Redcliffe Partners advises EBRD on a USD56 million loan to Kernel for the construction of four biomass plants

Redcliffe Partners acted as a legal adviser to the European Bank for Reconstruction and Development in connection with the USD56 million term secured loan, including USD8 million tranche funded by the Clean Technology Fund, to be provided to four Ukrainian members of the Kernel Group, the world’s leading and the largest in Ukraine producer and exporter of sunflower oil, and major supplier of agricultural products from the Black Sea region to world markets.

The loan will be used to finance the construction of four biomass plants with an aggregate capacity of 47MW at the existing production facilities of the borrowers located in Ukraine to use sunflower husk (a biomass residue produced in the crushing process) as biofuel to generate electricity.

By financing this project, the EBRD is helping Kernel to implement its long-term energy efficiency investment strategy. The project is a part of the larger Kernel incentive to re-equip its existing crushing plants with modern biomass power plants to produce “green energy”, so diversifying income sources and to make its own substantial contribution to ensuring Ukraine's energy independence, as well as in protecting the environment and reducing pollution.

Redcliffe Partners' role in the transaction included reviewing, drafting and negotiating the finance documents, the preparation and signing of security documents, conducting limited collateral title due diligence and corporate check of the borrowers and Ukrainian sureties, collection of conditions precedent, and the issuance of the Ukrainian legal opinion.

Our team advising on the transaction comprised Olexiy Soshenko, managing partner, Evgeniy Vazhynskiy, senior associate, and Eduard Olentsevych, junior associate.