Presentation focusing on: 1) business and financing challenges in the African power space; and 2) the proposed financing solutions (UNECA, Addis Ababa 2011)

1. Financing Power Projects in Africa
Jeannot Boussougouth
Senior Manager: Energy, Utilities and Infrastructure
Investment Banking Coverage
Jeannot.Boussougouth@standardbank.co.za
Standard Bank
1 July 2011
UNECA 2011, Addis Ababa

2. Contents 1
Section Page
1. Introduction 2
2. Standard Bank 4
2.1 Natural partner in Africa 5
2.2 Recent Accolades 6
2.3 Selected Infrastructure Credentials 7
3. Our African Infrastructure Understanding 10
4. Business and Financing Challenges 13
5. Requirements for Successful Private Sector Participation 16
6. Potential Financial Structure 23
7. Standard Bank’s Value Proposition 25
8. Case Study: Morupule B Coal Power Plant Financing 34

3. Private and confidential
Section: 1
Introduction

4. Introduction 3
Standard Bank is the largest bank in Africa
– We are present in 17 countries across Africa (especially Sub-Saharan Africa)
– Our current market capitalisation is USD 24.77billion (11 January 2011) and our Total Assets are USD 182.6 billion (June 2010 Interims)
– We are 20% owned by ICBC (the world’s largest bank)
– In most African countries, Standard Bank operates as an integrated corporate and investment bank
The purpose of today’s presentation is to :
– Introduce Standard Bank to the audience in terms of our offering, capabilities and strengths in Africa
– Highlight business and financing challenges in the African power space
– Highlight Standard Bank’s proposed financing solutions, including ECAs
– Highlight some of the most attractive power projects in Africa

5. Private and confidential
Section: 2
Standard Bank

6. Standard Bank: Natural partner in Africa 5
Key points Most comprehensive network in Sub-Saharan Africa
On-the-ground
presence in 17 On-the-ground presence in 17 African countries
African countries
Nearly 150 years of experience in Africa
Largest bank in Africa
– Over 40,000 employees in Africa
– Over 8,000 bank branches headquartered in
Unrivalled Johannesburg
knowledge of sub-
Saharan Africa Growth on the continent is a key strategic focus area
through on ground
Investment banking presence across the region and in key
presence
markets strengthened by recent acquisitions:
– IBTC Chartered Bank, Nigeria
– CFC Bank, Kenya
– Recent banking licence awarded - Angola Standard Bank
Strong product
teams in Angola (33.3 million) Lesotho (1.7 million) Nigeria (154.7 million) Zambia (14.6 million)
Johannesburg,
Lagos, Nairobi and Botswana (1.8 million) Malawi (12.8 million) South Africa (47.4 million) Zimbabwe (13.1 million)
London DRC (63.6 million) Mauritius (1.2 million) Swaziland (1.1 million)
Ghana (23.1 million) Mozambique (20.3 million) Tanzania (37.8 million)
Kenya (34.7 million) Namibia (2.1 million) Uganda (27.6 million)

