09 March 2021, Moscow – Akkuyu Nuclear JSC (ROSATOM’s subsidiary) receives two loans of up to $200 million and $100 million respectively for a period of 7 years from Sovcombank to finance the construction of the Akkuyu NPP in Turkey. The loan agreements were signed by Sovcombank and Akkuyu Nuclear JSC. The loans are being provided on special terms, including a reduction in the interest rate when the borrower fulfills its sustainable development covenants.
ROSATOM’s deputy DG for Economy and Finance Ilia Rebrov said: «By committing to sustainable development obligations as part of the loan agreements, ROSATOM, by means of the Akkuyu project, exemplifies the new level of responsibility assumed by nuclear companies in implementing the world’s sustainable development agenda. There are no direct CO2 emissions in the production of nuclear energy. Nuclear generation, therefore, plays a crucial role in ensuring that greenhouse gas emissions are reduced [sufficiently] to meet the goals of the Paris Agreement and to achieve the UN’s overall Sustainable Development Goals. At the same time, compliance with sustainable development requirements makes it possible to provide these loans on special terms, allowing us to be confident about the economic feasibility and advantages of “sustainable” financing. The timely implementation of our projects depends on reliable financing, and we are pleased with this expansion of our cooperation with Sovcombank».
Anton Dedusenko, Deputy Chairman of the Board of Directors and Managing Director for Sustainable Development and Shareholder Relations at Akkuyu Nuclear JSC said: “The Akkuyu NPP construction project is a ‘flagship’ project in several ways. Not only is Akkuyu NPP the first NPP to be built in Turkey, it is also the world’s first NPP to secure direct ‘sustainable’ financing for its construction. One of ROSATOM’s strategic priorities is to contribute to the achievement of the UN’s Sustainable Development Goals, and, together with our Turkish partners, we are working to make the Akkuyu NPP project a true ‘showpiece’ of ROSATOM’s achievements in the field of sustainable development.
A common vision of the importance of the Akkuyu NPP as a sustainable development project has enabled Rosatom and Sovcombank to find effective solutions for the timely provision of financing and the successful implementation of the project’s timeline.
Dmitry Gusev, Chairman of Sovcombank’s Board of Directors, said: “We are pleased with this opportunity to work with Rosatom to implement the Akkuyu NPP project. Sovcombank signed the Principles for Responsible Banking, approved at the UN General Assembly in New York in 2019. In the framework of this document, the world’s biggest banks have pledged to build their strategies in ways reflecting the international climate agenda. Our cooperation with Rosatom and Akkuyu Nuclear JSC fully reflects this strategic commitment, and both Sovcombank and Rosatom are interested in developing low-carbon clean energy, an endeavour that is in line with Goal 7, that of “Affordable and Clean Energy.”
For reference:
ROSATOM is a global technology leader and a diversified holding uniting assets in the energy sector, the mechanical engineering industry, and the construction industry. One of the ten largest companies in Russia, ROSATOM has developed competencies in all stages of the nuclear fuel cycle and ranks first in the world in terms of portfolio of foreign projects, with 35 power units at different stages of implementation in 12 countries. ROSATOM is the largest electricity producer in Russia, providing over 19% of the country’s energy needs. The sphere of ROSATOM’s activity also extends to the production of equipment and isotopes for nuclear medicine, scientific research, materials science, digital production, and the development of various innovative products, both nuclear and non-nuclear. ROSATOM’s objective is to develop low-carbon power generation projects, including in the field of wind energy. The state corporation unites about 330 enterprises and organisations and employs over 266,000 people. Since October 2020, ROSATOM has been a member of the UN Global Compact, which unites companies committed to sustainable development.
Akkuyu NPP is the first nuclear power plant under construction in the Republic of Turkey. After the commissioning of all four units, Akkuyu NPP is expected to generate about 35 billion kWh of power per year, enough to cover approximately 90% of the electricity needs of a large city like Istanbul. The station will cover up to 10% of Turkey’s total electricity needs. Akkuyu NPP meets all the modern safety requirements of the world’s nuclear community, namely those established by the International Atomic Energy Agency (IAEA) and the International Nuclear Safety Group, as well as those stipulated in the European Utility Requirements (EUR).
Sovcombank is one of Russia’s ten largest banks (with assets totalling RUB 1.6 trillion, or approximately US $20.27 billion, as per IFRS) and one of Rosatom’s base banks. Sovcombank employs 16,500 people in 2,266 offices in 952 localities across Russia. The bank provides a full range of banking services to individuals and legal entities.
