Another “sustainable” loan for Akkuyu Nuclear

15 April 2021

Akkuyu Nuclear (the Rosatom subsidiary that is building Turkey’s first NPP) on 14 April signed an agreement with Otkritie Bank on the provision of a non-revolving credit line for a period of seven years with a disbursement limit of $ 500 million. Otkritie Bank, which is controlled by Russia’s central bank, said the funds were attracted to finance the project for the construction of the Akkuyu NPP in Turkey “on special conditions providing for the project company to fulfil its obligations (covenants) in the field of sustainable development”.

In particular, Akkuyu Nuclear undertook obligations to carry out environmental monitoring with the submission of a corresponding annual report in accordance with Turkish legislation. “Compliance with the covenants implies setting a lower loan rate for the borrower,” the bank noted.

Kirill Komarov, First Deputy General Director and Director of the Development and International Business Unit at Rosatom said attraction of loans on special terms not only made possible a preferential interest rate, but also confirmed the aim of the Akkuyu project and Rosatom to choose sustainable solutions. “Each “sustainable” loan is evidence of the financial market's confidence in nuclear energy not only as a reliable borrower, but as an industry that creates conditions for economic growth as part of a sustainable, low-carbon scenario.”

Ilya Rebrov, Deputy General Director for Economics and Finance at Rosatomsaid the agreement was “an important milestone in the cooperation between Rosatom and Otkritie Bank, which began in the summer of 2019”. He added: “We believe that our strategic partnership with Otkritie Bank will further extend to other projects of ROSATOM, which will facilitate their timely implementation."

Otkritie Bank senior vice president Ekaterina Chirkova, director of the department for work with clients for the corporate and investment sector said Otkritie Bank is “directed towards the implementation of cooperation with leading companies that change the world around them, and lead by always doing more than just business” such as Rosatom. “We are pleased to be one of the main financing banks in its largest project outside the Russian Federation. The deal with Akkuyu Nuclear is especially important for the bank, since it uses a mechanism that encourages the client's desire to fully fulfil the environmental obligations assumed, which is in line with current international practice."

This is the second such financing arrangement made by Akkuyu Nuclear. In March, Rosatom announced that its Akkuyu NPP had attracted two loans from Sovcombank, one of the largest private banks in Russia. The loans were for up to $200 million and $100 million, respectively, for a period of seven years to finance construction of the NPP and credit agreements were signed for the funds, which were similarly agreed on special terms at a reduced rate provided obligations were met in the field of sustainable development.

The Akkuyu NPP construction project is being implemented by Akkuyu Nuclear following an intergovernmental agreement signed between Russian and Turkey in 2010. The Akkuyu NPP, with four VVER-1200 units, is being constructed on a build-own-operate basis by Rosatom, with commissioning of the first unit planned for 2023.

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