Linklaters advises Sovcombank on the pilot RUB 5.7bn domestic green project bonds due in 2031

Linklaters has advised Sovcombank as arranger on the RUB 5.7bn domestic green project bonds issued by an orphan SPV (SFO RuSol 1 LLC) for the purpose of financing two solar stations of Solar Systems in the Astrakhan region. The bonds are secured by the pledge of receivables under the on-loans from the Issuer to the project companies which in turn are secured by DPM power supply contracts, shares and assets of these stations and related corporate rights agreement. Senior bonds are rated A+(RU) by AKRA, mezzanine bonds are rated AKRA BBB+(RU) and junior tranche is unrated.

The placement of the bonds took place on 10 February 2020.

Linklaters team was led by partner Andrei Murygin and included managing associates Yuri Nekrasov and Maxim Kraynov and associate Aisana Indzhieva.

Andrei Murygin, Moscow capital markets partner, said: 

“It is gratifying to see that green financing is gradually growing in Russia and this growth is likely to speed up going forward. Solar Systems green project bonds are a good example of how this trend can benefit from the variety of bonds structuring options provided by the Russian domestic securities and corporate legislation.”
Solar Systems LLC is owned by Singapore Helios Mech and is one of the largest renewable energy companies in Russia. The portfolio of the company, which was founded in 2014, includes solar power plants in five regions of Russia with a total capacity of 365 MW.