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Phone: 58858
E-Mail: woojin.chung@db.com
Department: Global Banking - TMT
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Cost centre: 0840741100
Job number: 9eLD0613_Cover1
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Cost to Purchase: Nil
Deutsche Bank’s
commitment to addressing
climate
Foreword
Despite the challenging global economic and financial outlook, we believe that climate change remains a growth area.
In fact, climate change-related activity is likely to be a key driver of a global recovery scenario in a 2-3 year timeframe,
led initially by government action around green infrastructure investment, as reflected in the stimulus packages that
have been adopted by a number of countries including the United States, China and South Korea. Therefore,
investments in climate change should be carried out in a counter-cyclical fashion over the next few years, and firms
should be ready to act in markets with large catch-up potential such as the United States. We also see significant
potential in Brazil, China, India and the Middle East, where climate change will trigger immense business opportunities.
Over the past 18 months, Deutsche Bank has remained committed to its strategic vision to become one of the global
leaders in the space, and has delivered tangible results:
Rapid product development and strong distribution push in Asset Management
Near-doubling of income from renewables (wind, solar, etc.) within Global Banking
Commitment to build up a private equity position in green assets
Increasing recognition of Deutsche Bank by governments, clients and public policy groups as a major player and key
counterpart for regulatory dialogue, building on our demonstrated thought leadership through our various research
teams
Creation of an external Climate Change Advisory Board (CCAB) and the exciting potential this offers the bank in
terms of a very high profile and powerful network of individuals who value the bank’s efforts
Financial Intermediary
As a financial institution, Deutsche Bank is clearly focused on, and driven by, anticipating and responding to our clients’
needs. Accordingly, thought leadership requires us to strengthen awareness of climate change issues with all our clients
and advise them on strategic opportunities and challenges. In addition to this strategic advisory function and our normal
activities as a capital markets participant, we have identified the following four areas which are particularly relevant for
transformational change:
1. Clean technology: Building on our experience in the German market, our solar and wind engagement has quickly
spread to other geographies in Europe, Asia and the Americas. Beyond solar and wind, we see growing
opportunities in second and third generation biofuels as well as battery technology.
2. Carbon market activities: For several years, carbon trading has been an important and growing business as a
result of very active engagement in the offset project market (Clean Development Mechanism under the Kyoto
Protocol) as well as the European emissions trading scheme. The experience we have gained not only facilitates
our policy work (for instance by articulating and promoting emerging best practice carbon market design elements),
but also our position in new markets such as the United States, New Zealand and elsewhere. As an important
complement to our carbon trading operations, our transaction bank introduced last year a suite of carbon products
that comprise, among others, an escrow service for small counterparties and a clearing and settlement service for
spot trading exchanges. These products will become an important part of market infrastructure as carbon markets
reach a critical size.
3. Energy efficiency in buildings: Globally, energy efficiency represents about one third of the abatement potential
between now and 2020. While considered the low hanging fruit for tackling climate change, there are a number of
important barriers including up front capital requirements to realise energy-savings potential over time, lack of
common valuation methodology and misaligned incentives between owners and tenants. We are developing
financial solutions that can support energy efficiency projects at scale, making it easier for companies to pursue
these projects.
4. Green infrastructure: This initiative is likely to come into greater focus this year as green infrastructure investment
will feature in economic recovery programs in the United States and the United Kingdom. In the United States,
Deutsche Bank is establishing thought leadership around the topic of green infrastructure through recent publications
by Asset Management as well as active policy dialogue. This will be followed by products and services to facilitate
these developments.
Eco-efficiency manager
Our role as an eco-efficiency manager and corporate citizen constitutes the third leg of our overall environmental
strategy. At Deutsche Bank, we accept the need to reduce our carbon footprint. The management Board committed
last year to reduce the bank’s global carbon footprint by 20 percentage points every year compared to its 2007 base
year in order to neutralise the CO2 emissions of its worldwide operations by 2012. The bank plans to reduce its
carbon emissions through sustainable improvements in the energy efficiency of its buildings and technology
infrastructure, greater use of renewable energy sources as well as the purchase of emission certificates to offset any
remaining CO2 emissions.
