Presentation is loading. Please wait.

Presentation is loading. Please wait.

The Experience of a Technology and Service Provider GE Ahmed Ramadan Senior Vice President Sales & Project Finance Iraq Finance Conference September, 2012.

Similar presentations


Presentation on theme: "The Experience of a Technology and Service Provider GE Ahmed Ramadan Senior Vice President Sales & Project Finance Iraq Finance Conference September, 2012."— Presentation transcript:

1 The Experience of a Technology and Service Provider GE Ahmed Ramadan Senior Vice President Sales & Project Finance Iraq Finance Conference September, 2012

2 1 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Copyright 2010 General Electric Company. Proprietary. All Rights Reserved. No part of this document may be reproduced, transmitted, stored in a retrieval system nor translated into any human or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual, or otherwise, without the prior written permission of the General Electric Company.

3 GE

4 3 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Energy Services Oil & Gas Power & Water Aviation Healthcare Transportation Energy Technology Infrastructure Americas Asia Europe, Middle East & Africa Capital Aviation Services Energy Financial Services Real Estate GE Capital The only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896 Employee: +300,000, Existing: +100 countries Rev. $156.8B, Earning $11.2B GE Home & Business Solutions Appliances & Lighting Intelligent Platform Security NBC Universal Cable Film International Network Sports & Olympics A diversified infrastructure, finance and media company taking on world’s toughest challenges Who we are

5 4 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 GE in the Middle East by the numbers Over 4,000 employees ‘11 revenues: $8.6B ‘08 2.8 ‘06‘07 3.6 5.4 ’09 6.4 ‘04 2.4 8.4 ’10 ’11 8.6 ‘11 ‘10 ‘09‘08 ‘07 Year 4000 2000 500 0 Employees ‘12 Middle East Employee Growth Revenues ($ in billions) Year 16 facilities completed 4 facilities under construction Accelerating our growth, executing on growth, and investing in human resources

6 5 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 GE in Iraq In Iraq since 1950’s … all divisions operating since 2004 … In country team since 2009 GE HC has provided more than 1500 clinical equipment 180 conventional and mobile X-Ray 20 Digital X-Ray 14 CT scanners/3 MR systems Awarded CF34-8C engines to power 10 CRJ900 planes ordered from Bombardier and CFM56-7 engines to power 30 Boeing 737 aircrafts Mega Water injection project for State Company Oil Production (SCOP), main supplier for fuel treatment additive chemicals More than 130 installed GE turbines with another 72 turbines being supplied to add over 7,000 MW to the grid Active since the 50’s O&G sector providing power, compressors and pumping equipment to Iraq refineries, compression stations and pipelines Healthcare Water Energy O&G Aviation Others GE presence in Iraq extent to all other GE divisions from light bulbs, appliances to rail and sensing and inspection equipment, all have been actively supporting the needs for Iraq infrastructure

7 Iraq Localization 2012-2015 More than 300 employee dedicated to Iraq Iraq is identified as one of the top 5 countries for GE focus within MENAT Continuous expansion of local presence Offices in Baghdad, Basra and Erbil 10-15 O&G, healthcare project sites Service centers at Basra operational base Current Future GE Iraq not GE in Iraq We Make Progress Together

8 Project Finance

9 8 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Global Project Finance Loan Volume Market trends Global project finance activity increased Rebound beginning to look sustainable? Energy remains biggest chunk of PF activity (~$29B) but decreased by 9.4% to H1 ’09 Driven by Indian deals, Asia continues to dominate PF market Returning bank appetite spurs sponsors to seek longer tenors and higher leverage levels ECAs being replaced by local funding in some markets Global Project Finance Volume by Sector Source: Thomson Reuters 4% 1% 29% 18% 9% 8% 6% Global project finance EME A Americas Asia Pacific 1H04 1H05 1H06 1H07 1H08 1H09 1H10 Proceeds (US$) $160 $140 $120 $100 $80 $60 $40 $20 $0

10 9 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 MEA Project finance trends $100B ($85B in ‘09) … Total volume of projects $62B ($52B in ‘09) … Total debt… Govt and Multilateral: $18B in MEA volume by 50% (from $8B to $4B) Sustained H2 activity in GCC should make up for the gap Environment (H1 ’10): 0 10 20 30 40 50 60 70 80 90 100 110 Western EuropeMiddle-East & Africa North America H1 20102006200720082009 Project Finance – Regional Volume 2005-2009 US$bn Source: Infrastructure Journal