7. Recent Accolades 6
Key points
African Banker – 2009, 2008
Euromoney: Best The Banker – 2010, 2009, 2008 Euromoney – 2010, 2009
Deal of the Year Africa: Bonds (2010) Best Investment Bank in Africa (2010) Investment Bank of the Year, Africa (2009)
Investment Bank in
Deal of the Year Africa: Capital Raising (2010) Best Investment Bank in Nigeria (2010) Best Issuing House in Africa (awarded to Stanbic
Africa (2010) IBTC Bank) (2008)
Deal of the Year Africa: Structured Finance Best Bank in South Africa (2010)
(2010) Best Equity House in Africa (2009) Deal of the Year - ICBC 20% acquisition of
Lakatabu Expansion - Africa Industrial Deal of the Standard Bank (2008)
African Bank of the Year (2009, 2008)
Bank of the Year, South Africa (2009, 2008) Year (2009)
Best Investment Bank from Africa (2009, 2008) MTN Uganda - Africa Telecoms Deal of the Year.
(2009)
Best Bank in Botswana, Lesotho, Malawi,
Swaziland , Tanzania (2009) Zain - Middle East Telecoms Deal of the Year
(2009)
Deal of the Year for the Ruashi Copper Mining
Project in DRC (2008)
Global Finance Magazine – 2009
African Banker: Deal of the Year - Botswana for National
Development Bank BWP100 million 11.25% notes Best Debt Bank in Africa (2009)
Investment Bank of Best Foreign Exchange Provider in South Africa
due 2017 (2008)
the Year, Africa (2009)
Deal of the Year - DRC for the Ruashi Copper
(2009) Mining Project (2008) Best Investment Bank in Africa (2009)
Deal of the Year - Finland for Talvivaara Nickel Africa Investor – 2009 Best Investment Bank in Nigeria (2009)
Project US$320m debt facility (2008) Best Africa Investment Bank (2009) Best Investment Bank in South Africa (2009)
Deal of the Year - Germany for Kreditanstalt fur Best Africa Research Team (2009)
Wiederaufbau NGN28.7 billion 8.5% notes due by Infrastructure Deal of the Year for Gautrain (2008)
2011 (2008)
Deal of the Year - Tanzania Electricity Supply
Limited TZS300 billion syndicated loan (2008)
EMEAFinance – 2009, 2008
Deal of the Year - Zambia Sugar Project (2008)
Deal of the Year (South Africa) for the 20% Best Investment Bank in Africa (2009, 2008)
Africa Investor: Best investment by ICBC in Standard Bank (2008) Best Investment Bank in Nigeria (awarded to
Africa investment Deal of the Year Award - Bahrain for Arcapita Stanbic IBTC Bank) (2009)
Bank (2009) Bank US$1.1b syndicated Murabaha facility Best Natural Resources Deal in EMEA:
(2008) Kayelekera Uranium project (2009)
Most innovative in Trade and Project Finance Environmental Finance Magazine - 2009 Best Oil and Gas Deal in Africa: Oando (2009)
(2008) Carbon Finance Deal of the Year for Camco- Best Project Finance Deal in Africa: Botswana
Ranked No 1 in sub-saharan Africa and No 106 in Standard Bank Structured Carbon Credits Power Corporation (2009)
The Banker Top 1000 World Banks (2008) Transaction (2009) Best Project Finance House in Africa (2009)
Standard Bank has won various awards that demonstrate our capabilities across the entire range of advisory and funding services in Africa

8. Recent Energy, Power & Renewables Credentials (1/3) 7
Ongoing – Scatec Solar, South Africa
Standard Bank has been mandated as Sole Financial Arranger and Underwriter, and BEE funding provider to Scatec Solar
on its various Solar PV project in the Northern Cape and Eastern Cape provinces of South Africa
Ongoing – Solar Reserve, South Africa
Standard Bank has been mandated as financial advisor to Solar Reserve on its Solar CSP plants, using molten salt storage
technology, totalling [80-100]MW, in South Africa
Ongoing – Confidential, Africa
Standard Bank has been mandated for a confidential Equity raise in Africa
Ongoing – The Power Company/Built Africa, South Africa
Mandated as financial advisor for The Power Company/Built Africa [20]MW Solar PV Project, over several South African sites
Ongoing – Gitson Energy, Kenya
Mandated lead arranger & financial advisor for Gitson Energy’s [300MW] Wind Power Project in Bubisa, Kenya
Ongoing – Solar Capital, South Africa
Standard Bank has been mandated as financial advisor and main lead arranger for Solar Capital on its five Solar PV plants in
the Northern Cape
Ongoing – African Clean Energy Developments, South Africa
Standard Bank has been mandated as main lead arranger for African Clean Energy Development (ACED) to develop a
[400MW] wind farm in cookhouse in the Eastern Cape
Ongoing – CGNPC, South Africa
Standard Bank has been mandated as a financial advisor to China Guangdong Nuclear Power Corporation (“CGNPC”),
China’s largest Nuclear Energy company, in support of their bid to build South Africa’s potential nuclear power programme
Ongoing – Just Energy, South Africa
Financial Advisor to Oxfam’s energy subsidiary, Just Energy, to develop [74MW] of wind farms in the Eastern Cape
Ongoing – Italgest, South Africa
Standard Bank has been mandated as Financial Advisor to Italgest on its [100 MW] Solar PV project.

