Expert RA assigns ruA rating to company WEDF First Wind Farm LLC

11 October 2018

The rating agency Expert RA assigned a credit rating of ruA to the company WEDF First Wind Farm LLC for the first time in its history. The agency forecasts stable growth for the company. This is a long term credit rating based on Russian domestic criteria.

WEDF First Wind Farm LLC, a subsidiary fully owned by the Wind Development Investment Fund, established in equal partnership by Fortum and RUSNANO, is currently constructing a wind farm with the capacity of 50 MW in the Ulyanovsk region. The turbines are scheduled to begin operations in the 1st quarter of 2019.

The project is being implemented within the framework of the wind power delivery agreement (WPDA), which guarantees returns to investors. A key sub-contractor in this project is a subsidiary of the Danish company Vestas Wind Systems A/S (a leading provider of solutions in the wind power sector), VESTAS RUS, which is responsible for supplying and installing wind turbines. Expert RA notes that the Danish company has vouched to meet the localization requirements.

“The risks associated with project design and technology are regarded as low since previously utilized standard solutions will be employed and expenditures can be assessed accurately. The company had received all the necessary documentation including the approval from the State Expert Review Authority and the construction permit, by the time the rating was assigned,” the agency notes in its publication.

Participants’ substantial experience in implementing wind energy projects was also taken into account by Expert RA. Vestas Wind Systems has installed wind turbines with an approximate capacity of 94 GW in 79 countries, while Fortum has completed construction of a 35 MW wind farm in the Ulyanovsk region and owns stakes in three other wind power plants in Sweden and Norway.

In addition, the agency has favourably assessed the wind farm’s project finance and its standards of corporate governance in line with WEDF criteria. Vetroenergetika Management Company LLC is in charge of managing the Fund, with Fortum and RUSNANO employees in key managerial positions and with partners playing equally active roles in the investment committee as well as on the Board of Directors.

According to Alisher Kalanov, the Head of the Venture Capital Investment Division of Management Company RUSNANO and the Chairman of the Board of Directors at Vetroenergetika Management Company LLC, “the fact that the start-up WEDF First Wind Farm LLC was assigned a high credit rating proves that the nascent wind power sector has great potential and lends credence to the applicability of WPDAs in this sphere. The experts’ high credit rating will also enable the company to attract external investment on favourable terms and conditions in the future.”

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 105 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 5 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.