The European Bank for Reconstruction and Development will finance the construction of a 30 MW #solar #power #plant in the #Cherkassy region, which is expected to start generating electricity at the end of 2019. The #EBRD arranged for a #syndicated #loan worth EUR 24.5 million, of which EUR 12.25 million will be the EBRD portion and EUR 12.25 million will be provided by the #Dutch #Development #Bank ‘FMO’.
Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities
The European Bank for Reconstruction and Development (EBRD) arranged for a syndicated loan worth EUR 24.5 million to support renewable energy in Ukraine as reported on the EBRD website. According to the EBRD, the loan is intended to finance the construction of a 30 MW solar power plant in the Cherkassy region. The power plant is expected to start producing electricity at the end of 2019. The project will be implemented by a Ukrainian special purpose vehicle, which is 100% owned by Scatec Solar ASA (SSO:NO), a Norwegian solar power plants developer.
The syndicated loan consists of an ‘A’ Loan of EUR 12.25 million and a ‘B’ Loan of the same amount. The ‘A’ Loan will be provided directly by the EBRD, whilst the ‘B’ Loan is granted by the Dutch Development Bank ‘FMO’ (Kingdom of the Netherlands). This will be the first project co-financed by the EBRD and FMO in the Ukrainian renewables sector.
It is the second investment by the EBRD within the framework of the Ukraine Sustainable Energy Lending Facility III (USELF-III), which was approved by the EBRD in July 2018. USELF III replaced two previous programs co-funded by the EBRD and the Clean Technology Fund. Since inception, the USELF has supported 14 renewable energy projects with a total installed capacity of 158 MW in Ukraine.
The announcement was published following the meeting between Ukrainian President Petro Poroshenko and Sir Suma Chakrabarti, president of the European Bank for Reconstruction and Development, held on 17 December 2018. President Poroshenko welcomed the adoption of a new bank strategy for Ukraine until 2023, which was approved by the EBRD Board of Directors in October 2018.