BNDES, the Brazilian development bank, has approved a R$604 million (€204.7 million; $277.1 million) loan for the construction of 10 wind parks with a total potential capacity of 258 megawatts (MW), in Rio Grande do Sul, Brazil’s southernmost state.
Power generator Eletrosul and investment firm Rio Bravo, recipients of the loan, have established special purpose entities (SPEs) that will manage each of the 10 wind parks, according to the bank’s statement.
The project, which is called the Geribatu Wind Complex, is expected to create 3.4 million direct and indirect jobs during construction, and to commence operation in late 2014.
The bank’s R$604 million participation represents 63.7 percent of the project’s total cost of R$956.5 million. BRDE, a regional bank in southern Brazil, is contributing R$200 million to the project.
SVP Holding, which controls the 10 SPEs set up for the project, will also raise an additional R$90 million by issuing unsecured debt instruments. BNDES will be able to invest an unspecified amount in the debenture bonds, thanks to a financial product it launched in the first quarter of 2013.
The product, Debentures for Infrastructure Projects, is capped at R$5 billion and allows the bank to make investments of up to R$300 million per project. BNDES launched the product to facilitate long-term private financing of infrastructure projects.
Founded in 1952, BNDES offers financial support mechanisms to Brazilian companies and public administration entities, enabling investments in all economic sectors. It is headquartered in Rio de Janeiro and has offices in Uruguay and London.
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