VTB Bank, Gazprombank and Sberbank signed loan and collateral documentation with the Wind Energy Development Fund as part of a deal to provide financing for the construction of the 100 MW Kazachya Wind Farm (WPP) in the Rostov Oblast.
This will be the first syndicated loan in the renewable energy current pipeline, which proves investors’ interest in the industry and expands opportunities for financing such projects.
The planned installed capacity of the Kazachya WPP is 100 MW. The first 50 MW stage is scheduled to come online in late 2020 with it going fully operational in late 2021.
The wind project is being implemented on the project financing principles and envisages the provision of credit funds against a guarantee of future cash flows under capacity supply agreements of RES-based generation facilities.
Mario Mazidowski, Vice-President for Finance at PJSC Fortum , Deputy General Director for Finance and Corporate Issues, Vetroenergetika Management Company (Wind Power Asset Management LLC), says, “In 2020, the Wind Energy Development Fund’s family of companies reached a steady pace in the implementation of an ambitious investment programme, which provides for the construction of 1,823 MW of wind power by 2024. Financing of the project in the Rostov Oblast from the leading Russian banks is a demonstration of a high level of trust and recognition of our success. In addition, our partnership shows the attractiveness of renewable energy for financial institutions, which guarantees sustainable development of the renewable energy industry in Russia.”
According to Dmitry Kovrizhnykh, VTB Bank Vice-President, VTB has been successfully cooperating with the Wind Energy Development Fund since its inception, providing optimal financial solutions that allow for the implementation of the wind park build-out under the RES CDA programme.
Ilya Devichensky, Managing Director, Project & Structured Finance at Gazprombank, says, “Gazprombank takes an active part and expands its expertise in lending to alternative energy sources. The concluded syndicated financing transaction for the Rostov wind farm is a vivid example of the development of effective mechanisms for financing renewable energy projects.”
Olga Kharlamova, Vice President, Director of Key Client Lending, Sberbank, notes that Sberbank has already financed the construction of wind farms in the Rostov Oblast, and through new investments, the region will become one of the largest producers of clean wind energy in Russia.
Alisher Kalanov, Head of the Investment Division RES of the RUSNANO Management Company, says, “The formation of a syndicate consisting of the largest Russian financial institutions to finance the Wind Energy Development Fund’s projects proves the successful implementation of basic principles laid down in the foundation of the Russian renewable energy support programme. These principles allow all the players of the industry to make carefully weighed decisions taking into account their investment strategies and risk assessment. Russia’s embrace of the renewable energy industry is clearly growing, and a fully-fledged environment will make steady development of the green power engineering industry a reality.”
The Wind Energy Development Fund was established on a parity basis by Fortum PJSC and Rusnano Group to invest in the Russian wind power.