Oschadbank will finance a turnkey WPP in Zakarpattia as part of an unprecedented deal for the market

Oschadbank concluded a project financing loan agreement with LLC “WIND PARK NYZHNI VOROTA-7” for the construction of a wind power plant (WPP) with two wind turbines with a total capacity of 10.4 MW in the Mukachevo district of the Zakarpattia region.

A loan agreement in the amount of $10.9 million is concluded for a period of 8 years. The loan is implemented using the EBRD risk-sharing program in the amount of $4 million.

“This project is proof that even in the difficult conditions of a full-scale war, the Ukrainian banking system is able to finance innovative energy solutions. Wind energy for us is not only about energy but also about the independence and sustainable development of the country. Oschadbank consistently implements the strategy of supporting the recovery of Ukraine and the “green” economy, because it is such investments that shape the future of the country,” noted Sergii Naumov, Chairman of the Board of Oschadbank.

“The peculiarity of the implementation of this project is that Oschad provides a loan to a newly created company (SPA), which does not yet have the results of its activities and does not provide collateral property, except for the investment object. Nonetheless, our confidence in the company's capacity to meet its loan obligations stems from two factors: our extensive experience in creating and assessing wind energy companies' financial models, as well as the positive collaboration experience and stellar reputation of the project's general contractor, LLC "FRIENDLY WIND TECHNOLOGIES," the sole national producer of multi-megawatt-class wind energy equipment.The wind power turbines that FRIENDLY WIND TECHNOLOGIES has committed to produce for WIND PARK NYZHNI VOROTA-7 are the basis on which the loan agreement is based. The launch of the wind farm is expected already in the fall of this year,” said Yurii Katsion, Deputy Chairman of the Board of Oschadbank, responsible for corporate business.

Generally, eight wind parks with a total capacity of more than 80 MW are planned to be built under this mechanism.

As Mr. Katsion stressed, "We were once again the first to implement a case that changes the rules of the game in the market and expands its potential through the implementation of such energy projects by all banks that have a credit appetite in this field."

Within the framework of this case, all work from the development of project documentation to the commissioning and further support of the equipment during its life cycle is provided by the general contractor. Additionally, the terms of the general contractor's contract stipulate the social partnership obligation, which is to contribute 3% of LLC WIND PARK NYZHNI VOROTA-7's wind generation income to the territorial community's budget on the lands where wind turbines are installed.

“We have been cooperating with Oschadbank for a long time and highly appreciate this consistent support. The first project financing on a turnkey basis for a wind energy project in the Zakarpattia region became an important stage of our interaction. It confirms that Oschadbank well understands the specifics of renewable energy and is ready to invest in the development of the industry. For us, this is not just a loan but a real partnership with a state bank, which helps to implement strategic projects and develop Ukrainian production under the label “made in Ukraine,” emphasized Vladyslav Yeremenko, General Director of LLC “FRIENDLY WIND TECHNOLOGIES.”

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^{The general contractor LLC “FRIENDLY WIND TECHNOLOGIES” is currently the only national manufacturer of multi-megawatt-class WEE. The company started its activities in the Zakarpattia region after the forced relocation of the capacities of the group of companies LLC “UK Wind Parks of Ukraine” from the east of the country after the start of a full-scale war in 2022.}

^{We remind you that a year ago, Oschadbank concluded a loan agreement with LLC “FRIENDLY WIND TECHNOLOGIES” in the amount of UAH 147 million for the purchase of a LIEBHERR LG 1750 self-propelled mobile crane. This is the second crane in Ukraine with such characteristics of load capacity, lifting height, and boom departure, which helps to install wind turbines.}