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INVITE: ENERGOATOM - BREAKTHROUGH FINANCING FOR BREAKTHROUGH PROJECT - $410 MILLION
Presentation: Ukraine's Spent Nuclear Fuel Storage Facility & the innovative, unique financing structure
With Yuriy Nedashkovsky, President, Energoatom
Wed, Feb 14, 2018, 3:30 p.m. to 5 p.m., White House Conference Room, Law offices of Baker McKenzie, 815 Connecticut Avenue, 12th Floor,
Washington, D.C., followed by a light reception
WASHINGTON, D.C. - YOU ARE INVITED TO ATTEND a special Roundtable with Yuriy Nedashkovsky, President of Energoatom, and Energoatom’s top management team including Aidyn Aisin, Vice President, and Natalia Vashetina, Chief Accountant from Kyiv. The Roundtable will take place on Wednesday, Feb 14, 2018, from 3:30 p.m. to 5 p.m., at the White House Conference Room, Law offices of Baker McKenzie, 815 Connecticut Avenue, 12th Floor, Washington, D.C., followed by a light reception.
The "Energoatom -Breakthrough Financing for a Breakthrough Project" Roundtable is organized by USUBC (www.USUBC.org) and Broad Street Capital Group (www.broadstreetcap.com).
The Overseas Private Investment Corporation (OPIC), an agency of the U.S. government, is providing $250 million in political risk insurance for the construction of the Energoatom Central Spent Nuclear Fuel Storage Facility in Ukraine. With capacity to store 169,000 tons of spent fuel per year, the new facility will reduce the need to ship the spent fuel to Russia and pay Russia large tipping fees.
The original documents between the principal parties were signed in Kyiv on December 21, 2017. A statement from Ray Washburne, President and CEO, OPIC, Washington, D.C., read at the signing in Kyiv stated the following:
"I am very proud that OPIC has been able to support such an important project here in Ukraine. When I became the head of OPIC just a few months ago, the first international trip I took was to Ukraine. I was very impressed with what I saw here. Despite some challenges facing Ukraine, we see the potential for high-impact development projects here – particularly in the energy sector.
It is a pleasure for the United States to help move Ukraine towards energy independence by providing the capability to store spent nuclear fuel in-country, thus eliminating the need to ship the spent fuel to Russia for storage.
With total project costs of $410 million, Energoatom cannot self-finance the entire project. Therefore, OPIC has committed up to $250 million in political risk insurance to support the development, construction, and commissioning of the Energoatom Central Spent Nuclear Fuel Storage Facility in Ukraine.
This storage facility will be developed to store spent fuel from three of Ukraine’s four nuclear power plants, offering an efficient and secure process. The United States-based company, Holtec International – located in Camden, New Jersey - will supply dry storage casks, transportation casks, ancillary equipment, and engineering and training to the facility over an expected five-year period.
I’d like to thank our partners at Bank of America/Merrill Lynch without whom this deal would not be possible. They will arrange for the sale of OPIC’s $250 million commitment in the U.S. capital markets in the form of fixed-rate bond securities. The proceeds will fund the 20-year loan to Energoatom. We are very pleased that Ukraine will support the OPIC-insured loan financing by issuing a sovereign guarantee for repayment of the loan.
This is the first OPIC deal structured in this fashion and we are pleased to partner on an innovatively financed project. By working together, we will help Ukraine meet its energy needs, while supporting the U.S. economy with the creation of manufacturing jobs." [see complete OPIC news release at the link below and at the end of this invitation.]
LINK: https://www.opic.gov/press-releases/2017/opic-statement-ukraine-signing-ceremony-energoatom-spent-nuclear-fuel-project
ENERGOATOM - Largest Electricity Producer in Ukraine -----
Energoatom is a state enterprise organized under the laws of Ukraine and is the largest electricity producer in the country, with nearly 15 gigawatts of nuclear capacity, contributing approximately 50% of Ukraine's electricity.
The project not only represents increased energy independence for Ukraine, but also has a number of financial and economic benefits: Ukraine will save significant funds annually in tipping fees, payment to Russia to store spent nuclear fuel) and will get a transfer of world-class technology and new jobs once production of the equipment under the project is transferred to Ukraine. Given the breakthrough nature of the financing, the visibility of Ukraine to investors has been greatly increased.
On January 18, 2018, Moody's Investors Service assigned a definitive Aa2 rating on the senior secured 20-year Notes to be issued by Central Storage Safety Project Trust. The outlook on the rating is stable. The Government of Ukraine (the Guarantor) has issued an irrevocable and unconditional guarantee of Energoatom's payment obligations under the credit agreement.
BROAD STREET CAPITAL GROUP ----- MERCHANT BANKERS
Alexander Gordin, Managing Director of Broad Street Capital Group, (a member of the U.S.-Ukraine Business Council) will speak about the innovative financial part of this unique project at the USUBC Roundtable on February 14th in Washington. “We at Broad Street Capital Group are excited and proud to be part of this historic financing. Moody's unprecedented credit rating underscores the hugely positive effect of the U.S. Government's credit enhancement to offer long-term, low-rate financing in emerging markets, such as Ukraine, for large infrastructure projects containing U.S. exports,” Mr. Gordin stated.
USUBC is very fortunate to have this opportunity to meet with President of Energoatom Yuriy Nedashkovsky and his team in Washington, and learn about this unique project and challenges of its financing.
