Thursday, June 23, 2011

EBRD, IFC Lend $165 Million to EDP Renovaveis Romanian Wind Farm

The European Bank for Reconstruction and Development and theInternational Finance Corporation will lend 114.8 million euros ($165 million) to wind farms that EDP Renovaveis SA (EDPR) is developing in Romania.

The EBRD and the World Bank’s private-sector lending unit are each lending 57.4 million euros to Cernavoda Power SA, a company majority-owned by EDP Renovaveis, to co-finance the building and operation of the Dobrogea area wind parks, the EBRD said today in a statement. Further terms weren’t disclosed.

The institutions will keep 42.2 million euros for their own accounts and syndicate 15.2 million euros each to a group of commercial banks, the EBRD said. It also said this is the first investment and project financing by the EBRD and IFC in clean energy in Romania, which is seeking to boost renewable energy production to meet European Union goals.

EDP Renovaveis, the renewable energy unit of Portugal’s biggest power company, is developing the 138-megawatt Cernavoda I and II wind farms. The Cernavoda I facility is operating and the second phase is being commissioned. Each phase has a 69- megawatt capacity that together account for a quarter of Romania’s wind generation capacity, according to the EBRD.

To contact the reporter responsible for this story: Sally Bakewell in London atSbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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