AVELLUM
acted as the Ukrainian legal counsel to the European Bank for Reconstruction
and Development (“EBRD”>) and Nederlandse Financierings –
Maatschappij voor Ontwikkelingslanden N.V. (“FMO”) in connection
with a senior secured loan to LLC “Chysta Enerhiia-2011” in the total amount of
up to EUR 24.5 million (and each 50%).
The loan
proceeds will be used to finance the construction and operation of a solar
photovoltaic plant in the Cherkasy region, Ukraine, with the aggregate
installed capacity of 30MW (“Project”).
The
Project directly contributes towards achieving the 15% government’s target in
renewable electricity generation by 2030 (up from the current ~2%). It complies
with the FMO’s strategy on energy security and energy transition. EBRD's
portion will be funded under their Ukraine Sustainable Energy Lending Facility
(“USELF III”). Consequently, the Project will not only reduce
the existing Ukraine’s dependancy upon nuclear and thermal generation, but will
also clean-up the site.
Glib
Bondar, AVELLUM’s senior partner, commented on the transaction: “We are proud to work with
the leading international financial institutions which entrust us with support
of the renewables projects of nationwide importance.”
The EBRD
is the largest international financial investor in Ukraine. Since the start of
its operations in the country in 1993, the EBRD has made a cumulative
commitment of almost EUR13.3 billion across some 423 projects in Ukraine. The
EBRD supports the development of renewable energy in Ukraine under the USELF
program since 2009 and has so far funded renewable energy projects in Ukraine
with a total capacity of over 540MW for a global investment of more than EUR275
million.
FMO is the
Netherlands Development Finance Company financing long-term, sustainable
projects which power economies, promote the transition to a low-carbon system,
and safeguard energy security. Since early 2000, FMO is active in the Ukraine,
also with investments in private equity funds, agribusiness and the financial
sector.
The AVELLUM team was led by senior
partner Glib Bondar with support from counsel Maria Tsabal, senior associate
Tetiana Mykhailenko and associates Dmytro Symbiryov, Daryna Mykhailenko, Anna
Mykhalova and Anna Kalabska.