The syndicated loan consists of an “A Loan” of up to €12.25 million provided on the Bank’s own account and a “B Loan” of the same amount provided by FMO, the Netherlands Development Finance Company. It will finance a 30MW solar plant in the Cherkasy region of Ukraine, which is expected to start generating electricity in the fourth quarter of 2019.
The project will be implemented by a Ukrainian special purpose vehicle fully-owned by the Norwegian solar developer Scatec Solar ASA (SSO:NO). For the EBRD and FMO this will be the first co-financing in Ukraine in the renewables sector.
The project will be the EBRD’s second investment under its €250 million Ukraine Sustainable Energy Lending Facility III (USELF III) framework approved by the Bank in July 2018, following the signing of the first project in Mykolaiv earlier in December. USELF III builds on two previous programmes co-financed by the EBRD and the Clean Technology Fund, which yielded 14 renewable energy projects in Ukraine with an aggregate installed capacity of 158 MW.
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost €12.1 billion across some 400 projects in Ukraine. Almost €1 billion was invested in 25 projects in Ukraine’s power sector.