Enel Green Power SpA (“Enel Green Power”), acting through its Brazilian subsidiary Enel Brasil Participações Ltda. (“Enel Brazil”), the controlling holding company of Brazilian subsidiaries of the Enel Green Power Group, and IFC, a member of the World Bank Group, signed a $200 million loan agreement. The loan will support the construction of over 300 MW from wind power in the states of Bahia, Pernambuco and Rio Grande do Norte, located in the Northeast of Brazil.
The IFC 10-year term loan bears an interest rate in line with the market benchmark and is secured by a parent company guarantee issued by Enel Green Power. The Enel Green Power Group’s development strategy relies on funding projects through cash flow generation, in combination with external funding only when the latter is long-term and competitively-priced as well as coming from reliable partners.
“We are pleased to sign this agreement with IFC, the first one between Enel Green Power and a member of the World Bank Group”, commented Giulio Carone, Chief Financial Officer of Enel Green Power. “This investment is part of a comprehensive long-term investment plan to increase supply of wind power generation, seeking to support the sustainable growth of energy supply in Brazil”.
“IFC is excited to partner with Enel Green Power, a leading company in the global renewable energy industry, to support expansion of their investments in wind power in Brazil”, commented Hector Gomez Ang, IFC Brazil Country Manager. “This investment helps accelerate development of Brazil's renewable energy sector while also expanding electricity supply at a critical time. Access to reliable power generation from diversified sources is a key component of Brazil’s long-term competitiveness and sustainable social and economic growth”.
In Brazil, Enel Green Power owns and manages 173 MW of wind capacity and 93 MW of hydro capacity, as well as 331 MW of projects in execution.
IFC’s strategy in Brazil is focused on improving the country’s competitiveness, supporting job creation, infrastructure development and access to financial services for underserved sectors. IFC’s environmental and social standards aim to support sustainable development in various industries in Brazil.
About Enel Green Power
Enel Green Power is the Enel Group company fully dedicated to the development and management of renewable energy sources at the international level, with operations in Europe and the Americas. The company generated over 29 billion kWh in 2013 from water, sun, wind and the Earth’s heat - enough to meet the energy needs of more than 10 million households and avoid the emission of around 16 million tonnes of CO2 into the atmosphere. Enel Green Power is a world leader in the sector thanks to its well-balanced generation mix, providing generation volumes well over the sector average. The company has an installed capacity of approximately 8,900 MW from a mix of sources including wind, solar, hydroelectric, geothermal, and biomass. The company has approximately 750 plants operating in 16 countries in Europe and the Americas.
IFC (ifc.org), a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges.