28 Aug 2008 07:00
Camco International Limited
Carbon Credit Portfolio Sale
28 August 2008
Camco International Limited ("Camco"), a leading climate change business, is delighted to announce the successful auction of a portfolio of 5.8 million certified emission reductions (CERs) from 9 specific projects.
The auction was approximately four times over subscribed demonstrating both the depth of the CER market and the high demand for Camco's quality projects. Camco was able to enhance the price per CER by developing an innovative and proprietary structure.
The portfolio was placed with leading international compliance buyers. Under the deal CERs will be delivered to the buyers on a non guaranteed basis at a fixed price per CER. As part of the structure Camco will receive an upfront, non-recourse cash payment with respect to CER generation of €15 million. The combined price per CER achieved from the upfront and the fixed delivery price is higher than forecast at the time of the company's admission to AIM in April 2006.
Camco's demonstrated structuring and sales capability gives buyers the ability to diversify their exposure, whilst ensuring maximum value for Camco's project partners. The portfolio is representative of Camco's total portfolio with 55% of projects registered and 45% already commissioned.
As a result of the success of this first transaction Camco plans to place a second smaller portfolio to a group of preferred buyers.
Scott McGregor, Camco CFO, said
"We are delighted by the overwhelming response and the premium value we have created for our shareholders. I would like to pay tribute to our internal team for the innovative way this transaction was structured and to Standard Bank's strong team and professional approach marketing the portfolio."
Geoff Sinclair, Standard Bank Head of Emissions, said,
"We have been very pleased to assist Camco in this large and innovative transaction. The solid structure and quality projects in it, along with Camco's leading carbon capabilities, have combined to produce excellent results."
Enquiries:
| The Camco Group | +44 (0)20 7121 6100 |
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| Jeff Kenna, Chief Executive Officer | |
| Scott McGregor, Chief Financial Officer | |
| KBC Peel Hunt Ltd (Nominated Adviser and Broker) | +44 (0)20 7418 8900 |
| Jonathan Marren | |
| David Anderson | |
| Gavin Anderson | +44 (0)20 7554 1400 |
| Ken Cronin | |
| Kate Hill | |
| Daniela Stawinoga |
Notes to editors:
About Camco
The Camco Group is a leading climate change business in the growing carbon and sustainable energy markets. We offer a full range of carbon-related services to public and private organisations worldwide. The Group has a 20-year track record and manages one of the world's largest carbon credit portfolios.
The Group consists of three business segments:
The Camco carbon assets business is a leading project developer with one of the world's largest carbon credit portfolios. We partner with companies to identify, develop and manage projects that reduce greenhouse gas emissions, and then arrange the sale and delivery of carbon credits to international compliance buyers and into the voluntary market.
The consulting practice consists of Bradshaw, ECCM, ESD and ESD Sinosphere. It combines specialist technical, strategic and financial expertise and experience accrued over two decades to deliver a sustainable low carbon society. We are positioned to work with our clients to turn climate change liabilities into economic, social and environmental assets.
Camco Ventures works with project and technology developers, early stage businesses and investor groups to commercialise climate change mitigation technologies, projects and services. Part of this business is the Camco asset management vehicle.
About Standard Bank
The Standard Bank Group is a leading Emerging Markets Corporate and Investment Bank and is Africa's leading banking and financial services group, with assets of approximately US$175 billion and over 48,000 employees (including Liberty Life) in 38 countries across the globe. (18 in Africa and 20 outside Africa).
It leverages its pioneering heritage and experience of resource banking and emerging markets in Africa to offer banking and financial services in developing economies throughout the world, and is committed to making a real difference wherever it operates.
Standard Bank's principal international investment banking subsidiary is Standard Bank Plc (SB Plc) whose main activities involve sourcing and structuring capital markets, and trade and project-related transactions. It also provides advisory, financing, hedging and commodity trading services.
SB Plc is authorised and regulated by the Financial Services Authority. It is a member of the London Stock Exchange, the London Bullion Market Association, the London Metal Exchange, the London Platinum and Palladium Market and the New York Mercantile Exchange (COMEX Division). Through its branch in Tokyo, it is also an Associate Member of the Tokyo Commodities Exchange (TOCOM).