9. Recent Energy, Power & Renewables Credentials (1/2) 8
Ongoing – BHP Billiton, DRC
Mandated Transaction Advisor to BHP Billiton SA (Pty) Limited on the INGA 3 hydro-electric project concept study in the
Democratic Republic of Congo.
Ongoing – Mphanda Nkuwa Hydropower Project, Mozambique
Financial advisor to the Mphanda Nkuwa consortium on the development of 1500 MW hydro electric project in Mozambique
Ongoing – Anglo American, South Africa
Standard Bank has been mandated as the Financial Advisor to Anglo American’s [450MW] discard coal-fired IPP near
Witbank
Ongoing – SARGE, South Africa
Standard Bank has been mandated as the sole Project and Equity Raising Financial Advisor and Lead Arranger to the
SARGE 50 MW, Solar PV project in the Northern Cape, as well as 216 MW of wind projects
Ongoing – Forest Oil Corporation, South Africa
Standard Bank has been mandated as Financial Adviser to Forest Oil Corporation in connection with the development of an
integrated [750-800 MW] natural gas to power project
Ongoing - Oelsner Group Wind Farms , South Africa
Standard Bank mandated Financial Advisor and Lead Arranger to Oelsner Groups’ two wind farms being Kerrifontein
(20.8MW) and Langefontein (50MW)
Ongoing – Confidential , South Africa
Standard Bank has been mandated as the sole Project and Equity Raising Financial Advisor and Lead Arranger to a SA
renewable energy company on a multiple wind farm project
Ongoing – Volta River Authority, Ghana
Standard bank has been mandated as Financial advisor to VRA on the expansion of the Takoradi power plant
Ongoing - Aldwych International, Kenya
Joint Lead Arranger for long-term financing to Aldwych International for the 300MW Lake Turkana Wind Project valued at
US$760m
Ongoing - Gulf Power, Kenya
Co-lead Arranger of the Greenfield 84MW Athi River HFO power plant developed by Gulf Energy

10. Standard Bank – Recent Energy, Power & Renewables Credentials (3/3) 9
Ongoing – redcap, South Africa
Standard Bank has been mandated as the Lead Arranger for the Kouga Wind Farm project
Ongoing - AMD Energia, South Africa
Standard Bank has been mandated as the Lead Arranger for Alt-E’s multiple solar PV projects
Ongoing – Confidential, Africa
Standard Bank has been mandated as the Buyside Financial Adviser for the purchase of a power station
Ongoing – Confidential, Africa
Standard Bank has been mandated as the Sellside Financial Adviser for the sale of a power station
Ongoing – Aeolus, Kenya
Standard Bank has been mandated as the Financial Advisor and Lead Arranger to Aeolus Kenya Ltd on a 60MW wind farm project
Ongoing – Electromaxx, Uganda
Sole Lead Arranger of the expansion from 25MW to 50MW of the Electromaxx HFO power plant facility
2010 – Companhia Moçambicana de Hidrocarbonetos, S.A. (“CMH”), Mozambique
Standard Bank acted as FA and lead arranger to Companhia Moçambicana de Hidrocarbonetos, S.A. for the funding of its share of the
project costs for the expansion of the Central Processing Facility at the Pande and Temane fields’ reservoirs near Bazaruto
2009 - Mmamabula Energy Project, Botswana
Mandated by CIC Energy for a 1200 MW coal fired power plant, coal mine and related infrastructure in Mmamabula, Botswana. Project
size of US$5 billion and mandated as co-lead arrangers for the ECIC covered ZAR tranche as well as the ZAR commercial facility.
2009 – Eskom, South Africa
Standard Bank acted as the Mandated Lead Arranger in the Kusile Boilers contract. Standard Bank acted with 4 international banks in
funding the Euro 705 million contract over 12 years. Export Credit was also arranged with Euler Hermes (German ECA) over the
foreign content of the contract with Hitachi Power Europe.

11. Private and confidential
Section: 3
Our African Infrastructure Understanding

12. African Infrastructure Context 11
Key points African Context
Positive correlation between infrastructure expenditure and GDP Table 1: Overall Infrastructure Spending Needs for SSA
Inadequate growth (Economic Research (Aschauer, 1989; Munnell, 1990) )
infrastructure is _e.g. through increased productivity, reduced logistics costs etc.
cited as a key
constraint to
Conversely, inadequate infrastructure is cited as a key constraint to
investment and
growth investment and growth (ADB, 2007)
Therefore, the provision of quality infrastructure is a necessary
element of any strategy for economic integration and sustainable
development in Africa
SSA requires SSA requires $93bn/year in infrastructure investment to meet MDG,
$93bn/year in (or around 15% of GDP)
infrastructure
investment to meet 15 countries in Africa are land-locked, with 40% of the continent’s
MDG
population estimated to live in these countries
Hence efficient cross-border transportation is vital for their
economic development
However, the cost of trucking increases in Africa by between 684%
- 1560% due to poor road conditions, with 40% of food produced in
Better policy
rural Africa degrading due to the lack of roads and bridges (Council
frameworks to
attract investment for Scientific & Industrial Research (CSIR))
required
Opportunity 1: Potentially high economic returns to investment in
infrastructure, but requires better policy frameworks to attract
investment and align economic returns with investor risks/returns
Opportunity 2: Although investment currently dominated by public
sector, there’s a strong shift towards private sector (IPP, PPP,
Corporate etc.).

