing

Provide access to institutional investors

Financial advisory (debt and equity)

VAT- facilities, Guarantees, Letters of Credit

Hedging, cash management, agency services

Product offering Global Footprint

Office Presence

Rabobank No. 1 MLA transactions in the Dutch infrastructure

sector, 2017

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Rabobank dedicated to developments in biobased

Organiser of bio-economy Conferences

2017– Agri meets Chemicals IV

2016 – Bio Economy Utrecht

2016 – Agri meets Chemicals III

2015 – Agri meets Chemicals II

2014 – Agri meets Chemicals I

Publishing reports on biochemicals

• Bioplastics moving to the beet

• Joint publications with deloitte:

• Opportunities for the fermentation based chemical industry

• Viability of biobased chemicals from beet sugar in Delfzijl

• Packaging strategies and the Circular Economy

Member of biobased network

• Bio-based Industries Consortium

• Biobased Circular Business NL

Development Capital

• SHIFT Invest

• Dutch Greentech Fund

• Rabo PE

Financing to the bio-refinery and waste to power sectors. :

Draff & Wood to heat & power, Scotland

Recycled wood & Solid Waste to power, England

Various, virgin wood to power, USA

Meat and Bone Meal to heat and power, England

Biowaste to Power, NL

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Integral Approach to achieve Tailor-made Financing Solution

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Project Finance

Export Finance

Markets

Knowledge & Network

• Focus on the ex- and imports of capital goods and services

• Increased liquidity and lower cost due to ECA coverage

• Hedging of commodity price risks

• Hedging of interest rates and foreign exchange

• Hedging advisory and execution co-ordination

• In-depth knowledge of waste to energy projects and the PF market

• Strong relationships with EIB and relevant ECAs

• Commitment to innovative, circular and bio-economy development

• Strong focus on advising, structuring, arranging and underwriting

(complex) project finance transactions

• Flexible approach to risk and return allocation scenarios

Add value to Bio-refinery Projects by combining expertise across the entire spectrum of financing

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• Bio-economy to take center stage in post oil era

• Momentum for many clients and regions to play a distinctive role to capture

opportunities

• Bio-chemicals in Rabobank’s sweetspot (F&A, Circular Economy )

• Closing the gap on innovation and scale-up projects with strong expertise,

networks and collaboration with public-private financing

Summary

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Rabobank is committed to

Thank you