Oschadbank leads a consortium of banks to provide DTEK with UAH 3 billion for one of the largest energy storage facilities in Eastern Europe

The DTEK company has agreed with a consortium of Ukrainian banks led by Oschadbank on a record-breaking loan for a project of modern energy storage systems in Ukraine. The three banks - Oschadbank, FUIB, and Ukrgasbank (UGB) - will provide about UAH 3 billion (equivalent to €67 million) to finance the construction of one of the largest energy storage facilities in Eastern Europe.

The loan agreement was signed by the parties last week and is DTEK's largest internal loan to build new energy infrastructure.

“DTEK's investments in new energy facilities are not only a response to current challenges but also a contribution to the long-term strategy of ensuring Ukraine's energy sustainability and independence. Our goal is not just to restore but also to create a modern and reliable energy sector that will become the foundation for the country's economic development,” emphasized Maxim Timchenko, DTEK CEO.

“The consortium loan agreement signed under Oschadbank's leadership provides for project financing. It clearly illustrates how, in wartime, private and state-owned banks are able to unite and change their procedures for the development of the economy and energy security of the state. This is not the first time during the war that Oschad has organized consortia that allow businesses to implement large investment projects,” said Yurii Katsion, Deputy Chairman of the Board of Oschadbank in charge of corporate business.

The loan agreement covers 5 electricity storage facilities with a total capacity of 180 MW.  In total, six energy storage facilities with a capacity of 200 MW are planned to be built in different regions of the country. With the loan, the banks will finance part of the cost of the projects. The rest of the investment will be made up of DTEK's own funds. The agreement is valid until September 25, 2030.

“Stable operation of the energy sector is critically important for Ukraine, especially in the face of constant attacks by the enemy aimed at our energy infrastructure. At FUIB, we understand our responsibility as a bank that systematically supports the country, and we do our best to financially contribute to the development of new energy capacities. It is not only about investing in infrastructure, it is about strengthening the strategic energy independence and security of the state,” emphasized Serhii Chernenko, FUIB's Chairman of the Board.

“UGB continues to provide strategic support to the Ukrainian energy system. Ukraine's energy independence has always been a priority for us, and we are proud to join this landmark project of DTEK. The construction of energy storage facilities will significantly strengthen our energy security,” considers Rodion Morozov, Acting Chairman of the Board of Ukrgasbank.

The project will ensure simultaneous electricity supply for 600,000 Ukrainian households. The construction of the storage facilities will be completed in 2025.

Such financial cooperation of Ukrainian businesses in the energy sector leads to the accelerated construction of new energy capacities in Ukraine, contributes to the restoration of energy potential, and strengthens the country's energy security.