13. African Infrastructure Characteristics 12
Key points African Infrastructure Characteristics
Context:
On-the-ground
presence in 17 Investing in African power / infrastructure is not usually for the marginal player – more a specialist activity so less subject to
African countries boom and bust
Project lead times will likely take longer than the credit crunch/global recession, e.g. often 3 years plus
Developer Perspective:
Some cut backs in capital expenditure (e.g. focus on lower risk markets) but reduced bank financing capacity is a larger issue
Financing Perspective:
Ability of African
banks to raise USD
Ability of African banks to raise USD has been dramatically affected, hence a focus on local currency financings which caps
dramatically
affected project size
Current turmoil in the global credit markets has impacted on closings and increased borrowing costs. However, few clients have
walked away with more club deals seen. Limitation on banks’ liquidity/capacity BUT project finance less affected than most debt
financing classes
Flight to ECAs and DFIs across all markets, not just Africa. Follow on question is their ultimate African appetite given competing
liquidity demands
Flight to ECAs and
DFIs across all Supplier Perspective:
markets
Recent softening of forward-looking equipment prices but no dramatic plummet. Note most bail-outs encourage infrastructure
spending

14. Private and confidential
Section: 4
Business and Financing Challenges

15. Business and Financing Challenges 14
Key points Key Issues
Opportunity Costs of insufficient electricity supply/electrification
High opportunity costs
of insufficient
electricity supply – Cost of Unserved Energy: $1.50/kWh (IRP 2010), $10/kWh (Dept of Energy)
– Small Diesel Generator: $1/kWh plus
– OCGT Diesel turbines: 30c – 50c/kWh peaking power
– Subsistence charcoal: destruction of our forests
Greater certainty in – Reality Check: the real developmental costs of delayed decisions!!...
future tariffs is
paramount New Generation Planning
– A complete financial model not a shopping list of projects
– Should include interest during construction (IDC)
– As an indicator to politicians, regulators and consumers about what realities we face
Effective domestic
– Greater certainty in future tariffs is key to funding new investments today
wheeling framework
needed – Greater support to credit ratings of utilities (key to tapping current EM liquidity)
Effective Domestic Wheeling framework
– Framework must be standardised and transparent for all arrangements
– Pricing and risk sharing should facilitate wheeling not prevent it

16. Business and Financing Challenges 15
Key points Key Issues (Contd...)
Leveraging credit quality private off-takers
Effective risk
allocating approach
– Allocating risk to those that are able to best manage it
– Creating a domestic industrial/mining offtaker group. e.g. CEC Energy
– Innovative commodity risk management (commodity price indexation in loan terms)
– Allowing more private players on regional power pools (e.g. SAPP)
Unrivalled – Enables smaller countries to reduce burden on their utilities/Treasury
knowledge of sub-
Saharan Africa Cross-border PPAs
through on ground
presence – Chicken and Egg situation (smaller countries can’t build large projects alone)
– Mozambique’s Mpanda Nkuwa 1,500MW hydro project would benefit entire region but needs Eskom
– Challenge: CESUL line and Mpanda Nkuwa require back-to-back contracts
Strong product
– Could a Mozambique coal IPP sign a private PPA with mine in SA or Zambia?
teams in
Johannesburg, Integrated Mining/ Power projects
Lagos, Nairobi and
London – Reality check: new mining investment is key to our economies over next 20 years
– Using Diesel Generators cost GDP and jobs
– New quality creditors for power projects: Commodity Buyers