RSVP: Registration is required for attendance USUBC members meeting with Yuriy Nedashkovsky. Please send an e-mail to Morgan Williams, mwilliams@usubc.org to register your attendance.
BIO: Yuriy Nedashkovsky, President SE NNEGC “Energoatom”
Yuriy Nedashkovskiy was appointed President of SE NNEGC Energoatom by Decree of the Cabinet of Ministers of Ukraine #124-p dated 05.03.2014. From 1983 to 2000, he worked at the Khmelnytsky Nuclear Power Station, where he passed the career path from lineman of border equipment to the Director General of the Station. He served in the position of President of Energoatom from 2000 to 2003 and from 2005 to 2006. From 2003 to 2005, he held position of Advisor to a Member of the Verkhovna Rada [Parliament] of Ukraine. Mr. Nedashkovsky was Deputy Minister of Fuel and Energy of Ukraine from 2006 to 2008.
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OPIC STATEMENT AT UKRAINE SIGNING CEREMONY FOR ENERGOATOM SPENT NUCLEAR FUEL PROJECT
The Overseas Private Investment Corporation (OPIC), Washington, D.C., Thu, Dec 21, 2017
UKRAINE – Today, the government of Ukraine hosted a signing ceremony in Kyiv for the Energoatom Central Spent Nuclear Fuel Storage Facility Project, which helps move Ukraine closer to energy independence by giving Ukraine the capability to domestically store spent nuclear fuel. OPIC is providing $250 million in political risk insurance and Holtec International, based in Camden, New Jersey, is providing the spent fuel storage casts and other equipment.
The documents included the credit agreement, the sovereign guarantee, the arbitration agreement, and the foreign enterprise support agreement. Representatives from Energoatom, Bank of America/Merrill Lynch, Broad Street Capital Group, and an OPIC trustee were in attendance.
Deputy Prime Minister Volodymyr Kistion and Minister of Finance Oleksandr Danyliuk delivered remarks. The U.S. Embassy’s Deputy Chief of Mission George Kent read the following statement from OPIC President and CEO Ray W. Washburne, who was unable to attend:
Thank you all for the invitation to attend today’s signing ceremony in support of the Energoatom Central Spent Nuclear Storage Faculty. I regret that I was unable to attend this important milestone. Many of you have worked very hard to get us here today and I thank you for your commitment.
I am very proud that OPIC has been able to support such an important project here in Ukraine. When I became the head of OPIC just a few months ago, the first international trip I took was to Ukraine. I was very impressed with what I saw here. Despite some challenges facing Ukraine, we see the potential for high-impact development projects here – particularly in the energy sector.
It is a pleasure for the United States to help move Ukraine towards energy independence by providing the capability to store spent nuclear fuel in-country, thus eliminating the need to ship the spent fuel to Russia for storage.
With total project costs of $410 million, Energoatom cannot self-finance the entire project. Therefore, OPIC has committed up to $250 million in political risk insurance to support the development, construction, and commissioning of the Energoatom Central Spent Nuclear Fuel Storage Facility in Ukraine.
This storage facility will be developed to store spent fuel from three of Ukraine’s four nuclear power plants, offering an efficient and secure process. The United States-based company, Holtec International – located in Camden, New Jersey - will supply dry storage casks, transportation casks, ancillary equipment, and engineering and training to the facility over an expected five-year period.
I’d like to thank our partners at Bank of America/Merrill Lynch without whom this deal would not be possible. They will arrange for the sale of OPIC’s $250 million commitment in the U.S. capital markets in the form of fixed-rate bond securities. The proceeds will fund the 20-year loan to Energoatom. We are very pleased that Ukraine will support the OPIC-insured loan financing by issuing a sovereign guarantee for repayment of the loan.
This is the first OPIC deal structured in this fashion and we are pleased to partner on an innovatively financed project. By working together, we will help Ukraine meet its energy needs, while supporting the U.S. economy with the creation of manufacturing jobs.
Thank you.
LINK: https://www.opic.gov/press-releases/2017/opic-statement-ukraine-signing-ceremony-energoatom-spent-nuclear-fuel-project
More about the project: https://www.opic.gov/opic-action/featured-projects/eastern-europe/energoatom-advancing-energy-security-ukraine
INVITE: BREAKTHROUGH FINANCING FOR A BREAKTHROUGH $410 MILLION PROJECT
Presentation of Ukraine's Spent Nuclear Fuel Storage Facility & the innovative, unique financing structure
With Yuriy Nedashkovsky, President, Energoatom, largest electricity producer in Ukraine
Wed, Feb 14, 2018, 3:30 p.m. to 5 p.m., White House Conference Room, Law offices of Baker McKenzie,
815 Connecticut Avenue, 12th Floor, Washington, D.C., followed by a light reception
Organized by U.S.-Ukraine Business Council (USUBC), Washington, D.C. and Broad Street Capital Group, New York, NY
USUBC NOTE: Holtec and the Broad Street Capital Group are members of U.S.-Ukraine Business Council (USUBC), Washington, D.C. www.USUBC.org. A special “thank you” to Baker McKenzie, also a member of USUBC, for hosting this event.
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U.S.-Ukraine Business Council (USUBC)
1030 15th Street, N.W., Suite 555 W, Washington, D.C.,
Morgan Williams, USUBC, mwilliams@usubc.org, www.USUBC.org
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