Argentine generator Genneia has signed a loan agreement with German development bank KfW to back its 100MW Pomona wind farm.
A spokesperson for Genneia confirmed that the deal marks the company’s first-ever project financing out of its portfolio of renewable and other generation facilities.
The USD 142m in debt provided by KfW covers 75% of the USD 189m capex, the spokesperson said.
He declined comment on whether the remaining USD 47.25m will be in the form of equity provided by Genneia.
KfW-IPEX Bank has agreed to provide a USD 120.9m tranche, while German Investment Group (DEG) will provide a USD 20.7m tranche. The USD 120.9m tranche is backed by German export credit agency Euler Hermes.
Genneia was mulling project finance for a portfolio of five wind farms, including this project, in June 2017.
The financing will be backed by a 20-year, USD-denominated PPA won in the RenovAr 1.5 auctions, which took place on 25 November 2016.
The company will develop the project through an SPV named Vientos del Sudoeste.
Pérez Alati, Grondona, Benites & Arnsten (PAGBAM) is legal advisor to the SPV.
The project will be developed near the town of Pomona in the southern province of Río Negro.