Georgian Co-Investment Fund April 2016
Georgian Co-Investment Fund (GCF) Overview Established in September 2013 Georgia-dedicated private equity fund Limited Partnership set up according to international best practices Limited Partners include sovereign wealth funds and family offices; no Georgian government ownership Professional management team with years of international investment and finance experience GCF s objectives - invest in commercially attractive projects - provide high returns to investors - attract top class strategic investors as partners (co-investors) Limited Partners Management Company Co-investors/ partners Investment Projects Investment Projects Investment Projects 2 2
Investment Criteria Geography Industries Investment Restrictions Investment Type Financing Type Minimum Investment Size Maximum Investment Size Target Equity Stake in Projects Investment Period Fund Life Exit Horizon Georgia and Georgia related Energy & Infrastructure Manufacturing Hospitality & Real Estate Agriculture and Logistics Trading, retail, pure residential real estate development, gambling, transit Working capital financing Speculative investments: commodities, derivative contracts (unless used for hedging) Startups, new projects, expansion, turnaround, reorganization, distress, special situations Equity, mezzanine debt, hybrid financial instruments (i.e. convertible debt, etc.) US $5 M >20% of total commitments 25%-100%. Fund s preference is to hold non-controlling stakes Five years (through YE 2018) 7+1+1 years; fund will liquidate after term expiry By YE 2020 Financial Criteria Minimum IRR - 17% Minimum money multiple - 1.5x 3 3
Portfolio Summary # Project name Investment Sector Description Project size, US$ M 1 Mtkvari HPP Energy & Infrastructure 2 Oni Cascade of HPPs Energy & Infrastructure 3 Tskhenistskali Cascade of HPPs Energy & Infrastructure 4 Greenhouse Agriculture & Logistics 5 Axis Towers Hospitality & Real Estate 6 Galleria Tbilisi Hospitality & Real Estate 7 Shekvetili Hotel & Spa Resort Hospitality & Real Estate 8 Panorama Tbilisi Hospitality & Real Estate 9 BitFury Information Technologies Installed capacity 53 MW Annual energy generation 245.1 GWh Installed capacity 177.2 MW Annual energy generation 789 GWh Installed capacity 347.1 MW Annual energy generation 1,743.7 GWh Potential Size: 35 ha Production: Cucumbers & Tomatoes Multifunctional Complex Total buildable area: 94,000 m² Multifunctional Shopping Mall Total buildable area: 48,000 m² Luxury Hotel & Spa Resort Total buildable area: 40,000 m² Multifunctional Complexes Total buildable area: 215,000 m² Bitcoin Blockchain infrastructure development, data processing, chip production 127.9 330 723 40 83 77 50 500 40 Total 1,970.9 4
Energy & Infrastructure Co-Investment Opportunities
Mtkvari HPP Technical Parameters Plant type Run-of-the-river (with reservoir) Total installed capacity 53 MW Total annual generation 245.1 GWh Capacity usage ratio 53% Reservoir useful capacity 2.67 million m³ Headrace tunnel length & diameter 9,600 m; 6 m Tunneling technology Tunnel Boring Machine (TBM) manufactured by Herrenknecht Transmission line 220 kw, 2.7 km long Key Financial Assumptions Total investment size US$ 127.9 M (including costs of financing) Expected to be commissioned in 2018 Debt to equity 60/40% Equity investor GCF: 100% 6 6
Mtkvari HPP, cont d River: Mtkvari Location: Akhaltsikhe Municipality, Samtskhe-Javakheti Region (near Turkish border) Mtkvari HPP Powerhouse Mtkvari HPP Headwork 7
Mtkvari HPP, cont d 8 8
Oni Cascade of HPPs Technical Parameters Plant Type Run of the river Capacity of Oni 1 HPP 117.2 MW Capacity of Oni 2 HPP 60 MW Total installed capacity 177.2 MW Total annual generation 789 GWh Overall capacity usage ratio 50.8% Power waterway tunnel length 23 km Power waterway tunnel diameter 6 m Key Financial Assumptions Total investment amount US$ 330 M Expected to be commissioned in 2021 Debt to equity 60/40% Equity investor GCF: 45%; PERI: 45%; ROBBINS COMPANY: 10%; Please note that the above mentioned technical and financial parameters might change according to the feasibility study results. 9 9
Oni Cascade of HPPs, cont d River: Rioni Location: Oni Municipality, Racha-Lechkhumi Kvemo-Svaneti Region HPPs: Oni 1, Oni 2 10
Tskhenistskali Cascade of HPPs Technical Parameters Plant Type Run of the river (Reservoir) Capacity of Ludji HPP 54.4 MW Capacity of Mukhra HPP 60.5 MW Capacity of Lentekhi HPP 80.9 MW Capacity of Tsageri HPP 151.3 MW Total installed capacity 347.1 MW Total annual generation 1743.7 GWh Overall capacity usage ratio 57.3% Ludji reservoir storage capacity (net) 127 million m³ Tsageri reservoir storage capacity (net) 7 million m³ Key Financial Assumptions Total investment size US$ 723 M Expected to be commissioned in 2021 Debt to equity 60/40% Equity investor GCF: 100% Please note that the above mentioned technical and financial parameters might change according to the feasibility study results. 11
Tskhenistskali Cascade of HPPs, cont d River: Tskhenistskali Location: Lentekhi and Tsageri Municipalities, Racha-Lechkhumi Kvemo-Svaneti Region HPPs: Ludji, Mukhra, Lentekhi and Tsageri Mukhra HPP Powerhouse Lentekhi HPP Headwork Mukhra HPP Headwork Ludji HPP Powerhouse Ludji HPP Headwork - Dam Lentekhi HPP Powerhouse Tsageri HPP Headwork - Dam Tsageri HPP Powerhouse 12
Hospitality & Real Estate Co-Investment Opportunities
AXIS TOWERS General Description Category 5* hotel Pullman (Accor Group), A class office, retail, residential Total Buildable Area 94,000 m² Residential Area 15,000 m², US$ 1500 (incl. VAT) Hotel (5*) 252 rooms, US$ 145 (incl. VAT), 65% Office Area 15,000 m², US$ 24 (incl. VAT), 85% Retail Area 7,400 m², US$ 27 (incl. VAT), 90% Facilities Sky bar, lounge bar, restaurants, conference halls, pool, spa, Number of parking lots 500 Key Financial Assumptions Total investment size US$ 83 M Equity investor GCF: 50%; AXIS: 50% Construction works expected to be completed in 2017 14
AXIS TOWERS, cont d 15
Galleria Tbilisi General Description Category Multifunctional Shopping Mall Total Buildable Area 48,000 m² Net Leasable Area 22,100 m² Average rent price, occupancy US$ 40; 90% Number of parking lots 300 Key Financial Assumptions Total investment size US$ 77 M Construction works expected to be completed in 2017 Equity investor GCF: 100% 16
Galleria Tbilisi, cont d 17
Contacts George Bachiashvili Chief Executive Officer Tel: +995 322 470 003 Email: gbachiashvili@gcfund.ge Website: www.gcfund.ge Facebook: www.facebook.com/gcfund Twitter: www.twitter.com/gcfund LinkedIn: www.linkedin.com/company/georgian-co-investment-fund Tinatin Odilavadze Head of Public Relations Tel: +995 322 470 004 ext. 151 Email: todilavadze@gcfund.ge 18