Escolar Documentos
Profissional Documentos
Cultura Documentos
June 2011
Formed in 2006, raised two funds which listed on Frankfurt Stock Exchange in 2007, management spin-out in 2008. First Vietnamese fund management company to sign the United Nation Principles of Responsible Investment (UN PRI). Has since 2009 focused on Renewable Energy. Managed by a team of international and local professionals with outstanding track records , significant assets management and operation experience.
RENEWABLE ENERGY
ENERGY EFFICIENCY
The investment opportunities are sourced through Anpha Capitals extensive network in the Renewable Energy space in Vietnam. Most clean energy industries in Vietnam are in a nascent stage. This gives the opportunity for high returns, but also increases the risk profile. The investment manager will be more active in the operations of the investment than in a traditional Private Equity investment. Vietnam has for over 10 years had economic growth rates of 7-8% and changed dramatically. The development in Renewable Energy, but also Energy Efficiency and Waste and Water Treatment is however lagging. The management team has experience with young companies and start ups. The management team will be active in the operations of the investee companies. The Funds has among its advisors environmentally very knowledgeable and very respected individuals, with influence on environmental opinions in Vietnam.
Advisors
Proven technology
Regulatory
Biomass
Proven technology
Transportation Efficiency
Hydro
Cheap
Social issues
Solar
Sustainable
Cost
ENERGY EFFIECIENCY
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2. -
PIPELINE
PIPELINE - BIODIESEL
Transaction Details
Sector
Background Capital raise Ownership Instrument Key terms Expected cash-on-cash x Holding period Exit Sector Fundamentals Clean energy is fully supported by the government in terms of tax deduction, raising public awareness, developing distribution infrastructure. The technology used in producing biodiesel from fish oil is available at low cost. There is about 145,000-260,000 tons of fish oil, input material for biodiesel production, available in Mekong Delta. Fish oil price is cheap because it is extracted from waste of fish processing industry. The demand of diesel is estimated at 8.74 million tons in 2010 and increased to 11.14 million tons in 2015. The biggest market of diesel is Ho Chi Minh City area, near the Mekong Delta, minimizing the transportation cost.
Investment Thesis
Renewable Energy
Opportunity to gain exposure in a leading firm in the biodiesel market US$12 Mn 40% maximum Convertible bond/Straight equity No lockup 2.3x 5 7 years Listing/Trade Sale Highlights Exposure to pioneer position opportunity created by potential and encouraged industry. Abundant feedstock supply at low cost Flexible supply sources thanks to multi-feedstock capability technology Small foot-print factory to startup, hence low investment cost The plants location is very near target market. Good access to seaports and highways to minimize logistics cost.
The demand of biodiesel increases significantly as one the best substitutions for mineral diesel
Board and management team has almost 10 years of biodiesel manufacturing experience Ethanol E5 is already a proven sales success Risks
Investment Thesis
Highlights
Exposure to long term development of Green Energy in Vietnam Be the first pioneer company in the industry in Vietnam, take the largest market share while promoting clean and sustainable energy, reduce toxic gas emission Led by experienced founder with deep know-how knowledge Geographical advantage for solar power projects Tax incentives from Government Potential IRR is over 20% for 7 years Risks Hard to negotiate a future Feed-in-tariff (FiT) with EVN Operational risk in the initial stage as employees are inexperienced with the new technology and equipment Unknown target market since domestic demand does not justify cost while regional markets (China, Laos, Cambodia, Thailand) are largely unknown and European/American markets are dominated by bigger firms Most equipments and production chains will be imported, expose the company to exchange rate risk
Exit
Sector Fundamentals
Listing/Trade Sale
There is a growing global concern about green-house effect and toxic gas emission level. Fast growing sector Global accumulative solar photovoltaic (PV) electricity market is expected to grow at 15% (Energy savings Weekly). Outside Europe, Asia is becoming a major demand centre as India and China announced plans to increase their solar power capacities to 20 GW/each by 2020
Potential growth for renewable electricity in Vietnam Vietnam needs to increase its supply capacity by at least 3 times of current capacity to meet demands in 2020
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Investment Thesis
Highlights
A huge potential market that has not been covered sufficiently Two-three small size projects which require 0.5-1.5 million USD to retrofit buildings with more efficient energy systems The building owner gets new lighting and ventilation equipment for free. The benefit from energy efficiency will be shared between the building owner and the fund The growth prospect comes from both geographic expansion of customer base and the increasing return from energy saving bills IRR=15% expected Short pay-back period of 3-4 years
Risks Current energy prices are relatively low which makes replacement of existing energy system less attractive There are not many big buildings with energy bills high enough Tenants or apartments owners may refuse to change Risk of energy prices not rising in expected horizon time of investment
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MANAGEMENT TEAM
Prior Vice Director of Tropicdane Group in Vietnam Managing Director of Bowers and Wilkins Loudspeaker manufacturer in Denmark M.Sc in Economics and Business Administration from University of Aarhus in Denmark MBA program at Katholieke Universiteit Leuven in Belgium
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ADVISORS
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CONTACT
Thank you
Thomas Jakobsen - Head of Sustainability thomas.jakobsen@anphacapital.com +84 (0) 903 757 565 ANPHA CAPITAL FUND MANAGEMENT COMPANY Address : 7 Vo Van Tan Street, District 3, Ho Chi Minh City, Vietnam Phone : +84 (8) 3825 8107 Fax : +84 (8) 3825 8108 Website : www.anphacapital.com
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