Brazil's Renova gets DIP loan for 400-MW wind project

Wind farm in Brazil. Author: Otávio Nogueira. License: Creative Commons, Attribution 2.0 Generic.

Brazilian renewables developer Renova Energia SA (BVMF:RNEW11) has received a BRL-362.5-million (USD 63.7m/EUR 53.4m) debtor-in-possession (DIP) loan to complete the 400-MW Phase A of the Alto Sertao III wind power complex.

The financing came from a bank credit note structured by Brazilian independent resource manager Quadra Gestao de Recursos Ltda, contracted by the company's subsidiary Chipley SP Participacoes SA, Renova announced last week.

According to the company's filling, this transaction is part of its judicial recovery process. The deal success and the completion of Phase A are an integral part of the firm's restructuring.

Currently, the group's second judicial recovery plan is being processed at Sao Paulo’s 2nd Bankruptcy and Judicial Reorganizations court. Renova initially filed for bankruptcy in October 2019, reporting around BRL 3.1 billion in total debt.

(BRL 1.0 = USD 0.176/EUR 0.147)

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