11 10 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Need for credible Developers, EPC & investors’ interest and capabilities IPP Regulatory framework still in progress Scarcity of long term funding…even more challenging on Project Recourse basis ECAs although opening up mainly under corporate/sovereign recourse basis, remain off cover under PF structures We are seeing appetite from equity investors for Infrastructure Project development Regional banks & International Banks with local presence start to consider longer term commercial lending. Anbar Nynawa Duhuk Erbil Ta’amim Salah Al-deen Sulimaniya Diyala Bagdad Karbala Najaf Babil Qadisiyah Waset Maysan Thi-Qar Muthana Basrah Project finance: “The Iraq case”

12 GE Experience in Sales & Project Finance

13 12 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Global customer finance unit acting as an advisor to the GE Industrial businesses... not a profit center Reporting into Corporate Finance with shared objectives with the GE businesses A team of ~70 professionals Located in 16 countries Sales & Project Finance Profile

14 13 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Focus Areas  Financial Advisory Support –Financial Structuring –Debt arranging and syndication –Access to private equity investors  Project Development Support in parallel with business tech teams –Contract expertise –Technology/market familiarity –Consortium agreements  Funding Support –Debt Products –Mezzanine Products –Derivatives Project Development Support for Our Customers

15 14 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Leveraging global funding sources China (CCB, ICBC, SDB) Russia (Sberbank) Gulf (Al Baraka) Brazil (Unibanco Aymore, Banco do Nordeste) Regional/ Local Banks ECAs U.S. Ex-Im Coface SACE JBIC BNDES MLAs OPIC World Bank EBRD IFC Int’l Banks, Ins, Pension & Finance Co SocGen BNP Paribas HSBC Grants Brussels/EU U.S. DOE, DOD Millennium Challenge Corp Islamic Finance IDB AFESD ICD – Private ABC Islamic Bank/ Retail Pools Equity EPC/developers Private equity funds

16 15 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Expertise in multiple product areas Private Bank guarantees Letters of credit Deferred payments Forfaiting Short/med term Trade Finance Trade Finance Project Finance Project Finance SPC No/limited guarantees Financing dependant on cash flows Frequently requires ECA/ MDB support Leasing/ Lending Leasing/ Lending Financing typically equipment specific Applicable for more developed markets Financing frequently requires int’l bank support Export Finance Export Finance Mainly public buyer Gov’t agency Sovereign, bank guarantee Long term Sourcing issue Political Risk & Credit Insurance Political Risk & Credit Insurance Insure against expropriation, currency inconvertibility, war, etc. Insure against corporate risk Credit Default Swaps

17 16 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Technical expertise - Access to “world-class” Technical Support Group People – 35 person global team; expertise in development, deal structuring and development finance and return Access to developers - Strong relationships with wind and thermal project developers Knowledge- Project development expertise to support new product launches Products - Diverse energy solutions: Thermal, IGCC, Wind, Solar (photovoltaic), Jenbacher engines powered with biofuels When a piece of the puzzle is missing … Asset management- Long term asset management of GE owned projects GE global development

18 17 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 GE support on IPPs/PPPs Global network of access to International and local EPC & Developers Dedicated Expertise team to support Iraq EPC Screening & Matrix model to evaluate EPC capabilities Strong Access to international & regional developers Identify gaps and suggest solutions Tailor make Funding solutions Long term asset management of GE equipment

19 18 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Expanding capacity to help the Kingdom meet soaring power demand More than 300 GE turbines installed Generating half (>14GW) of SEC power generation capacity GE technology operating in 37 power plants across 4 operating areas Developing comprehensive long term financing solutions with US Eximbank since ‘08 Pilot transaction $1.1B Direct loan to SEC for 3GW(PP8, Feras, Qurrayah) Largest ever Loan in the history of US Exim: “Landmark” Extended support under direct loans for Al Dur and PP11 + + ECA for utilities … +

20 19 DO NOT FURTHER DISTRIBUTE © General Electric Company, 2010 Working together on future projects Regional track record: winning IPP power projects Developed relationships: leveraging 30 years of local presence Financing: facilitating ECA financing to increase developer capability Execution: seasoned regional project capability … to win and execute successfully GE is committed to support Iraq meet its infrastructure needs


Download ppt "The Experience of a Technology and Service Provider GE Ahmed Ramadan Senior Vice President Sales & Project Finance Iraq Finance Conference September, 2012."

Similar presentations


Ads by Google