INTEGRITES has advised on the first large scale project financing in renewable energy in Ukraine

January 23, Davos.  NBT, our client, a Norwegian utility-scale wind power developer, and Total Eren, a leading renewable energy Independent Power Producer (“IPP”) based in Paris, have signed framework agreement on attracting financing for Syvash Project (construction of one of the largest in Europe wind farms in Kherson Oblast, which will also be the largest one in Ukraine) for the total amount of EUR 260 million. The agreement envisages the attraction of credit financing (over 70% of the total cost of the project) and its own investment, in particular by NBT and Total Eren. EBRD Vice President Alain Pilloux, Joar Viken (NBT) and David Corchia (CEO of Total Eren) signed the agreement with President of Ukraine Petro Poroshenko in attendance.

Financing of the Syvash project under the framework agreement will be performed by a syndicate of foreign lenders, including the European Bank for Reconstruction and Development (EBRD) and the Nordic Environment Finance Corporation (NEFCO). Further stages of the project envisage additional financing by foreign funds focused on similar energy projects.

INTEGRITES is acting as a local legal counsel and K&L Gates LLP is acting as international legal counsel for all aspects of the project including the acquisition, development, construction and financing of the Syvash wind farm.

“It is really iconic, since it is funded exclusively by international lenders. Project financing is extremely necessary for Ukraine, therefore we are convinced that this project will open the door for other similar projects and new investments. We are happy that the hard work over the last year culminated in the signing”, – said Dr. Oleksiy Feliv, Managing Partner at INTEGRITES.

“We are extremely happy that we can invest in utility-scale wind farms that will power the sustainable future growth of Ukraine. The 250MW Syvash wind farm is just the start of our plans to invest a considerable amount of capital in our large pipeline of wind projects in Ukraine over the next two to three years. With an improved business climate in Ukraine and the success of this international project financing, we envision that private commercial institutions and international investors will see the benefits of investing in Ukraine. In addition, we foresee potential interest for Green Bonds to financing NBT’s pipeline of new wind projects in Ukraine. We look forward to working with the Government of Ukraine and our strategic partners to support our expansion plans for investing in wind power in Ukraine,” stated Joar Viken, CEO of NBT.

“We are very pleased to be working closely with INTEGRITES on this landmark project financing in Ukraine and look forward to working with the firm and other key stakeholders to attract more international finance into the renewable energy market in Ukraine. Reaching financial close on this deal has involved overcoming many challenges and is a testament to the skill, experience and commitment of NBT and Total Eren”, said Alex Blomfield, Special Counsel at K&L Gates LLP.