Wind Power entered into an agreement with the lender
OREANDA-NEWS. Wind Power LLC, being part of an operational company DTEK Renewables, that manages assets in the renewable energy sphere, entered into an agreement with the lender to change the terms of the financing secured by the guarantee of the parent company DTEK Renewables B.V. During the period from 2012 to 2014, Wind Power raised two loans from LandesBank Berlin AG (Germany) amounting to EUR 245 million for the construction of Botievo wind farm, the loan risks being covered by such export credit agencies (ECA) as EKF, Euler Hermes, KUKE S.A., and private reinsurers. The new agreement provides for the cancellation of the sureties and guarantees provided by other operational companies of DTEK Group and results in DTEK Renewables being financed on a standalone basis.
During the year, Wind Power held negotiations with the lender LandesBank Berlin AG and the pool of companies which provided insurance coverage, so that DTEK’s renewable energy business may move to the financing on the basis of the standalone and autonomy principles. The negotiations were successful and the transaction was finalized at the end of May 2016, once all conditions precedent were met. The transaction provides for the revocation of the guarantees and sureties provided by other operational companies of DTEK Group, as well as for the change in the material terms of the agreement according to the global practices accepted for such types of financings. Currently, Wind Power’s lenders accept all risks inherent in DTEK’s wind energy business.
“Wind Power is a reliable borrower and builds its relationship with the lenders on the basis of openness and transparency principles. This is a platform for the successful dialogue today and a basis for the development of our future projects, - notes Viktoriya Syromyatova, the Company’s Director. – The agreement on the transfer to the financing secured by the guarantee of the parent company DTEK Renewables evidences a high level of trust in the team, and the lender’s faith not only in the Company’s stability, but also prospects for the development of the Ukrainian renewable energy industry in general”.
DTEK is a strategic holding company that manages three operating companies with assets in coal mining, thermal power generation and distribution, renewable power generation and gas production. It is part of the financial and industrial group System Capital Management (SCM). The shareholder of the group is Rinat Akhmetov. Mr Maxim Timchenko is DTEK’s CEO. DTEK employs 118,000 people.