Landmark Projects

Deal of the Year Awards

2014 – Sarulla Geothermal Power Project in Indonesia

Delphos advised the consortium of Medco Power Indonesia, Itochu Corporation, Kyushu Electric Power Company, and Ormat International on obtaining $350 million in financing for the 330 MW Sarulla geothermal project in Indonesia. This innovative financing consists of a 20-year $250 million loan from the ADB, a 20-year $80 million concessional loan from the Clean Technology Fund, and a 20-year $20 million concessional loan from the Canadian Climate Fund for Private Sector Investment. The full financing package also includes a 20-year $490 million loan from JBIC and a $330 million 20-year loan from six commercial banks, which includes political risk insurance from JBIC. BTMU, ING, Mizuho, NAB, SMBC and Societe Generale are the six commercial banks on the deal. The project will be developed and implemented under a 30-year energy sales contract with PLN (Indonesian electricity distribution company), a 30-year joint operating contract with Pertamina Geothermal Energy, and a 20-year guarantee from the Ministry of Finance. The $1.5 billion Sarulla project is the largest single-site geothermal project in the world and was awarded 2014 Deal of the Year Awards from PFI, IJGlobal, GlobalCapital Asia/Asia Money Awards, and FinanceAsia.

2013 – Latin America Export Finance Fund

Delphos International assisted Crecera Finance Management Company, Ltd ("Crecera"), the fund manager of Latin America Export Finance Fund, Ltd ("LAEFF") to finance the expansion of its portfolio of short-term loans to underserved enterprises in the agricultural and commodities sector for the provision of pre-shipment or post-shipment export financing in Peru, Brazil, Colombia, and Uruguay. Delphos assisted Crecera in obtaining $50,000,000 of senior debt from the Overseas Private Investment Corporation to finance LAEFF’s expansion costs. Other lenders on the transaction included, Inter-American Development Bank, OPEC Fund for International Development, and BAWAG. The transaction received a Deal of the Year for 2013 by Trade Finance magazine.

2009 – Morupule B, Botswana

Delphos International acted as the sole financial advisor to the Government of Botswana (“GoB”) and BPC (the national utility) on the award-winning financing of the $1.6 billion 600 MW Morupule B coal-fired power generation project in eastern Botswana.  The project also entailed a major expansion of the country’s transmission system at a cost of approximately $275 million, including the installation of a 102-km 400 kV transmission line, the installation of a separate 215-km 400 kV transmission line, the installation of 3x315 MVA 400/220 kV transformers, and the installation of a 400/220 kV substation at Isang and associated works, in addition to the installation of reactive power compensation equipment, automatic generation control equipment, and software.

In November 2008, BPC signed the EPC Contract for the generating facilities to CNEEC, a Chinese contractor. In December 2008, BPC mobilized Delphos International as a sole financial advisor. The team designed and organized a process for soliciting financing proposals from domestic, regional, and international financing institutions. Following receipt of more than 10 expressions of interest, the team analyzed and ranked the submissions, and based on the firm’s recommendations the client has chosen a financing plan involving a mixture of multilateral and commercial financing at very attractive rates and tenors.  ICBC provided a loan of $825 million over a 20-year term, backed by a Sinosure guarantee for the first 15 years and an IBRD partial credit guarantee for the last 5 years.  Along with Standard Bank, Delphos International also designed a hedging solution that converts the proceeds of the dollar financing into actual and “synthetic” Pula (based on a trade-weighted currency basket). Despite the extremely challenging financing environment, financial close on the ICBC facilities took place according to schedule on June 15, 2009.

In addition, Delphos International advised BPC on the negotiations of a bankable coal supply agreement between MCL (a subsidiary of DeBeers) and BPC for the Morupule project. Specifically, Delphos International assisted in analyzing MCL’s price offer and financial model, negotiating price formulas and levels, escalation clauses, and various other key economic and risk allocation provisions.

The transaction was awarded the 2009 Deal of the Year by both Project Finance and Project Finance International magazines. The GoB was so pleased with the firm’s services that it expanded our original scope and added more projects so that Delphos has advised it on four projects, i.e., a 1,200 MW coal IPP, a 600 MW coal utility project mentioned earlier, a 250 MW coal bed methane IPP, and a 70 MW diesel rental project).

2005 – AES Maritza East 1, Bulgaria

Delphos International acted as co-developer and subsequently as co-financial advisor to AES on the €809 million debt package for the €1.1 billion 670 MW Maritza East 1 lignite-fired project in Bulgaria, the largest foreign direct investment in Southeast Europe. The financing closed in December 2005 (and achieved first disbursement in May 2006) with the participation of the European Bank for Reconstruction and Development (EBRD), the Multilateral Investment Guarantee Agency (MIGA), Hermes, COFACE, Calyon, ING, and BNP Paribas. In particular, Delphos focused on MIGA political risk insurance policies covering approximately €100 million of debt and equity exposure. In addition, Delphos advised AES on government and public relations in Bulgaria and U.S. advocacy for the project. As one of the original developers of the project, Delphos worked on the project conceptualization and development, including the negotiation of a PPA and other project contracts.

1999 - First Merchant Power Plant in Argentina

Delphos International was co-advisor with Bank of Tokyo - Mitsubishi to PSEG and AES in project financing the 830 MW gas-fired AES Parana power plant (total project costs of $448 million), which became the first merchant power plant in an emerging market to be financed on a non-recourse basis. Delphos International arranged a senior debt facility provided by the IDB, JBIC, and EID-MITI of Japan. A major portion of the senior debt came from a B-loan syndication of commercial banks led by West LB, ING Bank, and Bank of Tokyo-Mitsubishi.

