Project and Structured Finance Unit

1. Project and Structured Finance Unit Structuring Standards for Cash Flow Based Financing

2. AGENDA • General Economic and Financial Environment • Unicredit Bulbank‘s Strategy in respect to RES in today environment • Structuring Requirements for Project FinancingsPolicy Standards of UniCredit Group • Selected transactions • UniCredit Bulbank Information

3. 1. General Economic and Financial EnvironmentAfter having plummeted in the 4Q2008 Bulgarian economy is set to slide into recession. Growth rate of GDP on demand side in % (yoy 2006-2012) Source: NSI and UniCredit Bulbank forecasts • Opposite to many other EU countries the global recession hit Bulgarian economy with a considerable time lag. Only in 4Q/08 economy slowed down markedly to 3.7% yoy from 7% yoy in the first 9M/08. • Given weak external demand and shortage of foreign capital inflows the Bulgarian economy will unlikely avoid recession. • Our central projection envisages annualized GDP growth to fall into the negative territory for six consecutive quarters, starting from 2Q/09. • Fixed investments is set to drop severely (by real 18.4% yoy subtracting 6.1 pp of GDP) in response to the more difficult access to financing and looming risks of spare production capacities in the post crisis world.

4. 1. General Economic and Financial EnvironmentCA gap shrink, but capital inflows dry-up even faster. Private Capital Inflows Dropped Sharply Source: BNB • In the 1Q/09 private capital inflows failed to finance CA deficit causing official reserves to fall by 7%. • The large private non-financial sector external debt remains a key source of vulnerability. We think that significant share of this debt will be rolled over, but nevertheless automatic re-financing can no longer be expected in the context of the ongoing deleveraging process and given that industrialized nations are crowding out emerging economies from the competition for global savings. • On a more positive note, the balance of payment risk that Bulgarian economy faces is significantly alleviated by the strong debt metrics of the public sector. If needed the very strong balance sheet of the public sector will allow authorities to borrow, without threatening Bulgaria’s creditworthiness.

5. General Economic and Financial EnvironmentRepricing of Risks • High Prices on Country Risks • Higher Financing Costs for RES Projects in SEE • Currently Limited Credit Liquidity in SEE

6. 1. General Economic and Financial EnvironmentCurrent view of the CDS of Bulgaria

7. 2. Unicredit Bulbank’s Strategy towards RES in today environment - General Standards and Frame Requirements • UCB continue with its’ pro-active, but selective approach in respect to Projects in Renewable Energy • Responsible structure for origination, arrangement and due diligence of Project Finance Transaction within Unicredit Bulbank AD: Project and Structure Finance Unit • Competence: local arranging unit for small/mid-sized local transactions (E2m-E50m), supporting local unit to UniCredit Group for larger deals (>E50m)

8. 3. Structuring ParametersGeneral Standards and Frame Requirements • Equity requirements: depending on Cash Flow strength and shall ensure stress scenarios debt service by the lowest power generation output. Taking into consideration lower Risk appetite, based on the today economic environment, at least 30% equity contribution is required • Technologies: proved technologies with track records • Sponsor: industry experienced, with completed projects in the RES • Grace:depending on the Project and technology • Maturity:10 – 15 Years, depends on the technology and Cash Flow availability • Pricing: dependent on the market conditions, limitedsources from EIB and EBRD

9. 3. Structuring ParametersGeneral Standards and Frame Requirements • Collateral: Typical for such kind of PF transactions granting access to all assets and rights of the SPV with the aim to secure the Project as whole • Availability of the source and Technical risks: Competent External Appraisal • Legal Risks: External Legal Due Diligence • Minimum Debt Service Cover Ratio (DSCR) • 1,25x for PV • 1,20x for Hydro • 1,25x for Wind • Calculation: “Annual debt service of principal + interest” / “Available Cash Flow” (EBITDA)

10. 3. Structuring ParametersGeneral Standards and Frame Requirements • Debt Reserve Account • Accumulation of FREE CASH FLOW (remaining after payment of operative expenses and debt service) • Mandatory for all Cash Flow based financings • Equal to 6 months debt service • No disbursement of profit prior to full accumulation • Account held with UCB & pledged to UCB • Maintenance Reserve Account • Mandatory, if no full-service agreement exists (i.e. guaranteed performance & availability subject to cash flow projections)

11. 3. Structuring Parameters General Standards • Monitoring: Quarterly/semi annual technical and commercial reports from the project • Insurance • Construction all risk • Third party liability • Property damage • Machinery breakdown • Business interruption

12. 4. Selected Transactions>EUR 2 mln for 2007 - 2008 (UniCredit Bulbank as an Arranger and/or an Underwriter): • Up to 20 MEUR from a total of 198 MEUR Senior facilities + 25 VAT facility for development of 156MW Wind Farm, Kavarna, Bulgaria, with Key Sponsor AES (USA), MLA EBRD/IFC/UCMIB – closed transaction; • Up to 20 MEUR of total 54 MEUR (MLA EBRD/BA-CA) – Small Hydro Power Plants Cascade for VEZ Svoge (Petrovilla Group, Italy) with total installed capacity of 25 MW – completed transaction; • Up to 9.5 MEUR Investment Loan + L/G limit – Hydro Power Plant with installed capacity of 8.7 MW – completed transaction; • Up to 7 MEUR investment loan + VAT limit – Small Hydro Power Plant with installed capacity of 3.8 MW – mandated transaction; • Up to 3.174 MEUR for a Small Hydro PP with installed capacity of 3.484 MW - completed transaction;

13. 5. UniCredit Bulbank Information Contacts of Project and Structured Finance Unit THANK YOU FOR YOUR ATTENTION!