22 August 2013

Climate Change Building Critical Mass Awareness

Engaging Media, Entertainment & Advertising
Auditorium B&C, ADB Headquarters, Mandaluyong City

Presented by: Eduardo V. Francisco President, BDO Capital & Investment Corp. BDO Greening Chairman

OUTLINE
Our RE Strategy

BDO Sustainable Energy Finance Program (IFC Partnership)

BDO Greening Program Conclusion Contact Details

OUR RE STRATEGY
We are keen supporters of viable projects even if done on limited recourse or on a project finance basis. We prefer projects with PPAs that are not solely reliant on the FIT. We like run-of-river mini-hydro projects and selected biomass projects which use own plants agricultural waste materials as feedstock to produce own power (captive).

The Bank will continue to tap the following sectors for energy efficiency financing: hotels and resorts, malls, commercial building, industries, and agro-processing.
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OUR RE STRATEGY
We will also tie-up with Energy Service Companies (ESCOs) to finance their projects or their clients energy projects. But we still need to see strong credit worthy ESCOs with proven track records.

BDOS SUSTAINABLE ENERGY FINANCE (SEF) PROGRAM WITH IFC

FEATURES OF THE PROGRAM

In March 2010, BDO signed a Cooperation Agreement with the International Finance Corporation (IFC) to facilitate the financing of energy efficiency and renewable energy investment projects. IFC will provide advisory and capacity building services to BDO to develop and promote sustainable energy financing.

Sustainable energy projects include investments in energy efficiency (EE) and renewable energy (RE) projects (below 15 MW).

FEATURES OF THE PROGRAM

IFC and EE/RE consultants will assist the Bank in the appraisal and evaluation of specific market segments, technologies and projects involving EE and RE investments. This enhances the Banks capacity- building efforts in managing sustainable energy portfolio. IFC is providing the Bank advisory services in the following areas: Support in market identification IFC will assist the Bank in developing strategy for EE and RE financing and in identifying specific target market.
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FEATURES OF THE PROGRAM

Capacity building for Bank staff IFC will conduct training and workshops for Bank officers in the following areas: technical and financial evaluation of EE and RE projects; risk evaluation and management; project and program monitoring. Specific market research Conduct of market studies on specific market segments which BDO would require from IFC. IFC will also provide BDO with all scoping studies already completed by IFC.
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FEATURES OF THE PROGRAM

Relationship brokering IFC will assist in identifying equipment suppliers and energy service companies (ESCOs) for the development of BDOs pipeline projects.

Marketing support Assist BDO in developing the marketing and awareness campaign for its sustainable energy finance program.

FEATURES OF THE PROGRAM

Energy efficiency and renewable energy calculators IFC will provide energy efficiency and renewable energy calculators to help the Bank officers evaluate energy efficiency and renewable energy projects. This is in conjunction with the training on technical and financial evaluation of EE and RE projects.

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BENEFITS TO CLIENTS
BDO provides free-of-charge energy walkthrough audit to assess clients plant facilities and presents audit findings, EE solutions if any, and computation of energy savings. If client needs financial assistance, BDO can provide financing for the EE investment. For RE projects, RE consultant will prepare technical evaluation of the project and can provide advisory services to clients in the area of technology and feedstock (for biomass projects) assessment.
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REVIEW OF THE PROGRAM

A. Summary of Loans Approved and Released
Loans Approved (Term Loans)
P205 M Loan & P59.59 M Leasing facility

Project
EE Onion cold storage plant

Loans Released/Status
P264.59 M

EE Green Building RE - Mini-hydro

P500 M P850 M

P500 M Under loan documentation

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REVIEW OF THE PROGRAM

Loans Loans Approved Released/Status (Term Loans) P40 M Under loan documentation Under loan documentation

Project

RE Rice-husk fired power plant (captive) EE-Mall/Shopping P32 M Center TOTAL P1,692 M

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REVIEW OF THE PROGRAM

B. Accounts Under Evaluation/Pipeline (with pre-clearance)
Project
EE Airconditioning & Lighting system EE- Airconditioning & Lighting system EE- System loss reduction/upgrade of transmission lines & substations TOTAL

Estimated Loan
P100 M

P30 M
P160 M

P290 M

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Alternergy Wind One Corporation

