CLARIFICATIONS FOR SWAP CO2 CERTIFICATES FOR PHASE 4 OF THE EU ETS WITH CO2 CERTIFICATES FOR PHASE 3
ERATTA - CLARIFICATIONS
As for the received clarification questions from various bidders:
- SWAP Phase 4 CO2 certificates with Phase 3 CO2 certificates in order to achieve EU-ETS compliance for 2020 for a number of 94,879 phase 3 certificates, in exchange for a fee, established as the absolute value per certificate;
TAROM prefers delivery of EUA Phase 3 to TAROM and subsequently, TAROM will deliver the EUA Phase 4 and the price. If a trader would like to use the certificates of TAROM after quoting a final price, we can consider that, but not the preference for SWAP. We will evaluate the total cost to TAROM.
- REPO certificates remaining for the year 2021 will be the subject of a redemption operation in 2022.
- The term of the contract will be 14 months from the signing date, not before the redemption of the certificates under REPO conditions.
To be safe we used 14 months to meet the plan for 2022 compliance deadline.
- Can Tender submit a bid only for the swap, and not for the REPO?
Offers would be evaluated independently; we can have the same supplier or different one based on final price for the transaction (difference to add for the SWAP or REPO)
- Could you please describe the conditions of a REPO transaction?
Spot sell - forward purchase - we want to pay now a cost and lock in the repurchase price for April 2022 conformation and receive the cash for the remaining certificates by end of April 2021.
- The contract will be awarded to the economic operator who cumulatively meets the above conditions and presents the offer with the lowest fee per certificate.
- How are you going to calculate the lowest fee per certificate? A weighted average of swap fee (94,879) and of REPO fee (29,793)?
Independent, we can have different operators offering the lowest cost for SWAP and REPO.
MIFID conditions apply only to traders that will present a solution that requires this type of certification (i.e. trading companies). Alternative options can be considered if applicable under the Romanian legislation.
Proposal submission deadline: 07.04.2021 ora 12 p.m. (local time)