Nuclear waste with an OPIC wrap

  TXF PREMIUM

An Opic-wrapped Energoatom nuclear waste storage facility project bond is nearing launch. The enhanced bond will be structured around Ukrainian risk, nuclear risk, and the vagaries of the arbitration process.

Tom Nelthorpe

 22 September 2017

 

A $250 million enhanced bond financing for Ukrainian nuclear operator Energoatom is likely to come to market in November this year. The bonds, for which Bank of America is placement agent, would carry breach of contract insurance from the United States’ Overseas Private Investment Corporation (Opic), and fund construction of the Energoatom Central Spent Nuclear Fuel Storage Facility near Chernobyl.

Opic is wrapping the debt in large part because a US manufacturer, Holtec International, is supplying the facility with 94 double-walled stainless steel casks and related equipment. Broad Street Capital, a New York-based advisory firm, is financial adviser and what it describes as “financial developer” for the project.

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