Financed ProjectsJSC Concern Galnaftogaz Windfarm

Identification Code:

OP/24/0018

Total Operation Cost:

224.400.000

Maturity:

192 months

Operation Status:

Description and Purpose of the Operation:

The transaction aims to provide a long-term debt facility of up to EUR40,000,000 (Loan) to special purpose vehicles (Borrower) incorporated in Ukraine and majority owned and controlled by the Bank’s existing client, GNG Retail Limited and its key subsidiary Joint Stock Company Concern Galnaftogaz (jointly referred to as GNG Group), to meet the Borrower’s capital expenditures requirements related to the construction and operation of the wind power plants in Ukraine with a total installed capacity of 147MW (Operation).

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Private

Borrower/Client:

Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC, legal entities incorporated in Ukraine as special purpose vehicles (SPV) in charge of construction and operation of the wind power plants for the purpose of the Operation.

Co-Financiers/Participants:

The Loan will be a part of a total senior secured debt financing package jointly prepared by BSTDB, EBRD and IFC.

Guarantors/Sponsors:

GNG Retail Limited, a Cyprus-based company and a part of the GNG Group, shall be the Sponsor and provide the support for the Operation in the form of the completion guarantee to cover until the project completion the Borrower’s obligations under the financing agreements.

Developmental and Regional Cooperation Impact:

Through the proposed BSTDB investment in the RES generation facility, the Operation will be supportive in addressing the critical energy needs of the country and improving the resilience of the power generation infrastructure in Ukraine. The Operation will also contribute to the green quality by adding a 147MW of new renewable energy capacity to the national grid of Ukraine, supporting the country’s transition to a low-carbon economy and the decarbonization of the electricity generation sector, which has a considerable level of reliance on the fossil fuel generation.

Environmental Classification and Impact (summary):

Screened E&S Category B. Any key E&S issues will be addressed in the E&S Action Plan (ESAP) drafted for the Operation and its implementation by the Borrower represents one of the main E&S condition of financing. Once operational the wind farm is projected to generate under the p90 scenario 396GWh of renewable energy annually, which translates into c. 255,000 tons of avoided eqCO2 emissions annually. Thus, the Operation is in line with the Bank’s Climate Change Strategy and will contribute to meeting the Strategic Objective 1 that is decarbonization of the Bank’s portfolio, and the Strategic Objective 2 that is increasing capital allocation towards climate positive operations.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org