PRK Partners has advised Komercni banka in connection with unique granting of a project finance loan facility to the Energeia charitable organization, which intends to operate a hydroelectric power plant in Steti, a city approximately 60 km north of Prague, on the Elbe River. The first phase of the transaction was successfully completed in Q1, 2015.
According to the Energeia website, the organization "combines the world of business and of charitable activities [by investing] in renewable sources of energy, which will then become a perennial source of money, financing the charitable work. Our attitude means that our projects deliver ongoing benefits: money once donated will go on helping for decades. The renewable sources themselves are a great benefit for society and comply with our vision of a beneficial and ethical business. Simultaneously, from a long-term perspective, they represent a stable and returnable investment. We take on both our profitable and non-profitable projects with a sense of responsibility — our world is not only a reservoir of resources, but an environment which we all live in and have our own portion of individual responsibility for; an environment which we’re connected to through innumerable joins and relations that profoundly affect the quality of our life."
According to PRK Partners, “this is the first project in the Czech Republic that directly links business and ecology with social, charitable, and educational work.” The firm also reported that, “the fact that the borrower is a charitable organization is, from the Czech loan market's point of view, very unusual and, as such, it raised many new issues that up till then had never been addressed but which needed to be dealt with in the legal documentation."