CMS has advised EuroCape Ukraine I LLC, a subsidiary of independent renewable energy company LongWing Energy SCA, as lead borrower and sponsor in relation to equity and senior debt financing, for the construction of a wind farm in Ukraine.
VLC Renewables, a renewable energy investment fund formed through a partnership between Vitol and Low Carbon, has co-invested with LongWing Energy SCA in the Project, while GE Energy Financial Services has made a minority equity investment. The Overseas Private Investment Corporation (“OPIC”), the U.S. Government's development finance institution, will provide the senior debt of $150 million for the first phase of the Zaporizhia Wind Farm, with JP Morgan as hedge provider. The financing package will be used to support the first 98 MW phase of the planned 500 MW wind farm. Once completed, the wind farm will be one of the biggest onshore wind farms in Europe. The project is expected to significantly increase the country’s power generation capacity and bolster energy security.
CMS acted on all aspects of the project development and financing including the negotiation of all transactional documents, as well as related advice on real estate, banking and finance, energy regulatory issues and due diligence aspects.
The CMS project team was led by Vitaliy Radchenko with major assistance from senior banking associate Kateryna Chechulina, banking associate Khrystyna Korpan, real estate counsel Natalia Kushniruk, as well as other team members.
Vitaliy Radchenko comments: "We are delighted to be involved with this landmark project financing transaction involving US OPIC and GE, and one of such importance to Ukraine’s energy security. It adds up to a significant pool of our financing transactions in the renewable energy sector of Ukraine that we are advising on, which demonstrates some significant interest of the investors to Ukraine as an investment destination for renewable projects over the recent years".