LAUNCH Webinar: "The key role of off-balance sheet contracts in building a strong sales message"
2 March 2020 - 2 March 2020
Brussels, Belgium
OVERVIEW
One of the well-known burdens in implementing sustainable energy projects for both the public and the private sector is the fact that many implementers are limited from carrying out such measures due to their inability to add further debt on to their balance sheets. Reasons are multiple but generally fall into the following categories, banking covenants and negative impact on credit standing, while for municipalities such debt is restricted by the Maastricht rules.
For small and medium-sized companies with limited resources, off-balance sheet appears the best solution as it has no implication on their balance sheet and doesn't affect the liquidity position in a certain period. Thus, this liquidity may be used for other corporate purposes related to the sales and marketing growth of the company. Moreover, contracts that enable off-balance sheet financing for the client should also be seen as an important selling point for Energy Service Companies (ESCos) because they help accelerate deal closure.
Recognizing the importance of this point in the contractual agreements to finance sustainable energy projects, the LAUNCH partners are developing within the LAUNCH project a standardized Energy Performance Contract that can be accepted by auditors and Eurostat as being off-balance sheet. This would bring contractors one step closer to financing their project.
Off-balance sheet contracts should also be looked at as an important selling point for ESCOs: this type of contract, in fact, helps accelerate deal closure with end-clients who often do not want to have the assets and associated liabilities on their own balance sheet.
This webinar will focus on the key role of off-balance sheet contracts in building a strong sales message towards end-clients, starting from the key differences between on and off-balance sheet transactions, the characteristics of an off-balance sheet transaction and what approach the LAUNCH consortium is adopting to draft the standardised EPC. The topic will cover both the financial (investor) and the commercial (contractor) perspectives.
WHO SHOULD ATTEND?
Energy service companies (ESCOs), engineers and consultants, development managers and sustainability professionals with an ambition to learn more on key financial and commercial concepts and to improve the processes of project uptake in their own businesses or for their clients.
WHY ATTEND?
To be at the forefront of a fast-changing industry, gain financial and commercial insights and increase the opportunity to get your sustainable energy projects financed. This webinar will provide an ideal platform to share experiences and best practices with other professionals in the sector and to ask questions you've always wanted to ask on this topic.
This is the first of several educational resources that the LAUNCH consortium will share with a wider audience to allow a better understanding of how to use the tools developed within the LAUNCH H2020 project.
WHAT YOU'LL LEARN:
What is the difference between on and off-balance sheet transactions;
What are the characteristics of off-balance sheet transactions;
How LAUNCH is developing a standardized off-balance sheet Energy Performance Contract;
Why this is important from a financial point of view;
Why this is important from a commercial point of view.
Visit www.launch2020.eu to read the full agenda
One of the well-known burdens in implementing sustainable energy projects for both the public and the private sector is the fact that many implementers are limited from carrying out such measures due to their inability to add further debt on to their balance sheets. Reasons are multiple but generally fall into the following categories, banking covenants and negative impact on credit standing, while for municipalities such debt is restricted by the Maastricht rules.
For small and medium-sized companies with limited resources, off-balance sheet appears the best solution as it has no implication on their balance sheet and doesn't affect the liquidity position in a certain period. Thus, this liquidity may be used for other corporate purposes related to the sales and marketing growth of the company. Moreover, contracts that enable off-balance sheet financing for the client should also be seen as an important selling point for Energy Service Companies (ESCos) because they help accelerate deal closure.
Recognizing the importance of this point in the contractual agreements to finance sustainable energy projects, the LAUNCH partners are developing within the LAUNCH project a standardized Energy Performance Contract that can be accepted by auditors and Eurostat as being off-balance sheet. This would bring contractors one step closer to financing their project.
Off-balance sheet contracts should also be looked at as an important selling point for ESCOs: this type of contract, in fact, helps accelerate deal closure with end-clients who often do not want to have the assets and associated liabilities on their own balance sheet.
This webinar will focus on the key role of off-balance sheet contracts in building a strong sales message towards end-clients, starting from the key differences between on and off-balance sheet transactions, the characteristics of an off-balance sheet transaction and what approach the LAUNCH consortium is adopting to draft the standardised EPC. The topic will cover both the financial (investor) and the commercial (contractor) perspectives.
WHO SHOULD ATTEND?
Energy service companies (ESCOs), engineers and consultants, development managers and sustainability professionals with an ambition to learn more on key financial and commercial concepts and to improve the processes of project uptake in their own businesses or for their clients.
WHY ATTEND?
To be at the forefront of a fast-changing industry, gain financial and commercial insights and increase the opportunity to get your sustainable energy projects financed. This webinar will provide an ideal platform to share experiences and best practices with other professionals in the sector and to ask questions you've always wanted to ask on this topic.
This is the first of several educational resources that the LAUNCH consortium will share with a wider audience to allow a better understanding of how to use the tools developed within the LAUNCH H2020 project.
WHAT YOU'LL LEARN:
What is the difference between on and off-balance sheet transactions;
What are the characteristics of off-balance sheet transactions;
How LAUNCH is developing a standardized off-balance sheet Energy Performance Contract;
Why this is important from a financial point of view;
Why this is important from a commercial point of view.
Visit www.launch2020.eu to read the full agenda
Keywords
epc, energyefficiencyfinance, sustainableenergy, sustainablefinance, offbalanchesheetcontracts, h2020projectes