67.5MW wind farm located in Pililla, Rizal (the Project), comprising of 27 x 2.5MW wind turbines One of the 6 exclusive Wind Energy Service Contracts (WESC) awarded by the DOE to Alternergy Alternergy Wind One Corporation to construct and operate the Project (AWOC, the Company, or the Project Company) Total project cost estimated to be US$186 million at D/E of 70:30 Construction period estimated to be 15 months

20Y REPA with Transco as FIT Administrator

Interconnection agreement with Meralco Turnkey EPC contract and O&M contract with the consortium of Nordex SE and McConnel Dowell Group executed on 11 July 2012

Alternergy Wind One Corporation

Special Purpose Company; incorporated on 29 June 2011 Total Sponsors equity funding commitment of approximately US$51 million On July 31, 2012, AWOC obtained DOE approval of APHCs assignment of all its rights and benefits under the Wind Energy Service Contract (WESC)

The Project received the Confirmation of Commerciality from the Department of Energy (DOE) last May 17, 2013.
Management team:
Name Vincent Prez Knud Hedeager Gerry Magbanua Marie Antonette de Guzman Alma Roxas Position President and Chief Executive Officer Executive Vice President and Chief Operating Officer Vice President and Chief Financial Officer Vice President and Corporate Counsel Corporate Project Manager

BDO Greening Program

Initiatives to support environmental causes
by Eduardo V. Francisco EduardoPresented V. Francisco President, Capital President, BDO Capital andBDO Investment

BDO GREENING PROGRAM

Internal initiative to increase environmental awareness and promote a more responsible lifestyle among employees.

BDO Greening Initiatives

1. Awareness campaign through seminars, BDO Intranet page

on greening programs, Project Noel film showing, No to plastics at cafeterias and Green Tip of the Month 2. 7,000 tree seedlings planted in Cebu, Bicol, Clark, Pampanga and NLEX. Supported the Oh My Gulay! (OMG!) project of ex-Sen. Angara for the second year in 15 public schools 3. Implementation of projects through voluntary participation of employees

Electronic Monthly Billing Statement

Go Paperless campaign of BDO Credit Cards through enrollment in Electronic Monthly Billing Statement facility to encourage the public to reduce use of paper.

Electronic Monthly Billing Statement BDO and WWF partnership project

BDO is BAIPHIL Green Bank Champion BDO's entry is the BAIPHIL Green Bank Champion for Fund Mobilization and Partnership for the Environment.

BDO partnered with and World Wide Fund for Nature (WWF)-Phil in a project to help sustain and manage the whale shark eco-tourism program in Donsol, Sorsogon through research and data and environmental protection management.

Let's green the planet Pledge to change one action to reduce your impact on Mother Earth. Here are some greening ideas: Shave five minutes off your shower. Bike, walk or take public transit to work. Take the stairs. Bring a reusable water bottle or coffee mug to work. Do meetings via teleconferencing or video-conferencing. Go paperless. Opt for soft or digital copies of your bills, books, documents and more. Do mobile or net-based transactions.

Celebrate Earth Day everyday by doing small acts for the planet. When all of us act together, even small deeds can make a big difference for Mother Earth.

CONCLUSION
Everyone recognizes need to save our planet and maximize its resources. We are cognizant of climate change and the need to reduce our carbon footprint. We espouse greening efforts in our households and companies as well as green financing for our clients. We also working on several RE project financing and keen to support other sponsors on their efforts.
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Eduardo V. Francisco +63 917 855-6248 evf@bdo.com.ph evf@bdo.com.ph

Best Investment Bank in the Philippines: 2006-2013 Best Debt House in the Philippines: 2006-2010 Best Investment Bank in the Philippines: 2007-2013 Best Bond House in the Philippines: 2007-2010, 2012, 2013 Best Equity House in the Philippines: 2008 & 2013

Best Equity House in the Philippines: 2006, 2007, 2009, 2010, 2013
Best Bond House in the Philippines: 2007, 2008, 2010, 2012

Best Equity House in the Philippines: 2006, 2007, 2008, 2010

Best Domestic Investment Bank in the Philippines: 2006-2012 Best Equity House in the Philippines: 2008, 2010

Outstanding Local Underwriter-2006 Best Investment Bank in the Philippines-2012

Top Corporate Issue Manager/Arranger 2011 & 2012

BDO Capital & Investment Corporation

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