Key initiatives include:
1. Renewable energy: As of 2008 Deutsche Bank is purchasing 100 percent of its electricity needs in Germany,
Italy, UK and Switzerland from renewable sources. In January 2009, we added the United States to this list. On a
global basis approximately 67% of our total electricity requirements will be met by renewable electricity this year.
2. Building efficiency: Our Frankfurt headquarters is undergoing a significant renovation. We have incorporated
into this €300+ million programme a significant investment in greening our towers to set a new standard both within
Deutsche Bank and more broadly for the real estate industry in terms of large scale green refurbishment.
3. Staff education: We launched last year an internal website “Passion for the Planet” that is designed as an
outreach to all staff, providing advice on how they can affect our carbon footprint through their own behaviour. It
also offers information on what people can do in their own homes. Going forward, we are planning to make this site
increasingly more interactive to benefit from the many ideas staff have on energy and eco-efficiency.
4. Information technology: We recently announced a global 4-year commitment to deliver eco-efficient IT by 2012.
This 8 point plan includes a commitment to realise a 4-fold increase in energy efficiency in our data centres as well
a halving the IT energy consumption per head in our corporate offices. In addition we will be rolling out industry
leading initiatives to further reduce travel and paper while introducing eco-supplier management into our purchasing
processes including end-of-life recycling.
5. Creative solutions: We believe break-through innovation is critical to solving the challenge of climate change.
Our support of the Solar Impulse, a plane which is expected to fly around the globe in 2011 fuelled only by the sun,
is an example of our commitment to supporting creative solutions which allow all of us to envision a new world
powered by renewable energy.
Caio Koch-Weser
Vice Chairman, Deutsche Bank
Chairman, Environmental Steering Committee
Solaris
European Renewables
Deal of the Year 2007
Sustainability
Fully committed to our own sustainability with a full time team of professionals dedicated to this
Our commitment to sustainability has been rewarded with ISO 14001 – one of the first banks to
receive the certification in 1999
Deutsche Bank is continuing to lead by example with
– Greentowers: to make Deutsche Bank building the first LEED Platinum certified building
– Eco-efficient IT to reduce carbon footprint and energy consumption ISO 14001 certified
Babcock & Brown Wind Partners Ltd Babcock & Brown Ltd and Babcock Babcock & Brown Wind Partners Ltd
& Brown Wind Partners Ltd
Transaction highlights
B&B and BBW assets were sold at the upper end of the range of recent comparable renewable energy transactions
– Both Spanish and Portuguese asset portfolio were sold at circa €1.9m/MW multiple, placing them at the top end
of Spanish and Portuguese renewable energy transactions and at a considerable premium to the level at which
Complicated and intensive process of managing multiple sell-side process in different countries simultaneously
The process designed as a wide auction process using Deutsche Bank’s network to facilitate interest among
Sole Financial Advisor and Tender Agent for phase of development in the global
the public tender offer
Transaction highlights
Deutsche Bank acted as sole Financial Advisor and Tender Agent to Bosch on its €1.2 billion public takeover of
ersol Solar Energy AG
Bosch’s acquisition of ersol was an industry-transforming transaction and the first transaction with an established
industry conglomerate acquiring a sizeable solar company
Bosch had been already active in the renewable energy market with wind power and maritime energy and had the
aim of expanding its new energy technology business unit with the acquisition of ersol
Alongside the acquisition of ersol, Bosch also acquired the thin-film technology subsidiary ersol Thin Film (ETF)
from the former majority shareholder Ventizz Funds
1,800 1,707
1,600 1,487
1,407
Transaction highlights
Deutsche Bank acted as Joint Bookrunner on Suntech Power Holdings’ US$250m equity follow-on offering on 21
May 2009
Gross order book was well-covered including strong demand from dedicated tech funds alongside new investors