Other Notable Projects

First US Ex-Im Bank Project Financing

As financial advisor to Ormat, Delphos International utilized a TDA feasibility study to arrange two Ex-Im Bank Mixed Credit facilities (a tied-aid structure consisting of 65% loan and 35% USAID grant) for two geothermal projects in the Philippines (Mak Ban and Bacon Manito). On a parallel track, Delphos International arranged a $173 million Ex-Im Bank project financing for a 125MW geothermal project located in the Leyte Geothermal Field (Upper Mahiao) in 1995. In 1997, Delphos International arranged a second Ex-Im Bank project finance facility for $50 million for the follow-on optimization project at the Leyte Geothermal Field. MIGA insured Ormat’s equity investment against political risks for these projects. These two projects were among Ex-Im’s first limited recourse project financings.

First IFC/MBIA Co-Financing

Delphos International acted as financial advisor to The AES Corporation on the $240 million financing for AES El Salvador, which included the expansion and upgrading of electrical distribution infrastructure.  MBIA, the Armonk, NY based monoline insurance company, and the International Finance Corporation (“IFC”) invested a total of $240 million to support the expansion of the electricity distribution networks in El Salvador, which brought much needed benefits to the rural areas of the country. This investment, which included a $120 million MBIA-guaranteed facility, a $45 million IFC A loan and a $75 million B loan, financed the five-year expansion programs of three private electricity distribution companies in El Salvador. Delphos International was instrumental in bringing MBIA, who had never previously co-lent with IFC, into the transaction.  The deal closed in December 2001. The distribution companies, CAESS, EEO and DEUSEM, which are majority-owned by AES, used IFC's financing to replace antiquated distribution infrastructure, to improve service quality and to expand their networks into underserved rural areas. MBIA’s facility was used to refinance AES’ original equity investment in the El Salvadorian companies.

First Private Hydropower Project in India

Delphos International first acted as advisor to Dodson-Lindblom International (“DLI”) in 1999 by helping them raise $10 million in project financing from OPIC for a 12 MW rehabilitation project in the State of Maharashtra near Mumbai.  More recently, Delphos International helped DLI obtain a secured $30 million in senior loans from IFC and DEG for development, construction and rehabilitation of a cluster of six hydropower projects in three different states of India totaling 61.2 MW. In addition to the senior loan, Delphos International facilitated the commitment of a $20 million equity investment from Guggenheim Capital, LLC. The revenues of the project will be augmented by the sale of approximately one million Certified Emission Reductions (Carbon Credits) to IFC-Netherlands Carbon Facility until 2012 at a price of about EUR 7 each. CER sales included a historical “look-back” on CER generation.

One of First OPIC Country/Industry-Specific Funds

Delphos International served as co-founder and financial adviser to Agribusiness Partners International Limited, a $100 million limited partnership formed to invest in agribusiness and food processing companies in the countries of the former Soviet Union (FSU). The Fund was backed by a $100 million guarantee from OPIC, and also included a $5 million investment from another government-backed equity fund, The US-Russia Investment Fund (TUSRIF).   Investments ranged from $2 million to more than $10 million and focused on joint venture projects involving Western agribusinesses, as well as state-owned enterprises seeking to privatize.  API is fully invested in companies located in Russia, Kazakhstan, Ukraine, Moldova and Georgia. Delphos International has also been instrumental in obtaining financing for expansion projects for the following API Investments.

Pioneering Solar Power Deals in India

Delphos International is the sole mandated advisor to Sun Edison, a leading global PV solar developer, for the financing of four utility-scale PV solar projects in India with total capacity of 45 MW, which is equivalent to approximately $180 million of total project costs. Sun Edison is one of the world’s leading solar PV developers and owns and manages approximately more than 314 MW of PV solar projects in North America, Europe, and Asia. Its parent company, MEMC, is a Fortune 1000 silicon wafer manufacturer with revenues of over $2 billion. Delphos International is responsible for arranging senior debt for the projects from a variety of sources including OPIC, IFC, and local commercial banks. In addition, Delphos is assisting SunEdison structure a holding company for its development and construction activities in Asia and Africa. Delphos obtained IFC’s approval of a $55 million equity investment in the holding company.

Business Lender for Afghanistan

Delphos International recently structured and closed a $25 million facility to provide senior and mezzanine debt investments to companies in Afghanistan through Afghan Growth Finance, (AGF), a joint venture between Delphos International and SEAF (a private equity fund manager). Delphos International helped obtain $5 million in equity through a grant from the US Department of Agriculture and further leveraged these funds with a $20 million loan commitment from OPIC. Subsequently, in 2010, OPIC committed an additional $30 million of direct financing and a co-financing line of $25 million. As of January 2011, AGF has approved a total of $19 million in commitments.

East Africa Telecoms

Delphos International was instrumental in raising $50 million from OPIC for Africa Telecommunications, Media and Technology Fund I, the fastest fund closing in OPIC’s history at the time. For ATMT’s portfolio company, Wananchi Group, Delphos International has raised approximately $300 million in commitments, including $35 million vendor financing facility with Standard Bank and Cisco Capital, $50 million in equity capital from ECP Africa Fund III, $20 million equity investment from Export Development Canada, and $5 million factoring facility with National Bank of Canada, backed by receivable insurance policy of $5 million with Export Development Canada.