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Baker McKenzie Advises Banks on Renewable Energy Project Financing in Ukraine

Baker McKenzie Advises Banks on Renewable Energy Project Financing in Ukraine

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Baker McKenzie's Kyiv, Frankfurt, Berlin, and Amsterdam Offices have helped a consortium of German banks led by Bayerische Landesbank, and DTEK Renewables complete an ECA-backed finance transaction in the Ukrainian renewable energy sector aimed at financing the construction of the first stage of the Primorska wind electric plant in Ukraine.

The borrower was Primorska WEP, a project company and a part of the DTEK Renewables group. It is indirectly owned by DTEK Renewables B.V., a Dutch holding for renewables of the larger DTEK group. Baker McKenzie acted as de facto transactional counsel for DTEK as well. 

The EUR 90 million loan facility's original lenders were, amongst others, Bayerische Landesbank, Bremer Kreditbank Aktiengesellschaft, and KfW Ipex-Bank GmbH. The financing is supported by Euler Hermes, the German export credit agency.

According to Baker McKenzie, ”upon completion of the second stage and reaching its projected capacity of 200MW, Primorska WEP will be among the largest onshore wind farms by power output in Central and Eastern Europe.”

Philipp Leckebusch, CEO of DTEK Renewables, commented: “According to the Energy Strategy of Ukraine, the share of renewable energy in the final energy consumption should increase to 25% by the year 2035. The country depends on investments like our project in order to reach this target. We are glad to contribute with our project to the realization of the objectives of Ukraine’s Energy Strategy and the development of a secure and environmental-friendly energy sector in Ukraine.”

Baker McKenzie's Frankfurt-based Finance Partner Kathrin Marchant added: "This is the most significant cross-border loan transaction in the Ukrainian renewable energy sector this year and the first of this size in the last years. It is a very good example of how ECA-backed financing together with the joint efforts of experienced teams of bankers, investors, exporters and advisers can assist in making a complex project in challenging circumstances a success."

Baker McKenzie's international team on this transaction was led by Kyiv Managing Partner Serhiy Chorny and Frankfurt-based Partner Kathrin Marchant, assisted by Berlin-based Partner Tim Heitling, Amsterdam Legal Director Martijn van der Vliet, and Kyiv Associates Victoria Ischenko, Stepanyda Badovska, and Nataliya Tyschenko. 

 

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Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

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We incorporate the most advanced Western legal techniques and practices into our work. By adding our first-hand knowledge, broad industry experience, and unparalleled level of service we deliver the best results to our clients in their business endeavours. Our partners are taking an active role in every transaction and ensure smooth teamwork.

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Firm's website: www.avellum.com

 

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