Deutsche Bank has been a Bookrunner on more solar equity offerings than any other firm since 2008, raising the
greatest amount of proceeds (approximately US$1.7bn) for its clients
Issue date: April 28, 2009 Pricing date: April 28, 2009
Ranking: Senior Offering size: $228 million
Size: $230 million Shares offered: 10.35m
Maturity: 5 years Offer price: $22.00
Coupon ( s.a.): 4.75% % of pre -deal mkt. cap: 12.0%
Conversion premium: 20.0% Mult. of ADTV: 4.4x
Conversion price: $26.40 Discount to last sale: (2.7%)
Effective premium: 75.0% File/offer discount: (8.5%)
Effective conversion price: $38.50 Offer to 1 st close: +13.9%
Conversion ratio: 37.8788 Role: Joint Bookrunner
Call feature: NC-life
Put feature: None
Role: Left Bookrunner
Transaction highlights
In addition to its Bookrunner role on both the convert and equity offerings, Deutsche Bank acted as lead
counterparty on SunPower’s call spread transaction
Deutsche Bank's pre-marketing efforts resulted in several key fundamental orders and significant oversubscription of
more than 3x for the convertible offering
Upsized convertible offering priced at the midpoint of the aggressive range with a 4.75% coupon and 20.0%
conversion premium
Company entered into a call spread transaction with Deutsche Bank and other counterparties to increase the
effective conversion premium to 75%
Company intends to use proceeds to repay outstanding convertible debt and general corporate purposes
Offering summary
Transaction highlights
Deutsche Bank acted as the Joint Global Co-ordinator and Joint Bookrunner
The IPO of SMA represented the largest solar IPO in 2008 and the only sizeable IPO in Germany in 2008
The book of demand was multiple times oversubscribed from a broad range of high-quality investors covering
specialised renewable energy funds as well as leading German and European institutions
Through the momentum in the book, Deutsche Bank managed to push pricing through the mid-point
The IPO was executed in very challenging market conditions. The decoupled pricing structure facilitated the IPO to
be successfully executed despite broader market volatility
Transaction summary
Development of photovoltaic solar power facility with total capacity of 16 MW with potential additional capacity of
4MW
First capital markets solution of its kind in Europe for this asset class. Solaris is a milestone in hybrid project finance
and, in particular, portfolio aggregation, as it provides private client investors with the benefits of the international
capital markets
Transaction designed to benefit from regulated tariffs under which generators under 100kW are eligible for
favourable tariffs
Transaction summary
The financing totalled €217 million and included €185 million senior notes
Maturity of a total of 24.5 yrs was, at the time, the longest in the market for renewable projects
€33 million (in aggregate by the 200 borrowers) provided in the form of equity and quasi-equity instruments
Electricity generated will be purchased by Iberdrola under an off-take agreement prescribed by the Spanish
government
The DWS Invest New Resources fund was awarded as the “Best Fund over the past One Year, Equity Global” by
the Lipper Fund Awards, Gulf 2008
Nicolas Huber ranked #13 among top 100 fund managers in Europe, for the DWS Zukunftsressourcen, DWS Invest
New Resources LC, DWS Invest Climate Change LC, DWS Klimawandel funds
No 3 EUAs
No 2 EUA Options
No 3 US VERs
Ongoing
Monitoring and
corrective measures
Organisation specialist
Performance indicators 6. 3. bodies committees
Audits
Management review
Improvement
(TQM)
Implementation of the
5. 4. Sustainability program
sustainability program Annual targets and
Implementation, initiatives
training,
communication,
refinement of the
sustainability
management system
We will neutralise the carbon footprint of IT used at Deutsche Bank managed locations
in line with the overall Group’s carbon neutrality commitment
Eco We will create an eco-supplier programme to assess the total eco-impact for our major
responsibility IT purchase categories
We will track the disposal of our IT assets and ensure they are recycled in an
environmentally responsible manner wherever possible
Technology We will use technology to halve the amount of paper used in our offices
usage
We will double the utilisation of our next-generation hardware
efficiency
We will halve the IT energy consumption per head in our corporate offices
Investment banking
Carbon markets