Avellum, working with White & Case, has advised Ukrenergo on its debut USD 825 million issuance of sustainability-linked eurobonds. Sayenko Kharenko, working with Linklaters, advised the managers BNP Paribas, Deutsche Bank, Goldman Sachs International, and Ukreximbank. CMS advised the EBRD on its USD 75 million investment in Ukrenergo bonds.
The five-year notes are guaranteed by the Ukrainian state and bear interest at 6.875% per annum.
According to Sayenko Kharenko, "the notes are issued under the green and sustainability-linked bond framework and an amount equal to the net proceeds from the transaction will be used to finance or re-finance eligible green projects. The green and sustainability-linked bond framework also includes specific performance indicators, which demonstrates Ukrenergo’s commitment to meet environmental, social, and corporate governance targets."
Ukrenergo is a state-owned electricity transmission system operator, managed by the Ministry of Energy of Ukraine.
"This is a significant milestone for the Ukrainian investment climate and the country’s transition towards sustainable development," Sayenko Kharenko Partner Nazar Chernyavsky commented. "We hope that this landmark deal will restore investors’ confidence in the Ukrainian energy sector and facilitate the implementation of renewables projects."
"It is the first sustainability-linked bond issued by a Ukrainian company and the EBRD's participation as the anchor investor provided comfort to other institutional investors, further widening the market participation," CMS informed.
The CMS team included Kyiv-based Partner Ihor Olekhov and Associate Khrystyna Korpan, Warsaw-based Partner Rafal Zakrzewski and Senior Associate Przemyslaw Karolak, and London-based Partner Michael Cavers and Senior Associate Kirsty Templar.
The Sayenko Kharenko team was led by Partner Igor Lozenko and included Counsel Oleksandr Nagorny, Senior Associate Anton Kerimov-Varanytskyi, Associates Denis Nakonechnyi, Oles Trachuk, and Vladyslava Mitsai, and Junior Associate Oleksandr Motin.
The Avellum team was led by Senior Partner Glib Bondar and included Partner Vadim Medvedev, Counsel Mykyta Nota, Senior Associates Anastasiya Voronova, Anton Zaderyholovа, and Anton Arkhypov, and Associates Oleg Krainskyi, Anna Mykhalova, Mariana Veremchuk, Yaroslav Pavliuk, and Oles Bidnoshyia.