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ESG is everyone’s responsibility – and this responsibility is recognised at the Group level, as well as in our local countries. UniCredit Bank Serbia has been active in structuring and arranging financing for renewables’ projects since the adoption of the first local legal framework on this topic. In the Serbian market, UniCredit has participated in and arranged five wind farm financings – two of them alongside other financial institutions and the remainder under bilateral agreements. The two highly notable deals we were part of in 2022 further confirm our leadership position in renewables’ financing in the country.
In September 2022, UniCredit Bank Serbia and Elicio Ali VE, a 100% subsidiary of Elicio NV, successfully completed the refinancing of the 42 MW Alibunar Wind Farm, a facility which supplies electricity to just under 30,000 households. The green energy produced by this project is expected to reduce CO2 emissions in Serbia by almost 95,000 tons per year.
The transaction underlines the continued strong cooperation between the two companies, as well as UniCredit’s market-leading position in the structuring and financing of wind power projects in Serbia.
UniCredit Bank Serbia was the leading structuring bank and sole lender in the €53 million refinancing, whilst also acting as account bank and hedging bank for the restructured interest rate swap. Furthermore, our bank in Serbia successfully advised Masdar, Taaleri Energia and DEG on the refinancing of the Čibuk wind farm – demonstrating our leadership in Project Finance and Debt Advisory in CE&EE.
UniCredit Bank Serbia acted as Sole Debt Adviser, Sole Bookrunner, Mandated Lead Arranger, Hedging Bank, Account Bank and Security and Facility Agent for the Čibuk wind farm refinancing, successfully completed on 23 September 2022.
Vetroelektrane Balkana doo (Čibuk 1) is the largest wind project in Serbia with a production capacity of 158 MW. With 57 GE turbines, Čibuk 1 produces enough electricity to supply around 87,000 households thus offsetting the equivalent of around 380,000 tons of CO2 each year.
A conversation with...
Aleksandra Rašić, Member of the Management Board at UniCredit Bank Serbia and Head of Corporate Banking Division
Immagine
Aleksandra Rašić
Member of the Management Board at UniCredit Bank Serbia and Head of Corporate Banking Division
Why was becoming a leader in renewables important for UniCredit Bank in Serbia?
ESG is all that a company does for the community in which it operates, and it is an honour to be the leader in one of those areas, where we not only help the community, but also encourage our competitors to behave in the same way for the benefit of the whole society. The fact that we are one of the leaders in this field speaks of the trust that clients give us in renewable energy projects, and this is clear confirmation that we are on the right track in the development of our business. More and more companies are investing in the green component of their business, which is very positive, and for UniCredit Bank Serbia it is extremely important to support this trend further and keep our leading position in the local banking sector.
Why are you particularly proud to have worked on this development?
Although UniCredit participates in financing of various green projects, we are particularly proud of our “wind portfolio”, where the bank has supported the development of 5 out of 7 large wind parks. Furthermore, we are also the only local bank who provides both financial advisory and refinancing for the green energy projects in the operational phase, initially financed through different loan structures by international development banks. Last year, UniCredit supported project ČIBUK 1, the largest wind farm in Serbia which produces enough electricity to supply around 87 ,000 households and offsets the equivalent of around 380, 000 tonnes of carbon dioxide during each year of operation. Finally, UniCredit has a strong footprint in the region with extensive expertise in structuring project finance transactions in the role of mandated lead arranger, advisor or coordinating and structuring bank.
How has this contributed to our Bank’s overall strategy?
Support of green transition and sustainable growth of companies and the local community is one of the pillars of our UniCredit Unlock strategy. The fact that the bank's market share in green energy financing is significantly higher than the total market share confirms that we are committed to the green agenda in this market. Renewable energy and infrastructure financing as well as the importance of sustainable business development, represents an opportunity as further development in these areas is among some of the top priorities for the country. We are very proud that the local market has recognised UniCredit Bank’s experience and support in the field of renewable energy, which gives us comfort to continue our strong presence in the local community’s green agenda.