IIC backs 70MW Uruguay wind farm with $138.5m bond

The Campo Palomas project in the country’s Salto Department was purchased by Chicago-based Invenergy last year.

A 70MW wind farm in Uruguay has received backing from the Inter-American Investment Corporation, with the lender closing on $138.5 million in a 19.5-year amortising B-bond for the Campo Palomas project.

The IIC, the private sector arm of the Inter-American Development Bank, provided a loan last year to finance the wind farm’s construction. The B-bond, structured by the IIC and Norwegian investment bank DNB Markets to refinance the existing loan after the completion of construction, was oversubscribed, the IIC said.

“We are excited to continue to use the B-bond, a product developed by the IDB Group, to mobilise institutional investors to Latin America and the Caribbean,” said Gian Franco Carassale, IIC’s lead investment officer.

Invenergy, a Chicago-based energy firm, acquired Campo Palomas in April 2016 from Spain’s Abengoa. Construction on the site, which is in the country’s Salto Department and comprises 35 wind turbines, was completed earlier this year. Power from the site is delivered to Uruguay’s power grid under an agreement with Usinas y Trasmisiones Eléctricas, the country’s state-owned utility.

Campo Palomas was Invenergy’s first project in Uruguay. In March, the firm purchased the 64MW La Jacinta solar farm, also in the Salto Department, from Fotowatio Renewable Ventures.