We would like to present to you the structure of interaction of Si14 Solar companies with the states of different countries. Based on the green energy pacts, your government can initiate the issuance of a green bond.
The issuance of a Green bond allows the government to create funding for the implementation of a CSP power plant with a capacity of at least 10 MW with further multiplication by regions.
The issuance of a green bond
- are bearer securities;
- are placed simultaneously in several markets;
- issued for a long term of 10-30 years;
- the nominal value of the Eurobond has a dollar equivalent;
- payment of interest on coupons is made without withholding taxes;
- Eurobonds are placed by an issuance syndicate, including
- banks, brokerage, and investment companies from a number of countries.
Economic effect:
1) Following the launch of a CSP power plant of 2MW or more and the support of the institutions represented, a Green bond issue with a coupon yield of 3% per annum is initiated.
2) Volume of the planned attracted green bond investments not less than 500 million USD (for a country with a population of at least 100,000 people)
3) Profitability of CSP power plants at least 15% per annum (with the support of
government structures) - that allows having at least 10% of attracted funds from the Green bond (including multiplication in other countries) - at least 50.000.000 USD annually - for one-time investments:
- Creation of a 2 MW CSP power plant - 3.2 mln euros
- Design and commissioning of a 25 KW plant 210.000 EUR
- Initiation of Green bond issue, preparation of documentation - up to 200.000 EUR
Initial structure costs up to EUR 3,610,000 plus customs and logistics fees
Payback on the initial investment is after the Green Bond is issued. The issuance of a Green bond allows to optimize the cost of the Green bond and receive a discount of up to 20% on the production of the Green bond - for a one-time return of up to 10.000.000 USD after the emission.
The expected minimum revenue of the Green bond is 50.000.000 USD (annually) + 5.000.000 USD (support of the law Renewable Energy Sources Act (EEG 2018))* 30 years (expiration date of the Green bond) = 1.650.000.000 USD, which is distributed in a 50/50 split between the state and Si14 Solar.
This structure is subject to the multiplication and creation of a box offer for developing states.
Building on the experience of green bond issuance in 2020, the volume of green bond issuance in the world has more than doubled, exceeding $340 billion. This instrument is in demand market and institutional investors due to the promising development of alternative sources of green energy.