Download - AIDEA FY15_July Overview
AIDEA Overview
FY 2015
• Development finance corporation for the State of Alaska
• Semi-independent entity, overseen by a seven member Board
• AIDEA is self funded - receiving no General Funds
• Provides an annual dividend back to the State of Alaska
– Total since 1997 - $373.5 million
• Revolving Fund ≈ $1.4 billion in assets.
• Standard & Poor’s AA+ credit rating
Overview
To promote, develop, and advance economic growth and diversification in Alaska by providing various means
of financing and investment.
Mission
AIDEA fulfills its mission by providing access to affordable, long-term, asset financing
History
$180 million in cash and loans provided funding for the Loan Participation Program
1967
1981
1986
2013
2014
AIDEA created by Legislature
$143.5 million in cash & loans funded the DeLong Mountain Transportation
System (Project Development)
SETS program established and capitalized
Arctic Infrastructure Development Fund established
(not capitalized)
AIDEA Funds
Three funds - different risk characteristics and
project eligibility criteria
Revolving Fund
Enterprise Account
Loan Participation
Program
Commercial Finance
Lower Risk
Economic Development
Account
Project Finance
Project & Infrastructure Development
Higher Risk
SETS
Energy Infrastructure Development
Legislative Appropriations
Range of Risk
Debt &
Credit Enhancements
Arctic Infrastructure Fund
Infrastructure Development
Legislative Appropriations
Range of RiskDebt & Credit
Enhancements
Financing Tools
AIDEA provides a range of financing pathways
• Loan Participations
• Energy Loans
• Development Project Finance
• Tax-Exempt Bonds
• Taxable Bonds
Debt
• 100% Ownership
• Partner in LLC or Subsidiary
Corporation
Equity
• Loan Guarantees
• Bond Guarantees
Enhancements
Project Finance Continuum
7
Investments and Impairments
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
LOANS AND LOAN PARTICIPATIONS PROJECTS CONDUIT BONDS
741,726
144,709
620,965
1,851 0 0
Investments and ImpairmentsProjects Financed Since July 1, 2000
($ millions)
Investments Impairments
• Natural Resource Extraction and Processing
• Community Public Purpose Facilities
• Transportation and Logistics
• Commercial Real Estate
• Tourism/Recreation
• Communications
• Federal Facilities
• Manufacturing
• Infrastructure
• Healthcare
• Utilities
• Energy
• Retail
AIDEA Assists in Financing
Well Stocked Tool Box
Infrastructure Development
EnergyDevelopment
AIDEA
Programs
ProjectDevelopment
Commercial Finance
Conduit Bonds
Specialty Financing
Loan Participation Program
• Participation may total up to 90% of a loan originated by an eligible lending organization (for example, a commercial bank), with total participation not to exceed $25 million.
• Terms: Up to 15 years for personal property or 25 years for real property;
• 75% loan-to-value;
• Fixed or variable interest rates
• The program has created approximately 5,000 construction jobs and 6,000 permanent jobs
Provides long-term commercial financing to Alaska businesses
Loan Participations by Industry
Loan Participations by Region
Region Balance ($) Dollars (%) Loans (#) Loans (%)
Anchorage 211,309,870 53.8 129 54.7
Southeast 82,957,548 21.2 40 16.9
Mat-Su 41,520,112 10.6 29 12.3
Interior 26,075,215 6.6 9 3.8
Gulf Coast 22,616,198 5.8 21 8.9
Northern 2,922,495 0.7 2 0.8
Southwest 5,284,804 1.3 6 2.5
Totals $392,686,242 100.0% 236 100.0%
Project & Infrastructure Development
Long-Term Financing for Projects & Infrastructure in Alaska
Own all or a part of an
economic development
or infrastructure project.
Co-Invest in a
Corporation or LLC
that owns the project
or infrastructure.
Provide direct loans or
loan/bond guarantees for
development projects.
14
Project Criteria
The project must be endorsed by the local government
The project must be economically advantageous to the state and to
the general public welfare
The project applicant must be financially responsible
The project must be economically and financially feasible and
generate sufficient revenues to repay AIDEA’s investment
Analysis & Decision Making
DeLong Mountain Transportation System
• The mine and DMTS provide more than 500 regular and 100 seasonal jobs
• Direct and indirect jobs provide more than $15 million of annual income to local residents
• Royalty payments to NANA, average more than $35 million annually
• PILT from Teck to NWAB was more than $9 million in 2012
• AIDEA’s investment of $265 million to be repaid over 50 years with an expected ROI of 6.50%
52 mile road and port facility serving Red Dog Mine
Lik Deposit Transportation System
• The LDTS will be a haul road approximately 20-mile long connecting the Lik Deposit to the DMTS haul road system.
• The LDTS will be constructed on land owned by the State of Alaska and NANA. LDTS will use approximately 40 miles of the existing DMTS roadway.
• Port site modifications would include an additional concentrate storage building, fuel storage, a camp extension, upgraded generation capacity, an expanded shallow water dock, and modifications to the existing ship loader, or if necessary, a new ship loader.
