PwC played a significant role in the Bungala Solar project transaction announced by Reach Solar energy on Monday, 10 April 2017.
Over the course of the last 12 months PwC delivered a fully integrated advisory service that utilised more than 60 staff across different professional capabilities including commercial and financial advisory, legal, tax, debt capital advisory, due diligence and financial model audit services. Instead of using multiple advisers, Reach Solar energy worked with one multidisciplinary professional services firm.
In recognition of the broad and integral role that PwC was to play in the project’s commercial development, PwC and Reach Solar energy agreed to share the entire project development risk. PwC did not bill any work on hourly rates. Payment to PwC was wholly contingent on the project’s commercial and financial success.
PwC’s investment in the Bungala Solar project could be made due to its deep understanding of the renewable energy market in Australia and the strength of its relationship with the Reach Solar energy management team. PwC and Reach Solar energy worked together to develop the project from inception to financial close across all aspects of the project, from securing land and development agreements to receiving equity commitments from world renowned investors in the renewable energy sector.
This is a new way of doing business with our clients, and importantly demonstrates full alignment of PwC’s success with the success of our clients.
The Bungala Solar project transaction involved the parallel and intertwined streams of greenfield development, project financing and full equity sell down with a simultaneous financial close. Selling 100 per cent of the equity of a greenfield project at the same time as raising the project finance is a new model of doing business in the renewable energy sector.
As PwC partner, Damian McNair said, "it will be a model that will be adapted in other infrastructure projects going forward as superannuation funds and industry players grapple with the lack of suitable investments in which to deploy their capital and are forced to transition from brownfield infrastructure asset purchases to investment in greenfield infrastructure developments."
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© 2017 PwC. All rights reserved.
© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Liability limited by a scheme approved under Professional Standards Legislation.