August 28, 2018 | Cbonds
|DTEK Renewables, the holding company consolidating DTEK renewable energy assets, has raised EUR 90m in debt financing for the construction of the first stage of the Primorskaya Wind Electricity Plant (WEP) with a capacity of 100 MW in the Zaporizhzhya region.|
The loan for the construction of the first stage of Primorskaya WEP was issued by a consortium of German banks (Bayerische Landesbank, KfW IPEX-Bank, Bremer Kreditbank and others) with risk coverage provided by German export credit agency (ECA) Euler Hermes. The loan term is 10 years after the technical commissioning of the plant.
This is the third financing agreement signed with European financial institutions for the construction of the company's wind energy projects. For the implementation of the first wind farm project in the company's portfolio, the Botievo Wind Farm, DTEK acquired loans in the total amount of EUR 235m from Germany’s LandesBank Berlin (Berliner Sparkasse) from 2012-2014.
This is the first external debt financing agreement of such scale to come into effect in the Ukrainian renewable energy market over the last five years. ECA participation facilitated successful execution of this credit agreement under the background of slightly improving sovereign debt rating and more stable macroeconomic environment of the Ukraine.
“A surge in foreign investments in the company’s energy projects demonstrates the high level of international financial community confidence in DTEK. In a few years, we raised EUR 335 million from German banks for the construction of new wind farms. This April, DTEK and Chinese company CMEC signed an agreement valued at EUR 134 million. The financing of this project is subject to support of state-owned insurance agency PRC Sinosure for the construction of 200 MW Nikopolska SPP. The project has a total investment of EUR 235 million. Such sustainable interest from international investors in renewable generation in Ukraine gives us confidence in the implementation of our strategic plans – to have 1,000 MW of ‘green’ facilities in the portfolio by 2020,” commented Maxim Timchenko, DTEK’s CEO. – “Investments in RES are a contribution to energy security promotion, diversifying energy resources and improving the environment. The Energy Strategy of Ukraine defines the growth of the renewable generation share in energy consumption as required for the country. By 2035, it should be 25%. DTEK’s plans fully meet the objectives of the State Energy Strategy.”
“BayernLB is delighted to announce the financial close of the EUR 90 million financing of the first stage of the Primorsk Wind Farm located at the Sea of Azov. Together with the second stage, which will be completed in 2019, the Primorsk Wind Farm will contribute 200 MW of installed capacity of renewable energy and support Ukraine’s efforts to increase the share of green energy to the targeted level in accordance with the adopted EU Renewable Energy Directive 2009. The transaction was supported by Euler-Hermes, the German export credit agency, and a syndicate of banks led by BayernLB. Thanks to the very professional approach of the investor DTEK Renewables, all the challenges of this complex project could be overcome and keep the project on time, – commented Senior Director of Bayerische Landesbank Heinz Jetschin”.
For the first construction phase, 26 GE wind turbines with a unit capacity of 3.8 MW will be installed at the Primorskaya WEP. Completion of the WEP construction is scheduled for late 2018, and the plant will join the United Energy Systems of Ukraine and start 'green' power generation at the beginning of next year.
|Full company name||Donbass Fuel-Energy Company(DTEK)|
|Country of risk||Ukraine|
|Country of registration||Ukraine|