WE HELP ELECTRICITY PRODUCERS FINANCE NEW POWER STATIONS

Are you an electricity producer? The Ecu is the best way for you to raise money to finance new power stations.

RAISING MONEY FOR NEW POWER STATIONS

The annual electricity consumption in the EU is around 3.1 million GWh. If we want to run all our cars on electricity, we need additional 1.3 million GWh. This does not include commercial vehicles and the increased use of electricity for heating. On top of this, many European governments are closing coal and nuclear power stations, which account for 75% of all electricity production in France and 50% in Germany. McKinsey has calculated that European power companies need to invest €6.6 trillion in new power stations. This does not include the upgrades to the national grids, which will be financed by governments. Some energy companies have issued perpetual bonds, but their market prices have fallen sharply, making investors apprehensive.

HIGH DEBT LEVELS IN THE ENERGY SECTOR

How will power companies raise these €6.6 trillion? They already have a lot of debt, because the sector is capital intensive. France had to nationalise its biggest electricity producer, EDF. Loans increase interest rate risk and cash flow risk and they lower the company's credit rating. The total corporate bond market in the EU is only €1.7 trillion. The total of all bank loans to European businesses is €5.6 trillion. The solution is a digital green bond that can raise more money than traditional bonds and which minimises electricity producers' risks.

WHAT IS THE ECU?

The Ecu is a perpetual bond. It is issued on behalf of multiple electricity producers. As a producer, you receive a share of the money and you guarantee for the same share of Ecus. You don't repay the money and you don't pay any interest, but you accept Ecus, if your customers wish to pay invoices with them. You can then resell these Ecus on securities exchanges. The interest is added to Ecu's book value, which is calculated daily based on inflation and the yield of a basket of bonds. It does not matter that electricity prices vary by time and region. Nothing changes in the way electricity is traded. Ecu's market price reflects its rising book value and because it is normally above the daily book value, bonds are rarely redeemed.

BENEFITS FOR ELECTRICITY PRODUCERS

Ecus do not carry interest rate risk. Bonds must be repaid and issuing a new series means more costs. Ecus have no maturity and can be resold again and again - in effect, a continuously revolving loan. During economic crises, bond annuities stay the same causing cash flow problems, but lower sales mean that less Ecus can be redeemed. You can book the sale of Ecus as prepayment and it does not effect your credit rating and no VAT is due. You only guarantee to supply your product to your customers and accept Ecus for payments. You do not guarantee for the obligation of others.