K&L Gates and Integrites have advised NBT on the financing documents for Segment 2 of Ukraine’s Syvash Wind Power Project, with commitments of an additional EUR 107.6 million of further senior debt coming from the Black Sea Trade and Development Bank (EUR 30 million), Proparco (approximately EUR 42 million), Finnfund and IFU (EUR 15 million each), and the Nordic Environment Finance Corporation (EUR 5 million). The lenders were advised on Ukrainian law by Redcliffe Partners and on English law by Clifford Chance.
Other legal advisors included Advokatfirman Torngren Magnell KB (borrower's Swedish legal adviser); BCTG Avocats (Total Eren’s French Legal Advisor); Eversheds Sutherland (Algihaz’ legal advisor); Gernandt & Danielsson Advokatbyra KB (Total Eren’s Swedish legal advisor); Kanter Advokatbyra KB (lenders' Swedish legal adviser); and Wikborg Rein Advokatfirma AS (sponsors' Norwegian legal adviser).
As reported previously, earlier this year K&L Gates and Integrites advised NBT on the acquisition of the project company SyvashEnergoProm LLC and both NBT and Total Eren as sponsors on the development, construction, and financing of the power generation facility and new substation.
According to a joint Total Eren and NBT press release, "at its full capacity, Syvash represents a EUR 380 million total investment. Syvash will consist of 63 wind turbines and is located on 1,300 hectares of land in the southern Kherson region of Ukraine. Once built, it is expected to become the country’s largest renewable energy project. It is the first international Financial Close ever achieved for a wind farm of that scale in Ukraine. The project was financed in two phases, for a total loan amount reaching EUR 262.6 million: A loan of up to EUR 155 million had been raised in January for the construction of the first 133 MW phase from a consortium led by the EBRD."
In addition, the press release asserts, "the electricity generated from Syvash will be sold to state-owned company Energorynok - Ukraine’s wholesale electricity market operator. Once the full project is completed, it will have a planned production of 850 GWh per year, hence generating enough electricity to meet the needs of approximately 100,000 households. It is expected to reduce CO2 emissions by 470,000 tonnes per year, hence creating a positive impact on the environment. The Engineering, Procurement and Construction contract has been signed with PowerChina, one of the largest power plant construction companies worldwide, and Nordex Group, a leading producer of onshore wind turbines. The Syvash wind farm will bring economic development and significant tax 2 revenues to the Kherson region and will have a lasting economic impact even after its construction is completed."
K&L Gates's London-based team was led by Partner Alex Blomfield and included Partner Mayank Gupta (who has recently moved to Hamilton Locke in Australia), Senior Associate Joshua Spry, Associates Francis Iyayi and Peter O’Donnell, and Trainee Solicitor Francesca Norman.
The Integrites team was led by Managing Partner Oleksiy Feliv and Senior Associate Olena Savchuk.
The Redcliffe Partners team was led by Partner Olexiy Soshenko and included Senior Associate Evgeniy Vazhynskiy and Junior Associate Eduard Olentsevych.