Kinstellar advised DEG on USD 20 million credit facility for Astarta
Kinstellar has acted as Ukrainian legal counsel to the German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW Bankengruppe, headquartered in Cologne, Germany, in connection with a long-term facility of up to USD 20 million for Astarta Group..
Part of DEG’s investment will be directed at modernisation of Astarta’s production equipment, aiming to further reduce consumption of natural resources under the “Best Available Technology” Programme of Astarta.
During the structuring and negotiation of the transaction the new laws on foreign exchange and creditor rights’ protection entered into effect in Ukraine and the transaction documentation had to be reconsidered with the new rules in mind. Kinstellar’s team has also extensively explored with DEG different borrowing structures available under Ukrainian foreign exchange law.
Kinstellar’s team advising on the transaction was led by Andriy Nikiforov, counsel and head of Banking & Finance in Kyiv, and included Ganna Kalinichenko (senior associate, Banking & Finance), Oleh Andreikiv (senior sssociate, Corporate), Viktoria Pysmenna (associate, Real Estate) and Julia Palaida (associate, Corporate).