Redcliffe Partners advised Proparco, BSTDB, Finnfund, IFU and NEFCO on the second-phase financing to SyvashEnergoProm

18 June 2019

Redcliffe Partners acted as Ukrainian legal counsel to a number of lenders, including Proparco, BSTDB, Finnfund, IFU and NEFCO, and J. P. Morgan Securities plc as a debt coordinator with respect to the second phase of this large-scale renewable project financing in Ukraine.

The project’s sponsors are Norwegian developer NBT AS, French-based renewable Independent Power Producer (IPP) Total Eren, and Al Gihaz, a Saoudi Arabian conglomerate.

In total, during the second phase SyvashEnergoProm has been provided with EUR 107.6 million, including a EUR 42.6 million loan from the Société de Promotion et de Participation pour la Coopération Economique (Proparco), a EUR 30 million loan from the Black Sea Trade and Development Bank (BSTDB), a EUR 15 million loan from the Finnish Fund for Industrial Cooperation Ltd. (Finnfund), a EUR 15 million loan from the Investment Fund for Developing Countries (IFU) and a EUR 5 million loan from the Nordic Environment Finance Corporation (NEFCO).

The overall cost of the project amounts to EUR 380 million, making the project the biggest investment in the renewables energy sector in Ukraine, and which is expected to become the country’s largest renewable energy project. Previously, Redcliffe reported on advising EBRD and NEFCO on the EUR 155 million first-phase financing.

Redcliffe’s role included provision of complex transactional advice, covering various regulatory, tax and currency control issues, and the preparation and review of transactional documents. Within the advice, Redcliffe’s team developed innovative solutions, including implementation of a unique project accounts structure that has become possible due to liberalisation of the currency control regime earlier this year. The project team held various discussions with the National Bank of Ukraine and the local servicing bank to achieve this.

Olexiy Soshenko, Managing partner, comments on the deal: “We are delighted to see the support of leading international financial institutions in building an energy-efficient and sustainable Ukraine. We see strong interest from foreign strategic investors in Ukraine's renewable energy sector and the recent Syvash financing evidences the return of 'new money' deals.”

Olexiy Soshenko, Managing Partner and Head of the Banking & Finance practice, led the project together with Evgeniy Vazhynskiy, Senior Associate in the Banking & Finance practice, with assistance from Svitlana Teush, Counsel and Head of the Renewable Energy Focus group, and Junior Associates Eduard Olentsevych and Bogdan Nykytiuk.