January 3 (Renewables Now) - The Brazilian Development Bank, or BNDES, has approved a loan of about BRL 1.3 billion (USD 322.9m/EUR 289m) to support 370.8 MW of wind projects developed by Iberdrola SA (BME:IBE), it said on Thursday.
The financing will cover 12 out of 15 wind farms together with their respective transmission systems. The facilities, located in the municipalities of Santa Luzia, Sao Jose do Sabugi, Sao Mamede and Areia de Baraunas in Paraiba state, are owned by individual special purpose entities (SPE) under Iberdrola's Brazilian unit Neoenergia SA (BVMF:NEOE3).
BNDES' loan covers 80% of the total project investment of BRL 1.6 billion. According to the bank, these 12 parks are capable of generating enough power to meet the demand of 840,000 homes. Commissioning is expected to happen in 2022.
Last month, Iberdrola and the European Investment Bank (EIB) signed a EUR-250-million loan agreement that will support the construction of 520 MW of wind capacity in Brazil.
(BRL 1 = USD 0.248/EUR 0.222)