Linklaters advises on Ukraine’s first ever green bond issuance

Linklaters advised Raiffeisen Bank International and Renaissance Capital on the issuance of EUR 325 million 8.5% senior notes due 2024 by DTEK Renewables Finance B.V., a finance subsidiary of DTEK Renewables B.V.

This offering was the first ever green bond issued by a Ukraine-based corporate, and only a second green bond in the broader region. DTEK Renewables will use the proceeds to continue promoting the development of green projects by financing projects that are aimed at increasing the production, connection and distribution of renewable energy and related infrastructure as well as financing and/or refinancing its existing wind power and solar power projects.

The Linklaters team was led by partners Richard O’Callaghan and Cecil Quillen, counsel Manoj Tulsiani and senior US associate Yaroslav Alekseyev.

Maxim Timchenko, CEO, DTEK Energy group said:

“The issuance of these Green Eurobonds represents a major milestone for the Ukrainian energy sector. Ukraine has a unique opportunity to create a modern energy system: clean, efficient, competitive. The use of Green Eurobonds provides an attractive and highly effective financial mechanism to support Ukraine's transition to a more balanced energy system with lower CO2 emissions.”

The offering represents the latest element within Linklaters’ extensive portfolio of work in the green and sustainable bond sector, with participation in recent bond offerings from our offices in Europe, the Americas and Asia. Notably, Linklaters also advised the Joint Lead Managers on Europe’s first ever general-purpose SDG-linked bond, by ENEL Finance International N.V.

Other leading green bond transactions on which Linklaters has also advised include Russia’s first green bond (by RZD Capital plc), the Government of Hong Kong’s inaugural green bond under its Government Green Bond programme and Asia’s first corporate sustainability bond by Tropical Landscapes Finance Facility.