17. Private and confidential
Section: 5
Requirements for successful private sector participation

18. Key Requirements 17
Key points Overview
Finalise the enabling framework to allow and facilitate private sector participation in the power sector
Finalise the enabling
framework
– E.g. In SA. New Generation Regulations of August 2009 is a positive step, but market requires more clarity on
process (amongst several other issues)
– Rules on Selection Criteria for Renewable Energy Projects
Market requires a bankable PPA (which allows for the appropriate risk allocation between the private sector and the buyer
(SOEs or any Integrated System Operators)). This should include such items as:
Bankable PPA are – A balanced liability regime
required
– Appropriate protections for the generation companies for risks not within their control
– A stablisation clause for changes of law
– Fair termination events for buyer and seller
– Appropriate termination compensation regime
Government support – Clauses allowing for restructuring which may affect the buyer (e.g. unbundling of the Public utility)
required to stand
behind buyer Government support required to stand behind buyer, in order to provide comfort to private sector (developers, equity
participants, lenders, etc.) that PPA availability payments will be made accordingly and termination provisions are fair (and
termination payments will be funded)
– E.g. In SA, if buyer is Eskom, NT support for PPA required as Eskom is already highly leveraged. Further PPA-type
commitments could negatively impact on Eskom’s balance sheet and current debt covenants. Risk that private
sector not prepared to enter into PPAs with Eskom without Government backstop

19. Key Requirements (Contd…) 18
Key points Overview (Contd...)
Need for
– E.g. In SA, if buyer is ISO, NT support required as will be newly formed company with no trading history. Private
independent offtaker sector will require Government backstop for new entity
/ buyers
– E.g. In SA, Cash-flow timing risk – monthly payments under PPAs versus collections from distribution companies
(municipalities), large industrial users and Eskom Distribution
Market is looking for independent offtaker / buyer – e.g. Eskom is seen to be conflicted as a fellow generator and somewhat
higher risk creditworthiness
– Independent buyer is seen as key by private sector
ISO has been a
successful model Independent systems operator has been a successful model in other jurisdictions, seen by the market in a favourable light

20. Key Requirements (Contd…) 19
Key points PPA 101
The PPA grants the concession and sets the tariff. It is the primary document that the SBO would focus on. To some extent all
the others are secondary
Grants the concession • Grants the concession - gives the project the right to
exist, and the right to generate electricity. Term
typically 20-25 years from completion of construction
Ownership • BOO or BOT
Sale and purchase of • Generator (IPP) paid on the availability of net • Procurer (SBO) takes price and despatch risk
capacity dependable power capacity irrespective of despatch
• Take or Pay
sufficient to cover debt service, equity return and fixed
O&M
Sale and purchase of • Variable O&M costs recovered through the sale of the
Net Electricals net electrical energy dispatched
Indexation • Tariff payments may be indexed for inflation and • Procurer may take inflation and forex movements
movements in Foreign Exchange rates risk
The responsibilities will be split
Specifications and • PPA sets out the responsibility of the Generator to • Generator / EPC Contractor takes the responsibility
Performance Standards build by a given date a plant to very precisely and risk of building the plant to the requirements of
of the Plant documented specifications, operating standards and the Procurer
designs
Revenue Write Down • PPA includes provisions to reduce the payments • Generator takes performance risk
Performance criteria provisions for non- payable to the Generator if the tested dependable
Performance capacity at any time or the actual availability [or the
heat rate] is worse then the levels the Generator is
contracted to provide
Delay LD’s for late • Delay LDs payable for late commissioning payable by • Generator takes risk of late commissioning
commissioning Generator/ EPC Contractor

21. Key Requirements (Contd…) 20
Key points PPA 101 (Contd...)
The responsibilities will be split (Contd…)
Water and Power • Generator would seek to make it an • Procurer takes responsibility for providing Water and Power
Transmission obligations of the Procurer to design build Interconnections
interconnections and commission all required water and
• The PPA sets out provisions for the Procurer to keep the
transmission linkages by an agreed date
Generator whole and / or pay compensation if such facilities
and prior to scheduled testing
are late
Third party Supply of Gas / Coal / Fuel • In many markets, the Generator would seek • Procurer takes risk of fuel supply and pays deemed
responsibilities to make it an obligation of the Procurer to commissioning if fuel is not available Generator takes
supply Gas / Coal / Fuel (ie energy efficiency risk through an incentive penalty regime
conversion)
• Generator may take fuel / hydrology risk
assuming satisfactory pricing and supply
Permits • PPA allocates responsibility for obtaining • Split between Procurer and Generator
risks
permits
Natural Force Majeure • PPA sets out provisions in relation to relief • Insurance
of liability and the provision of insurance
(both damage and business interruption) to
mitigate Natural Force Majeure Risk
• (Lightening, fire, earthquake, accidents,
explosions, epidemics etc.)
Political Force Majeure • There are certain risks which are • Procurer Risk
uninsurable, political in nature and which
Generators will not accept and need to be
Force majeure /
taken by the Procurer • Payments of deemed commissioning [or termination buyout
political events if prolonged] or tariff adjustments to compensate for
• (Act of war, blockade, boycott, rebellion,
additional costs or revenue losses
civil commotion, Change in Law and / or
unjustified failure to renew permits)

