Moscow, November 10, 2020 — Gazprombank, VTB Bank and Sberbank signed loan and collateral documents with the Wind-Energy Development Fund in Rostov Region within the framework of a deal on providing financing for construction of the Kazatchya WPP with a capacity of 100 MW in Rostov Region.
The banks will provide syndicated financing to the design company of the Wind-Energy Development Fund (a joint investment fund established by Fortum PJSC and RUSNANO Group on a parity basis). It is the first syndicated credit on the renewable-energy market that confirms the interest of investors in the sector and expands opportunities for the financing of such projects.
The installed capacity of the Kazatchya WPP is 100 MW. The first stage of the plant (50 MW) is supposed to start operating in Q4 2020, while the wind power plant will be fully commissioned in Q4 2021.
The project is being implemented on the basis of project financing principles and envisions the provision of credit facilities against the security of future cash flows per capacity supply agreements for generating facilities that operate using renewable energy sources.
“Gazprombank is actively participating in the crediting of alternative energy sources and expanding its expertise in this area. The just-concluded deal on syndicated financing of the Rostov WPP is a spectacular example of the development of efficient mechanisms for the financing of projects in the field of renewable energy. It is important to note that, among other things, cooperation between the banks and the Wind Energy Development Fund will enable further localization of equipment manufacturing in Russia,” said Ilya Devichensky, Head of the Energy Industry Directorate — Managing Director of the Project and Structured Finance Department.
“VTB has successfully cooperated with the Wind Energy Development Fund since the moment of its establishment, providing the best possible financial solutions that allow for the implementation of an ambitious program involving the construction of wind farms within the framework of RES Capacity Supply Agreements. One of the main priorities of VTB Bank PJSC is support for projects involving renewable energy sources, and we are pleased that our cooperation with the Fund is supporting the active development of this dimension in Russia,” commented Dmitry Kovrizhnykh, Head of the Energy Industry Directorate — Senior Vice President of VTB Bank.
“We are glad to be embarking on yet another stage of our cooperation with the Wind Energy Development Fund. Sberbank has already funded the construction of wind power-plants in Rostov Region, and with new investments, the region is poised to become one of the largest manufacturers of clean wind power in Russia. Financing projects involving renewable energy is a priority area at Sberbank; we see great potential in cooperating with the Fund and intend to bring our accumulated expertise to bear by supporting such projects in the future as well,” shared Olga Kharlamova, Vice President, Director of the Key Customer Crediting Department at Sberbank.
“In 2020, companies of the Wind Energy Development Fund progressed to a steady pace in the implementation of an ambitious investment program that included the construction of wind generation facilities with a capacity of 1,823 MW by 2024. Financing of the project in Rostov Region is a display of the high level of trust and recognition of our accomplishments by the leading Russian banks. Moreover, our partnership indicates that renewable energy is attractive for financial institutions, and this fact serves as a prerequisite for the sustainable development of RES in Russia,” commented Mario Mazidowski, Vice President for Finance at Fortum, Deputy CEO for Financial and Corporate Issues at Vetroenergetika Management Company.
“The establishment of a syndicate of Russia’s largest financial institutions to finance the projects of the Wind Energy Development Fund serves as proof of the successful implementation of the fundamental principles underlying the support program for RES development in the Russian Federation. These principles allow all actors of the RES industry to make deliberate decisions that reflect their investment strategies and risk assessment. Interest in the RES sector is definitely growing in Russia, and the industry’s fully-formed ecosystem will enable the further development of green energy,” said Alisher Kalanov, Head of the RES Investment Division at MC RUSNANO.