DTEK Renewables is planning to issue green bonds


DTEK Renewables BV (DTEK VDE) is considering issuing standard green bonds. This will allow the company to raise funds for existing and future renewable energy projects. For this, DTEK Renewables has already passed the preliminary expertise by Sustainalytics.

"An amount equal to the net proceeds from the green bonds will be used to fund and/or refinance, in whole or partially, eligible "green" projects," the company notes in published Green Bond Framework.

The funds raised will not be used by DTEK for any fossil fuel activity.

DTEK Renewables plans to issue five-year "green" Eurobonds in Euro. The organizers will be Raiffeisen Bank International AG and Renaissance Capital, with the roadshow around the US and Europe will start on October 24.

The company states on its website that all the funds raised will be directed to the above goals, including to refinance previously received funds from banks and shareholders over the past two years. This will allow DTEK Renewables to realize plans to expand its onshore wind and solar project capacity to 1.9 GW, compared to about 0.95 GW expected by the end of this year.

The company, in particular, plans to build a 565 MW Tiligulska wind farm. Currently at the site of the future station, wind monitoring and environmental impact assessment procedures are underway. DTEK Renewables also is implementing three solar power projects with a total capacity of 390 MW: Vasylkivska, Pavlogradska and Troitska power plants. The implementation of these projects in the Dnipropetrovsk region is planned in 2020-2021.

In order to ensure accountability for the borrowed funds, the company undertakes to introduce a public reporting system that will reflect the distribution of funds by project and a description of the projects themselves.

Sustainalytics is one of the world leaders in the research and rating of companies and organizations in the field of ESG and corporate governance. Sustainalytics noted that wind and solar projects will help transform the Ukrainian energy sector, reduce greenhouse gas emissions and achieve the UN Sustainable Development Goal #7.