22. Key Requirements (Contd…) 21
Key points PPA 101 (Contd...)
The responsibilities will be split (Contd…)
Termination • The Agreement will stipulate the Events of • In the event of termination due to Procurer default, the
Default, cure periods and the termination Procurer is obligated on request to purchase the plant for an
regime agreed sum that covers debt and probably an equity return
• In the event of termination due to Generator Default, the
Procurer has the right but not the obligation to purchase the
Termination plant but for a lesser sum covering only debt
Credit Support • In the event of termination due to Procurer • It is a matter of commercial negotiation as to whether SBO
Default and a purchase price being payable would be required to provide such a backstop. It may be
then lenders may seek some form of possible to structure without
backstop credit support in respect of the
payment to be made, typically in the form of
a payment guarantee

23. Key Requirements (Contd…) 22
Key points Tariff structure – integral component of PPA
A number of different tariff structures are feasible – in this document we have focused on the most commonly used structure:
Availability payment
structure ‘Availability’ payment structure
The RFP for an IPP tender will specify the tariff structure which bidders must adhere to and will form the basis of payments to /
from the Project Company (Generator) and the offtaker (Procurer)
Each bidder will be invited to bid a number of Charge Rates
– Occasionally charge rates can be firmly fixed and bidders would have to target LEC (Levelised Electricity Cost)
based on an Asset Value (Brownfield)
Bidders would have – Lower charge rates however may not always equate to better value for money for the procurement Authority
to target LEC
For an availability driven tariff, payments will typically be split between Capacity and Output
– Capacity Payments are designed for recovery of all the fixed costs of the plant, including debt service, taxation,
equity return and fixed O&M costs. Typically deductions for non-availability and / or poor plant performance would
be netted off against these capacity payments
– Outputs Payments recover the variable operating costs of the plant and may also include an adjustment for fuel
consumption
In the case of a merchant plant or ‘Take or Pay’ agreement, the tariff structure is much simpler. Revenue = Plant Output (MWh)
Payments typically * Market Price (ZAR/MWh)
split between
Capacity and Output
Fuel adjustment
Base capacity component Fixed O&M component Variable O&M payment
payment
Capacity Payment Output Payment
Service Payment

24. Private and confidential
Section: 6
Potential Financing Structure

25. Financing Structure 24
Potential Financing Structure
Mine or
Leveraging credit quality of end-users Utility/Single Buyer
SmelterCo
– Mines
PPA
– Smelter or Steel mill
Sale of coal to
– Commodity offtakers local industry
Unlocks the Chicken/Egg problem IPP and smelters
– Facilitates investment in interdependent power, port and mining
infrastructure at same time
Discard coal
PPP basis
– Private sector partnerships with public electricity, rail and port
utilities
Coal Mine Co RailCo
– But reduces investment, guarantee and operations burden on
utilities/Treasury
Standard Bank can facilitate:
Security of supply
for Coking Coal
– Advisory Offtaker
– Bring in foreign partners
Commodity Offtaker PortCo
– Debt Funding
– Commodity Risk Management

26. Private and confidential
Section 7:
Standard Bank’s Value Proposition

27. Standard Bank’s Value Proposition: Robust Project Advisory/Finance Services 26
Our Project Advisory and Finance Services
A Standard Bank team of about 70 project f inance specialists (based in Johannesburg, Lagos, Nairobi, London, Beijing, and
Sao Paolo) provides advisory and arranging services to government and private sector clients on limited recourse projects
Strong
Our experts come f rom diverse disciplines, are knowledgeable in a variety of sectors and have an understanding of local
Multi-Disciplinary
regulatory f rameworks and f inancial market constraints
Team Structure
Our project f inance team is able to work closely with other areas of our banks to create customised solutions that draw on
sector and product expertise f rom across the banks
Standard Bank can act in any one or a combination of the capacities of financial advisor, arranger and underwriter of senior
debt, mezzanine debt and equity f or all large capital projects. Our project f inance services include:
– Project evaluation and f easibility studies
– Financial modelling and sensitivity analysis
– Risk evaluation and risk mitigation strategies
Project Finance – Advice on the structure of project contracts
Services
– Taking an active role in negotiations
– Financial structuring
– Foreign exchange risk mitigation techniques
– Arranging of multi-source f unding, including development f inance and export credit f inancing
– Arranging and underwriting bank f inancing
We have established excellent relationships with development f inance institutions, multilaterals and major credit export
Excellent agencies having closed numerous project f inancings with them across a range of emerging markets
Relationships with
DFIs and ECAs Standard Bank Group is an Equator Principle Financial Institution, having adopted and integrated all 10 of the Equator
Principles which relate to Project Finance

