Redcliffe acted as a legal adviser to EBRD in connection with an EUR 3.3 million financing of an Aquanova Development LLC loan facility for the construction of a small hydro power plant, Nyzhniy Bystryi, with a generation capacity of 1.7 MW, located on the Rika River in the Khust District of the Zakarpattya Region.
The project was implemented in Phase II of the Ukraine Sustainable Energy Lending Facility (USELF), which was designed to promote renewable energy generation in Ukraine, an increasingly important factor in the country’s energy security. The USELF programme strengthens sustainability of the renewables sector in Ukraine, especially in times of limited availability of funding for such projects from private banks. The USELF replicates a well-established EBRD model, which is already in place in other countries of Eastern Europe, Central Asia and the Caucasus.
“EBRD is the largest financial investor and facilitator of energy efficiency solutions in Ukraine. We were happy to participate in the Aquanova hydro power plant financing as one of the multiple investments of EBRD aimed at the development of an environmental and social foundation for renewables operations in Ukraine”, said Olexiy Soshenko, Redcliffe’s team leader on the transaction.
Redcliffe’s advisory role in the transaction included conducting a legal due diligence of the borrower, drafting legal documents under the transaction and legal assistance at the completion stage of the deal.
Redcliffe’s team included Olexiy Soshenko, managing partner, Evgeniy Vazhynskiy, associate, and Anatoliy Doludenko, junior associate. Clifford Chance advised EBRD on the English law aspects of the financing.