Financing of Hanhikivi-1 NPP construction project
Hanhikivi-1 NPP construction project is being financed through the following main sources:
- Shareholders equity for Hanhikivi-1 NPP construction purposes, in accordance with the shareholders' agreement concluded between JSC REIN and Voimaosakeyhtiö SF at the NPP startup date will amount to about 1.7 billion Euros. State Corporation Rosatom fee will amount to about 600 million Euros. Equity financing is provided by the company's shareholders in the form of tranches according to the schedule set by the shareholders’ agreement.
- According with the shareholders' agreement, Rosatom provides assistance in organizing for the Project financing from different sources. As that, it has provided for the financing raised from the Russian Federation National Welfare Fund (NWF) in the amount of up to 2.4 billion Euros, but not exceeding 150 billion Rubles. In April 2015 Fennovoima Oy has received the first tranche from the NWF in the amount equivalent to 920 million Euros as subordinated loan from REIN.
Total amount of the debt financing for the Project (loans covered by export credit agencies and commercial loans) will make about 2.8 billion Euros, in particular:
- Funding from foreign commercial banks covered by foreign export credit agencies. This financing will be provided for the supply of foreign components for nuclear power plant construction. For instance, this kind of financing is stipulated in the contract for the supply of turbine generator units for Hanhikivi-1 NPP signed on July 28, 2016 by the General Contractor for construction of the NPP – RAOS Project Oy (daughter structure of JSC REIN) and Alstom Power Systems (owned by General Electric). The parameters of the contract signed are fully consistent with the recommendations of the Organization for Economic Cooperation and Development (OECD).
- Funding from Russian commercial banks secured by Export Insurance Agency of Russia EXIAR.
- Funds from Russian and foreign commercial banks.