28. Standard Bank’s Value Proposition: Experience with DFIs 27
Selected Experience with DFIs
Transaction Year Amount DFIs involved SB Role
EBRD, IFC, DEG, NIB, BSTDB,
Pulkovo Airport Expansion Project Current EUR1.2bn MLA and Bookrunner
EDB
EUR450m Mandated co-arranger
Lake Turkana Wind farm project, Kenya Current AfDB, DEG, FMO, Proparco
and lender
Petromax Power Project, Bulgaria Current Undisclosed EBRD Advisor, MLA
Nairobi Northern Corridor Concession, IFC, DEG, FMO, IDC, AfDB,
Current Undisclosed Advisor
Kenya PAIDF, EAIF
Guinea Allumina Project, Guinea Current US$2.8bn AfDB, EIB, IFC Advisor
Lekki-Eppe Expressway PPP 2008 US$300m AfDB Advisor and Lender
Monastir & Enfidha airport concessions, EIB, AfDB, IFC, OPEC, Arranger and
2008 €562m
Tunisia PROPARCO Underwriter
Eleme Petrochemicals Company Ltd,
2007 US$125m IFC Arranger
INDORAMA Nigeria
Federal Grid Company, Russia 2007 RUB5.0bn EBRD Arranger
Empresa Nacional de Hidrocarbonetos de
2007 ZAR1.08bn EIB, MIGA Arranger
Moçambique, Mozambique
Chelyabinsk Tube Plant,
2007 €145m EBRD Arranger
Russia
RusHydro, Russia 2006 RUB6.3b EBRD Co-Arranger
Pervouralsk New Pipe Plant, Russia 2006 €115m EBRD Arranger

29. Standard Bank’s Value Proposition: Experience with ECAs 28
Selected Experience Working with ECAs
Transaction Year Amount ECAs involved SB Role
Lake Turkana Wind farm project, Kenya Current EUR450m EKF, SACE Co-arranger and lender
Nord Stream Pipeline Project Current EUR3.9bn Hermes, SACE Arranger, lender
Kusile Power Project, South Africa Current Undisclosed Hermes TBC
Mmamabula, Botswana Current Undisclosed ECIC, China Exim MLA
El Boleo Project, Mexico Current US$1.2bn US Ex-Im, EDC, KDB Advisor, lender
Guinea Alumina Project, Current US$5.0bn COFACE, China Exim and ECIC Club participant and
Guinea arranger of ECIC tranche
Kolwezi Copper Cobalt Mine, DRC Current Undisclosed EDC, EFIC and ECIC Club participant and
arranger of ECIC tranche
Mozal Aluminium Project, Current Undisclosed COFACE Club participant and
Mozambique arranger of ECIC tranche
Federal Palace Hotel and Casino, 2008 US$167m ECIC Lead arranger and
Nigeria underwriter
Akwa Ibom Power Project, Nigeria 2006 US$60m US Exim, ECIC Club participant and
arranger of ECIC tranche
Empresa Nacional de Hidrocarbonetos de 2006 ZAR1.08bn ECIC Arranger
Moçambique,
Mozambique
Sasol Natural Gas Project, Mozambique 2004 ZAR 2.5bn SACE and EFIC Lead Arranger and
underwritter
Kansahi Copper project, 2004 US$120m ECIC Arranger
Zambia

30. Standard Bank’s Value Proposition: Export Finance Solution (1/4) 29
Export Credit Agencies
An Export Credit Agency (“ECA”) is typically a government agency or parastatal organisation. Its goal is to promote its domestic
industries and to foster economic growth through the provision of financial support to exporters.
This is most often achieved by providing political and commercial insurance cover or loan guarantees to banks.
A financing solution incorporating an ECA represents one of the most attractive financing solutions where there is a cross-
border movement of capital goods and/or services.
Given the general decrease in available liquidity and risk appetite for emerging markets and emerging market assets, the
significance and importance of ECA supported funding has increased.
Advantages of an Export Finance structure
ECA backed funding is especially beneficial in transactions requiring a longer tenor, large amounts and for higher risk grade
countries.
Repayments can be “stretched” to match future cash flows, not country limit constraints
Lower interest rates and competitive USD funding, eg Libor + 2.50% for ECIC-backed financing from South Africa
Alternative source of funding (not tying up all credit lines with Standard Bank)

