Today, on January 20, the German Power Company Notus Energy and American & Ukrainian Investment Company Horizon Capital signed the agreement on financing joint project aimed at construction of a wind farm in Odesa region with capacity of 124 MW. In addition, Horizon Capital announced initial closing of its Horizon Capital Catalyst Fund focused on reconstruction.
Both agreements were signed at the World Economic Forum in Davos in the presence of Oleksii Sobolev, the Minister of Economy, Environment and Agriculture of Ukraine.
Previously, Horizon Capital successfully launched the Horizon Capital Catalyst Fund (HCCF) aimed at supporting recovery and reconstruction of key sectors of the Ukrainian economy. At the first closing stage, the Fund attracted €152 million, i.e. over 50% of the target size equal to €300 million. In particular, the Fund focuses on sectors that are critical for reconstruction of the country and those that require significant private capital investments, namely energy, digital infrastructure and construction.
Now, jointly with announcement of the first closing, the Fund has completed structuring of its first investment –construction of a wind farm in Odesa region, being developed by the German energy company and developer Notus Energy.
Oleksii Sobolev noted, “I congratulate Horizon Capital and our partners – IFC, EBRD, Proparco, Swedfund, Norfund and FMO – on the first closing of Catalyst Fund. This is a signal to the world: we are not waiting for end of the war in order to rebuild the country. Strategic partnership with the German company Notus Energy is also important, in particular, when Ukraine lost over 60% of its generating capacity due to constant shelling. The presence of such large players in Ukraine shows that Ukraine is capable of attracting large international capital even in the wartime”.
Structure of the deal provides the following:
• Catalyst Fund receives 45% in the project and provides a corresponding share of equity for construction.
• Notus Energy holds a controlling stake and acts as the lead investor in the deal: it finances the remaining required equity and is liable for construction and further operation of the facility.
• Total project budget exceeds €220 million and provides a significant amount of debt financing from international IFIs and DFIs, including with EBRD, IFC, Swedfund, BIO and Green for Growth Fund (GGF). In particular, the project in Odesa region is the first of three wind farms in Notus Energy portfolio for Ukraine, with aggregate capacity of ca. 300 MW, as well as a part of broader portfolio of renewable energy development in Ukraine with capacity over 1.3 GW under the projects at various stages.