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.