31. Standard Bank’s Value Proposition: Export Finance Solution (2/4) 30
Mechanics
If a client or its subsidiary is sourcing capital goods and services from a supplier in South Africa, Standard Bank can provide an
Export Finance backed term loan which is partly guaranteed by the ECIC.
A lending rate of LIBOR + 2.50% is payable by the Borrower under the South African Export Finance scheme and an ECIC
premium for political risk insurance and commercial risk insurance is also payable by the Borrower.
The ECIC premium (for the provision of political and commercial cover) may be payable up-front as a lump sum payment or
payable over the drawdown period or annualised over the tenor of the loan.
The premium is determined by a number of factors including country, tenor, drawdown schedule, repayment profile and the
security package relating to the loan.
Borrower USD term loan
Standard Bank
(plus hedging if
required)
exported equipment Insurance cover
Equipment supplier ECA
eg in South Africa eg ECIC from South Africa

32. Standard Bank’s Value Proposition: Export Finance Solution (3/4) 31
ECIC
The principal objectives of the ECIC are:
– to facilitate and encourage South African export trade by underwriting bank loans and investments outside the country, in
order to enable foreign buyers to purchase capital goods and services from the Republic; and
– to provide investment insurance to South African companies investing in assets offshore.
Unlike a number of other export credit agencies (such as EFIC for instance), ECIC does not lend directly to projects.
– ECIC provides insurance cover (100% Political and 85% Commercial Risk cover) to Lenders that are signatories to their
Export Credit Support Agreement and Standard Bank provides the liquidity.
The ECIC have appetite for most countries in Africa and are mandated to cover countries around the world in general.
– Their appetite both in terms of number of transactions supported as well as quantum of support per transaction differs
from country to country.
– They are actively looking to diversify their insurance portfolio and are most keen on countries where they currently have
low levels of exposure.

33. Standard Bank’s Value Proposition: Export Finance Solution (4/4) 32
Criteria to qualify for ECIC support
Tied Export Programme
– The ECIC will support projects (under their “tied” export program) where there is an export of capital goods and services
from South Africa.
– ECIC will support 85% of the South African export contract (SA contract value) and will require the Borrower to make a
down payment of 15% of the SA contract value to the South African exporter.
– The minimum ECIC requirement for South African content is 50% of the value of the South African export contract.
– The ECIC provides insurance for credits of a minimum of 2 years and typically up to a maximum of 12 years (in the
recent past we have seen longer tenors).

34. Private and confidential
Section: 8
Case Study

35. Case Study: Morupule B Coal Power Plant Financing 34
Chinese partners: USD1.6bn coal-fired power plant, 600MW, built by Chinese contractor CNEEC, funding arranged by ICBC/Standard Bank
Cost effective: The all-in cost of the whole project was USD 2.91m per MW (compared to USD4.5m per MW for the Kusile plant in South Africa)
Single financial solution: Standard Bank and ICBC arranged a US$ 825mn loan for 20 yr, backed by a Botswana Ministry of Finance guarantee, Sinosure ECA 15
yr guarantee and the World Bank 15-20 yr guarantee. A US$ 140 mn bridge finance facility was provided by ICBC, guaranteed by Standard Bank. The BPC sells
power in Botswana Pula (BWP). Standard Bank swapped the BPC’s floating USD exposure to a fixed BWP exposure for the whole 20-yr period.
Standard Bank’s expertise: Our local banking presence in Botswana, power sector expertise and deep relationships with Chinese partners allowed us to bring
together all the parties to present the Botswana Government with a single, quick and cost-effective solution to secure its domestic power supply.
Sinosure
World Bank Guarantee
Partial Credit 15 year Political/
Ministry of Commercial cover
Guarantee
Finance
16 – 20 year
Guarantee ICBC
$825 mn 20 year loan
Standard Bank BPC
Bridge
Currency and
Interest rate hedging
$140mn $140 mn
ICBC
Guarantee Bridge 9 month
Standard Bank

36. Disclaimer 35
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