Fangda Partners advised the Export-Import Bank of China (“Cexim”) as the lender in connection with the EUR 75 million financing for the development of the 41 MW Hydro Power Plant Bistrica, located in the Republic of Srpska, Bosnia and Herzegovina. This transaction is Fangda’s second major hydropower project completed in Central and Eastern Europe in recent years.
The Bistrica Hydro Power Plant is owned by Hidroelektrane “Bistrica” d.o.o. Foča and will be constructed by China National Aero-Technology International Engineering Corporation. The plant is one of three cascade hydropower plants in a hydropower complex in Bosnia and Herzegovina. The financing is guaranteed by the Ministry of Finance of the Republic of Srpska and insured by China Export & Credit Insurance Corporation (“Sinosure”) for political and commercial risks.
This transaction featured a highly complex structure and compliance landscape, presenting multiple challenges for the Fangda team in navigating stringent regulatory requirements in the Republic of Srpska, addressing potential implications of the region’s prospective EU accession, meeting the conditions of the Sinosure policy requirements, and balancing the lender’s commercial objectives with the regulatory and risk frameworks across multiple jurisdictions. Drawing on our extensive experience in global project finance and in energy and infrastructure transactions, as well as on our deep understanding of Chinese financial institutions, we not only facilitated the successful closing of this strategically significant transaction but also assisted Cexim’s efforts to cut carbon emissions and combat pollution worldwide.
The transaction was led by Mr. Shepard Liu and Ms. Emma Pan. Banking & Finance partner Mr. Stanley Chen also provided legal support.
