Why questions remain over landmark Ukraine project financing

Author: Gemma Varriale | Published: 18 Jun 2012

Europe’s biggest solar project has, for the first time, found a way of addressing challenges in Ukrainian law on intercreditor rights. But it’s not clear whether the Ukrainian courts will uphold the solution.

The project consists of €175million financing for a solar power plant in the Crimea region with capacity up to 100 MW.

“Apart from the sheer size of the project, this is bringing project finance to the Ukraine which, because of the generally perceived challenges with the banking system, the regulatory system and the ability to take effective security, has always been quite demanding,” said Matt Hinxman of Norton Rose in London, who acted for lenders VTB Capital.

Hinxman added that the security package on this...