Ukraine's Oschadbank funds energy projects for 8 mln euros
MOSCOW. Oct 28 (Interfax) - Ukraine's Oschadbank has already funded 8 million euros out of the total amount of applications received from clients for financing energy projects totaling 432 million euros, and has approved funding for another 20 million euros.
Deputy Director of Oschadbank's Corporate Development Department Yevgeny Myachin made this statement at the talk show titled "Financing of energy projects in Ukraine: rebuilding and development of new generation capacity," which was organized by the Energy Club, Ukrainian media reported.
"As for the structure of such projects, we see that 77% is gas-fired generation capacity, which provides fast solutions in supplying electricity," he said, adding that wind and solar generation capacity accounts for another around 20%, and there is a growing demand for funding energy storage systems.
Investment loans secured by purchased energy equipment, as well as refinancing of generation capacity construction costs, under which the bank can fund up to 70% of the costs incurred by the client for already operating facilities in order to finance those under construction are among the products and programs used by Oschadbank to fund energy projects, Myachin said.
"Another product is financial leasing. We can buy equipment both in Ukraine and abroad. We have an extensive network of partner manufacturers of equipment for gas piston, solar and wind power plants, therefore, we can choose the most optimal options jointly with our clients," Myachin said.
Oschadbank provides financing for up to eight years with the client's share in the project reaching not less than 25% on the conditions of availability of a financial model of the project, which makes it possible to repay credit funds and interest, as well as substantiated demand for future products.
The banks received 2,484 applications for 54.8 billion hryvni for energy projects in Ukraine in June-September, of which the construction of new generating facilities with a total capacity of 200 MW, 50% of which are gas piston power plants, was financed, the National Bank of Ukraine said.
