EU and EBRD support €157 million international finance package for private Ukraine wind farms

An international finance package will bring €157 million of project finance debt to a private wind power project that aims to boost Ukraine’s energy security. 

The deal, announced on 3 April in Kyiv, is co-financed by the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Black Sea Trade and Development Bank (BSTDB) , and supported by the European Union, the United Kingdom, and the Climate Investment Funds’ (CIF’s) Clean Technology Fund (CTF).

The EBRD and IFC will each lend €60 million and the BSTDB €37 million. The total cost of the project is estimated at €225 million (excluding VAT), with the rest to be met by equity from the project sponsor, GNG Group or Galnaftogaz, widely known in Ukraine as OKKO Group. The loans are to Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC, special purpose vehicles incorporated in Ukraine.

The loans will support OKKO to construct and operate wind power plants in Ukraine with a combined capacity of 147 MW. The plants are expected to generate at least 380 GWh of renewable zero carbon electricity annually, resulting in carbon dioxide emission savings of approximately 245,000 tons per year.

“This is a smart investment at a critical time. It boosts Ukraine’s energy security and supports its shift to renewables. The EU is glad to help make it happen,” said Stefan Schleuning, Head of Cooperation at the EU Delegation to Ukraine.

The EBRD’s funding will be backed by financial guarantees from the European Union provided under its Ukraine facility, the Ukraine Investment Framework. 

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Press release