20 mile road and port site modifications
Skagway Ore Terminal
• AIDEA recently made approximately $14 million in improvements to the facility. This investment has been paid back through user fees by the current tenant
• SOT supports family wage year-round jobs and the expanding mining sector in the Yukon Territory
• AIDEA has legislative authorization to issue up to $65 million in bonds to fund a major expansion of the facility
100,000 sq. ft. ore concentrate storage facility and ship loader
Ketchikan Shipyard
• AIDEA is nearing completion of an $87 million capital expansion and upgrade of the shipyard including: an operations office, assembly hall/production center and a steel fabrication shop
• Vigor Industrial purchased the shipyard operator, Alaska Ship & Drydock, in March 2012.
• AIDEA retains ownership of the Ketchikan Shipyard
The shipyard provides 160 direct jobs in Ketchikan
Alaska Class Ferries
• Vigor Marine & Ketchikan Shipyard awarded contract to construct two Alaska Class ferries - 2018
• At 280 feet each ferry will seat up to 300 passengers and carry 53 standard vehicles
Additional economic impact to Ketchikan - $32.1 million
• Increased employment by 60-80 per year for 4 years
• Additional $22 million in wages and $9.8 million in local spending
Ketchikan Shipyard
Mustang Operations Center 1, LLC
• 15,000 BPD operating facility will process crude oil produced in the South Miluveach Unit with 25 – 30 million barrel proven reserves. The oil will then be transported to the Alpine Pipeline onto the Kuparuk pipeline and finally to TAPS.
• The facility will create:
– 250 construction jobs
– 20-25 permanent jobs
– Up to 200 indirect jobs
• AIDEA’s $70 million investment in the project is expected to leverage more than $500 million in additional private investment in the Mustang Field.
Up to an additional 15,000 bpd of oil in TAPS
Camp Denali Readiness Center
• AIDEA financed a $15 million expansion of the National Guard Armory on JBER
• The Camp Denali Readiness Center Addition Project includes a new 29,000 square foot facility, relocation and replacement of an antenna array, a new access road and expanded parking.
• AIDEA owns the project which will be operated by the Alaska Department of Military &Veterans Affairsthrough a 30 year lease
• Retained 115 USCG and civilian jobs
New home for US Coast Guard in Anchorage
BlueCrest Energy
• AIDEA investment up to $30 million
• 98 million barrels - proved and probable reserves of oil
• 297 BCF - proved and probable reserves of gas
• Development of Cook Inlet oil reserves
• Increase local and State tax base
• 50 construction jobs
• 150 new jobs created
Onshore oil rig for Cook Inlet
Bokan Mountain Mining Project
• Legislature approved up to $145 million in bonding authority
• High paying jobs for a region with high unemployment
• Decrease US dependence on Chinese REE
Rare Earth Element (REE) production
Niblack Mining Project
• Legislature approved up to $125 million in bonding authority
• Infrastructure development may also occur at the Gravina Island Industrial Complex in Ketchikan
• High paying jobs for a region with high unemployment
• 150 full-time on Prince of Wales
• 80 ore processing in Ketchikan
Copper, Zinc, Gold and Silver
Conduit Revenue Bond Program
• Neither the assets nor credit of AIDEA or the State of Alaska are at risk
• Essential to the underwriting and placement of bonds are– the creditworthiness of
the project, and
– any credit enhancements offered by the applicant
Access to tax-exempt and taxable bonds
317
$1.4 B
Energy Development
Sustainable Energy Transmission and Supply Fund
The SETS fund, established and capitalized in AIDEA, provides tools for financing Alaska’s energy infrastructure needs
Liquefaction,
regasification, distribution,
storage, or use of natural
gas except a pipeline from
North Slope or Cook Inlet
to market.
Transmission,
generation, conservation,
storage or distribution of
heat or electricity.
Distribution or storage of
refined petroleum
products.
• Direct Loans
• Loan & Bond Guarantees
• Bond Issuances
Financing limits:
• 33% of direct financing, or
• $20 million in credit enhancements
Arctic Development
Eligible Projects
• (A) the construction, improvement, rehabilitation, or expansion of a facility
– (i) in the Arctic to aid in development or meet emergency response needs; or
– (ii) in the state if the construction, improvement, rehabilitation, or expansion supports or furthers the development of a facility in the Arctic; or
• (B) the construction, improvement, rehabilitation, or expansion of a shore-based plant, facility, or equipment used in support of a fishery in the Arctic.
Arctic Infrastructure Development Fund
Arctic Development
Financing limits:
• 33% of direct financing
• $20 million in loan/bond guarantees
• 40 year maximum term
Financing Alaska’s Arctic infrastructure needs
New Markets Tax Credits
Provides AIDEA with ability to incentivize the use of the federal New Markets Tax Credit (NMTC) program in underdeveloped and poverty-stricken areas of the state.
• Incentivizes economic development opportunities in those areas with the most need.
• AIDEA may provide a guarantee to a commercial lender for a leveraged loan in a NMTC transaction
• AIDEA may make direct leveraged loans in a NMTC transaction if the project proponent cannot secure financing from a commercial lender.
• Allows for a $40 million rolling cap in loans and guarantees.
Investment in areas of high unemployment & poverty
Contact
Alaska Industrial Developmentand Export Authority
813 West Northern Lights Blvd.,
Anchorage, Alaska 99503
(907) 771-3000(888)300-8534 (Toll Free in Alaska)
www.aidea.org
#AIDEA