National Nuclear Generating Company Energoatom seeks to finance building of the centralized spent nuclear fuel storage facility via the issue of securities on the U.S. stock market with the help of Bank of America Merrill Lynch.

Energoatom announced the start of negotiations with Bank of America Merrill Lynch regarding coordination of due diligence, drafting preliminary financing conditions, cooperation with OPIC in registering the insurance policy and preparation of documents for the issue of the bonds.

The expected cost of the agreement between Energoatom and Bank of America Merrill Lynch is $1.5 million.

Energoatom said that as part of searches for the sources of long-term financing (at least seven years) to build the spent nuclear fuel facility negotiations with Bank of America Merrill Lynch, Citibank and U.S. Export-Import Bank were held. The first bank showed its desire to participate in the project.

Energoatom President Yuriy Nedashkovsky said at the end of 2015 that the company seeks to attract some $250 million from Bank of America Merrill Lynch to build the facility. He said that this is a loan for at least 25 years at less than 7% per annum.

Energoatom and Holtec International signed a contract to build a spent nuclear fuel storage facility in 2005 after Holtec won the tender.

A supplementary agreement to the contract dated January 26, 2016, foresees that Energoatom will design and build the facility, and Holtec will supply equipment.

Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.